Category

CPG

Future of CPG Marketing:
Building a Winning Strategy

man on speedy go kart - full

The Consumer Packaged Goods (CPG) industry marketing is changing. The game and the rules are evolving, and brands need to identify and implement new and strategic ways to keep up in order to remain profitable.

According to Clare Gordon, Nicolas Willemot, Eileen Shy, and John Grudnowski in their Bain & Company article, “Today, marketing consumer products is more like a sprawling contest of mixed martial arts, with new competitors playing by different rules; an unprecedented complexity of channels, content, and partners; and a step-change in speed and ways of working that has punches flying at incumbent consumer products companies.”

To ensure future success, CPG brands need to transform their marketing operations to better connect with consumers in this ever-changing industry. Here’s how brands can prepare for the future of CPG marketing.

Define New Growth Platforms

In the past, brand marketers just considered geographies and nearby industry verticals when brainstorming marketing methods. However, this approach is no longer effective. Brand marketers need to take more factors into the mind and remain aware of new marketing trends that emerge in the CPG industry when coming up with marketing strategies.

CPG marketing trends have shifted from services to experiences, and now further to communities, and brands must discover new growth platforms in order to keep up with this pace of change. To determine the most effective marketing methods and growth platforms, they need to evaluate the past and the future. Brand marketers can enhance their marketing methods by combining the old with the new.

So, instead of relying only on legacy marketing tactics, brand marketers should think “outside the box.” Consumers today want more engagement with brands. Marketers should create innovative ways to connect with consumers based on demand while envisioning marketing strategies that influence every touchpoint of the individual consumer journey in the long run.

By taking a step further and implementing a growth platform that enhances marketing tactics of the past to improve the future, CPG brands can transcend beyond their current products, business models, and capabilities.

man with tablet showing charts-growth

Rethink Your Brand Portfolio

The truth be told. The conventional marketing formula no longer brings growth. As the marketplace undergoes a rapid transformation, marketing leaders are compelled to rethink their brand from its competitiveness to capabilities and the way they connect with consumers.

Disruptive industry trends and insurgent brands have raised the bar on consumer expectations that force brands to build and manage a more diverse brand portfolio to meet the demand.

By focusing on refining optimal portfolio roles, identifying winning strategies, determining the level of investments and ROI expectations, will help marketing leaders to develop a 360-degree consumer engagement strategy through omnichannel touchpoints of the customer journey. According to the article, “CMOs need to reassess growth platforms and future brand portfolios, along with developing a supporting strategy on data and technology,” to fulfill their newly assigned role as growth drivers in this versatile CPG marketplace.

brand idea poster - onsite services

Transform Your Operating Model

Brand marketers should consider adopting a new operating model and partnership structure that falls in line with the emerging trends in the CPG industry. They must also ensure that they have an effective process in place to manage this transition.

Brands should collect and utilize customer data in order to personalize the shopping experience for their target market and make it as engaging as possible for shoppers. As Gordon, Willemot, Shy, and Grudnowski explain, “Take control of targeting and consumer data to build differentiated capabilities for retargeting groups of consumers, as well as driving insights and guiding strategy.”

Consumers expect to see advertisements that are specifically targeted to their needs. Brands can put their consumer data into good use to tailor their marketing techniques to fit the profile of their target audience.

When you identify the needs of your customers and effectively use personal information, you can influence their shopping process, convert them to loyal customers, and simultaneously drive sales for your business.

*****

As new trends and changes emerge in the CPG industry, it is essential for brand marketers to be aware and plan new marketing strategies for the future.

By defining new growth platforms that involve “thinking outside the box” of legacy marketing methods, focusing on refining optimal portfolio roles by revamping your brand portfolio, and transitioning to a new operating model that satisfies customers’ shopping experiences, CPG brands can generate demand, drive sales, and keep up with the fast pace of industry changes.

Related blogs:

Subscribe to the Blog

Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

LEARN MORE

Three Key Tips to Gain Competitive Advantage in CPG

man looking at consumer product at a grocery store

Undeniably, the Consumer Packaged Goods (CPG) industry faces unique challenges. Over the past five years, many CPG brands have experienced a decline in revenue and profits. Brands are struggling to keep up with changes in the industry, and some are consequently falling behind as the broader retail landscape changes.

According to Bain & Company’s Matthew Meacham, François Faelli, Eduardo Giménez, and John Blasberg in their article, “When we analyzed the performance of 34 of the world’s top 50 consumer goods companies in the last few years, we made the unsettling discovery that 85% of those big companies had seen a decline in either revenues, profits or both.”

In order to ensure future success, brands need to find ways to combat the current challenges in the industry. So, what can CPG brands do to overcome the current crisis in the industry?

shadowed people with bubbles - account management

Be Agile with Emerging Trends

With advances in technology and the emergence of a new generation of shoppers, the CPG industry is constantly evolving. The wants and needs of customers are changing, along with the ways they shop. Brands that hope to survive in this ever-changing market need to keep up with the new trends.

