CPG Marketing: strategies and solutions to reach more consumers

Daniel Cruz

By Daniel Cruz
7 min READ | Dec 1 2021

CPG marketing is going through troubled times. People are buying more today than ever before, but there’s no guarantee they’ll keep purchasing your products.

This comprehensive guide explains the problems of CPG marketing, the approach that tackles them, and how to choose the right CPG marketing channels.

Bonus: we’ll end with a bulletproof solution that covers all the issues we discuss in this next section.

Curious yet? Read more below.

Supermarket shelves full of beverages, an example of CPG goods.
Image source

What are CPG (Consumer Packaged Goods)?

The Consumer Packaged Goods (CPG) industry relates to everything that customers use on a daily basis that needs to be replenished. Cosmetics, food, clothing, and household items are good examples of CPG products.

CPG Marketing Strategy: The Problems

The Consumer Packaged Goods market is facing problems galore:

Problem 1: Fierce competition from CPG industry's giants

Unilever, Procter & Gamble, Coca-Cola, etc., are increasing their profits exponentially. Simultaneously, DTC brands penetrated this environment to “steal” some customers from these mammoth companies above.

Problem 2: High costs of production

The price of ingredients is on the rise, and so is the cost of packaging materials. The losers in this situation are small businesses that don’t make enough profit on their retail sales.

Problem 3: Scattered attention and saturated advertising

E-commerce is becoming trendier by the day, so people have plenty of websites to choose from. Besides, people see at least 4,000 ads/day, with continuously fragmented attention now that social media is in the picture. Thus, your customers see ads on podcasts, social media, YouTube, the TV, streaming platforms, and offline.

Problem 4: Weak brand loyalty

50% of your customers would leave you on the spot for another company that seems better. Switching costs are low, and consumer-packaged goods are somewhat similar nowadays. Consumer behavior can be unpredictable. Plus, the pandemic only weakened that frail brand loyalty.

As you can see, these four factors contour an unstable reality for CPG brands. You can’t differentiate yourself from the competition and count on a loyal brand community simply by relying on your products’ features.

Instead, you want to focus on the consumer.

CPG Marketing Strategy: The Consumer-Centric Approach

The problems above have an easy fix:

Convey the right messages to the right people at the right time and place.

Okay, that’s obviously not an easy fix, but it is doable. Here’s what you’d need:

A granular model, helping you personnalize your offer

This means you want to target each member of your audience individually. The old CPG business model that targeted an amorphous mass of people is obsolete.

An AI consumer-intelligence engine that can assimilate an immense volume of information, analyze it, and propose actions.

Thus, you’ll be able to make faster decisions regarding resource allocations and marketing efforts. The sources to consider include:

  • Consumer engagement from different social media platforms
  • Sales information
  • Channel preferences
  • Shopping experience
  • Retail media networks like AWS, Roundel, or Wal-Mart Connect
  • Consumer-loyalty websites that offer potential customers coupons and discounts, virtual try-on features, and other tools

Furthermore, you should base your campaign strategy on two pillars:

  • Reach
  • Customization

You could create versatile campaigns if you employ a:

Dynamic Creative Optimization feature.

That DCO uses machine learning so that it can pick the right messages (text and visuals included) for each of your potential customers in real-time.

Digital Asset Management system.

This platform allows you to keep track of your campaign and adjust your strategy according to the results.

That whole approach we discussed above is pretty theoretical, so now let’s analyze the practical side of things.

CPG Marketing Strategy: The Channels

Remember how we started the section above? We said you need to convey the right messages to the right people at the right time and place.

Build powerful SEO and CPG content strategies

So, before picking the most appropriate channels for your target market, you’ll need to contour your SEO strategy. It’s a very lucrative approach: SEO’s ROI is 5.3X while paid advertising’s ROI is 2X.

Along with SEO, consider honing your CPG content marketing strategy.

These two factors ensure your brand can produce correct messages according to your audience’s values and needs.

Thus, you want to:

  • Bring value to your customers
  • Focus on the solution
  • Be relevant
  • Optimize for organic searches
  • Share your messages

Also, remember to base your communication on a unique solution for your audience—something impossible to refuse.

For example:

  • Your brand of cosmetics can provide a virtual makeover tool.
  • Your brand of kids’ toothpaste/toothbrushes can include a small hourglass in the package. Thus, parents and kids know exactly when those two minutes of brushing are up.
  • Your brand of organic oatmeal can include a recipe brochure with each pack.
  • Your line of sports drinks can feature an app to connect with consumers and personalize their experience.

Your paid media can include anything that your consumers use, from TV to magazines, social media to podcasts, and so forth.

Let’s look at the things that will help with the second part of the solution above, aka the piece focusing on “the right time and place.”

Social Media Marketing

  • Pick the social media platform according to your audience. For example, older generations like Gen X prefer Facebook while Millennials and Gen-Z are on Instagram and TikTok.
  • Start engaging with your customers.
  • Post relevant content that focuses on solving their needs, such as tutorials, tips, apps, and so forth.
  • Reply to all comments and consider all the feedback you receive.
A smartphone screen showing social media apps such as Instagram, Facebook and TikTok.
Include the right channels in your marketing plan. Image source

In-store Promotions

These promotions attract attention and allow you to gather information about your customers, especially if you’re using coupons.

Warning: Make sure that promotion comes with something really valuable for your target market. If you’re just offering a price discount, people will forget about your product when you go back to the regular price.

Instead, have that promotion be a unique feature that makes people’s lives easier and that they’re only going to get at a discounted price for a limited time. That way, you’re creating both fear of missing out (FOMO) and brand desire.

Mobile Promotions

Mobile promotions are excellent solutions because smartphones are personal and direct channels. For example, you can include your mobile promotion in a digital wallet.

That strategy has three major advantages:

  • It’s targeted and personal.
  • It can send further customized notifications if someone saves your offer in their wallet.
  • It can update coupons/promotions so that you and your customers stay in contact.

Influencer Marketing for CPG Brands: The Bulletproof Solution

CPG marketing is revolutionizing at the moment, so you should hop on to this train. Nowadays, it’s no longer enough to trust your products and send bulk messages to a mass of people.

You should hone your strategies, customize your messages, and rely on data analytics.

From that perspective, CPG influencer marketing is a saviour. Just consider the problems we mentioned in the first section:

  • Cutthroat competition
  • Money problems
  • Disloyal audience
  • Scattered attention

A savvy micro-influencer can flawlessly sponsor your product and, in turn, increase your sales. They are a better choice than traditional advertising since people see them as trustworthy and knowledgeable.

Micro-influencers already have a captive and loyal audience to transfer the same things to your brand. Micro-influencer marketing is an effective way of raising brand awareness and getting buyers into stores. Besides, they will showcase the unique sides of your products effortlessly and at a low cost. It only makes sense that 78% of brands prefer to work with nano or micro-influencers.

The only problem is choosing the right micro-influencers. However, digital tools like inBeat help you connect with these content creators for free. Our marketing tool can personalize your searches and find talented creators that represent your brand’s core values from our vast network of micro-influencers.

A screenshot of inBeat's influencer search tool.
inBeat helps you find the right influencers for your next CPG digital marketing strategy.

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