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The CPG Marketing Evolution

November 17, 2023

A digital metamorphosis is disrupting traditional norms within the CPG sector. Marketing now pulses through e-commerce platforms, social media channels, and mobile applications. Behind the scenes, AI and data analytics orchestrate personalized marketing strategies and influencer collaborations, acting as unsung heroes. The days of relying solely on brick-and-mortar retail are fading. Instead, the digital frontier becomes the canvas where brands paint their narratives, connecting with a diverse and digitally astute audience.

Imagine a landscape where data reigns supreme, sustainability takes center stage, and consumer preferences become the guiding compass for brands venturing into uncharted territory. With shifting consumer behaviors, technological advancements, and a growing emphasis on sustainability, CPG marketers find themselves at the crossroads of tradition and innovation.

Many CPG brands are boldly embracing direct-to-consumer (DTC) models, deviating from conventional retail strategies. This seismic shift allows brands to cultivate direct consumer relationships, offering personalized experiences and collecting invaluable data. Subscription models, online exclusives, and tailored recommendations reshape the very dynamics between brands and consumers. It’s a revolution that transcends traditional retail boundaries, placing power firmly in the hands of brands eager to redefine the consumer journey.

Beyond being a buzzword, sustainability has become a cornerstone in the CPG marketing playbook. Consumers, more than ever, vote with their wallets, favoring brands that champion eco-friendly packaging, ethically sourced ingredients, and social responsibility. Marketing campaigns now weave narratives around corporate responsibility, communicating not just a product’s features, but a brand’s ethos. Sustainability is not a fleeting trend; it’s a fundamental aspect shaping the future landscape of CPG marketing.

In the era of data-driven marketing, brands grapple with the delicate balance between personalization and privacy. The value of consumer data is undeniable, but trust becomes the linchpin that holds the fragile ecosystem together. Transparent communication about data usage, robust security measures, and empowering consumers with clear choices are the building blocks of this trust. Striking the right chords in the symphony of data privacy is not just a compliance requirement but a strategic imperative for brands navigating the intricate world of CPG marketing.

As the CPG industry faces challenges like heightened competition, supply chain disruptions, and dynamic consumer preferences, it also stands on the precipice of opportunities. Innovation in product development, agility in marketing strategies, and a willingness to embrace emerging technologies create pathways for growth. The future belongs to those who can adapt, innovate, and respond resiliently in an ever-evolving market.

In the dynamic tapestry of CPG marketing, change is the only constant. The convergence of digital transformation, sustainability, and consumer consciousness molds an industry that thrives on adaptability. Looking ahead, brands that navigate this landscape with agility, transparency, and a commitment to consumer values will not merely survive but thrive in the fascinating journey ahead. Welcome to the future of CPG marketing—a realm where every trend, challenge, and opportunity weaves a narrative of innovation and resilience.

Written By:

Emmanuel Rojas

Blog

Sustainable Packaging Materials

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July 13, 2023

Brands have a responsibility to adopt sustainable packaging materials, not only for the environment but also to increase customer loyalty.

Reports show that adopting sustainable packaging materials is imperative for brands to remain their customers’ first choice. An article published by the Global Banking and Finance Report mentioned that more than half of the consumers surveyed have said they are willing to pay more for eco-friendly packaging.

It is important to note that implementing sustainable packaging materials may come with challenges, such as finding suppliers and educating customers. However, these challenges can be overcome with proper planning and communication.

As the demand for sustainable packaging solutions grows, various eco-friendly materials emerge as viable alternatives to traditional packaging options. These sustainable packaging materials offer unique characteristics that suit different applications.

This blog post will explore some of the most popular sustainable packaging materials and discuss their best uses, enabling consumer packaged goods (CPG) brands to make informed choices for their packaging designs.

Bioplastics:

Bioplastics are derived from renewable sources such as cornstarch, sugarcane, or cellulose. They offer several advantages over conventional plastics, including reduced carbon emissions and biodegradability. Bioplastics can be divided into two categories:

PLA (Polylactic Acid): PLA is a popular bioplastic made from fermented plant sugars. It is commonly used for packaging applications such as food containers, disposable cutlery, and transparent film wraps. PLA is compostable under specific conditions and is suitable for items with a short shelf life.

