Between 2% and 4.3% of grocery buying now happens through digital channels. As consumer behavior changes, CPG marketers, largely comprised of grocers, are trying new tactics to reach their audience.
CPG manufacturers have been struggling to convince consumers to purchase more expensive branded products ever since the recession cut into the household budget. With the job market and the economy finally improving, CPG marketers are showing a willingness to spend more on advertising, especially in the mobile market. This spending may be their ticket to higher sales.
This year, new research surfaced on how super-consumers drive sales of newly released consumer packaged goods (CPG). Now there's more data out on the link between online advertising and the resulting increasing in consumer purchases of CPG. All of this focus on the CPG category may have marketers in that segment rethinking their advertising strategy.
Consumer goods companies continue to pour money into trade promotion to boost sales. The typical company spends between 11% and 30% on the effort. These budgets are divided between trade marketing and consumer marketing. In 2012, the latest research suggests that consumer goods companies will increase their digital consumer promotions significantly. Many of these promotions
The trend started during the recession. More consumers began purchasing private label products from their favorite grocery store. Some of these stores note that their private label products now account for between 19%-26% of total sales. With this trend firmly entrenched, marketing strategies are changing.
The recession may be ending, but the thrifty habits consumers developed during lean times are here to stay. Evidence of these habits is found in the rising power of the dollar store segment. Consumer Packaged Goods (CPG) companies are taking note and shifting their marketing strategies as a result of this trend.
During tough economic conditions, businesses are often tempted to cut marketing budgets. Advertising experts typically say that’s the wrong strategy. The recent experiences of a few large consumer packaged goods (CPG) marketers show that higher ad budgets make a difference.
Earlier this week, I discussed the growing problem CPG (consumer packaged goods) marketers face when selling against store brand products at traditional retail sites. One way to improve sales is to sell CPG online. This strategy has definite advantages and online is a growing channel for CPG according to RetailNet Group but manufacturers will need to work with their etail partners to succeed.
Consumer products marketers have spent plenty of time and money distinguishing their brands. But the Great Recession changed the shopping habits of consumers who were driven to purchase only on price. While many marketers expected consumers to return to their favorite brands as the economy improved, new research shows that the purchase process may be more complicated.
CPG (Consumer Packaged Goods) manufacturers have a long history of advertising both directly to consumers and jointly with retailers through trade promotions or co-op funds. Kantar Media has been studying the advertising trends for CPG firms. The company has just released new information through DirectHeat, which monitors the way CPG companies advertise with retailers as partners.