By Robert Wheatley

From left to right, Kerri Erb and her beagles Frankie and Flora; Bob Wheatley and Goliath; Betsi Schumacher and Otto; Ruth Keefover and Millie

Well it’s officially “Take Your Dog To Work” day and here at the agency we celebrate with gusto. Our dogs are patrolling the halls, searching each other out for some one-on-one nose to _____________engagement. Everyone is on their best behavior and enjoying the camaraderie.

My dog, a gentle giant named Goliath, is a 170-pound Newfoundland who has a habit of stopping traffic wherever he appears because onlookers first think I’m sporting a pet black bear. He’s sitting at the foot of my desk right now, a sort of big furry sentry watching the entrance of my office. If I make a move of any kind to stand up, walk down the hall, flinch, nod or whatever, he’s right there with me never more than a few inches away. My four-legged shadow.

And that in a few words explains the basic premise of our relationship. Never far off. Always with me. Always anxious for interaction. He’s consistent and faithful in that regard more so than most humans I know. I’m sure he has his bad days but for the most part I would characterize him as permanently chipper, good natured and happy. Sure he pleads directly for the tummy scratch or head rub by using his paw to push my arm in the appropriate direction. His head, by the way is seriously the size of a basketball. You wonder at times what’s going on in that brain of his.
It goes without saying we like each other. We have this thing, this sort of unsaid communication that’s always on. He watches me intently for cues on the next thing to do, go or see. So yes, this is a relationship. Pretty solid one at that. I don’t mind getting slimed which is par for the course with a big-jowl Newf. He doesn’t mind getting yanked along during a walk when I don’t have time for the sniff-every-object routine. We hang out.

So I get the pet food business growth juggernaut. I understand the premium-ization of pet food. I know why pets are now family members and accorded the rights and privileges thereof. We love them through our stewardship and care. They reward us with faithful, enduring, calming and uplifting attention. Pet products enable us to convey our love for them. It’s powerful stuff.

Other lifestyle acquisitions fail us routinely. They break. They cease to amuse. Don’t live up to our expectations. Become passé. Their value always tied to the moment of utility or entertainment where they hold court however briefly. Pets endure and transcend all of this. Now if only they could talk.

Trading Up Fuels Pet Business Results…

By Robert Wheatley

This just out from Packaged Facts: pet product and service sales are up 5% in 2009 to $53 billion. And the forecast going forward is rosier yet, despite the lingering impact of the economic downturn. According to Don Montouri of Packaged Facts, a reason for this stellar industry performance is, “the human/animal bond… and ‘pet parent’ sentiment has never been higher.”

The upper end of the pet food market was once the province of pet specialty retail stores. Now the larger chains like Petco and PetSmart have added natural and organic brand aisles to take advantage of the upswing as consumers continue to pursue higher quality diets. The super premium business is about 8% of the pet food overall and is growing at double digits.

What is the underlying condition that shores up and protects the pet products business while others reel from consumer spending cutbacks? For one it’s the rise of pets to family member status. The emotional bonds continue to grow stronger and take on added importance to consumers. This over-arching condition seems to get lost, however, at the shelf and in some super premium brand communications.

I’m Natural… Oh Yeah, Well I’m More Natural!!!

Despite the laudable fundamental conditions in the pet food market, pet brand competition these days is focused in many cases on a form of natural and organic one-upmanship. You can see the tell-tale signs of ingredient story specsmanship and analytical selling propositions, made especially evident in package communications and other forms of outreach at shelf, as well as what appears in consumer-facing media.

Seems logical enough if you have the high quality proteins, fruits and vegetables, and it is food after all, shouldn’t you be taking credit for bringing “human grade” nutrition to Fido’s bowl? On the one hand you can understand why this becomes the center of brand/pet parent communication especially via product packaging at the store level. But the decision isn’t in the tapioca or the real chicken meat, it’s in the feelings consumers have about the brand and about the relationship they have with their animal.

Bottom line: brand decisions are made based on feelings more than facts. For sure strong brand value propositions are holistic combinations of financial and functional benefits — and certainly nutritional excellence and food quality factor in. But the most powerful tool of all is in the emotional bonds that can be created when pet brands start examining how they can enable pet parenting experiences and communities.

Consumers are not fact-based analytical decision making machines.

Pet parents, if anything, are driven by their emotional relationship with their pets and the desire to express their love for the animal by providing a better quality of life (diet is absolutely connected to this goal).

So the call to action: high quality nutrition is important but it doesn’t super-cede the need to meet consumers where their hearts are invested. The brands that dial this in will create opportunities to accelerate their growth in what is already a favorable business environment.

Those that get this right will be the big winners as the pet food business continues to gain momentum in the year ahead.

