Einstein Simplified!!

If Einstein can be simplified, I bet digital  marketing for FMCG / CPG brands can be simplified as well.

You would have noticed that it is difficult (if not impossible) to wrap up a digital / online marketing discussion, without learning a few extra jargons and tech-speak. All the jargon has a MEGO effect on me (`My Eyes Glaze Over') :-). 

If you are into jargons pick up a few from here.

The other interesting bit in most discussions is the "evasive action" when it comes to quantifiable returns from the marketing spends. 

At AaramShop, we have taken a few steps towards addressing this challenge by creating a marketing program which converts consumer touch-points (jargon 1) into shopper action-points (jargon 2) for FMCG / CPG brands. 

Talk to us about our Simplified Online Plan for FMCG brands (in India) and sign-in for the Step-Up Program. 

You are assured of time porn (jargon 3) 

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"Clicks to Bricks" integration for FMCG brands' digital campaigns.

The growing importance of digital marketing is not lost on anyone. However, most brand marketers in the FMCG / CPG space find it difficult to justify the high engagement cost per consumer, especially because most current digital assets are restricted to creating awareness. 

There is now an option to change that. AaramShop has digitized the FMCG brands' existing last mile, thus enabling an integration of a “purchase now” prompt option within all digital assets. 

The consumers can now browse through all manner of digital communication, have the additional option to click on a “purchase now” tab, enabling them to order a brand from their preferred neighborhood retailer, who packs up and deliver in a matter of hours. 

Here is a neat example of seamless "Click to Brick" integration by Saffola (Marico Industries) giving its consumers a “purchase now” option on its website and at the same time it helps build a stronger bond with its channel by helping generate direct demand and action specific to the retailer outlets.

All digital assets of the brand like its websites, social media presence on platforms like Facebook, Pinterest, Twitter, etc, review sites, blogs etc and and digital marketing campaigns can be now made to perform harder for the marketing dollar spend, and go beyond the just feel good awareness.

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• The Truth About What Works in Digital Marketing.

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• AaramShop launches AaramTV to help FMCG brands narrowcast their brand messages at the neighborhood grocer.

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• Digital Influencers of Brand Selection.

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Digital Influencers of Brand Selection.

Here is yet another research that supports the need of multi channel marketing initiatives – especially from a digital perspective in the CPG / FMCG space. The fact that consumers have adopted the digital media in their daily life is not lost on anybody; however, it is important to understand that they use it in different ways and with different intentions.

The key for brands, marketers and manufacturers looking to capitalize on digital in the CPG environment, is to identify how each consumer group embraces digital media.

Clearly the 18 - 34 year old consumers are comfortable with digital technology and their use of digital resources has an impact on purchase. What is even more dramatic is the extent to which this group is influenced by product and brand recommendations from bloggers and social networking platforms. In-store digital touch screens and phone applications are also seen to address this group effectively and present immediate, high-impact brand marketing opportunities.

Another plus for marketers is that these digital-savvy consumers are often trendsetters and influencers in their own circles. Word-of-mouth and informal, viral marketing can make a huge impact on those that are fully engaged in digital media.

Download the SymphonyIRI Group Point of View report: Digital Dimension: Consumers Embrace Digital Media with Diverse Approaches from here (PDF)

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Since the great majority of CPG purchasing occurs in-store, how important is digital in the path to purchase?

The title of this post is the question that Joel Rubenson asked Catherine Roe, head of CPG for Google. What stumped me was the sheer volume of "interest / passions" related searches, which just goes to indicate the opportunities for the CPG marketers.

Catherine reports that searches on Google.com related to recipes are up 38% in 2011 over 2010. And it’s a huge number. It’s 7.8 billion recipe-related searches on Google.com.

Just to give you a perspective, there are more searches around food and recipes than there is travel, beauty, and luxury. It is absolutely huge. The iPad or her computer or her phone has replaced her cookbook. So, she’s doing that research ahead of time on Google and then going to either a recipe site or a food site or whatever it might be to get the tips, to get the health information, to get the ingredients to get everything she needs. 

Read the interview in parts here

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Mobile and Social Steering Future for CPG.

"We see a merging between social and mobile as two really popular platforms coming together, not only for ecommerce, but also to drive multichannel behavior. It’s just incredibly dynamic, and we’ve really adopted an integrative planning framework that takes into account the consumer journey and how the consumer is using digital channels and platforms. That’s become the driver for how we plan our entire marketing strategy and budget."

It was good to read this interview of Jeff Jarrett, vice president for global digital marketing, as he spoke about the most effective ad formats for consumer packaged goods, and how online CPG sales have required the industry to establish a larger footprint in digital. Read the full interview here where-in he talks on strategies, RoI, impact of mobile & social media and the changing consumer behavior. 

