Summary: New York Times discusses a new trend, consumer package goods (CPG) companies re-investing significantly in marketing spending. Reinvesting in tired brands is critical, but, without reinventing those brands, it's only a short term fix. CPG companies need to reinvent the industry.
No kidding CPG brands are getting tired and old. CPG companies have a lot of rules about marketing. Unfortunately, many of these rules don't fit the world of marketing today.
"Bite and smile" advertising just isn't believable anymore, and if anything, it's just more wallpaper for the consumer to ignore. These brands need a shot of investment, that's for sure. But they also need a new approach, whether its with the marketing tactics, or with a complete re-think about how to compete in the industry. Maybe it's time for a reinvention of the CPG world.
Attempts to make marketing spending more efficient, such as merging brands, line extending and creating sub brands has just confused consumers. New marketing approaches seem to have fallen flat with both consumers and marketers in CPG. Markets of one may work well on lower volume, higher profit products, but they are very challenging for high volume, low margin businesses like CPG. At the same time, most of North America is over-stored with grocery retailers, creating fierce competition. In turn, retailers are squeezing manufacturers. And the Charmin is pretty much squeezed out.
So, what's a marketer to do? Well, maybe part of the answer is in Seth Godin's comment in the NY Times article, to create new things that will compelling for consumers. One answer may be to consider "micro targets" very small niche targets for products, as compared to mass markets or to one to one marketing. Or maybe, it's time to reinvent the industry.
Perhaps manufacturers need to get closer to the consumer. Develop a small retail chain to test new product ideas and create a new way for people to shop for specific micro targets. Can you imagine the Campbell's Wellness Centre? A place where people can shop for healthy food, make an appointment with a dietician, buy cooking magazines and books, sign up for a healthy cooking class, or weight watchers group? A Cheerios Child Development Centre, complete with healthy food, a daycare centre, books on childhood development, seminars on parenting, family activities? Food for thought.
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