The New Playing Field of CPG

The traditional retail path to purchase has been transformed, and if you weren’t paying attention, you might think it unrecognizable today. Ten years ago, a brand could target a family’s homemaker as the primary buyer, easily promoting products and building brand awareness along demographic lines through advertising on daytime television, in grocery store circulars, and with prominent displays in-store. But dual-income households and e-Commerce are on the rise, meaning all members of the household could be a potential buyer and be shopping at any time, anywhere. Consequently, the amount of “target customers” a CPG must work to understand has exploded, and the shopping journey has evolved from one that is simple and linear, to one that is multi-channel and more complex.

Dynamics of today’s shopping journey

A look at the technology today’s shoppers use for going about their day-to-day lives is an indication of the new dynamics that CPG companies must be aware of. This is particularly true with the onslaught IoT devices such as digital assistants. Today, the path to purchase might more closely reflect the below:

Step 1: Meal “Prep”

A consumer asks their in-home digital assistant to place an order for a prepared meal for dinner that same day, while at the same time requesting that a number of items be added from her grocery list for pickup.

Step 2: Reactivation

The assistant responds to her, saying that it’s been over a week since the last purchase of milk and eggs. It already knows the household tends to buy a variety of brands of 2% organic milk, but only sticks with a specific national brand of organic eggs, so the assistant recommends the user stop by a nearby store on the way home. The assistant knows that the particular retailer is having a promotion on 2% organic milk and suggests three prepared dinner choices based on the customer’s past-purchase behavior.

Step 3: Omnichannel Personalization

Hours later, when the customer is picking up their order curbside, the store associate notifies her that a free energy bar sample has been added to the order. Beyond that, the retailer serves up digital manufacturer coupons that are redeemable if the customer participates in a three-minute survey on the product sample, reviewing three package designs as well.

CPGs need new winning plays for reaching consumers

Click and collect, ready-made meals, the Internet of Things, time starvation… all of these factors introduce new levels of competition in CPG retail, making clear that winning over today’s consumers is a whole new game. However, many CPGs are playing by the old rules.

Download a copy of our latest white paper, “Harnessing AI to Change the Game,” to get your hands on a helpful playbook to learn how leading CPG organizations are turning to Revenue Growth Management strategies to stay both competitive and profitable.