How Mondelez Is Using Data to ID Emerging Trends for Product Development
For Mondelez International, developing innovation is about addressing unmet consumer needs — a strategy that requires deep, data-based relationships between the brand and shopper.
The company’s product development approach includes maintaining a pulse on ongoing and emerging shopper trends to “deliver more excitement through new flavors or new pack formats that better fit consumers' lifestyles," shared Lori Herman, consumer insights lead at Mondelez, during an MMR Research virtual event.
Identifying the Emerging Trends
In describing their strategy, Herman placed consumers across a spectrum that’s book-ended by those looking for healthier options (with intentional indulgence) and those more focused on delight.
With the rapid gain in popularity of weight loss medications such as GLP-1, companies have had to consider how the trend might impact shopper behavior.
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“I think what it's going to do is really impact the types of products we're seeing and maybe even claims on packs,” said Herman, who added that protein-rich portfolios will likely benefit more due to the nutritional needs of those on the medication, and more high-protein snack products could enter the market as well.
Additionally, it could lead to new packaging standards, much like non-GMO has become table stakes for many brands, she said.
Another component is personalization — a trend that has been growing for some time. "I think that's probably going to continue to emerge as people have so much more technology and medical insight as to what their bodies actually need,” said Herman.
Also, experimentation as a trend itself is gaining traction. Herman referenced consumers who seek out new products at Costco and purchase them in large quantities before even trying them. This behavior is likely due to influencers, social commerce trends on TikTok, and perhaps even simply “the magic of Costco and the perception that it's got to be good if they're carrying it.”
Aligning Product Development and Marketing
Not every new product will be a winner. Herman emphasized there will always be instances of the company thinking they’ve developed a brilliant idea, but when it’s exposed to consumers, the feedback is “it's too sweet, it's too bitter, it's too this, it's too that.”
For this reason, she notes that it has to be more than just a concept on paper.
“It has to be qualitative and quantitative work that helps us understand their response to the idea, to the format, to the taste, to the texture,” she said. “There is nothing more valuable in my opinion than sitting in a room with them … or on a virtual screen, talking to them and hearing from them — and having them experience your ideas and your products then developing from there.”
Also read: Mondelez’s Gen AI Content Strategy
Overall, marketing teams should be dedicated to innovation marketing and not just product development, she said. They should be thinking holistically about development, ensuring the consumer point of view is incorporated to optimize the product and the experience for the individual consumer.
“Everybody's kind of wearing lots of hats and our marketing partners are absolutely focused on the inkling of the idea all the way to ensuring it's delivering to the consumer what they expect,” said Herman.
