Companies in the consumer-packaged goods (CPG) industry that want to continue growing while the purchasing behaviors of consumers are shifting have to start investing in various types of marketing efforts, as well as consumer product and CPG public relations. The one that’s been consistently showing positive results for most brands has been digital marketing, and companies have plenty of opportunities to promote and separate themselves and their solutions in today’s crowded markets.
Competition in the consumer-packaged goods industry is quite fierce. In the United States, some of the biggest CPG brands include companies like Procter & Gamble, Coca-Cola, Unilever, PepsiCo, and more. Aside from all the established companies, plenty of direct-to-consumer start-ups have started entering this industry trying to grab the attention of the target audience and turn them away from these legacy corporations.
The way that these new companies can do that is by simply cutting out the middleman and directly selling their solutions at a reduced price while building stronger relationships with the target audience. Some of the best examples of companies working in this way include Glossier and Birchbox.
Furthermore, while plenty of consumer-packaged goods companies have been increasing their revenue, the costs have also been rising for the customers themselves. For instance, some of the commonly used food staples have increased their prices by around 15 percent in the last year. With the costs continuing to increase in this industry, the competition is only going to get a lot more serious, as companies that are less profitable start struggling to survive, while the ones that are making a profit get an even bigger market share.
It’s quite difficult for companies in the consumer-packaged goods industry to reach the target audience given how crowded this market tends to be. With the attention of most consumers all over the world decreasing, and e-commerce stores and sales increasing, companies have a lot of things to take into consideration if they want to reach consumers and grow.
Aside from that, the costs for digital advertising have also started increasing, and the real-time demographic information from all the biggest marketing platforms has only made it more difficult for these types of companies to cut through all the noise of the crowded market. According to some estimates, most consumers tend to come across between 6000 to 10,000 ads every day.
While companies in the past could only focus most of their marketing efforts on one or at most two communication channels to reach the target audience, that’s no longer the case. With the attention of customers being fragmented between all the different social media platforms, as well as streaming services, podcasts, and other offline, as well as online media, it’s more important than ever for companies to start investing in digital marketing efforts.
The author, Ronn Torossian, founded 5WPR.