A DSN Special Report TABLE OF CONTENTS Earning share of heart with the new consumer .......... 14 Mentholatum ................................................................ 26 ShopRite ‘fixes the mix’ in health and beauty ............. 15 Lornamead ................................................................... 28 Sundial breaks down beauty, societal walls .............. 16 Hello Products .............................................................. 30 Unilever’s Pimenta: Brand purpose matters ............... 18 Hyland’s ....................................................................... 32 Uncovering changing needs, the art of ‘social listening’ .... 20 Henkel........................................................................... 34 Differentiating, influencing at the shelf and online .......... 21 Edgewell ...................................................................... 36 Breaking through the social media clutter ................. 22 Paris Presents .............................................................. 38 Pinterest’s ‘future-oriented network’ ......................... 22 Conair .......................................................................... 40 Kao USA ....................................................................... 42 Best Practices Beiersdorf ..................................................................... 44 Sundial Brands ............................................................. 24 Vogue International ........................................................ 46 Unilever ........................................................................ 25 Milani/Jordana Cosmetics ............................................. 48 DRUGSTORENEWS.COM JUNE 2016 • 13 Earning share of heart with the new consumer BY DAN MACK ransactional business is over; brands must connect heart and soul. Today’s new consumer is more informed, more T independent, more curious and more conversational than ever before. They want to be talked with — not talked to. It is about “share of heart,” not just “share of wallet.” These were key takeaways from the New General Market Forum, co-hosted by Drug Store News and Mack Elevation Forum, in April. The program, now in its second year, once again brought together executives from a number of purposeful companies — including Beiersdorf, Conair, Edgewell Personal Care, Hello Products, Henkel, Hyland’s, Kao, Lornamead, Mentho- latum, Milani/Jordana, Paris Presents, Sundial Brands, Unilever and Vogue International — Over the course of the day, New General Market Forum moderator Dan Mack led a multi-faceted discussion that uncovered several best practices for connecting with the new consumer. whose brands emotionally connect with to- day’s new consumer, building community and 4. Candor: Companies that play it loose original ideas, relationships and connec- advocacy with their diverse consumer bases. with the facts or cover up the truth create tions that add value to their lives and Seeking a blueprint to better serve today’s key trust issues. The most trusted brands — their relationships; consumers, the group was joined by retail execu- and companies — are honest about fail- 8. The story: Great brands tell stories about tives Jody Pinson, VP beauty merchandising at ure: They actively listen to the needs of their causes that leave an imprint. Origi- Walmart; Holly Schmidt, senior DMM beauty their consumer. Engaging honestly with nal brands stand for something unique at Walgreens; and Chris Skyers, VP health and online reviews or personal complaints and special, and consumers are compelled beauty care at Wakefern Foods, each of whom shows that the brand cares, and it shows to share the brand’s story with friends and shared their vision for connecting with today’s the human aspects of the brand — for family; and New General Market. good or bad; 9. Purpose: The new consumer doesn’t buy Over the course of the multifaceted discus- 5. Co-creation: Brands that listen deeply a brand; they join it. Brands must uncov- VLRQ WKH JURXS LGHQWLÀHG QLQH EHVW SUDFWLFHV to their top customers, enlisting them to er their true identity, one that aligns with for building connectedness and intimacy with help design the next generation of innova- a higher calling and one that is resound- the New General Market: tion, are very special. Organizations that ing. The New General Market consumer 1. Share of heart: The best brands build cov- embrace co-creation are more aware of is searching for brands that are original enantal, inclusive relationships with their the customers’ changing needs, and give — brands that stand for something and tribes, allowing their customers to develop voice to their league of followers, encour- brands that stand with others. Brands loyalty and emotional