In January, the PR firm Edelman reported “for the first time, trust and transparency are as important to corporate reputation as the quality of products and services.” This is important news for us in new product development. We all know that great brands are built on emotional benefits; and trust and transparency are emotional benefits that transcend every product category. While Edelman suggests there is some improvement in corporate trust after the record lows of 2009, products and brands can clearly differentiate themselves on trust.
How do we build trust and transparency into our new products, or rebuild them in our current brands? Maybe we can learn something from the first company I am profiling on evolveNPD.com, Organic Valley. Transparency and trust are central to the organic food movement as consumers seek knowledge of where and how their food is produced. What can we learn from a fast growing consumer brand like Organic Valley? Here are a few things I observed from reading about the company and meeting some of their marketing team members
1. Transparency in manufacturing: Organic Valley has a “transparency” page on their website where they publish updated information on key company variables such as farm size, pasture policies, and farm materials allowed.
2. Transparency in product labeling: Milk cartons use regional labels to communicate where the product was produced so consumers can easily see they are buying milk produced by regional farms.
3. Transparency as a business model: Organic Valley’s co-op model creates a large group of owners with a democratic leadership model. With such a large group responsible for decision-making, it is much more difficult to hold corporate secrets.
4. Trust and the local connection: Organic Valley has chosen to use farmers rather than marketing staff as their spokespeople. Since these farmers are tied to local communities, trust is more easily built with local consumers.
5. Trust and corporate administration: The company builds trust by living their values in ways not directly related to the end product. For example, their corporate headquarters was built using principals of environmental stewardship, and they have a corporate culture of aggressive recycling and eco-friendly living.
Do you think building transparency into new products is worthwhile in your industry? Can you think of examples of NPD efforts aimed at building trust and transparency, either successes or failures? I would love your thoughts and comments!
FYI, you can see the entire Edelman’s report at: http://www.edelman.com/trust/2010/
Tags: marketing strategy, new product development, Organic Valley, transparency, trust
Monika Wingate is the owner of Fountainhead Brand Consulting and V.P. of Membership for the Wisconsin Product Development and Manufacturing Association (PDMA). She has helped a variety of companies develop new products and growth strategies including CUNA Mutual, Hormel Foods, U.S. Bank, and Kohler.
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