79%increase in core snack categories, as at home occasions increased and D2C accelerated growth of the category1

1 IRI: How America Eats: The Snacking Frenzy in 2021 and Beyond2 US ProQuo platform data, June 20213 Euromonitor Passport, Health & Wellness Savoury Snacks, Sweet Biscuits, Snack Bars & Fruit Snacks, accessed March 2021 4 FoodBev Media: Top five factors impacting the snacking industry in2020

Frequency

25% of consumers are now buying healthy snacks weekly

23% are buying healthysnacks bimonthly

9% are buying healthy snacks more than once a week2

Delicious and NutritiousCategory Deep Dive | Healthy Savory Snacks

2012

4

In 2019, the global plant-basedsnack market was valued at

$34.69BIn 2028, it’s forecast to reach

$73.61B

The global healthy snacks market is forecast to reach

$98Bby 2025, growing at a CAGR of 5.8% between 2020 and 2025,

according to Euromonitor3

60% of consumers in the category reported health, nutrition and lifestyle as motivators. Amongst these:

10% cited ‘family’ and ‘wanting to be around longer for family’ as motivators

14% cited taste as a motivator

18% cited weight loss as a motivator2

Motivations

© ProQuo AI Limited 2021

Competitive Landscape

Eat Real

Become a Packaging proPackaging is often a customer’s first introduction to a product and can go a long way in creating lasting brand loyalty. To grow your Familiarity, make your brand’s packaging memorable, ensuring it stands out from the crowd and is easily recognizable through bright colors and fonts. Customers need confidence that their snacking habits aren’t coming at the expense of global waste reduction. So, investing in sustainable materials as well as highlighting healthy and sustainable ingredients on-pack will also help to boost your Integrity.

Tap into your Target AudienceFinding the right Target Audience is crucial for any brand. And as the snack category is diverse, spanning across a variety of ages and locations, it’s important to segment your group. Once you know the geographic, sociographic, behavioral and demographic profiles of your customers, you can create targeted marketing strategies that major on Relevance. To ensure Consistency, create a clear picture of your Target Audience and align this against your actions, so you can be confident you’re always acting with your targets’ best interests in mind.

Master your MerchandisingMerchandising is all about how your brand is presented in-store and online. To remain Relevant, make sure your product is shelved in a place where consumers would expect to find it. Think about tying your merchandising campaigns to specific influencers or other brands (through cross-promotions). This will drive the relevance of your products and hammer home its benefits to your target audience.

Don’t neglect Customer SuccessCustomer Success is all about making sure your customers are enabled to achieve their best outcomes when using your product or service. A customer feedback loop is critical when creating a strong product. This will help with Performance, as keeping in touch with your target audience will ensure you’re always on top of any problems, like taste issues. This will allow you to react quickly to implement improvements. Personalizing your Customer Success process will help with Familiarity, enabling customers to feel like they know your brand.

Small but effective Product ChangesTo guarantee your products are keeping up with the latest consumer demands, you’ll need to keep in touch with category trends, as these can impact customers’ expectations. Maybe you’ll need to adapt your product format to keep up with a new consumer trend in the category? This will help to increase your Accessibility. Or perhaps, a product isn’t performing that well, and needs to be swapped in for a different pack size or new and improved ingredients that might be more suited to your audience.

5 Actions to Compete

The Needs to be Serving

Accessibility Performance Consistency Integrity Relevance Familiarity

The Primary PlayersCompetitive Landscape Strongholds

Simple Mills

Siete Foods

Empathy

Women21-40

HippeasTransparencyMen

41-60

Women21-40

Men41-60

Women21-40

Men41-60

Performance

Value for Money

Late July SnacksWomen21-40

Men41-60

Popularity Connection

Accessibility Relevance

Clarity

© ProQuo AI Limited 2021

3 Actions to DisruptCraft new CommunicationsWith a good Communication strategy, you can disrupt your category. To grow your Aspiration, look at your target audience and think about what makes them tick. Emulate this type of person through your Communications, paying close attention to the language and channels you’re using. To demonstrate Empathy, show you’re in touch with your target audience, anticipating their needs before your competitors.

Get creative with DeliveryBusinesses that are creative with their delivery processes are more memorable. As the category becomes more and more popular, it’s important to include personal assets within your Packaging to increase your brand’s Innovation, ensuring you stand out from the crowd. If you’re looking to boost your Transparency, consider creating content that provides an inside look into your delivery services to build customer trust, whilst demonstrating the open nature of your company.

Time for a new Proposition?Your Proposition is your company’s purpose, what your brand has to offer and why people should invest in you. Transparency is key for any Proposition. Customers want to feel like they know a company. So, think about how you can express your company’s values, aims and processes, in an open and authentic way to build customer loyalty.

Looking to Disrupt?

Aspiration Transparency Empathy Innovation

© ProQuo AI Limited 2021

55% of consumers in the category reported health, nutrition and lifestyle as motivators. Amongst these:

12% cited ‘living longer’ as a motivator

11% cited fitness asa motivator

5% cited weight as a motivator

14% cited ‘sweet tooth’ asan important motivator, alongside health2

79%increase in core snack categories, as at home occasions increased and D2C accelerated growth of the category1

The global healthy snacks market is forecast to reach

$98Bby 2025, growing at a CAGR of 5.8% between 2020 and 2025,

according to Euromonitor3

1 IRI: How America Eats: The Snacking Frenzy in 2021 and Beyond2 US ProQuo platform data, June 20213 Euromonitor Passport, Health & Wellness Savoury Snacks, Sweet Biscuits, Snack Bars & Fruit Snacks, accessed March 2021 4 FMCG Gurus, Top Trends for 2020

Motivations

Frequency35% of consumers are buying healthy snacks once a week

13% are buying snacks more than once a week

17% are buying snacks every time they shop2

In the US, 51% of consumers are switching from traditional

snacks products, like chocolate, to protein products4

2012

Delicious and NutritiousCategory Deep Dive | Healthy Sweet Snacks

© ProQuo AI Limited 2021

Eat Real

Shake up the category with Product ChangesPeople expect healthy sweet snack brands to be trailblazing. Boost your Innovation Driver by stepping away from typical bar formats; try to be inventive with the shape of your product. Are you able to exploit unexpected combinations of ingredients that delight and surprise your customers? Failing that, can you bring healthy snacking to a product group people could never have imagined could be healthy, like Halo Top was able to do with ice cream?