One of the most significant trends is rapidly shifting in consumer behavior as they become more socially, environmentally, and health-conscious. This fast-growing trend contributed to the considerable disruption caused by small insurgent brands in many product categories, making the competition even more intense.

In order to support the new wave of consumers and to compete in the current market, brands should focus on establishing a robust multi-channel presence to connect with the target consumers where they are comfortable to interact and share.

When brands are aware of emerging market trends, they can come up with a plan to prepare for them ahead of time. By serving the consumer in the way they want to be served on par with the current trends, brands can outsmart the competition to be successful in the marketplace.

Reinvent Brand’s Image

Brand marketers need to start thinking “outside the box” when it comes to engaging with customers. Instead of relying solely on legacy marketing tactics, brands should consider ways to draw in customers that they haven’t used before.

Meacham, Faelli, Giménez, and Blasberg explain: “Winning companies will innovate their way out with new products, new systems, and new needs that help elevate their categories to premium status while increasing product and assortment penetration.”

If keeping up with the current trends is “today forward” strategy, brands also will need to take “future back” approach to set their own destiny and progressing toward it.

By redefining the vision for your brand, and your company – future back approach – to rearticulate a meaningful, sustainable, and consumer-driven purposes will inspire to reset the brand’s sense of urgency and to become the frontline innovator.

woman shopping on tablet - CPG

Directly Engage with Customers

Traditionally, most CPG brands don’t maintain a relationship with customers after they make a purchase. However, if brands take the initiative to connect and develop lasting relationships with their shoppers, they will drive sales and increase their opportunities for upselling and cross-selling.

Adding the data-driven personalization in every customer touchpoint will significantly improve customer commitment to the brands, especially when a customer feels connected, understood, and valued by the brand.

One way is direct mail follow-ups with customers after they’ve purchased your product. Consumers typically respond positively to direct communication because they appreciate feeling that their feedback is important.

Also, brands should consider opening pop-up brick-and-mortar stores to improve engagement with consumers. Brands can more easily establish impactful connections with their shoppers in a physical store, where the entire consumer experience is curated by the brand.

There is no sales method more effective than good old-fashioned, positive, face-to-face interactions. When a customer leaves your store feeling like they’ve had a good experience, they are more likely to come back and also to encourage their friends and family members to shop there.

*****

The current crisis in the CPG industry doesn’t mean that your brand is doomed to struggle. Instead, brand marketers should see these market challenges as opportunities to redefine their business by thinking of new, creative ways to engage with customers and drive sales.

Making sure you stay in the know regarding new market trends, coming up with innovative ideas for products and marketing tactics, and putting in the effort to reach out and directly engage with your customers are important steps you can take as a CPG brand marketer in order to flourish in today’s challenging market. By understanding these useful actions, CPG brands are more likely to remain profitable and ensure a successful future for their business.

Related blogs:

Subscribe to the blog

Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

LEARN MORE

Mixed Reality Marketing: Three-Dimensional Storytelling

man with vr goggle on

Marketers are always seeking the next big thing; whether its an emerging trend, a new generation of consumers, a viral social platform, or a technological innovation. Many experts predict that the “next big thing” for brand marketers is the Mixed Reality (MR).

Mixed Reality (MR), including Augmented Reality (AR) and Virtual Reality (VR), is becoming more and more attractive. Technological advances give customers a whole new way to visualize and experience products in different settings.

According to David Roe in CMS Wire, “MR, also referred to as hybrid reality, is the technology that is used to merge real and virtual worlds and produce new environments and visualizations where physical and digital objects co-exist and interact in real time.” It is predicted that a staggering 100 million consumers will be using MR by 2020.

In order to ensure future success, brand marketers should stay ahead of the curve and be able to capitalize on the opportunities presented by advances in MR technologies. So, what can brands do to take advantage of MR technologies?

AR on magazine and direct mail

Reimagine Advertising

MR technology enables marketers to be creative with their advertising experience by placing the brand image closer to the eyes of consumers.

Brands can take customers on an experiential “test drive” of their product before making purchase decisions. This builds confidence in their product with ads that can transform UX and the buyer’s journey into the next level.

Using MR technology, brand marketers can also tailor their ads by applying consumer’s preferences where the content of each ad shifts by specific circumstances and even with different languages.

This will help brands tell a better story in a more compelling and a meaningfully interactive way. With Millennials and Gen Z becoming the prime consumer group, the early adopters will have the upper hand in providing a superb customer experience and staying ahead of the competition.

