This presentation is a two-week project by our team of five in an effort to address the problem our client Cargill is facing in the year 2015. In particular, Cargill and its business partners are facing declining revenues due to the miscommunication about food products from conflicting sources such as social media. The question is how to eliminate such miscommunication and increase transparency for Cargill itself. Our team did a field survey at Whole Foods Market in downtown Chicago to pinpoint the most influential source on consumer behavior. As a solution, our team made two recommendations. First, educate doctors and NGOs on the quality of our product and food health in general through multiple channels. Second, partner up with an influential third party and create a seal with new, comprehensive standard to address the safety concerns from the consumer. In the end, we discussed some potential obstacles we will be facing during implementation.
Note: all information from this powerpoint is collected from the public domain. The analysis and recommendation made in the Powerpoint in no way represent Cargill or Bain's view on the matter.
2. Agenda
Background of Cargill
Problem breakdown
Constructing a marketing strategy
Implementation of solution
Performance evaluation
3. Background of Cargill
Cargill is dedicated to
helping people and
organizations thrive
North America: 42% of
gross investment
(highest)
B2B without large
retail consumer
presence
Commitment to
increasing
transparency
4. Problem breakdown
Miscommunication about food products
from conflicting sources
Change in behavior, leading to higher
costs for Cargill and consumers
Hurts Cargill’s mission to feed the
world sustainably and affordably
5. Cargill’s Goal
Cargill is seeking to
shape the public
conversation in order to
build confidence in what
Cargill supplies, while
staying consistent with
its business principles.
6. Approach to Problem
Content
What are effective marketing solutions and tools?
Channel
Which messengers and allies can we partner with to target the key audience?
Key Audience
Who are key consumers we want to reach?
7. Key Audience
Key Audiences | Channels | Content
• 76% of women claim to have all or most
of grocery shopping responsibility – FMI
U.S. Grocery Shopper Trends (2014)
Female
• When people have children, their
thinking about food shifts dramatically as
they transition from caring about oneself
to caring about another growing being. -
Hartman Group (2013)
Families with
children
8. Survey Method
132 Whole Foods Market customers at
Streeterville store
Key Audiences | Channels | Content
General food-
purchasing
choices
Current most-
trusted sources
View of doctors
as a potential
source
Current behavior
regarding food
seals
View of influence
of food seals
9. Survey Results
Key Audiences | Channels | Content
70%
33%
58%
18%
15%
12%
24%
0% 20% 40% 60% 80%
Professional Health Experts
Food-related NGOs
Friends and Family
Academics
Social Media
Government
Other
What sources do you trust the most when it comes to
making food-related decisions? (Pick up to 3)
As a percentage of respondents
10. Survey Results
Key Audiences | Channels | Content
As a percentage of respondents
9%
3%
20%
46%
22%
0% 10% 20% 30% 40% 50%
1
2
3
4
5
On a scale from 1-5, how much would a doctor’s
recommendation regarding food influence your food
purchasing choices? 1 being not at all and 5 being
strongly influential
11. Messengers and Allies
Key Audiences | Channels | Content
Doctors and NGOs
• Have the authority
and trust of the target
audience
Cargill
• Wants to educate the
public with science-
backed facts
12. Messengers and Allies
Key Audiences | Channels | Content
Conferences and
Workshops
Doctors
Pediatrics, Family
Doctors,
OB/GYNs
Posters,
pamphlets
NGOs
Food ethics,
health, safety
Websites
13. Survey Results
Key Audiences | Channels | Content
73%
27%
Do you look for the USDA organic seal or
any other non-conventional seals on
products?
Yes
No
14. Survey Results
Key Audiences | Channels | Content
6%
6%
21%
45%
22%
On a scale from 1-5, do these seals change
your confidence in the product, with 1 being
no change and 5 being strongly confident.
