FINAL Dossier for Loblaws Digital No Bleeds Cover
Total Page:16
File Type:pdf, Size:1020Kb
This dossier is a collection of work created for Foresight Studio SFIN 6018-19 for Fall/Winter 2015-2016. Submitted to Suzanne Stein and Stuart Candy March 2, 2016 This work is licensed under the Creative Commons Attribution-Non Commerical-ShareAlike 4.0 International License To view a copy of this license, please visit: http://creativecommons.org/licenses/by-nc-sa/4.0/ WHAT’S ON THE TABLE? FORESIGHTS ON FOOD IN 2030, INCLUDING IMPLICATIONS AND STRATEGIES FOR LOBLAWS HALA BEISHA JANICE DE JONG DONNA KLAIMAN ROXANNE NICOLUSSI JENNY WHYTE Food is our common ground, a universal experience. James Beard TABLE OF CONTENTS INTRODUCTION 6 APPENDICES 114 BIOS 112 CONCLUSION 108 CLIENT PROFILE 10 TIME MACHINE 102 SCANNING 16 STRATEGIES 82 SCENARIOS 58 Image source: Lernert & Sander for De Volkskrant, http://lernertandsander.com/cubes/ 6 INTRODUCTION “The real act of discovery consists not in finding new lands but seeing with new eyes.” Marcel Proust Food preparation, consumption and enjoyment is our common ground. It is an inextricable part of the human experience. It is part of our cultural identity. It is how we express ourselves. It is a key part of how we choose to connect with others. Throughout history, hunter-gatherer societies and nomadic settlements were in close proximity to areas where humans could access food. Spice routes that linked parts of Asia, Europe and the Middle East traded in much coveted food items. Cities directly on these routes enjoyed tremendous economic prosperity. Viewed as a key and vital resource, wars were fought over access to food. Cutting off food supplies during wars was and is still an effective technique to conquer lands and their people. FOOD AND SOCIETY Every day and around the world people are preoccupied with food. People from all walks of life and ethnic backgrounds come together to buy, prepare and enjoy food together. It is a rich and varied aspect of our lives that weaves together elements of the past with the demands of the present. Food is the common thread that brings people together in celebration and mourning. Business deals are signed and political enemies negotiate compromises at the dinner table. Food is the one equalizer where people come together to enjoy elaborate tapas in Spain, a five-course meal in Paris or a simple chow mein at a food stand in Beijing. Against a backdrop of globalization, urbanization, and increased population growth, a number of critical issues have been brought to the fore. Current factors that impact the food scene include: the effects of genetically modified foods, industrial farming practices, food security issues; food inequality despite large production capacities, profit making and distribution practices; and the politicization of food labelling. 7 INTRODUCTION CURRENT FOOD ISSUES Despite the abundance of food in Canada today, there has never been a time in our history when there is so much at stake for the health and the sustainability of the planet. Questions being debated on the world stage and in cities across Canada include: Is access to food a right? Who controls food production, policies, and companies? What is the role of ordinary citizens? Do people have a say in the quality of food? What are the long-term health implications of consuming certain types of food? What is the moral obligation of companies and private citizens? How do we come together to celebrate our different food tastes and heritage? How do we provide food to those without access? DOSSIER LAYOUT AND THE BIGGER PICTURE These are a number of the questions that linger in the background as this compilation of work sets out to examine the future of food in 2030. This document sets out to identify drivers of change in the external environment that have an impact on emerging food trends. It is these food trends that will shape consumers purchasing decisions and influence what is on the table. The report is titled “What’s on the Table” to illustrate the potential diversity of food options and how they might be part of the dining table of the future. Rich contextual information generated by trend scanning then led to the generation of four different probable scenarios using foresight methodology. From the scenarios, specific informed statements are drawn to create an immersive experience referred to as a “time machine”. Finally, an intricate weaving of the findings of each section was used to inform the strategic discussion of the key stakeholder. For the purpose of this report, our stakeholder is Loblaws, a key purveyor of food items with locations across the country and the resources and track record to shape the future. It is important to note that the act of foresighting and scenario planning is not an exact science but an art. The main objective is not to provide definitive answers but to inform Loblaws’ strategic discussion to create capacity. Inayatullah (2008) states: “At a deeper level futures thinking can create capacity. It is not about predicting correctly or getting the strategy right, but about enhancing our confidence to create the future we desire.” REFERENCE Inayatullah, S (2008). Six pillars: Futures thinking for transforming. Foresight 10 (1) 4-21. 