Let Users to Truly Connect

Where there is content, it gets shared. You and five billion other smartphone users instantly connect via various social platforms. AR and VR are the new channels that marketers should consider to increase brand awareness. It is a new way for consumers to connect with your products on a deeper level, from the first-person perspective

For example, home-building brands can implement ways for customers to visually rotate and move furniture online in 3-D, enabling them to more easily see which products look best to them. They can also “see” how various materials and finishes will look and feel in a digital mock-up of a home.

This new trend also bridges the gap between the old and the new. The traditional marketing tactics are evolving as digital and virtual technologies mature, becoming a new storytelling medium for a new revenue stream.

Especially in the form of AR, where no wearable device is required but your smartphone to connect consumers with your products. Simply point and scan brochures or catalogs with an AR app to make a purchase or receive relevant product information and tips.

female using interactive screen to customize shopping

ChatBots 24/7

Some service leaders are now using artificial intelligence (AI) and virtual customer assistants (VCAs) as tools in their contact centers. Brand marketers should consider developing VCAs that can effectively interact with and provide technical support to customers.

By allowing well-equipped bots 24-7 to handle basic customer service queries, customers are cared for when needed, resulting in establishing trust-based relationships between customers and your brand. Using bots can also significantly reduce wait times for customers seeking assistance, which will increase customer satisfaction with your brand.

In the meantime, human representatives can focus solely on helping customers with complex, in-depth issues that require multi-layer customer support. As a result, they will become loyal shoppers and will recommend your brand to others.

*****

As new MR technologies become more available, brands need to capitalize on the different ways to use them in relation to consumers.

By assigning bots to assist customers with simple service inquiries, giving shoppers the opportunity to virtually test drive your products with AR before committing to a purchase, and provide a meaningful first-hand experience to connect with your products, brand marketers can enhance brand awareness, increasing demand generation to drive sales and revenue.

Related blogs:
2020 Shopper Marketing: Are You Ready For This New Wave of Consumers?
Looking Ahead: What Winning Customer Experiences Will Look Like in 2020
Top Brand Marketing Trends for 2019

Subscribe to the Blog

Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

LEARN MORE

Retail Trends: Defining Your Strategic Roadmap

The retail industry today is more exciting than ever. With increases in technological advances, shopping has become a part of consumers’ everyday lives. Now, they can shop anytime and anywhere at their own convenience. The modern shopper is always in control, always in the “driver’s seat.” And they expect to have their shopping needs met by the brands they choose.

According to Kelly Bransten in Microsoft and PSFK’s eBook, “Success in this new era is dependent on understanding and anticipating the needs of customers at every stage of the retail journey.”

In order to ensure future success, brands need to find ways to capitalize on the emerging trends in the retail industry.

people looking up - crowd

Create Raving Fans

Shoppers want a customer-first kind of experience. And, with increased technology, brands are now able to gather valuable consumer data to help them accomplish exactly that. Consumers today are more open to sharing their data with brands, but they expect a more personalized shopping experience in return.

To deliver a more exceptional experience using customer data, brands first need to understand what kind of information is necessary. Once they have gathered the appropriate data, brand marketers should send personalized recommendations that address the individual needs of the shopper. These recommendations can be delivered electronically as emails or physically in the form of creative, attractive direct mailers. When customers feel their individual needs have been met by your brand, they’ll be more likely to make purchases in the future, and to recommend your brand to others.

Consumers are more likely to give out personal information to brands when they feel they will receive exceptional service in return. So, one way to incentivize customers to share their personal data is to offer exchange benefits such as discounts, loyalty points, and access to special, recommended deals. This exchange of information also helps establish trust between the customer and brand marketer, resulting in a higher conversion of raving fans for the brand.

Ensure Positive Brand-Customer Interactions

In the retail industry, it is extremely important for customers to have positive interactions with brand representatives. As a result, brands need to focus on training employees to be knowledgeable, so that they can provide accurate information when discussing their products with shoppers. They also need to be equipped and ready to present useful solutions to any problem. When brand representatives are passionate about the products they’re selling, they are positively impacting the minds of potential buyers.

As the experts at Microsoft and PSFK explain, “Despite collecting a variety of insights on individual shoppers from their online browsing behaviors, purchase history, loyalty membership and location, most companies fail to develop this information into an actionable customer view.”

Brands need to know how to effectively capitalize on customer data in order to drive sales and increase revenue. And they can do exactly that when they have well-trained, knowledgeable employees representing their brand.

When customers leave your store feeling satisfied with their interaction, they are more likely to shop with your brand again, and to recommend your superior service to friends and family members.

hand holding mobile phone with AR

Capitalize on Advances in Technology

Some brands are differentiating themselves by implementing data-driven initiatives that help them offer innovative products that have not previously been introduced to the market. They are able to do so by analyzing customer preferences and shopping patterns.

