WordSmiths

Living on the edge in a CPG world.

In an eMarketer interview late last fall, Pete Blackshaw, Global Head of Digital Marketing & Social Media for Nestle, had a quote that I latched onto. He said, “Social media is less of a stand-alone appetizer than a basic food ingredient for all marketing.” I think the food analogy coming from a forward-looking head of digital marketing at one of the world’s largest food manufacturers is more than a play on words. It is extremely sound advice delivered in a clever, succinct sound bite.

We have a similar philosophy permeating our agency: “Technology is not an idea… but ideas can no longer survive without technology.”

The first reaction when asked to write a blog post for the Production function at The Smith Brothers Agency was one of mild reluctance. I mean, who would really give a hoot about our agency’s internal process? But then it occurred to me how I myself read project management blogs in my Google Reader every morning, trying to glean a modicum of affirmation or wisdom or maybe just to enjoy a little wise humor (read: The Tao of Project Management and you’ll see what I mean). Suddenly I realized it actually might be quite helpful for folks working in the CPG space to see how we go about creating what we here at SBA call “a culture of flawless execution.”

Hard to believe, but this year marks my 25th year in the advertising business.

Along the way I’ve made more mistakes than I care to acknowledge. But have also managed to do a lot of things right.  After thousands of meetings, hundreds of campaigns and more than a quarter century of trying to do the best creative I could for my clients, I’ve come to believe in certain things.  I’ve come to hold onto certain truths that I believe are critical to being successful in this crazy, ever-evolving business.

The list below is admittedly simplistic. And many of these thoughts were collected from early in my career.  But I think they still hold true and hope you might find a thought of two that might be helpful to you in your pursuit of great work.

I believe…

As an agency focused on CPG marketing, we’re growing more troubled by retailers’ aggressive private label marketing efforts. Retailers are doing it well. And it’s working. Most alarming, though, is that CPG brands seem to be bankrolling retailers’ private label marketing with the investments in trade and shopper marketing that they are obligated to devote to their retail partners. How do CPG marketers change direction and regain control?

Background

CPG marketers know that retailers have realized tremendous success in developing private label brands and that it is a real threat. Among the facts illustrating private label success, Mintel reports:

  • Since 2008, the number of premium-positioned private label product introductions has outpaced new premium-positioned products introduced by brand marketers.
  • Seven of ten shoppers say they perceive the store-brand food products they buy to be the same or better quality than name brands.
  • Over half of shoppers say they will shop a specific retailer because it has good store brands.

What CPG marketers may not wish to acknowledge is the hostile nature of many private label marketing campaigns and their own role in funding them.

QR (Quick Response) codes aren’t new. Here’s a quick look at the what, who, why and whether to consider using them for your brand.