Contents:

Overview Catalyst Summary Analysis INTRODUCTION: Using trend frameworks develops the means to boost the quality and frequency of insight generation and new product planning There is a funnel approach to identifying the manifestation of trends TREND: Innovation is a major driver of growth but is a challenging process A number of internal problems can lead to ineffective approaches to innovation Four different types of innovation strategy exist One of the major hurdles to successful innovation appears to be capturing consumers imagination TREND: New sensual products and concepts are emerging as consumers seek more pleasure, intensity and sensation from consumption TREND: Enjoyment driven consumers are becoming more experimental which makes an emotional connection all the more important INSIGHT: Manufacturers must capitalize on the desire to experiment by arousing curiosity VERDICT: Manufacturers must actively tempt today's inquisitive consumers INSIGHT: Manufacturers are creating additional sensual appeal by manipulating the key sensory attributes of products VERDICT: Intensifying product sensory appeal must be an important innovation objective INSIGHT: Sensory Marketing reflects how industry players are using scent in a creative and innovative manner to engage shoppers VERDICT: Marketers are beginning to realize that scent is extremely powerful in shaping perceptions and forging an emotional connection with consumers INSIGHT: Sonic Branding is another emerging discipline in the broader discipline of sensory marketing VERDICT: A branded audio identity can help differentiate brands in crowded marketplaces INSIGHT: Sensory Packaging is a powerful tool for evoking consumer desire VERDICT: Any packaging concept that enhances the sensory properties of products has the potential to be a key differentiator and is thus highly valued by shoppers INSIGHT: Erotic branding and shock advertisements are marketing concepts being used to bring brands into consumers consciousness VERDICT: Marketers should approach evocative, shock based marketing with caution INSIGHT: Offering brand experiences has become an important branding imperative in the experience economy VERDICT: Experiential Marketing and Experiential Retailing will grow in relevance and popularity because it provides a foundation for brand interaction, product trial and brand engagement INSIGHT: Multi-sensory marketing brings together many of the above sensory platforms into one compelling selling proposition VERDICT: Multi-sensory branding can help to establish an emotional connection with shoppers TREND: The trend towards authenticity and provenance is beginning to impact mass market products INSIGHT: Origin specific and traceable goods have added appeal to today's discerning shoppers VERDICT: Being more open and transparent will become a key feature of marketing communications in the future, especially with more brands using provenance as a point of differentiation INSIGHT: The growing importance of authenticity and provenance means that touting brand heritage becomes increasingly important VERDICT: Terms like heritage, authenticity and personality can be seen as the building-blocks of an aspirational brand image TREND: More affluent and expectant consumers are trading up more frequently INSIGHT: Manufacturers must re-align products to reflect changing perceptions of what is considered to be premium or luxury VERDICT: Being a mid-market brand is a dangerous place to be INSIGHT: Premium is still a high price related to extraordinary factors perceived and experienced by consumers APPENDIX Definitions Methodology Further reading and references Ask the analyst Disclaimer List of Figures Figure 1: Mega-trends are having a long-term and substantive impact on the marketing landscape and can be grouped into two categories Figure 2: Consumer behavior and the innovations targeting it inevitably fit into a trend hierarchy Figure 3: There are four different approaches to innovation and six kinds of innovativeness rating Figure 4: Attitudes towards innovation vary markedly and influence the inability of new products to capture the imagination of CPG shoppers Figure 5: There are numerous factors influencing sensory trends in consumer packaged goods Figure 6: The sensory mega-trend reflects consumers desire for experiential pleasure, intensity and sensation from products Figure 7: People are looking for new consumption experiences so industry players must carefully consider how to arouse consumer curiosity and induce product trial Figure 8: Marketing communications and actual product features can be manipulated to maximize the visual dynamics and sensory appeal of brands Figure 9: Beer manufacturers are actively targeting more adventurous palates with fruity beers Figure 10: Food and beverage marketers are delivering additional sensory excitement with new textures, bolder flavors, flavor blending and co-branding with iconic branded flavors/ingredients Figure 11: Manufacturers are looking to reinforce the sensual credentials of products though engaging brand names and written communications while Guinness typifies efforts being made to help consumers replicate third-place experiences and quality within the comfort of their own homes Figure 12: Opportunities exist to use scent in a more creative and engaging manner Figure 13: A variety of brands have been using brands in different ways to create a sonic identify Figure 14: Easily confusable, active packaging and intelligent packaging are actually two distinct concepts Figure 15: There are a number of new smart packaging/label innovations entering the market Figure 16: Packaging materials can be manipulated to enhance the sensory experience for consumers Figure 17: Brands are using edgier, erotic and shock tactics to get noticed in an increasingly cluttered marketplace Figure 18: Experiential third-places are becoming an established part of experiential marketing campaigns Figure 19: Experiential marketing exists on different levels Figure 20: The search for authenticity reflects consumers active pursuit for higher quality experiences from consumption Figure 21: Health and provenance conscious consumers want to know about the products they ingest or topically apply so manufacturers are making greater efforts to be transparent Figure 22: Provenance/locality and production details are issues that increasingly matter to shoppers Figure 23: Iconic imagery can add an authentic aura to a marketing communication Figure 24: Touting brand heritage becomes increasingly important in light of the growing importance consumers attach to growing importance of authenticity and provenance Figure 25: Using ordinary people in marketing looks set to become a more established feature of marketing campaigns Figure 26: Firms in the middle need to move either up or down-market or face "death in the middle" Figure 27: Mass market brands are having to premiumize just to stay relevant Figure 28: While many brands should be looking to premiumization opportunities, PJ smoothies is an example of how industry players must be prepared to re-align products towards the lower end of the market as well Figure 29: Manufacturers must excel - more than competitors - in the provision of factors associated with the Premium Price Index (PPI)