The NOW Gen

Mes: agosto 2021

Brands

The role of CPG’s in a hyperconnected world

We are just a few months away from the beginning of 2022, and the changes in consumer behavior and expectations that changed during the global pandemic crisis have made something very clear to companies worldwide, and that is that these behaviors are here to stay. 

This has pushed the CPG industry to be the ambassadors of change and the innovators of the industry, through strategies that integrate seamlessly the offline and online, and this is because nowadays we live in a hyper-connected world, where convenience is what drives consumers to seek unique and fast experiences aligned not only to their shopping purposes, but also to their personal ones. In the recent “State of the Connected Customer” study by Salesforce, it was found that 80% of consumers believe that their experience with a brand is just as important as the quality of services and products, and that this experience is key to increasing loyalty and therefore long-term profit. In addition, 88% felt that brands that listen to their needs are seen as better-quality brands.

To create this profit, and not fall behind, CPGs have opted for vital strategies to meet the expectations of their consumers. From buying DTC companies, to giving consumers the ability to create their own product according to their needs. We will highlight some of these strategies and trends that are redefining the future of the industry.

Bye bye middle man

We are seeing more and more 100% online brands and startups that are eliminating the different logistics channels and bridging the gap with their consumers by offering niche products, focused on sustainability, personalization and a premium experience. This has created a wake-up call for industry giants, and in order to not be left behind this momentum, they have started to buy many of these brands to create a new experience with their consumers. And this buying doesn’t just start from the pandemic, Unilever, for example, bought several, including Dollar Shave Club in 2016 and Schmidt’s Naturals in 2017. 

Other brands such as Pepsi announced that they will create online stores for their consumers to buy their products directly, with 0 intermediaries, this with the objective of helping to develop skills and value through E-comm in the long term. Although it is a risky move, due to factors such as distance between the factory and the consumer, not doing so would imply a much greater risk as consumers are increasingly looking for a more personal treatment with their preferred brands.

The evolution of the value chain

It´s time to let go the traditional. Technology has come to impact the entire value chain, by creating more automated and disruptive processes to reach the consumer in a more unique and faster ways. In marketing, for example, advanced analytics are to generate promotions, product assortment and even pricing. Today, marketing teams from different CPGs work together with Data Scientists, integrating, consolidating and generating insights that positively affect marketing strategies and budget allocations. In sales, machine learning algorithms help create a more specific sales plan with key actions to ensure optimal negotiations and in the supply chain, experts are seeing how to convert business objectives and supplies into digital projects focused on more convenient and fast solutions.

Extreme personalization.

As we mentioned earlier, consumers are looking for experiences, and brands have to move to create them. According to a McKinsey study, almost 26% of purchases are based on product recommendations and reviews. For CPGs this percentage rises, with 65% in cosmetics and 55% in soaps. Using social networks, not only for the simple fact of being present, but also to listen to insights and understand them, can become a key point to create a better positioning through relevant promotions, allocation of targets, and even innovation and development of products. 

Another way to personalize is by creating interest through exclusivity across different E-Commerce platforms. Walmart, for example, offers L’Oreal hydration kits exclusively on walmart.com. Another German company even allows its online users to create their favorite type of muesli using more than 80 ingredients, and it is delivered to its consumers instantly.

But let’s not just stick to E-Comm. Augmented Reality (AR) is an incredible opportunity for CPGs to make experiences from the package. With the help of Smartphones, people can discover more about what they are buying, immerse themselves in the production experience and even find out which product is right for their needs, thus connecting the digital world to the offline world, and optimizing the collection of customer data in a more organic and optimal way.

We have to start acting and fast. Today is the time where we have to understand that markets and industries are moving at the speed of light and we have to captivate consumers right away. At 121 Corp, we move at the same speed as the world. We work hand in hand with our clients, and together we create innovative strategies and product design in record time across their value chain and consumer touchpoints. We know that in this year and the new years to come, we will not only need to have the perfect product with the same promotions and campaigns as always, but we will have to put ourselves in the consumers’ shoes. Understanding their tastes, needs, values and purposes, in order to create experiences that excite them and make them fall in love with a brand.