To more effectively fulfill customers’ expectations, some brands are utilizing customer relationship management (CRM) systems to unify their customer journeys across all channels. These systems notify employees when a shopper has entered the store, and then automatically trigger the delivery of recommendations. With this technological approach, brand employees are instantaneously informed of the arrival of a new customer, enabling them to more efficiently provide personalized service and assist the customer in their shopping process. This empowers brands to achieve more sales as well as higher customer satisfaction rates.

Brands should conduct Research and Development with customer needs always at the top of mind. By logging consumers’ in-store behaviors, interactions with products and employees, shopping patterns, and feedback, brands can develop a deeper understanding of their customers’ shopping needs. Using this understanding, they are able to respond better to the nuances of their shoppers, thus improving the customer experience.

*****

The retail industry is changing, and new trends are emerging. In order to remain profitable in this new age, retail brands need to adapt to these changes and find ways to capitalize on them.

Personalizing the customer experience to meet shoppers’ individual needs, ensuring that your employees have the training and knowledge necessary to engage in positive interactions with consumers, and effectively utilizing technological advances to your marketing advantage are important steps you can take as a brand marketer in order to flourish in this ever-changing market. By understanding these useful actions, retail brands are more likely to remain profitable and ensure a successful future for their business.

Related blogs:

Subscribe to the Blog

Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

LEARN MORE

How Wine Industry is Shifting to Connect with Customers

Wine companies invest significant resources in conducting studies to learn what customers look for when shopping for their ideal wine.

However, it’s becoming more and more evident that many wine consumers don’t actually know what they want in a bottle of wine. Consequently, these efforts usually bring wine brands with little useful insight and only wasted money.

According to Gregory Carpenter and Ashlee Humphreys at Harvard Business Review, there is a more effective approach to gearing your brand towards consumers – educating and engaging with them. If most customers don’t know enough about wine to know what they want to buy, wine brands need to take the initiative and proactively inform them.

So, how can wine companies successfully engage with their customers?

Wine glasses

Influence Customers’ Tastes

Many businesses aim to meet customers’ needs through their products. However, in the wine industry, many customers don’t know enough about wine to have predictable preferences. So, how can wine companies know what to produce to satisfy consumers’ desires?

Wine companies can use their expertise in the industry to give shoppers what they want before they even realize they want it. Brands can put a personal touch on their products by producing wines that they want to bring to market, rather than reacting to consumers’ preferences.

The most effective approach to success for winemakers is to influence the tastes of their customers. By coming up with innovative labels, branding and marketing planning, and products, wine brands can attract customers and drive sales for their products.

Develop Relationships with Industry Influencers

Certain critics and influencers have strong product views that can affect buyers’ decision-making processes. So, what’s the best way to capitalize on critics’ positions of power in the market? Impress them with a truly superior brand experience.

Creating a smart and innovative atmosphere where critics and social media influencers can experience and taste your brand’s wines will increase brand awareness and demand for your products. At the same time, it will enable you to develop long-lasting, profitable business relationships with influential figures.

As a result of the growing relationships with wine-industry critics, wine companies can use those reviews and ratings to better market their products and drive sales for their brand.

influencer marketing

Build Brand Loyalty with Shared Customer Experiences

Consumers seek advice by reading reviews and ratings. If wine companies want to wow shoppers, they need to focus on displaying these factors that can sway customers’ decision-making process.

The trick is creating a brand experience that is truly superior to the competition. As Carpenter and Humphreys explain, “Consumers become fans and pay premium prices, despite the availability of literally thousands of excellent alternatives.” When your customers believe that they are purchasing the best of the best, they will be willing to pay more.

The in-store display can be an excellent way to promote your products. Having a vibrant yet elegant display stating positive reviews and comments by influencers and customers will help accelerate your product sales by swaying the purchase decisions of customers. Sometimes too much information is better than lack of one, especially not many customers have expert knowledge when it comes to selecting a bottle of wine.

And they will keep coming back for the same brand and products in the future, hence, growing brand loyalty.

*****

Wine brands are discovering new ways to reach their customers. Instead of wasting money and resources surveying shoppers to learn about their wine preferences, they are focusing on influencing consumers with innovative products and creative packaging, and through influencer marketing.

Recommendations and strong reviews by influencers are an essential part of the decision-making process for modern-day consumers. By understanding the thought processes of shoppers, wine brands can help navigate them to make the right decision. As a result, it will create a fan base of customers who will remain loyal to your brand and increase your brand’s footprint in the market.

Related blogs:

Subscribe to the Blog

Why NVISION?

For more than three decades we’ve partnered with Fortune 500 companies to deliver marketing operations solutions. Led by a strategic account management team, we’ll help you develop, procure, fulfill and distribute printed collateral, signage, point-of-purchase displays, direct mail, branded merchandise and much more.

LEARN MORE