I was in meeting recently, reviewing competitive intelligence for a very cluttered category.  Among the findings was the abundance of features the different competitors offered consumers.  And having pored through so many competitors with so many choices, I found myself in the shoes of their shopper, completely overwhelmed and uncertain which I would personally choose.

Immediately, I thought: “jam!”  Not as in “brain jammed by too many options,” but rather, strawberry, grape, and other flavors.  Specifically, a study I recalled that was conducted by a Columbia University professor, a California gourmet market, and a premium jam maker.

In the study, a sampling booth set up in a gourmet market enabled consumers to try different types of one brand of jam.  Every few hours the assortment was changed between a larger set of flavors and a smaller set: twenty-four different flavors, to just six.

On average, consumers tasted at least two kinds of jam, and everyone received a dollar off coupon to purchase.  But what ultimately drove sales stemmed from the number of choices the consumers were presented.  Sixty percent of the shoppers were drawn to the large assortment, while only 40 percent stopped by the small one. But when it came to actually making a purchase, all those choices actually paralyzed the consumers.  Thirty percent of the people who had sampled from the small assortment decided to buy jam, while only 3 percent of those consumers who had to choose from the two dozen different jams purchased a jar.

Similar studies have been done around chocolate, 401k plans, and speed dating, all with similar results.  A large assortment of choices may attract attention, but when it comes to actually making a choice and buying, it’s distracting.  Additional research also concluded that ultimately, when a consumer does make a choice from among many, he or she is more likely to feel less satisfied, less happy with the choice and even insecure, asking “did I make the right selection?”  In other words, walking away with a negative experience.

So often we see brands, clients and even agency people thinking that more is more.  Give them choices, give them options, and let them choose!  But in the end, providing a focused, more streamlined offering leads to “happiness” and ultimately, a sale – whether it’s features and functions, or product benefits, or even creative choices.

(Source:  New York Times, “Too Many Choices: A Problem That Can Paralyze,” Alina Tungend, February 26, 2010)

This is important because it gives us an uber-snapshot of today’s consumer profile. When faced with a must-spend occasion, we know what they’re thinking and doing.

Today’s consumer is:

1.  Showing optimism

-  Expected to spend $688.87 on the holidays this year, up a tiny bit from last year ($681.83), but nowhere near years past (e.g., 2007 = $755.13).

-  Translating that feel-good into looking good with jewelry!  Asking for jewelry has made a 10% jump up from last year—demonstrating a higher comfort level in discretionary spending.

2.  Armed with coupons and hunting for sales

-  54.1% of consumers will shop with sales, while 30.9% will go online to comparison shop.

-  Don’t overlook FSIs and retailer flyers, as 28.1% will have newspapers and circulars as their resources for best deals.

-  Social spaces (Facebook, Twitter) will also be used to find special offers, in-store event information, and promotions.

-  And clip, clip (or copy, paste)…40.6% of consumers will be using coupons.

3.  Going online to buy, buy, buy

-  According to eMarketer, eCommerce is expected to grow 13.7% this year as consumers seek shopping convenience, selection, and better deals on the Web.

4.  Expecting the best of everything

-  Although price ranks highest in most motivating purchasing factors, quality and customer service are two areas that have grown in consumers’ priorities over the past year.

5.  Giving gift cards

-  Consumers want convenience and flexibility with gift cards as the most requested gift item.  But true to tradition, clothing and books rank second and third.

6.  Using smart phones for smart shopping

-  26.8% of adults plan on using their phones to either research or make holiday purchases this season.

7.  Not being shy about “a gift for you…a gift for me…”

-  57.1% of consumers will take advantage of the season to make purchases for themselves.

-  On average, today’s consumers will spend $107.50 on themselves!  Happy holidays to ME!

So for brands that still have time to squeeze in a last-minute, extra holiday push, or even for brands that have already planned out 2010, what does all this mean?

It paints a picture of a consumer willing to spend a little more than in years past.  Indeed, wallets are opening.  But your shopper is expecting good offers.  Seeking impeccable customer service.  Looking for convenience—in product choices and in how they find these selections.  And shoppers are fulfilling a need to please themselves. With an ever-present “what’s in it for me,” to give them permission to indulge a little.  Also, don’t overlook the power of mobile.  This year is just the beginning of smart-phone-armed, app-using, barcode-scanning consumer purchase behavior.

It’s not too soon to make that list and check it twice.  A new year and a new budget will be here sooner than you think!

A great example of the contradictions in behavior is with food.  Look at the landscape in recent, food headlines and news bytes (no pun intended).  And then take a peek at what’s tantalizing our pallets as trends and recent intros.  The juxtaposition not only demonstrates consumers’ contradictions in choices, but at its core, it reveals consumers’ desire to be surprised, delighted, and to just walk away feeling happy. Check out this “salty and sweet mash-up” of sorts…

Headline: “Food Safety Leaders:  Kraft, Subway, Starbucks to Cut Salt.” Both restaurants and packaged food companies are signing up for the challenge of reducing sodium in their products by 20% over the next five years.

