The CPG category’s digital spending will increase to $7 billion by 2018.
And while they stand to gain quite a bit, there are challenges. According to a report released by Accenture, which surveyed heads of sales and account leaders within CPG brands, only 16 percent of companies currently use digital technologies to maintain the in-store and online relationship with the consumer to drive repeat purchases in the store. That means they’re missing a huge opportunity to drive more sales with shoppers who are just inches from grabbing their products from off the shelves over a generic alternative.
In February 2014, Mondelez International’s Chief Growth Officer, Mark Clouse, made a definitive statement at the Consumer Analyst Group’s annual meeting. Mondelez gets twice the ROI from digital marketing compared with other channels. Taking note, CPG brands need to focus less on increasing brand awareness and recall and instead, on driving sales.
Here are four great campaigns that surprise, delight, and compel local in-store sales.
Frito-Lay uses social to learn exactly what consumers want.
Wasabi-Ginger. Cappuccino. Bacon Mac and Cheese. These don’t sound like your everyday potato chip flavors, but in a brilliant social media-driven campaign, Frito-Lay gave consumers a reason to believe in them.
These crazy flavors were submitted by consumers and then four were chosen and sold in actual retail stores across the country. People who bought the chips at their local stores were then invited to vote for their favorite on Facebook and share the campaign with their friends. Frito-Lay’s choice to leverage Facebook in this fun, engaging way was far from guesswork. As our own CPG marketing research found, 55 percent of moms and 47 percent of dads believe Facebook is the most useful social media channel to engage with CPG brands. That’s compared to only 5 percent of moms and 7 percent of dads who find Twitter useful.
The highly profitable campaign was a follow-up to Frito-Lay’s previous new flavor initiative and this go-around incorporated Vine and Instagram “reviews” as well as a $1 million prize for the winning flavor’s inventor. Bob Cargill, social media director at Overdrive Interactive, told ClickZ:
“It’s allowing people who wouldn’t normally pay attention to potato chips [to be] suddenly involved in this marketing campaign, and help Lay’s to spread the word.”
Hillshire Farm gets their timing just right.
Another way advertising can be deemed effective is to clearly communicate and demonstrate how a product or service fits into consumers’ lives and why they should buy at the time the message is shared. Hillshire Farm did just that.
The brand’s marketing teams know that consumers will not accept one-size-fits-all messages that don’t take into account where they are, what devices they’re using and what types of content and messages are most relevant to their local needs.
Knowing this, Hillshire brands used beacon and geofence messaging to connect hyperlocally with consumers seeking special in-store discounts. For this campaign, Hillshire Farm partnered with BPN and inMarket to send push-notifications to in-store shoppers. These messages connected them to an interactive shopping list featuring additional product suggestions as well as opportunities to earn rewards points and redeem special coupons.
The campaign delivered twenty times the purchase intent for the products featured in the ads and the brand experienced a 36 percent increase in brand awareness as well as an overall lift in sales. It was so successful that Hillshire Farm expanded the campaign to its Jimmy Dean brand. Not only did this approach immediately compel shoppers to engage with the brand in various environments, but it also incentivized them to buy in-store and eventually, increase their average order values.
Kraft makes completing a shopping list easier with mobile.
In a recent Forbes article, Michelle Greenwald wrote:
“Great campaigns help brands avoid being commoditized and compete only on price. They increase loyalty and good will, and can encourage purchase across more items within the brand umbrella.”
This is exactly what Kraft’s “Great American Bacon Cheeseburger” accomplished.
Using shelf flags inside Walmart retail stores, Kraft instructed shoppers to download the Blippar app and scan logos in-store. Shoppers then were sent online recipes after completing certain actions and were prompted to upload images of their receipts (to show proof of Kraft purchases) for the chance to win prizes. The campaign drove strong engagement with relevant and respected food bloggers, as well as the media. The beauty of this campaign isn’t in its ability to improve Kraft’s brand awareness, but instead in its effectiveness to drive in-store action through specific calls-to-action around a specific product line.
P&G’s Crest uses programmatic video ads to speak with relevant offers.
Localized messages are inherently personal when they’re targeted properly because they speak to offers that are available to consumers in their immediate surroundings. Knowing the exact items and prices at a nearby store is a powerful reason for shoppers to head to a location and buy what they want or need. P&G’s Crest brand partnered with Walmart to deliver just that through customized video.
In a programmatic co-op campaign that enhanced and syndicated existing video assets, P&G distributed weekly ad content by zip code to online video viewers — alerting them of the specific products available at their local Walmart. The retail giant and CPG leader saw high-level returns in store lift on the featured products, confirming the importance of customization and the impact of personalized messaging.
In the past, CPG brands have sought to connect in personal ways with their consumers to drive awareness and brand advocacy — to give their audiences a “reason to believe.” Fortunately, the lessons on what makes for powerful, personally relevant experiences can now be extrapolated to include the types of content that drive consumers to act locally too — to redeem a coupon, try a new product or just pick up their trusted brands over the competing offer.