1
2
3
4
5
15. Power of Seals
● “The Organic label is a marketing tool. It is not a statement about food
safety.” – Secretary of Agriculture Dan Glickman, December 2000
● Consumer perceptions linked to the USDA Organic Seal were facilitating
sales growth, rather than actual standards behind them, and familiarity with
the USDA Organic Seal increased confidence (71%). (Strochlic, 2005)
● The USDA Organic Seal increased likelihood consumers would purchase
organic foods (48%). This likelihood rose to 55% for survey respondents
with children under 18. (Strochlic, 2005)
Key Audiences | Channels | Content
16. Current dynamics
Key Audiences | Channels | Content
High Visibility
• Consumers consider
package labels for
organic products as the
most important
influence. - NMI(2008)
Creation of
Misconception
• The public’s high level
of trust in USDA
Organic Seal created
misconceptions that
sealed products are
healthier. - Academics
Review(2014)
Increasing Demand
• Consumers demand
that more standards
should be presented in
“organic” or “natural”
seals. - Consumer
Reports National
Research Center(2014)
17. Purchasing influences
Consumers look for specific labels when selecting
food and beverages to raise their confidence
Fresh, Natural, Sustainable traits associated with
Organic, Non-GMO seals
Label should address underlying, overall concern
about health, well-being, and safety
Source: Current State of the Organic Consumer,
Hartman Group Webinar Key Audiences | Channels | Content
19. Differentiating Factor
Current Seals
• Qualifications and meanings
not understood, creating a
misconception
• Addresses specific food topic
• Backed by government,
company, third-parties
New Seal
• Clear, transparent meaning,
educating the consumer that
these foods meet many
standards
• Addresses overall concerns
of food safety, health, and
ethics
• Backed by NGOs, doctors
Key Audiences | Channels | Content
20. Implementation
Education
Educating
relevant doctors
and NGOs about
misconceptions
and encouraging
them to counter
Saturation
Saturate the
market with the
seal, starting from
grocery products
to restaurant
menus
Word of Mouth
Spread through
friends and family
because of the
seal’s
differentiating
factors
21. Measures of Success
Key audience positively influenced by educational
channels
• Success of OB/GYNS, pediatricians, family doctors , and NGOs
Increase in sales of products with seals
• Tracks growth and change in consumer confidence level
Increase revenue and reduce costs for Cargill
• Strategies and tactics shape public conversation and consumer
behavior
22. Challenges
Key
Audience
• Other demographics may become
increasingly important in the future
Channel
• Potential unforeseen reasons for
doctors or NGOs to not support us
as allies
Content
• Seal may not fully eliminate existing
misconceptions
24. Appendix: Survey
12%
9%
24%
31%
24%
On a scale from 1-5, how much do you care about
purchasing non-conventional food (ex: organic, non-GMOs,
gluten-free, pesticide-free, hormone-free, antibiotic-free),
with 1 being not caring and 5 being strongly caring
1
2
3
4
5
25. Appendix: Doctors
Source: Food Marketing Institute U.S. Grocery Shopping Trends 2014
79
73
69
54
-6
-6
-7
-4
Which helps you stay healthy, which make it more
difficult for you?
Working against me On my side
Farmers
Doctors
My Friends
My Family
26. Appendix: Doctors
61% of Americans have a “great deal” of
trust and confidence in their doctors.
(Gallup, 2002)
70% of Americans are confident the
accuracy of a doctor’s advice. (Gallup, 2010)
27. Appendix: Doctors
“Most physicians, physicians’ assistants and nurses said they do not provide
food safety education to older adults because there is not enough time to
share this information during appointments. However, both groups said they
would be willing to provide educational brochures or post food safety
information on office bulletin boards if these materials were provided.“
(Educational Gerontology, 2012)
28. Appendix: Supporting Evidence
“The AMS-funded study concluded that these consumer perceptions linked to the USDA
Organic Seal were facilitating sales growth, and that familiarity with the seal but not the
actual standards behind them was a dominant factor in determining if a consumer was
likely to purchase organic foods.
AMS reported the USDA organic seal increased confidence in organic products (71%)
and increased likelihood they would purchase organic foods (48%). This likelihood rose
to 55% for survey respondents with children under 18. However, 79% of consumers
familiar with the USDA organic seal were not familiar with the corresponding National
Organic Standards behind it, and 90% believed USDA, not third parties, were responsible
for certification.
With these significant health, safety and nutrition misperceptions noted, AMS concluded
the USDA Organic Seal and marketing program was responsible for increased consumer
trust in and willingness to pay more for organic products.” (Strochlic, 2005)