WordSmiths - The Smith Brothers Agency Blog

WordSmiths

Living on the edge in a CPG world.

At Smith Brothers, our mission is to “Create inspiring ideas for courageous clients.” As students of the advertising business, and marketing in the CPG space in particular, we’re constantly on the lookout for work that not only impresses strategically and shines in execution, but that demonstrates some serious chutzpah on the part of the client who embraced it. We all know that too many clients err on the side of safe, hunkering down in the foxhole, afraid to lift their heads above the horizon line lest they have them blown off by senior management. Courage these days doesn’t come easy.

In this blog series, we will hold up those recent CPG marketers who should be recognized not only for their smarts, but for their bravery. Whether it’s eschewing the norms of a category, diving into uncharted waters in the digital space, committing big budgets to brand new platforms or just doing jaw-dropping creative, we will identify those brands that we think took a little more risk and stood a little taller than the field – those we think deserve a salute.

Until recently Shopper Marketing stood for corrugated displays, circulars, tear pads and high hopes for store compliance. The discipline has mushroomed to become a nuanced, data-rich practice that takes place as much in the digital realm as in the aisles of retailers. In little more than a decade we’ve seen the Shopper Marketing grow from an undefined, departmental hot potato to a discipline with dedicated, deeply-staffed manufacturer departments, trade commissions, specialized agencies, publications and best-of awards. Yes, we’ve seen watershed change in just a few short years. But change will continue to be the story as Shopper Marketing hits adulthood. The following are Smith Brothers’ five predictions for the changes we see ahead along with a few shopper-related questions to test your shopper IQ and demonstrate some of the factors driving change. Answers to the questions are provided at the end of the post.

Over the past year, the Smith Brothers analytics team has been working with a regional restaurant chain. About half of the analytics engagement is for our bread-and-butter marketing analytics services and deliverables, such as tactical analysis and recommendations, regular reporting and so on.

However, the other part of the engagement is more unique. The chain happens to have a loyalty program that accounts for a staggering proportion of their business. CRM metrics and analysis is an area of growing importance which is receiving greater attention from our clients and marketers in general. Our client’s story demonstrates why this is the case; specifically, it illustrates how CRM data that is right under our noses can drive broader marketing insights, strategies and tactics.

According to MEI Trade Insight, 87% of CPG brand marketers intend to increase or maintain their spend on trade activities in the year ahead. This stems from a belief that, in these recessionary times, moving more money closer to the shopper is a better way to get more bang for the buck. We have no argument with the “closer-to-the-shopper” philosophy. But in order to make this approach actually work, you have to know what closer to the shopper actually means —and “in the store” ain’t necessarily the whole story.