investment; aging loyalty; can’t create authenticity; they must walk 2. Values matter: The best brands tear down 6. Community: A strong community allows in it. It is not created — it is revealed. the walls of consumer segmentation by skin brands to ask consumers what they need In this special report, Drug Store News high- color and ethnic group, and look through and how they feel, creates engagement lights key discussion from the April 6 New Gen- the lens of deeper aspirations, values, and builds relationships. Communities eral Market Forum, and examines the best prac- VKDUHGQHHGVWDWHVDQGHPRWLRQDOEHQHÀWV gather around shared ideals; they are not tices a host of leading brands are implementing, 3. Growth mind-set: The growth mind-set just interested in brand attributes, but not only to elevate their business, but to help is a catalyst for cultural change and brand what the brand stands for; win the hearts and minds of the New General growth, and it is developed when brands 7. ,QÁXHQFHUV Committed brand advo- Market consumer. Q are constantly in a state of improvement, re- FDWHVDUHWKHEHVWEUDQGLQÁXHQFHUV,W·V Dan Mack is the founder and managing direc- ÀQHPHQWDQGDGGLWLRQ2QO\WKHQFDQWKH\ essential to create engaging content that tor of the Mack Elevation Forum, and author of address broader cultural needs through tai- incites action — shareability — with the book “Dark Horse: How Challenger Companies lored products and experiences; your enthusiasts. They are looking for Rise to Prominence.” 14 • JUNE 2016 DRUGSTORENEWS.COM ShopRite ‘fixes the mix’ in health and beauty hopRite has avoided the pitfalls many traditional grocery chains have faced by evolving with its consumers, especially S in regard to health and beauty care. Charged with keeping ShopRite owners ahead of trends is Chris Skyers, VP health and beauty care for Wakefern. He and his team do so against a sea of competitors, many of whom specialize in beauty, such as Ulta Beauty and Sephora. “Our owners do an amazing job with grocery,” Skyers said. To allow them to concen- trate on what they do best, Skyers is charged with bringing the best ideas in nonfoods to the owners. “We have to help them see tomorrow,” he explained. Skyers was a major contributor LQ WKH ÀUVW DSN-Mack Elevation New General Market Forum one year ago, and was back to share his experience over the past year and to discuss achievements his company has made. One of his biggest learnings has been in ad- dressing the needs of the New General Mar- ShopRite has shifted its focus on health and wellness into high gear as the retailer continues to roll out its beauty adviser program in stores. Looking to bring its health and beauty programs full circle, there are currently about 15 advisers ket. While admitting it is a challenge to merge working in stores. ÀYHVXEFDWHJRULHVLQWRRQHPDVWHUEHDXW\H[- perience, ShopRite has made great strides and posted impressive gains throughout its net- “OUR PURPOSE IS TO CARE DEEPLY ABOUT work of supermarkets. PEOPLE AND HELP THEM TO EAT WELL The blueprint didn’t start with merchan- AND BE HAPPY. ... WE ARE LOOKING FOR dising for the multicultural consumer, rather PARTNERS THAT ARE AUTHENTIC AND seeking to rediscover ShopRite’s core purpose. HAVE A REACH WITH CONSUMERS. ... THE Going back to its roots, Wakefern looked for COMMUNITY IS SAYING, ‘IF YOU ARE GOING what it means in the communities it serves. TO HAVE SOMETHING IN YOUR STORE, BE “Our purpose is to care deeply about people GREAT AT IT.’” and help them to eat well and be happy,” Sky- — CHRIS SKYERS, VP HEALTH AND BEAUTY CARE, WAKEFERN ers said. In assessing that yardstick, the com- pany saw room for improvement. For one thing, consumers saw supermarket health and one ShopRite operator willing to promote beauty care departments as outdated as boom Shea Moisture — despite the fact that some boxes, while such specialty stores as Sephora questioned whether or not they could sell are seen more like “Beats headphones.” Setting higher-ticket beauty items. The trailblazing out to freshen up the image, Skyers looked for owner who gave it a try unlocked a business forward-thinking ideas. bonanza. What’s more is that many of the One of the paths proving successful is ad- purchasers were new shoppers for that de- Wakefern’s VP health and beauty care Chris Skyers shared dressing shoppers’ needs community by com- partment or even for the store. They had been insights during DSN and Mack Elevation Forum’s New Gen- munity. “We are the community store,” Skyers buying their products in other doors. That suc- eral Market Forum in April in New York City. said. “Let’s go back to that, but let’s under- cess prompted other owners to join in. “When reach with consumers,” he said. stand the community — store by store.” ZHÀ[WKHPL[LWUHDOO\ZRUNVµ6N\HUVQRWHG