Creativity

Data at the service of creativity

The marketing sector is undergoing enormous transformations at the moment, with creativity blending with statistics to achieve precise outcomes. Traditional marketers, on the other hand, find this combination perplexing. After all, creativity and data are two opposites of the same coin.

You’ll be surprised to learn that the bulk of the decisions you believed were based only on creativity are supported by data as well. Analyzing significant trends, determining what appeals to the public, and developing a product in reaction to all of this is essentially data-driven. Let’s find out how these two different features get along.

Data-Supported Creativity

The majority of marketers feel that technology and creativity will become increasingly important in developing effective marketing campaigns. However, there are many unsolved concerns about how companies might profit from this merger.

According to a McKinsey analysis, firms that have combined these two areas are more successful than those still struggling to combine creativity and data. Other reports support that marketers believe that creativity and technology will be equally important in building effective marketing strategies.

Integrators’ creative functions are becoming more data-driven, while data-driven tasks are becoming more creative. Customer experience and consumer insights are two areas where we see this most clearly. Marketers who combine creativity and analytics create more significant development than others who don’t.

Overall, marketing is all about how a product interacts with customers. It is, in some ways, about customer involvement. Marketers can engage people in a way that assures results by combining creativity and data. Furthermore, technical developments in data analysis may accelerate marketing or creative processes by providing marketers with valuable insights from targeted customers. 

Competing in a data-driven world

Consider Spotify, which harnessed the power of data and utilized it to fuel an innovative marketing strategy. Spotify was able to usher in a new age of song-listening experience by leveraging available user data. They were able to construct their data-driven campaigns, which used outdoor billboards to provide goals for the future year, using the available statistics.

This data-driven marketing effort was not only timely, but it also drew the attention of a large number of people, making it a huge success, and the previous is known as data-led marketing.

Organizations like Spotify should not wait any longer to combine data with c o-reativity. However, this should be done in such a way that both of them complement each other. Remember that pushing this connection will never work since the goal is to strike a healthy balance.

Data Should Boost Creativity (Not Replace It)

The market is becoming increasingly competitive. Every day, businesses aim to differentiate themselves from the competition by devising novel ways to get their voices heard. However, sometimes more than just the ideal team members are required to break through the throng and have your message received the way you want it.

Marketing firms have the opportunity to peel back the layers and get to the heart of critical consumer data by using machine learning or other comparable technology. With the correct data comes insight, and with the proper insights, marketers have a good chance of creating accurate ads that are creative.

As additional technical improvements in the marketing, more and more businesses will follow the technique of making critical data useful. After all, the most engaging marketing initiatives are built on meaningful data about a particular target. This is where the connection between data and creativity may assist businesses in discovering new correlations.

In conclusion

Without data-driven insight, digital marketing services are like trying to hit a target while blindfolded. Given this, firms and marketing firms must craft messaging with their customers in mind, and data may assist in this process. The wonderful thing about creativity is that everyone has different preferences. This indicates that if one group enjoys something, it does not follow that the same thing will be well-received by another set of people, data that is provided while making a targeted campaign.

Marketers must grasp this to develop a better ad experience and, as a consequence, generate campaigns that will resonate with at least a more significant portion of the public.

A marketer must create individualized, memorable experiences that foster consumer loyalty. This is only achievable if an ad piece hooks its readers by appealing to their passions, interests, and concerns. This cannot be accomplished by putting statistics against creativity; rather, combining these two aspects will yield ideas worthy of acclaim. The future of marketing requires both technology and creativity.

121 is the Fastest day-to-day Design and Content Studio for many global Fortune 500 companies. We adapt and implement your global campaigns to suit and comply with all your outlets’ requirements while also aligned with your brand’s equity delivering high-quality solutions at superior Speed while remaining cost-effective; from Social & E-comm content, graphic design, digital implementation to integrated production, using both data and creativity to boost your global campaigns.

121 will work with you to grow your brand while giving you peace of mind. We aim to help you achieve your brand’s objective, not to compete against your creative, strategic, or In-House agencies. We genuinely believe that we can play a significant role in your success.