Recovering from pandemic pressures, businesses are now faced with inflationary concerns, economic uncertainty and a skittish public. How should produce companies respond?

The Produce News asked a group of veteran ag marketing experts. This year’s participants included Mary Heslep, senior vice president of Ten Acre Marketing; Steven Muro, president of Fusion; Melinda Goodman, president of Full Tilt Marketing; Cindy Jewell of Jewell Marketing; Tristan Simpson, CEO of tristan michele marketing; as well as a trio from GoldenSun Insights, Co-Owners Randy Riley and Jason Fuller and Vice President of Marketing Naba Bakar.

How have produce companies been impacted by inflationary pressure?

Steven Muro: Consumers are paying more for products but taking home less. Many companies cut marketing budgets when the economy has a downturn. Several studies have shown that companies that continue to market through the downturn gain up to an additional 4 percent market share when the economy improves. As competitor companies cut their marketing, now is the time to boost yours.

Cindy Jewell: Thankfully the berry category has not suffered adversely from inflationary pressures. However, we have suffered this year with a very harsh winter in California. For that reason, we are keeping things a bit tighter with the budget and marketing campaigns.

Randy Riley: Produce companies have faced significant challenges due to inflationary pressure on all fronts. As a result, produce companies have been forced to navigate these inflationary challenges by implementing cost-cutting measures, exploring alternative sourcing options and adjusting their pricing strategies. The escalation of consumer prices significantly influences sales volumes at the cash register. During times of inflation, businesses may adopt cautious strategies that can potentially result in fewer new product launches and smaller, even more targeted promotional campaigns. Increased costs for businesses include marketing expenses such as packaging, print signage, collateral materials, swag items and trade show booth props. As a result, companies may prioritize cost-saving measures and focus on maintaining profitability rather than introducing new products or investing heavily in promotional activities. Inflation can also impact consumer spending habits. This can create a challenging environment for new product launches and promotional campaigns, as consumers may be more cautious with their spending and less inclined to try unfamiliar, niche or higher-priced products.

Tristan Simpson: In times of inflation and financial uncertainties, it is common for marketing to be looked at as a way to maintain visibility, but companies are also looking to streamline execution. During the pandemic we saw a reduction in new product launches, but the appetite to resume innovation activities is back. Many innovations are in the value segment and cater to consumers’ needs for competitively priced produce options.

Melinda Goodman: Many produce companies are sophisticated marketers and understand that in times of economic slowdown, the go to solution is not to stop marketing, but to reassess how we market and spend dollars most wisely. Consumers still need to be marketed to and they need to be presented products for consideration and ultimately purchase. As their reasons for buying, or their own value propositions shift, so does that of marketers. They need to be more savvy and more focused on the bottom line, the audience and the goals.

What is the best messaging produce marketers can utilize? What resonates with consumer?

Jewell: Consumers come from so many different places in how they value fresh produce. We need to meet them where they are while being consistent in messaging about our company and our values.  Most shoppers are buying for flavor, convenience, and quality first. Health benefits are a bonus. In addition to buying fresh for flavor or convenience, with so many options today with branded value-added items — bagged salads and meal kits — I think we are winning consumers over and increasing consumption.

Mary Heslep: Consumers are growing more cautious of marketing claims, seeking proof points to back them up. We talk a lot about marketing transparency, and this is precisely why — there’s no guideline on whether local means five miles or 50 miles away. The consumer wants to determine if the product is local on their own and they want all the information needed to make that decision. The best produce messaging understands there’s a human on the receiving end who is seeking to be informed. Not all messages will fit on packaging or are accessible in-store for the consumer. Consistent education across multiple platforms will deliver the experience consumers are seeking from a trusted food brand partner.

Riley: Flavor is an essential aspect that captivates consumers, as they are drawn to the narratives of taste and the flavor experience they can expect to have. Alongside flavor, consumers express a keen interest in knowledge of usage, which serves to inspire their culinary creativity and accommodate their busy schedules. Convenience also remains a significant consideration for consumers, who appreciate recipes that are both easy to prepare and time-saving. In the realm of advertising and packaging, a natural, simplistic and authentic design approach holds greater sway. As consumers feel inundated by advertisements and salespeople, they are now swaying toward promotional content, seeking opportunities to be genuinely influenced.

Simpson: The best messaging is the simplest. We as an industry have oftentimes confused ourselves and the consumer with so many claims. At its highest order, the macro trends continue to remain the same for consumers looking for fresh, healthy produce that tastes great, is easy to consume, and meets their environmental and dietary requirements.

