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, May 1, 2012

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. 

Sunday, April 29, 2012

The Flight From Conversation.

Sherry Turkle, a psychologist and professor at M.I.T wrote this wonderful article in the NYT where she says that we’ve become accustomed to a new way of being “alone together.” Technology-enabled, we are able to be with one another, and also elsewhere, connected to wherever we want to be. We want to customize our lives. We want to move in and out of where we are because the thing we value most is control over where we focus our attention. We have gotten used to the idea of being in a tribe of one, loyal to our own party.

We live in a technological universe in which we are always communicating. And yet we have sacrificed conversation for mere connection. 

At home, families sit together, texting and reading e-mail. At work executives text during board meetings. We text (and shop and go on Facebook) during classes and when we’re on dates. My students tell me about an important new skill: it involves maintaining eye contact with someone while you text someone else; it’s hard, but it can be done.

Thursday, April 26, 2012

etail is retail is etail.

Wonderful as ever. The latest edition from trendwatching.com

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.