By Bob Wheatley

Photo credit: Sharon Dominik

Forever and a day I’ve seen this concept play out in various categories from beverages to food, travel services to floor care and cleaning products, that 80% of your profits can routinely come from 20% of your customers who constitute the most engaged, heavy users in your business. Call them your best fans.

Yet routinely we focus our efforts, strategies and spending on casting a broad net. We try to be appealing to everyone because we keep telling ourselves that our brand and business not only deserves high household penetration, but “we can’t ignore the volume opportunities.” To be sure, but the 20% that’s mainlining your brand and paying attention to your messaging with a little help and “enabling” can become a more productive core of real-world ambassadors. People who can help spread the word effectively to those who are not as fully invested and who don’t buy as often.

Take cheese and pet food for example. Cheese is one of the most popular food categories in supermarkets. We like cheese, so it’s a big volume business. Yet a closer look reveals that consumers who are more emotionally engaged and devoted to cooking represent a “heavy user” profile that purchases more cheese products, more often and in many cases will go for higher priced items when they feel the value proposition is credible. So paying closer attention to this group of emotionally charged ‘kitchen commanders’ can yield incremental benefits in talk value and word of mouth, once they’re fully embraced, recognized and rewarded by the brands they love.

Or in pet food: a dynamic audience combination we refer to as indulgers and doters consists of a high percentage of higher income households who treat their animals like family members — and will even go as far as cutting back on some of their own discretionary purchases in order to keep Fido in tip top shape by feeding him a super-premium pet food diet. Industry statistics show this group continues to fuel an incredible growth track record in the emerging natural and organic segment – even though the tough economy has weighed in heavily in many segments to compel “trading down” behaviors.

Your call to action…

Think of it this way, your PR communications ROI outcomes will improve when communicating with an audience that’s really, genuinely paying attention. Those who have emotional, personal lifestyle connections to a brand are listening — first at the category level. A brand that works over time to mine relevance with this audience has the opportunity to build a unique relationship and bond. Conversely broad awareness tactics can perform as a “reminder mechanism” for the larger audience segments out there who may buy less often but who have ties to the franchise through their habit behaviors.

1. Consider for a moment the opportunities from investing more fully in courting your heavy users. What would you do differently? What efforts might you undertake to help create a community around these groups and empower them to interact with each other – especially important for home chefs and pet parents who want to share tips, ideas, experiences and insights with each other.

2. What rewards and recognition can you offer to your most devoted followers that surprise and delight – and thus are often the triggers to generating strong, credible and organic word-of-mouth communication.

3. What sponsored experiences can you create and deliver that bring your brand as close as possible to your best fans and allow them to interact with you and each other. In food this could include unique culinary experiences that reward your best customers with an opportunity to learn from the food heroes they respect like celebrity chefs. For pets it could be local dog park events and contests that allow pet parents to engage in shared experiences with their animal and with each other.

But wait there’s more…

Today, excellent blogger and thought leader Sonia Simone has an interesting post at Copyblogger that talks about the personal side of the Pareto Principle and how it impacts you and what you do. Her observations:

“…Which means that 20% of your customers provide 80% of your revenue. 20% of the time you spend behind your computer provides 80% of your best work. And 20% of that great meal you had last night provided 80% of the pleasure. (It was the chocolate mousse cake, wasn’t it?)

Because of the Pareto Principle, there’s always a “20%” you should be spending your time on. And in just about every discipline, it’s known as the fundamentals.”

Have you sat down to think about your day, your activities and to reflect on this idea – that 20% of your efforts will produce 80% of the great results and accomplishments you’re looking for? So what do the fundamentals look like for you? Maybe it’s a good idea to start by putting more energy and investment into courting your biggest fans…

A Stroll Through a Pet Trade Show Can Be Eye Opening
By Kerri Erb

Can you believe I love going to a trade show? At least when it comes to the H.H. Backer Annual Pet Industry Christmas Trade Show and Educational Conference in Chicago. It’s a trade show I look forward to every year, because as a pet parent I am passionate about my beagles, Frankie and Flora, and pretty weak when it comes to spoiling  them with toys and treats.

I’m apparently not the only one, since the pet industry is still growing and set to generate $51.6 billion in sales this year according to a recent report in Petage.

Just When You Think You’ve Seen it All

The show is also a bit of sensory overload, with booth after booth of everything and anything you can think of that could be made for pets: pet food, dog leashes, dog collars, pet beds, pet supplements, pet clothes and even pet shoes! With that also comes the issue of sameness. I kept thinking to myself, how can any pet product stand out among all of these exhibitors? But when it comes to pet accessories I suppose it’s all a matter of finding something that fits with your lifestyle like an eco-friendly dog collar, or cool performance gear for dogs on the go, or even the fashion forward options that are available too.

