Showing posts with label online offline. Show all posts
Showing posts with label online offline. Show all posts

Monday, May 7, 2012

CPG & eCommerce - the new approach.

"The CPG of the future will rely on a sales ecosystem that integrates online interaction with in-store marketing. That will require sophisticated digital capabilities throughout the business, across all functions, including marketing, sales, R&D and supply chain. The companies that win will be the ones that aggressively exploit e-commerce models, integrating digital deep into their businesses to do so."
Really enjoyed reading the article titled "We are all eCommerce Companies Now" on the HBR  by Bonin Bough, Vice President of Global Media and Consumer Engagement at Kraft Foods. 

Mr. Bough's article is a validation of the business model created by us at AaramShop to address the traditional challenges faced by FMCG / CPG companies in leveraging the opportunities offered by eCommerce. For too long CPG companies have either tried to emulate the traditional eCommerce models (and failed) or have just kept away from it completely. However, now with the fast changing media consumption habits of the consumers reaching consumers at point-of-purchase is no longer simply a battle for shelf space, but a war to connect meaningfully across a wide range of digital platforms and delivery mechanisms. 

Tuesday, August 2, 2011

The integration of the Moments of Truth.

The First Moment of Truth (FMOT), coined by P&G, refers to the few seconds that it takes a consumer to choose a product on a retail shelf – from amongst the wide array of products on display.

The logic of FMOT is indisputable and has prompted brands to re-evaluate the traditional marketing funnel approach (AIDA and it’s various versions), and design their marketing plans based on the FMOT.

I understand FMOT works well in the Modern Retail Formats (MRFs), but it is difficult to see it working seamlessly in traditional neighborhood retailers (in India) where space is limited and the shopping environment is not geared up for a DIY format. This is important as 90% or more of the FMCG sales are still via the traditional retailers.

Recently and based on changes in the consumer’s usage of the Internet for shopping, Google came up with the concept that it called “The Zero Moment of Truth” (ZMOT), which refers to the pre-buying online research that the consumers undertake prior to hitting a store. 

Data made available by the research undertaken by Google, makes it imperative for the CPG / FMCG brands to have a comprehensive strategy to ensure they have a relevant & prominent positioning in the online space. 

Most brands are starting to address the two moments of truths and tend to consider these to two separate silos, which need to be addressed with strategies specific to the silo. 

At AaramShop, our belief is that for the brand marketing to be effective and for it to result into sales the two silos need to be intertwined. That’s the AaramShop offer to FMCG / CPG brands. 

AaramShop brand listing (along with advanced optimization) enables a brand to be “found” by consumers and also enables the brand to leverage itself on social networks to create relevant buzz. The brand could also use integration tools like Aaram Widgets or customized QR codes to further invigorate its social media presence.

AaramShop also enables the consumers to place an order for the CPG / FMCG product immediately – thus bringing the FMOT seamlessly close to the ZMOT. The order, when placed online is fulfilled by the independent neighborhood retailer (AaramShops as we call them). The product / brand is delivered to the consumers doorstep within hours.

It is this seamless integration of the ZMOT with the FMOT that makes AaramShop a unique platform & interesting enough for the FMCG / CPG brands to engage with.