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.
Tag Archives: CPG brands
Archives for Tag: CPG brands
It’s often been said that innovation is the lifeblood of any CPG manufacturer. Without a deep pipeline of new product SKUs, it can be hard to garner the excitement of retailers and consumers and fight off the inevitable encroachment of private label.
But regularly rolling out new product forms and flavors can be costly and a risk that most brands don’t have the stomach for.
I’ve recently noticed a few brands have been able to innovate, without changing their product at all.
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.”
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.
I recently went to Ad:Tech NYC with a fresh stat in my head. According to TNS The Digital Life, 60% of people do not want to engage with brands via social media. As my colleague @peteschnupp states so eloquently, “Yikes!” Pretty scary stuff for a guy who makes his living in digital marketing! As I sat there in our Ad:Tech sessions listening to the different speakers on social media, it hit me – brands and marketers become obsessed with “the Like.”
What does it take to make a successful viral video? The answer to this question is debated by agencies, analysts, journalists and brand managers alike. And, from our perspective, the deliberation is absolutely warranted.
Ever wonder what people are really saying about your brand? I don’t mean the generic answers consumers provide on brand surveys or a circled number on a rating scale. I’m talking about the good, the bad, and the sometimes shocking things people write in their Twitter feeds, Facebook posts or blogs. With an estimated 61.2% of US residents utilizing social networks in 2011, daily social media monitoring plays an integral role in understanding CPG consumers and what they have to say. Yet, today this is one of the first line items to be cut from the marketing/communications budget.
Social