But then there’s:  Bacon cupcakes.  Bacon lip balm.  Bacon marmalade. Bacon vodka. Bacon ice cream.  Bacon bacon.  It’s one of the top food and flavor trends cited for 2010 and if you don’t believe us, just check how two ‘Bacontrepreneurs’ from Bacon Salt grew an enterprise in three years with a $5,000 loan from a 3-year old.

Headline: “For Corn Syrup, the Sweet Talk Gets Harder.”
What started as a narrow movement by proponents of natural and organic foods has morphed into a swell of mainstream opposition.

But then there’s:  The recently revealed, million-dollar winning recipe in this year’s Pillsbury bakeoff:  the Mini Ice-Cream Cookie Cup, which included pre-made refrigerated sugar cookie dough, ice cream, melted chocolate, and raspberry jam.  It won because it was simple and it just tasted good.

Headline:  “Santa Clara Bans Happy Meal Toys.” This proposal is believed to be the first of this type, and would ban the inclusion of a toy in any kids meal with more than 485 calories, 600 mg of salt, or high amounts of sugar or fat.

But then there’s:  KFC’s new Double Down Sandwich.  Two fried chicken filets, two kinds of cheese, and (yes) bacon.  (Apparently, adult consent = OK)

All rational reasons that are making headlines—yet consumers’ emotional sides being fulfilled in trends and new food choices.

As marketers of food and non-food brands we realize that the new normal in spending is driven by careful consideration and prioritization:
•    88% of consumers have taken steps in 2010 to reduce spending overall
•    93% say that their spending has become more strategic

But at the same time, 90% of consumers are seeking small treats for themselves, as well as others, in what they buy.   Why?  Because small treats feel good.  And it’s that “small treats” insight that points us to the emotional connections a brand can bring to the table.  Whether it’s added value, or undeniable proof that only your product can do the job, or a free sample, or stellar customer service, or just a great online experience.   Delivering small treats that satisfy is like a consumer magnet!

Turkey bacon.  I think that’s a good way to visualize the happy medium tempering the rational needs with the emotional wants.  It’ll be our ongoing challenge to find a turkey bacon like balance in every marketing recommendation.

(Source: Coming of Age in the Great Recession: A Grounded Consumer Followup, Carton Donofrio Partners, Context-Based Research Group)

Why is it then, that we fail to act when we think—sometimes even know— that our brand is in disrepair? Well, whether it’s an abandoned Buick on the side of the road, or a brand new Prius with a sticky accelerator, there are identifiable indicators that it’s time to make a visit to “the brand shop”. The following are a few things that may light up your brand’s dashboard:

1.  Your market environment has changed. Your customers’ expectations of how a brand in your space looks, means, and behaves has altered. Are you keeping up with it? What your brand offers is still relevant to your customers, but how they think of you (and talk about you) needs to change to allow you to be more competitive.

2.  Your organization is transforming. You may have identified a new line of business, or adopted a new model, new markets may have emerged—your brand has to evolve with these changes, right down to its fundamentals. While you are not remotely a start-up, in many respects you need to act like one. You must carefully identify the perfect positioning, employ the right strategies and develop new messages and digital properties that are in sync with your transformation.

3.  Your competition is more aggressively managing its brand to better connect with your customers and prospects. If someone in your category is creating a lot of buzz, inspiring messaging and visual expression. You need to react before it’s too late. They say in the next five years there will be more change than there were in the last fifty. If your brand foundation and products are sound, you should be able to adapt and manage any change.

4.  Your communications—print, video and digital—just don’t reflect your brand position. If you’re on top of your offerings and operations, but find yourself apologizing for every brochure and URL you hand out, then it’s time to take a new look at how you express yourself visually. There have never been more tools available to you to refresh your brand.

5.  You took a wrong direction. A lot of things can lead us down the wrong path: Misinterpreted research, aggressive purchasing, even a shift in the market. Or maybe you just took a gamble.  At any rate, your brand is currently out of sync with the direction your industry is taking—or more importantly what your customers are wanting. A brand course correction is needed.

6.  Your brand has changed, but the perception hasn’t. Your products/services are in the forefront – you offer great innovations, higher quality and greater value to your customers. But they’re just not getting it. You need to eliminate this lag and allow your company to move forward. The good news is that you have the vision, model and value to fuel new messages, a new visual expression and a brand that will advance your evolved organization.

Once you have identified your ‘flashing sign’, understanding what course you need to take to transform your brand will go a long way towards ensuring the work you undertake will be necessary and effective.  A good full service ‘brand shop’ should help you better understand what’s wrong (diagnostic), what it will take to get you from here to there (planning), which experience will take you to your destination (creative), and how to continuously stay on the right track (stewardship/optimization).