CPG Marketing: What do consumer packaged goods companies (CPGs) need to get up and running in direct-to-consumer marketing when they’ve only operated in brick and mortar selling at traditional retailers? Two brand marketers in the Portada network provide useful recommendations.
The shift to e-commerce will drive more than 70% of sales growth across the food and beverage categories through 2022, according to eMarketer. Marketers in these categories face the challenge of selling directly to the consumer (DTC) beyond traditional brick-and-mortar channels. Portada asked two experienced and DTC savvy marketers for advice on how they can best meet this challenge.
CPG Marketing: Think Consumer First…
CPG Marketing needs a shift in thinking to “consumer first”, Moises Leiferman, Sr. Manager Omni Channel at Perfetti Van Melle, tells Portada. He recommends CPG marketers to “keep in mind the full path to purchase, with its iterations, and not as a funnel.” Additionally, he says that it is important to balance performance tracking with mid to long-term metrics like ROI. value growth and brand health.”
… and Align Resources with Expectations.
Leiferman also emphasizes that it is important to set up “digital platforms and resources in line with sales channels and expectations: For example, having a brand website might not be a must-have, if the CPG company is selling through third party websites. Another important point is to periodically review packaging and SKUs development so that it is in line with consumer online purchase; “Make sure the supply chain is adjusting towards a different setup,” Leiferman concludes.
Set up digital platforms and resources in line with sales channels and expectations.
Culture and Talent Ignite DTC…
To Emily Jordan, VP of Marketing at Willow Innovations successful CPG Marketing in the age of e-commerce involves culture and talent: “Bring in experts in the space who can ignite a DTC way of thinking. Fuel curiosity: Create a culture of test and learn which is key in DTC and E-commerce marketing,” Jordan asserts.
Fuel curiosity. Create a culture of test and learn which is key in DTC and E-commerce marketing,”
CPG Marketing: Data Driven and at Scale
According to consulting firm McKinsey, Data-driven marketing at scale can deliver consumer-packaged-goods (CPG) companies 3 to 5 percent growth in net sales and improve marketing efficiency by 10 to 20 percent. “To do it, CPG companies need an AI engine, a 360-degree view of consumers, and a fit-for-purpose marketing technology stack to deliver the right message to the right consumer, at the right moment—all the time,” McKinsey claims. Artificial Intelligence and a very comprehensive view of the consumer requires marketers at CPG companies to get very data-driven and analytical for quick decision-making. “Get analytical: DTC and E-Commerce unlock way more analysis about your consumer than traditional and brick and mortar retailers,” says Willow Innovations’ Jordan.
She also advises CPG marketers to get familiar with the lingo; AOV, CPA, Cost per new visitor, returning visitors, basket size, etc. particularly as it relates to the basics of performance marketing: Facebook, SEO, content marketing, lifecycle/email.
Get analytical: DTC and E-Commerce unlock way more analysis about your consumer than traditional and brick and mortar retailers.