PHA (Polyhydroxyalkanoates): PHA is a versatile bioplastic derived from various organic materials. It possesses excellent barrier properties and is used in packaging applications where moisture resistance is crucial, such as food packaging, personal care products, and medical devices.

Recycled Paper and Cardboard:

Recycled paper and cardboard are widely used sustainable packaging materials due to their recyclability, biodegradability, and renewable nature. They can be used in various forms, including boxes, bags, and wrapping materials. Recycled paper and cardboard are suitable for packaging products across multiple industries, including e-commerce, food and beverages, and cosmetics.

Corrugated Cardboard: Corrugated cardboard offers excellent strength and cushioning properties, making it ideal for shipping boxes and protective packaging. It is lightweight, recyclable, and often made from high percentages of post-consumer recycled content.

Molded Pulp: Molded pulp, also known as pulp packaging or pulp paper, is made from recycled paper fibers. It is commonly used for egg cartons, food trays, and protective packaging for fragile items. Molded pulp is compostable and can be an excellent alternative to plastic foam packaging materials.

Glass:

Glass is an infinitely recyclable material that offers exceptional durability and impermeability. It is commonly used for packaging food and beverages, cosmetics, and pharmaceutical products.

Glass containers preserve the product’s quality, are non-toxic, and can be recycled indefinitely without losing quality. Moreover, glass has a premium look and feel that can enhance a product’s branding and perceived value.

Plant-based or Compostable Films:

Plant-based films, often made from cellulose or polylactic acid, are designed to be compostable or biodegradable. These films offer barrier properties and can be used for food packaging, wrapping, and labels. They are especially beneficial for products with a short shelf life, as they can break down naturally and reduce waste.

Metal:

Metal packaging, primarily aluminum, and steel, is highly recyclable and can be used repeatedly without losing quality. Aluminum cans are widely used for beverages, while steel cans are common in food packaging. Metal packaging provides excellent protection against light, moisture, and oxygen, making it ideal for products that require a long shelf life.

Be a part of the movement toward sustainability and contribute to the betterment of our planet!

The use of materials like these offers diverse options for CPG brands to embrace eco-friendly practices. Bioplastics, recycled paper and cardboard, glass, plant-based films, and metal packaging all present unique characteristics and suitability for different packaging applications.

By carefully considering the specific needs of their products, brands can choose the most appropriate sustainable packaging material, reduce their environmental impact, and meet the growing consumer demand for greener alternatives.

In addition to these efforts, having a clear communication strategy for your sustainability plan can give your brand visibility among customers. Practices like having a clear message in your packaging copy, developing metrics to measure the effectiveness of your sustainability efforts, and constantly reviewing and improving your actions.

Customers are becoming more aware of their purchases’ impact on the planet and are more likely to choose businesses that align with their values.

In conclusion, it is time for businesses to take a stand and adopt sustainable practices, such as changing their packaging materials. Doing so can protect our planet and create a better future for future generations. Let’s take action and make a difference together.

Packaging

The Importance of Packaging Design in Marketing

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March 10, 2023

Packaging design plays a critical role in marketing consumer goods. It is the first thing customers see when they pick up a product and can hugely impact their purchasing decision. Packaging design is also one of the most effective ways to differentiate your product from competitors and create a unique brand identity.

With the rise of online shopping, packaging design has become even more important as it extends your brand’s story and reinforces the customer’s perception of the product. In this blog post, we’ll explore the importance of packaging design in marketing and discuss some of the latest trends.

Good Packaging Attracts Customers

Good packaging design is essential when it comes to marketing. It’s one of the first things customers see and interact with when purchasing. According to an article by Design Bro, 60 percent of customer decisions are made at the point of sale, thus being influenced by product packaging.

That’s why you need to put extra emphasis on packaging design. Packaging should be eye-catching, visually appealing, and memorable. To do this, you must focus on the product’s unique features and values and stay on-brand. It must also be consistent with your other product packaging.

The packaging should be informative, too. Consider including brand logos, product descriptions, ingredient information, and customer reviews. This way, customers can quickly find out what the product is about without taking it off the shelf.

It’s also essential to use materials that make the package stand out, such as colorful inks, bold designs, and interesting shapes. This will help the product stand out from the competition and create a stronger connection with the customer. Additionally, you should consider using eco-friendly packaging materials so customers know your company cares about the environment.