Goodman: There isn’t one right or wrong answer. How does your message align with your authentic values as a company and your audience? Consumers are inundated with marketing messages in nearly every space they live, work and play. Consumers have learned how to digitally multi-task and tune out the clutter — tuning in to only the messages that speak to them and feel honest. There are a lot of consumer segments and a place for every company to plant their marketing flag — but make sure it’s true to the spirit of your company.

Muro: Marketing is all about leveraging your products’ unique attributes. There is not a single message that is best for all products. Doing the upfront work of fully understanding your consumers, products, messaging and the market is a pivotal key to success.

Most produce companies do not have huge marketing budgets. Where should they spend their trade dollars?

Heslep: The smartest place companies can spend their trade dollars is on strategy, and make sure all key decision makers in the company are involved in the planning. A strategy will outline where to reach your target audience, how to gain their attention and what you plan to do with their attention once you have it. Without a strategy, you’re blindly spending to spend. You wouldn’t build a house without a blueprint. Stop spending your marketing dollars without a strategy.

Jason Fuller: In-person interactions, including trade shows and in-store demos, continue to wield the most influence, leaving a lasting imprint on both consumers and trade partners. Not only does this approach generate a higher return on advertising investment, but it also resonates with audiences for an extended period. In today’s dynamic landscape, cultivating a presence on social media channels has become indispensable. The sheer potential for any individual or post to trend requires a strategic approach, emphasizing the selection of a few platforms to excel on, rather than diluting efforts across numerous social media channels. Additionally, the alignment of sales and marketing teams emerges as a key determinant of success. By fostering synergy between these two functions, businesses can unlock their full potential. With that said, before investing in any marketing initiatives, it is crucial to prioritize market analysis with the intent of better understanding your audience. These steps play a significant role in gaining insights into your target market, their preferences and how they prefer to consume information. After conducting market research, you can make informed decisions and tailor your marketing strategies to effectively reach and engage your target audience.

Goodman: How companies spend their money also comes down to their goals. There is not a one-size-fits-all plan for success. It needs to be tailored to the audience and objectives. It also depends on your type of business. If you are a new company and are building brand awareness and promoting a new product, you may need more trade advertising. If you are working on maintaining and growing annual business, trade shows and face-to-face meetings are critical. This is just B2B marketing. What will be your marketing plan or spend to support your retail or foodservice customers? What will it take in a B2C spend to accomplish your goals?

Simpson: I have accepted that the budgets aren’t millions of dollars but rather hundreds, and that has been a joy for me to be creative in how most efficiently to execute. There is no “one-size-fits-all” in marketing spend. It is determined by who the target audience is, where they access information, and how best to reach them. Some companies are also focused on B2B vs B2C and that is an important distinction in the use of dollars.

Muro: Start by building a solid relationship with the customer’s buying personnel. Provide direction, ideas, research and information to help them be successful and your success will follow. Work in the best interest of the customer. From there you can target your marketing resources toward events, publications and social media — but make the relationship your foundation.

We now have one national produce trade show and a dozen regional shows. How should a produce company pick which ones to attend?

Fuller: Both regional and national shows hold equal importance in the realm of fresh produce. Regional shows offer a valuable opportunity to connect with customers in a more intimate setting, fostering closer relationships and deeper interactions. National shows provide a broader platform for connecting with industry peers and gaining insights into the success stories of fellow produce colleagues. When selecting which shows to attend, it is crucial to align with the company’s goals and objectives for that specific year.

Goodman: The question is always related to audience. Where will your audience be and where can you have the most impact. If you can afford to be everywhere — go everywhere. The beauty of our industry programming is there are solutions for every audience and every size customer to help connect and create business.

Muro: Make your decisions based on your distribution patterns and capabilities, and expansion strategies. Selling in a specific region? Attend a local show. Planning to expand distribution to another region? Attend a show in that region. Want national distribution? Attend the national show. Focus your resources for the greatest impact.

Jewell: We are taking a hard look at what we are trying to accomplish as a company and align ourselves in the future with the shows that we feel are the best fit. In years past when we had a couple of really big shows and just a couple smaller conferences, it was easier to participate in all of them, and I think we all felt pressure to be present.  Today, it just doesn’t make sense with all the other communication tools we have at our fingertips. 

Heslep: Determine your business objectives for participating in trade shows, including how you plan to participate: exhibit, sponsor, walk, golf, speak, attend or any combination thereof. Our industry loves to be together, but if you can’t determine the ROI for your travel and investment in the event, you might want to stay home. Each show, whether global, national or regional, attracts different audiences for unique experiences. Having a trade show strategy outlined 12-18 months in advance of shows and measuring your return on investment from previous years will help you make smarter financial decisions about participating.