Paws Down, My Pick for ‘Best in Show’

There’s a new company that stands out to me as my favorite pick of the show, called Yep Yup. It’s a combination of home décor for pets and pet parents so your house doesn’t have to be filled with paw print covered pet beds and dog bowls. I think the founder, Sepi Banibashar, is brilliant for coming up with fun designs that stylishly incorporate your pet’s stuff into your home. I can’t say that I’ve seen something so beautifully designed, so her business really stood out at the show, which is not easy to do.

Photos courtesy of Yep Yup

Some of the pet food and pet treats companies also have a presence at the show too, and that’s where the sameness can make things pretty confusing. It’s one thing for pet leashes to be very similar, because then it’s just a difference in taste and style. When it comes to pet food, it gets more complicated. How are pet food brands supposed to be distinctive when everyone seems to be saying the same thing?

My Nutrition and Ingredients are Better Than Yours

In speaking with the pet food brands at the show, they even agreed that there’s quite a bit of sameness, from similar sounding ingredient stories, to packaging, it’s clear why there’s so much consumer confusion about pet food brands. Not to mention, pet food brands are letting the decision-making process on which food to buy happen at the retail shelf. So when pet parents stand in front of the rows of pet food, they see what seems like the exact same story about the best quality ingredients and countless glossy bags with images of real chicken and fresh vegetables displayed.

There’s a HUGE opportunity to reach consumers and gain their loyalty BEFORE they get to the shelf. I want the best for my beagles, like most pet parents. That means doing my research before I even walk out of my house to make a pet food purchase – that’s when you want the decision to be already made, before a consumer gets confused by the sameness at the shelf. For pet parents like me who are savvy about ingredients, it’s so much more than just the packaging. In fact, it’s long before a pet parent steps into a store that your brand can make a move to become the leader of the pack.

Let me know your thoughts or if you’re a pet food brand looking for some answers on how to break away from the pack, drop me an email at kerb@wheatleytimmons.com or twitter.com/KerriAErb.

A Visit to the Virtual Dog Park

By Kerri Erb

One of my favorite things to do is take my beagles Frankie and Flora to the dog park. It makes me feel good to see them playing with their dog pals, and I get to connect with other pet parents. The conversations between us pet parents range from the food we’re feeding our pets, our favorite pet products, recommendations on veterinarians and dog walkers, and even fun dog events around the city. Almost always…it’s about our pets.

My Virtual Dog Park

Then a while back it occurred to me, while talking about the power of social media to a pet food brand, that my involvement in the online pet community is actually very much like a virtual dog park. I connect with hundreds of pet parents via Twitter and the Pet Friendly, Animal Lovers group on LinkedIn to engage in the same type of dog park chatter and swap information about pets. So when I can’t physically be at the park to share information with pet parents, I know I can count on the online pet community that’s out there 24/7 with an abundance of great recommendations and information to help me be a better pet parent.

Pet Companies Need to Join the Pack

Some pet brands are connecting with the pet community on Twitter. Some are doing a great job, while others are missing a huge opportunity to establish a relationship with existing and potential customers, and ultimately help them sell more products. I’m surprised by how many pet companies are not out there. With more than $45 billion projected to be spent on pets this year, the thousands of us pet parents out there online are buying from and supporting those brands that are joining us online with information that helps us make the lives of our pets even better.

It can definitely be scary to get out there and join the online pack, but what do pet brands have to lose? Your competitors are probably out there right now. Pet parents are already online and in powerful numbers. Not to mention they don’t bite! If you have a public relations or marketing partner, they can be that life jacket for you as you jump right into to the deep end of the doggie pool. If you aren’t quite ready to partner with someone to help you go down the social media path, the smart thing to do is take a moment to establish your own social media protocol.

Let’s face it, pet parents are probably already out there barking about your company – good and bad. While you might be holding out on getting started, don’t make an even bigger mistake by allowing the negative remarks go without a response from you. They can take on a life of their own. You gain respect from your customers by quickly responding to any issues and questions.

Virtual Dog Park Etiquette

Just as there are written and unwritten rules of the dog park, the same goes for how you join a tight-knit online pack. So if you still aren’t sure, these initial guidelines can work for any brand, but are really geared towards giving pet companies a nudge in the right direction. Even if you’re already out there, you may not be using all the social media tools to your advantage. Here are some initial guidelines:

• Don’t just talk about you and your product. Give me all kinds of pet lifestyle information that is helpful to me. That way I see you as a trusted source of pet information. Maybe even partner with a veterinarian or a pet behaviorist to be another voice for tips

• Celebrate your brand fans! Engage in conversations with them (especially on Twitter and retweet their positive comments). As a pet parent I respect the endorsements of other pet parents, versus a brand being self-serving about their products.

• Host fun contests and give away your product via social media (especially Twitter). It’s a solid way to gain followers and show your appreciation for those who are loyal to your brand. No doubt that those who have a great online experience with your brand will be sharing their recommendation for your product with other pet parents – the power of “word of mouth” at play!