Serve the younger demographicExplore a different Target Audience to boost your brand’s Popularity. Today younger people are less inclined to interact with healthy sweet snack brands. Understand the wants, habits and attitudes of younger customers to better serve them. Use customer personas to account for the variations that exist between millennials and Gen-Z. This type of work sets the foundation for your brand’s approach to communication and product development.

Introduce Delivery trackingDelivery tracking can bring customers reassurance and increases the perceived dependability of a brand, boosting the Customer Experience and Consistency scores. This might require reassessing your delivery infrastructure; either invest in your own delivery infrastructure to cater to changing consumption habits or partner with a renowned, sophisticated partner.

Invest in MerchandiseBoost your Popularity by investing in display units across your retailer network. They provide a great opportunity to increase brand awareness at point of sale. Get creative with the format used to gain attention. Double down on the designs of visuals, creating an elegant display to power your Attraction Driver.

Co-create with a PartnerFind a brand that appeals to your target audience and co-create an idea, event or product with them. This boosts your Popularity with segments of your audience that you have failed to connect with previously. Ensure there is an authentic connection between your audiences and product focus. Bringing together functional brands known for boosting health and a typical snack brand would cater to a broad audience. Different parties can introduce different ingredients to new products, or unconventional approaches to events which can bolster Performance and Innovation scores also.

5 Actions to Compete

The Needs to be Serving

Performance Consistency Accessibility Popularity Attraction Innovation

Competitive Landscape

The Primary PlayersCompetitive Landscape Strongholds

Perfect Snacks

No Cow

Women21-40

SmartSweetsFamiliarityMen

41-60

Women21-40

Men41-60

Women21-40

Men41-60

Relevance

Popularity

UNREALWomen21-40

Men41-60

Accessibility Empathy

Consistency Attraction

Connection

Differentiation Clarity

Performance Innovation

© ProQuo AI Limited 2021

Eat Real

3 Actions to DisruptLead with your brand valuesUse Communications to communicate your brand’s core values. People don’t expect brands to deliver on Empathy or Integrity. Use social media, newsletters and public display ads to build a strong brand character and personality that captures attention. This might involve some Proposition work to get clear on what your brand’s purpose is, beyond making money.

Focus on provenance and health credentialsUse your Packaging to communicate clearly what ingredients make up your product and their impact on people’s health. Boost your Transparency scores with messaging relating to the origin and calories of ingredients. Being seen to want to help people make the right decisions on healthy snacks will bolster your Empathy scores also. Avoid joining the group of brands looking to hoodwink people. Be open and brave about being people’s partner of choice.

Find a celebrity sponsorBoost your Aspiration by partnering with a celebrity who has a reputation for making the right food choices, as well as being somebody who keeps good company. A character like Ryan Reynolds embodies both the elegance and the health consciousness that has the power to make a brand incredibly desirable.

Looking to Disrupt?

Transparency Aspiration Empathy Integrity

© ProQuo AI Limited 2021

Attraction: A brand that’s appealing: whether that’s because it looks good or presents itself well. Its physical character draws you to the brand.

Innovation: A brand that does things in new ways. It’s always iterating: developing and discovering original ways of thinking and doing things. This brand has momentum.

Performance: A brand that fulfils its promise. It does so noticeably well. It delivers strongly against what you are expecting from its category.

Clarity: A brand which has clear purpose in your life. You know what it stands for, and what to do with it. There’s no ambiguity about this brand.

Connection: A brand that you respond positively to because of how it behaves. You find yourself relating to the brand. It does things in a way that you appreciate and understand.

Transparency: A brand that is free of pretence and deceit - it doesn’t camouflage its activities. It readily offers up details about itself, so that it is better understood. It makes sure it’s open about what it does and doesn’t do.

Accessibility: A brand that is so easy to use: the experience of it once you have it is uncomplicated and intuitive.

Aspiration: A brand that feels desirable and has something special that you want. The brand gives you an urge to have it, and may also feel exclusive.

Empathy: A brand that is perceptive of you: seeing what it is that you need and want. The brand is sensitive not only to what you want, but also why you want it.

Relevance: A brand that is relevant to you: it meets your needs or wants. What the brand offers has a direct bearing on your life.

Differentiation: A brand that stands out from the crowd. It is in some way unique - through its character, communications or in what it offers.

Integrity: A brand that has principles. It always chooses to do the right thing because of the clear values it holds. The brand behaves honestly.

Popularity: A brand that is loved by many; it is often famous or prominent in the world. It is widely applauded and endorsed, giving it popular acclaim.

Consistency: A brand that shows a steady conformity in all that it does. It has been reliably the same over time, creating a strong reputation; or it is the same across all its products and services.

Familiarity: A brand that you know and feel you know something about.

Value for Money: A brand that is worth investing in.

Driver Dictionary

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