Explore social media for us. What’s hot; what’s not?

Simpson: The algorithm is king. Always has been. Feed it properly and you win. We are doing some amazing work for brands in this space and it is such a great “test + learn” adventure that has minimal investment but big payout in terms of engagement and brand loyalty.

Muro: Understand your audience. Using consumer posts instead of business-specific posts on B2B platforms like LinkedIn is not a winning proposition. The B2B audience engages more with posts that demonstrate sales opportunities than consumer “how to” tips.

Goodman: Again — not a one-size-fits-all trend, but the hottest content of the day is short form video. This holds true for virtually every aspect of social media. We are in the time of video scrolling brought on by the TikTok age. We all have shorter, multi-tasking attention spans and short video is the way we are consuming content.

Jewell: I am still an Instagram lover and love options of posts, stories, reels for messaging. TikTok is obviously a great tool as well with so much flexibility. 

Heslep: Quality over quantity. Companies are quick to jump on new and exciting social media channels and trends, but you don’t need to be everything, everywhere, all at once. Explore your social media why for each channel, and focus your attention on the audiences that are engaging.

Naba Bakar: To succeed on social media, a balanced approach is key. It involves a combination of creating original content and capitalizing on current trends. Alongside this, having a well-defined social media strategy that includes recurring campaigns is crucial. Understanding your target audience is paramount to expanding your reach and fostering engagement. More recently, incorporating nostalgia-focused content can be a powerful tool in capturing the attention and interest of users. The social media world is constantly evolving, and it’s essential to stay updated with emerging trends, platforms and user preferences.  Understanding the role of algorithms and conducting in-depth reporting on social media performance are vital for effective social media marketing. By leveraging algorithms to optimize content and analyzing performance through regular reporting, marketers can enhance their strategies, reach their target audience and drive meaningful results on social media platforms.

What’s the newest trend in marketing that caught your eye this past year? 

Heslep: I’m a fan of brand collaborations and would love to see more of them involving fresh produce brands. From Nike to Tiffany to Sunkist to Whistle Pig Bourbon, brand collabs are Venn diagram gold, gaining the best of each brands’ loyal communities and bringing them together to cross-pollinate new ideas, resulting in limited edition products, innovative flavors and experiences, and elevated brand equity when done right. 

Goodman: Content communities are hot. People are looking to connect with like-minded peers and share the things they are passionate about. It’s also a space that removes the clutter and feels like a trusted environment. 

Bakar: In recent years, there has been a notable increase in consumer trust in artificial intelligence, which has led to further exploration and adoption of AI technologies by marketers. The advancements in AI-generated content, such as automated copywriting and image generation, have also caught the attention of marketers. These technologies can assist in creating compelling content at scale, saving time and resources while maintaining quality. As AI continues to evolve and improve, it is likely to play an even more significant role in shaping the future of marketing by delivering enhanced personalization, efficiency and customer experiences.

Simpson: Getting back to basics by doing what marketing does best: entice, intrigue, connect. We don’t have to one up ourselves in marketing. Staying tried-and-true is what is most interesting to me.

Muro: When the economy is rock-solid, some companies focus primarily on sales. When times are less certain, like now, there is a return to marketing with research, strategies, information, tight messaging and communications that work to drive sales further. We have seen this trend swelling over the past year.

What do you see over the next year in terms of promotional and marketing campaigns from the industry?

Goodman: Creative marketers will continue to find ways to adapt and differentiate from their competitors and meet their customers where they are. One thing you can count on is more digital promotions that spur first level of consideration, but also some shift back into stores to support the loyal in-store shopper.

Muro: Companies that understand the current economy will leverage their marketing, as competitors reduce their presence. Now is the time for promotions and campaigns that really stand out.

Jewell: I see companies weaving much more information about sustainability and earth-friendly practices into their stories. 

Bakar: Social commerce is experiencing a notable surge in popularity, emerging as a rapidly growing sector within the e-commerce space. This innovative approach leverages social networks and digital media platforms to facilitate seamless transactions between businesses and customers. It encompasses a wide range of activities, including product discovery, customer reviews and ratings, content sharing, recommendations, secure transactions and loyalty programs. By blending the power of social networks with the convenience of e-commerce, social commerce provides a dynamic and interactive shopping experience that bridges the gap between online engagement and purchasing decisions.