Kellanova's Charisse Hughes Talks 'Ideation Factory' Strategy
CGT's sister brand, the Path to Purchase Institute, recently held its Retail Media Summit in Rosemont, Illinois. During the conference, the keynote began with presentations from three high-level executives at Kellanova, Happy Products and Albertsons.
During a conversation with Lisa Johnston, P2PI editorial director, Charisse Hughes, Kellanova SVP & chief growth officer, described how the consumer or shopper is at the heart of everything they do.
She said her organization has leaned into innovation by creating an “ideation factory,” which standardizes the way it brings products to market. (Health & wellness and sustainability are also pillars.)
“Creatively, we’re starting with data,” Hughes said. “We acknowledge that and make a commitment to data as an asset.” The focus is on creating value for consumers and aligning with brand values.
Moving on to the customer journey, Hughes said Kellanova goes well beyond the traditional, and beyond transactions. “How do we lean into culture?” she offered as an important point.
Hughes presented multiple examples of how Kellanova keeps its brands top of mind.
Among them was the activation surrounding the Pop-Tarts Bowl, a Pringles/Crocs collaboration, and leveraging a TikTok video that paired Pringles with caviar.
“We’re really leaning into culture in a variety of ways,” Hughes said.
She added that Kellanova focuses on understanding where the consumer is shopping. “We have to be where they are with the right message.”
She described how they are identifying high-value audiences with clean room technology, providing an example of how they executed creative separately for brand lovers and price sensitive shoppers.
“We have to have the right data, understand the data and talk to consumers,” Hughes said.
Ten years ago, Kellanova committed to first-party data with its Kellogg Family Rewards. “Since then, we have put the brands at the center of our conversation,” she said.
Hughes discussed how Kellanova leverages AI to make sure its creative is effective. Additionally, the AI is focused on the digital shelf for consistency and high quality. And, the company serves the customers with predictive AI.
As it strives to make retail media part of its broader strategy, Kellanova has reorganized its teams into “full-funnel” teams, Hughes said. “All these folks are at the table.”
In closing, Hughes offered advice on leadership. Among her points:
- Poise and professionalism under pressure is important.
- It’s critically important to balance hard truths with optimism.
- Control the controllables.
“Our North Star is to be a snacks-led powerhouse,” she said.
Happy Products
Craig Dubitsky, founder of both Hello Products and Happy Products, brought the audience through his journey with Happy coffee.
“I love people. I’m obsessed with giving people better stuff,” he said.
He says he’s not a disruptor, as he’s been labeled. “The only people who call me a disrupter are the people being disrupted.”
Dubitsky said it’s important to “delight” people. “Keep bringing delight to more and more people.”
Emotional innovation is also key. “The challenge is, how to make something endearing and enduring.”
While coffee is a commodity, coffee makes people happy, he said. “The people buying it are happy.”
Discussing sustainable packaging for Happy ground coffee, the package (or “vessel” as Dubitsky calls it) is “beautiful.” “It’s recyclable, refillable, reusable and remarkable.”
Continuing on his journey, he discussed the launch of Happy ready-to-drink products as well as the brand’s partnership with Tate’s Bake Shop cookies, which has resulted in cookie-flavored coffee and coffee-flavored cookies.
Going back to the “happy” theme, Dubitsky also talked about how not everyone is happy, and how mental illness is prevalent.
As a result, Happy has partnered with NAMI, the National Alliance on Mental Illness. NAMI messaging is now highlighted on every package of Happy coffee.
Albertsons
Sean Barrett, chief marketing officer at Albertsons Cos., discussed the transformational shifts in shopper behavior that have occurred the last few years as well as the retailer’s strategy to attract and retain customers.
“Coming out of the COVID-19 pandemic, there were two dynamics: value-seeking consumers and time-starved consumers,” Barrett said during a discussion with Cyndi Loza, P2PI senior editor.
To reach them, Albertsons’ strategy has been threefold:
- Lower prices, and then leverage the scale of that.
- Deliver personalized, relevant offers that are right for the customer.
- Leverage its loyalty program by simplifying things, making it easy to realize value, and innovating with new as well as third-party partners.
Shoppers are value-conscious. “The role of retail media is very important in this,” Barrett said. “We want them to shop at our stores and feel that it’s not a bad decision.”
Convenience has been a strength of Albertsons. “Convenience-seeking shoppers over-index with us,” he said.
Barrett added that digital capabilities and personalization are important with meal planning. “It’s important to connect with customers anywhere they are thinking about planning.”
The challenge, he said, is: “How do we engage? How do we do it in a personalized way?
“It’s about being helpful,” Barrett continued. “Know the customer. Only put in front of them something that is helpful to that moment.”
Furthermore, in-store marketing opportunities are incredibly valuable, he said. The closer to the point of purchase it is, the more valuable it is.
Personalization and the use of data is the core of that. “We have so much data on our customers. What we know about them is incredible. ... We now use data to predict their next action.”
Bringing retail media (i.e., Albertsons Media Collective) in-house has impacted brand partnerships, Barrett said. “There’s an opportunity for brands to reflect and operate differently with retail media.”
A version of this article first appeared on the site of sister publication P2PI.