A must read for all FMCG / CPG marketers on how the trends are shaping up.

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The evolution of the "path of purchase".

Conventional wisdom has always been that most brand purchase decisions are made in the store. 

But with the new, digitally empowered consumer entering the store better prepared than ever before, is the new reality that most purchase decisions are made at home or on the way to the store?

This wonderful white paper by The Hub seems to suggest that the truth most likely lies somewhere in between.

The white paper goes on to list how can manufacturers ensure that their brands are included in the consideration set and make the final cut. They must identify shopper needs and behaviors at every phase along the path-to-purchase and deliver relevant experiences that shape purchase decisions, from pre-purchase to point-of-purchase, from consumption experience to post-experience reflection.

The consumer’s media consumption methods have changed and therefore the relevance of methods in which a brand can be relevant to them. The 24x7 access to socially connected devices is the single largest factor to change dynamics of marketing. The white paper reemphasizes what we are trying to create with AaramShop – an integration of the Zero Moment of Truth (ZMOT) with the First Moment of Truth (FMOT) of the brand. Read more about it here.

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Key Points About Integrating Traditional and New Mediums

Some brands have been forged in the digital fire while others have had to (or eventually will have to) jump into it. The biggest problem Michael sees here is we are trying to treat these two entities as one.

These are two very different situations and need to be treated as such. Those outside the bubble, who did not build their business in these channels are interested in what digital has to offer, but they don’t always need it just yet. It’s not that there isn’t a juicy opportunity, but balancing multiple channels (especially a mix of traditional and digital ones) is no easy feat.

Michael writes that we often try to show traditional brands the success digital brands have experienced. It is alluring, but it isn’t always relevant. Rather than enticing prospects with purely digital examples like Zappos or even those who have long had digital efforts like Levis, one needs to understand a few key points illustrated wonderfully here in a recent post by Michael Schechter.

Related articles

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A Framework for Keeping CPG's Relevant Online

Came across this comprehensive and insightful essay by Jordan Julien. He has arrived at the insights based on examining internal documentation, and conducting ethnographic studies, from four different global CPG's and finding correlations. 

 

The synthesis of this work has culminated into "The Ecosystem of Understanding", a framework for keeping CPG's (and everyone else) relevant online.

Jordan been able to extract 5 insights common (as under) to every CPG he has worked with; even the most innovative.

1. We don't know who we're talking to, but we like to pretend like we do.
2. We don't know why we're talking to them, but we know we should be.
3. We suffer from Shiny Object Syndrome.
4. We're inconsistent, but we're learning.
5. We're old, scared, and angry; but its only a matter of time before we're phased out.

Read more here

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The modern trade vs The brands - the saga continues.

I read with a lot of interest the series of recent articles carried in Economic Times on the ongoing and perpetual battle between the brands at one end and the modern retailers on the other. It started a few days back with the news that Reckitt was keen on reduction of margins for the modern retail outlets (by about 2% or so).

It followed today with the news that Future Group is "cleaning out" Reckitt from it's outlets. 

What made it particularly interesting for me was that about 2 years back (thats when modern trade was really modern in India), I had a longish meeting with the then brand custodian of one of the Reckitt brands who was spending majority of her marketing funds on "creating"a category for her product at the modern trade. We discussed issues around eventual private labeling, shrinking margins, cost charged towards display,  lack of traditional trade focus etc. however, perceived higher and better quality of consumer engagement ensured that she stuck to her decision of pouring very serious monies in modern trade to create a category - irony was that the largest amount was on the Future Group. 

While modern trade currently represents only 5% of the FMCG trade in India, the writing on the wall is very clear - the FMCG brands will need to take a good hard look at their own shopper marketing strategies and step back to embrace the traditional grocer / kirana store.

If the brands don't - they will be constantly on the receiving end - today Reckitt got taken off the shelves, yesterday it was Frito-Lay and Kellogg's. Tomorrow who knows. 

Must read : how solid is your brand?

Came across this article in the BusinessWeek and I thought it was very well written. Do read this article : How Solid Is Your Brand?

And if you like the article read this related one as well : Building a Better Brand.

Another viral campaign - with a brand association.

Here’s another example of a interesting viral campaign, Staedtler (the writing instruments maker) wants more and more people to write snail mail letters (or just write – instead of keying it all in), so much so they agreed to send 10,000 physical letters to users who submit their details on the Take Note site. You can even sign up to receive a letter from a stranger. Can’t recall when was the last time I received or send a hand written letter (as would be the case with most other folks) so this should be interesting for most people, especially the younger TG, who have probably never received a hand written letter.

While I really enjoyed the humor in the notes (good copy writers within the agency, I guess), I wonder why not extend the proposition to make this a worldwide property, Staedtler is afterall a worldwide brand. My view is that an international campaign would have increased the viral potential multifold.