Why is it that many sustainable food brands are not so successful?

(previously published in Dutch on Marketingfacts.nl)

When asked to name a sustainable Dutch food brand, everyone immediately shouts Tony’s Chocolonely. But what comes next? Name a sustainable food brand that is truly successful and truly sustainable? More difficult than it seems. Naming an A-brands is already difficult. But if we look at the many start-ups in the food world, it is (unfortunately) a battlefield. A targeted, segmented approach to the right target group could well be the key to success.

Choosing the right target audience

After all, a one-size-fits-all marketing approach is not effective for something as personal as food. Because in a fragmented landscape, it’s hard to stand out. But by focusing on a specific audience, you as a brand can offer unique products and experiences for that specific audience. This differentiation aspect not only increases brand visibility, but also helps build loyalty with consumers within that specific segment. So rather a brand that fits perfectly with a small target group than one that fits a little bit with everyone. By choosing the audience with the highest potential and targeting only that audience, with a targeted media mix and message, you can use your resources most effectively and efficiently. And by understanding the specific characteristics and interests of a particular segment, brands can develop campaigns that better resonate with that audience. Whether they are health-conscious consumers, vegetarians, or lovers of international cuisines, tailoring marketing content to the specific needs of each segment increases the likelihood of a positive response.

Why generic segmentations don’t work

But how do you choose the right target audience? This is not an easy question to answer. The easy way is to choose a target group based on demographic characteristics such as age, gender, income and location. But consumers within the same demographic group can differ significantly in their tastes, preferences and buying habits. For example, we see time and again that differences between generations are smaller than differences within a generation. Within Generation Z, we find both do-gooders and convenience seekers. So focusing on a particular generation or “families with children” is still too generic, because there are major differences between them in the way they look at food.

And then there are existing classifications of consumers into lifestyles or based on general values and life views. But these are often not specific enough for food marketing. In fact, a really useful segmentation for food marketing is based on the socio-cultural dimension of food and the influence of the food environment on the choices the Dutch make. Incidentally, this applies to every category. A really useful segmentation is based on category-specific attitudes and behaviors In other words, you have to look for groups of people who look at your category in the same way and not group them based on how they see the world.

The limited importance of sustainability

We find the answer to the question from the title in the new Food Profiles segmentation. Namely, far from everyone considers sustainability as important in their food choices. In other words, many sustainable food brands are not successful because they are too sustainable. Affordability is currently the most common consideration for Dutch consumers when making food choices, followed closely by enjoyment and convenience. These are aspects that benefit consumers in the short term. Aspects that provide longer-term benefits such as health and sustainability are less relevant at this time. But so what consumers in each profile consider important varies greatly.

The picture below shows the six profiles on two axes. The horizontal axis shows how much time, money and effort consumers are willing to invest in their food. On the far left we find the Experimental Home Chef (14% of the Dutch), who goes for quality enjoyment. His opposite is the Conservative Pragmatist (22%), who is primarily guided by affordability and convenience.

The vertical axis shows whether a consumer is more likely to go for the tasty, or the conscious choice. At the top is the Conscious Vanguard (18%), the group most interested in sustainability. At the bottom we find the Quirky Creature of Habit (14%), a group critical of innovation.