The Ever Changing World of Marketing in the Consumer Packaged Goods Industry

     Consumer packaged goods (CPG) are consumable goods such as food and beverages, footwear and apparel, tobacco, cleaning products, etc. CPGs are consumed everyday by the average consumer and represents one of the largest industries in North America, valued at approximately $2 Trillion. The goods that comprise the category are ones that need to be replaced frequently, compared to those that are usable for extended periods of time.

     The industry has seen a dramatic shift in focus on marketing tactics to reach new and existing consumers. In 1941 Bulova Watches aired the first ever television commercial and lead their message into a to baseball game between the Brooklyn Dodgers and Philadelphia Phillies. The ten second commercial included a voice over that said, “America runs on Bulova time.”

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     When you look at industry today, what you’re seeing is a shift in focus from 75 years ago. The content marketing movement of today has allowed consumer packaged goods companies to transform the way they connect with their customers. CPG marketers today realize they must adapt non-traditional methods to reach ‘modern consumers’ who are increasingly ignoring print and television advertisements.

     Just a few years ago many CPG companies and brand teams did not know what a world powered by content and social media looked like. But over the past few years, there have been a number of breakthroughs for CPG brands leading to growth and experimentation of new tools and ideas.Image

     One of the leading ideas companies and brands continue to experiment with is their advertising budgets. More and more dollars are being shifted away from traditional print and television media to digital and social platforms. With traditional marketing, results are not easily measured, and in many cases cannot be measured at all.   Also, in many instances traditional marketing costs significantly more than digital. A significant benefit to digital marketing is that results are much easier to measure and that content can reach an infinite number of people. It is also possible to tailor certain content and messages to a particular audience whether it be based on age, gender, location, etc. Digital marketing is an interactive means of reaching an audience since it makes use of social outlets like Facebook, Twitter, Vine, Instagram, etc.

     Some examples of this branded content include executions by Mondelez International, Inc. Mondelez is an American multinational confectionary, food and beverage conglomerate, comprising the global snack and food brands of the former Kraft Foods. Brands include Oreo, Chips Ahoy!, Belvita, Trriscuit, Milka, Tolberone, Cadbury Dairy Milk, Trident, Chiclets, Halls, and Stride. They have committed themselves to grow both their digital and mobile segments from about a quarter of its media budget to more than half of all spending by 2016. They are doing this as they have found a better return on investment online that from television and print advertisements.

     Oreo had a recent promotion giving away free packages of new Oreo flavors to the first 20,000 people who sent a tweet to @Oreo with the hashtag #SENDMEOREO. This execution was engaging with their audience and attracted both new and existing consumers. The brand claims to be the number one food brand on Facebook with more than 35 million fans. The marketing strategy shift to increased digital has led Mondelez to create similar programs and content for their other brands to drive growth.Image

     Although traditional marketing still has a place, the rise of the digital age is changing the landscape of the consumer packaged goods industry. Are you doing everything you can to get the right message in front of your target audience? How hard is your ad campaign working for you? Are you reaching the consumers you want?

 

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