• Don’t just let people “follow” you. Be sure to follow people back.

• Not everything you hear from your customers will make your tail wag, but it’s OKAY. Just respond to any issues or problems right away. Be honest and make the situation right, and you won’t lose that customer to another brand.

If you still want a partner to provide you a gentle lead on actually getting started with social media, I’m always up for a conversation about how to engage your brand with the pet community. Email me: kerb@wheatleytimmons.com or find me on Twitter: twitter.com/KerriAErb

Exploring the bond that generates awesome business growth

By Robert Wheatley

Pets. What a business – pet food is a $16 billion enterprise! What a category – growth is projected in double digits for premium natural and organic brands through 2011. In the midst of a difficult economy, the pet food industry shows no sign of slowing its march north to better, higher quality diets.

What is it about the relationships with our four-legged companions that so fully insulates this business from trading down?

Why does pet food escape the decision dogging so many other household expense categories to look for lower-cost options?

What’s the story here that protects spending on the health and welfare of these furry companions?

Significant Business Opportunities Abound

By Robert Wheatley

Pet food is an amazing business. Significant growth rates are forecasted over the next five years. Pet parents are emotionally involved and inquisitive consumers. Even in this troubled economy, pet owners how no signs of cutting back on their purchases for Fido. If anything the trend to trade up to more expensive natural diets — employing higher quality nutrition and ingredients — continues to pick up steam.

The upside business opportunities are significant. So competition is getting hotter. To capture consumers who are trading up, new entrants into the natural and organic segment are emerging. Mass brands are looking to enter the business with line extensions and new brands. Most authentic natural brands historically have been sold at specialty retail outlets that cater to the top quality pet diet products. However, big box outlets like PetSmart and Petco have also recognized the move to premium diets and established “natural” aisles in their stores. The game is on!!

In 2008 our agency represented the Nature’s Variety pet food brand, a market leader in raw frozen diets and also a major player in grain free nutrition, too. Our campaign for them helped deliver 20% sales growth last year. Additionally the Publicity Club of Chicago recognized the agency’s strategic effort with a Golden Trumpet award in Consumer Marketing; a Silver Telly from the Telly Awards in Direct Marketing; and our Rotation Diet program was a one of five finalists for the Golden Sabre, the top national award in the Public Relations field.

An investment firm acquired Nature’s Variety and brought in their own team, so we moved on. Our goal: take our pet food expertise and know-how forward to another growing brand looking to win big in this increasingly competitive category. To that end we’ve developed a short movie that profiles some of our insights in the evolving pet food business. Here it is:

W&T comes up big in awards season

By Robert Wheatley

There’s winning and then there’s winning. Our firm struck gold twice for Nature’s Variety pet foods. And silver once for Thermos brand. It’s award season, the time when industry peers assess and evaluate the finest work out there to determine the campaigns worthy of a best-in-class trophy.

For W&T the win isn’t in the trophy. It is in the validation of our strategies, insights and work by those who arguably can tell the difference between medium and outstanding. Interestingly the Gold level recognition is for the same program on behalf of Nature’s Variety pet foods.

Bravo to all of our brilliant team members who made this happen and at the source of all the effort and great ideas that led to this outcome…

Publicity Club of Chicago has awarded a Gold Trumpet in the Marketing category to W&T for Nature’s Variety, and a Silver Trumpet in the same category for Thermos brand’s Hydration For All campaign. At the hotly contested national Sabre Award competition, Nature’s Variety is one of five finalists for the top prize in marketing, the Gold Sabre. Getting to this level is no easy task as the largest global brands on the planet participate. Our work bested a broad field of iconic household names with very deep pockets.

The Rotation Diet campaign for Nature’s Variety was an outcome of a close collaboration between agency and client. Our goal was to identify the right path to building distinction and differentiation into an emerging pet food brand that is fighting for growth and share. In the end the victory is found in the client’s business results. So here’s to 20 percent year on year growth at the bottom line! This outcome is really our finest hour. And importantly an hour now acknowledged by our peers and colleagues.

Likewise the strategic campaign for Thermos similarly helped fuel sales and distribution growth in a difficult economy. The core idea: leverage Thermos as part of the rising tide of consumer interest in moving off of drinking water in plastic bottles and on to more environmentally appropriate solutions. The project put Thermos in the center of public and media discourse on the evolution of hydration and water consumption.

As a former national award judge, I understand the criteria separating winners from the rest. It is not just a judgment on the freshness of an idea or its superlative execution. Rather, it is the result that weighs heaviest. The goal of marketing communication investments for any brand is acquiring and keeping more customers. The extent to which W&T’s work contributes to client business growth is the real measure of excellence. That our peers agree is just icing on the cake.

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