8 There is no sincerer love than the love of food. George Bernard Shaw 9 Image source: http://torontolife.com/food/fancy-new-st-clair-west-loblaws/ 10 CLIENT PROFILE To better understand a client, it is important to bring into focus certain aspects of that organization’s operation and strategic direction. Engagement in strategic conversations with a client, as part of any scenario planning exercise, is an ongoing process that allows for the incorporation of new ideas and encourages organizational learning and adaptation. This section highlights key points of interest that point to Loblaws’ heritage of embracing innovation and their willingness to invest in the changes needed to pounce on emerging consumer trends and demographic shifts. Our understanding of Loblaws is a key part of the dossier that lingers in the background of our foresight process. It is important to note that Loblaws operates a number of different stores in its diverse portfolio that includes No Frills and Price Chopper to name a few. The document will look at the totality of the Loblaws offering with respect to food. HISTORY Loblaws was founded in 1919 by Pringle Loblaw and J. Milton Cork . At the time they introduced a new concept in grocery retailing, combining self-serve and cash-and-carry. Customers no longer had to wait for a clerk to fetch items from behind a store counter. Loblaw and Cork were told it would never work. Charles B. Shields, another prominent Toronto grocer, soon joined the partnership. Sales grew as customers took advantage of better quality goods at lower prices. Within a decade, the Loblaw chain has grown to over 70 stores in Ontario alone. It is this entrepreneurial spirit that allowed the company to expand to become Canada’s leading food and pharmacy purveyor. In 1978, Loblaws introduced No Name products. With their distinctive yellow packaging and bold lettering these products offer savings over name brands while matching their quality. In the 80’s Loblaws went on to introduce President’s Choice products. These gained a devoted following among shoppers and the Insider’s Report was launched. It was filled with recipes and product recommendations. 11 ABOUT LOBLAWS This was closely followed by the launch of President’s Choice Green Products that introduced more than 100 ‘environmentally friendly’ and ‘body friendly’ items in 1989. Loblaws went on to expand into the mortgage business through the successful introduction of PC Financial (1996). Clothing brand Joe Fresh made its debut (2006) and the only thing missing from the fashionable line was the high price. Over the years Loblaws worked to reduce its carbon footprint and introduced a supplier code conduct. This was followed by supporting the use of renewable energy in many of its stores. Image above: First Loblaws at 511 Yonge Street, 1919. The Guiding Star program was introduced in 2012 allowing Image source: http://www.thedrake.ca/blog/2012/05/vintage- consumers to make better food choices. In 2015, the company highlighted its purpose to “Live Life Well”– which was ultimately toronto-historic-snapshots/ anchored in the health and wellbeing of Canadians. This is especially true after Loblaws bought out Shoppers Drug Mart to become a nutrition, health and wellness provider. THE EVOLUTION OF THE BRAND - LOOKING AHEAD Greater integration of wellness services There is an even greater need for better wellness options with the growing number of Baby Boomers, and the offloading of medical services and a growing need for preventative healthcare options. Loblaws and Shoppers stores offer access to services that allow for improved patient care. 12 Building of trust and one on one relationships with customers In an increasing number of stores, in-house dietitians educate and advise customers to maintain or improve their nutrition, often in partnership with store pharmacists. The focus is on building trust and Image above: Newly renovated Loblaws at Maple Leaf customer relationships through services and loyalty programs. Gardens in Toronto. Image source: Iam_chihang via https:// commons.wikimedia.org/wiki/File:Loblaws_at_Maple_Leaf_ Consolidation of two powerful loyalty programs Gardens_Toronto_Canada.jpg The PC Rewards system is consolidated with Shopper’s Drug Mart Optimum program. The integration of the two programs has resulted in the creation of a highly personalized loyalty program that sends offers digitally via a smartphone app and adjusts to the different life stages in a customer’s life (e.g.: a child, an aging parent or embarking on a new commitment for wellness). PC Plus is to become Canada’s first integrated wellness loyalty platform, supported by loyalty and sales data.