Last week, new research surfaced on how super-consumers drive sales of newly released consumer packaged goods (CPG). This week, 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 Packaged Goods (CPG) marketers were late to the online party. But they seem to be making up for lost time as they improve their website content. However, if CPG marketers intend to see their online efforts translate to higher sales, they need to fine-tune their content and update it regularly..
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
Marketers have been tempted to cut back their ad budgets as the recession drags on. This has been especially true in the consumer packaged goods (CPG) sector where private labels brands are aggressively rolling out and capturing market share. But cutting ad budgets is exactly the wrong move according to the latest research.
It’s no secret that consumers have been selecting store-brand consumer packaged goods (CPG) from retailer shelves. Brand marketers have been losing their share of casual buyers, but it’s the defection of loyalists that is really hurting the bottom line. Taking steps to secure loyalty with marketing campaigns will go a long way towards increasing brand revenue.
With the economic recovery on the horizon, both brand and private label marketers want to know consumer intentions with respect to consumer packaged goods (CPG) purchases. Will shoppers stay with the store brand products they turned to during the recession or return to purchasing name brand products? Research from Nielsen suggests that many consumers have permanently changed shopping habits but marketers must work harder to maintain loyalty.
Last month, I highlighted a report from Nielsen about how more CPG manufacturers are marketing and selling directly to consumers, often online. Additional data from Catapult Marketing explains which consumers are purchasing CPG online and how marketers can successfully increase sales.
The advent of online shopping has upended many supply chains. Consumers can now download music directly from a musician’s website instead of going to a traditional retailer. Experts are predicting the same market transformation could take place in the book publishing industry. Instead of perusing books in the aisles of a brick and mortar store, consumers can download e-books from author sites directly to digital readers. Where do these changes leave the CPG industry? Will the middlemen be cut out?
The top 2 goals for CPG manufacturers this year are to improve profit margins (38%) and increase sales volume(34%). Producers of branded products have been hit especially hard by shoppers who are cutting costs and often purchasing less expensive store brands during the recession. CPG manufacturers market their new products directly to consumers, but their trade promotion efforts also make a difference for the bottom line.
Consumer packaged goods companies spend up to 60% of their marketing budget on trade promotions. And these promotions are likely to be more effective when marketers keep consumer behavior with respect to channel in mind. The Nielsen Company recently published tips on this topic which are designed to help marketers use their budgets more effectively.
It’s the news many businesses have been hoping to hear. Consumer spending rose 1.6% between February and March according to the Commerce Department. And to make sure that consumers return to purchasing well-known and trusted brands, many consumer-packaged goods companies plan to ramp up advertising.