Helps with Shelf Placement

Packaging design is an essential factor in the shelf placement of products in retail stores. Attractive and eye-catching packaging is more likely to stand out on store shelves, which can be a huge advantage for companies competing for customers’ attention. In addition, good packaging design can help boost product visibility and increase the chances of being picked up by customers.

Regarding shelf placement, good packaging design also helps ensure that products are organized and easily found in stores. An article by Alliance Sales mentions that packaging should be designed simply and clearly, so customers can quickly and easily identify the product they’re looking for despite their shelf placement. This is especially important for companies with similar products, as it allows customers to quickly find the right one without searching the whole shelf.

By designing packaging that stands out and is easy to understand, companies can increase their chance of being seen and chosen by customers. This can increase sales, so packaging design is essential regarding shelf placement.

Increases Sales

Packaging design can be essential to a product’s success or failure. It can increase sales by drawing attention to the product and appealing to the target market. The more attractive the packaging design, the more likely it is to attract customers and make them interested in purchasing the product.

Packaging can help create an emotional connection with potential customers. Packaging should evoke positive emotions such as happiness, confidence, and trust. In addition, good packaging should inform customers about the product’s benefits. This information will help customers make informed decisions.

Regarding physical stores, packaging can also be essential in shelf placement. Products with attractive packaging are likelier to be featured prominently on store shelves. This helps draw attention to the product and increases the chances of a sale.

Good packaging design can also help differentiate a product from its competitors. Products that stand out from their competitors often attract more attention and increase sales. This is especially true when the packaging communicates a unique benefit or story that resonates with customers.

Good packaging design is essential for boosting sales in today’s increasingly competitive market. According to a study by Ipsos, 72% of Americans say that packaging design influences their purchasing decisions. By appealing to customers visually and emotionally and with informative messaging, packaging can help convince customers to purchase a product instead of its competitors.

Packaging design constantly evolves, and staying on top of the latest trends ensures your product stands out. Here are a few of the newest trends in packaging design that you should consider when looking to revamp your packaging strategy:

New Trends in Packaging Design

1. Minimalism: This trend focuses on using simple, clean designs emphasizing the product and its features rather than using many bright colors and flashy visuals. This look conveys sophistication and elegance, and it helps products stand out from the crowd.

2. Sustainability: Consumers are more aware of their environmental impact than ever, so sustainable packaging is becoming increasingly important. Companies seek ways to reduce their packaging waste using recyclable materials and eco-friendly processes. This trend also extends to packaging labels, which should be made from recyclable materials such as paper or biodegradable plastic.

3. Customization: With more companies competing for the same customers, personalization is becoming popular in packaging design. Packaging can be tailored to appeal to specific customers, such as offering special edition packages with unique designs or targeted messages.

4. Colorful Designs: Colorful packaging designs are gaining popularity as they help products stand out on shelves and draw attention to customers. Bold and bright colors can create an eye-catching look that will help attract customers.

By keeping up with the latest trends in packaging design, you can ensure that your product stands out from the competition and makes an impression on potential customers.

The Bottom Line

Packaging design is crucial in marketing, especially for consumer goods. Not only does good packaging attract customers, but it also helps with shelf placement and increases sales. Additionally, with the rise of e-commerce, packaging has become increasingly important in creating customer loyalty and brand recognition.

Therefore, businesses should stay up-to-date on the latest trends in packaging design to ensure their products stand out from the competition. With the right packaging, companies can drive more sales and achieve greater success. Is your product’s packaging updated? Or are you ready to refresh your packaging design?

Brands

How CPGs are Stretching their Models for 2022

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October 20, 2021

The year 2021 is coming to an end, and marketers, as well as industry leaders, are still facing a disruptive landscape and continually transforming customer behavior. It is no longer simply good enough to tell customers what they should do or show them how good a product or service is, but rather, it is crucial to build a valuable relationship with customers. Creating relevant content that connects, building trust through availability, providing exceptional customer service, and carrying a purpose greater than the number of sales, are among the many actions a brand can make to win their customers’ hearts.

Sounds like a lot to do, doesn’t it?

Yes, but before giving up on connecting with customers, we have some cost-efficient tips from a few of our successful CPGs clients to help you save resources and valuable time.

Create a Center of Excellence – Consider hiring new providers for innovative, upcoming projects. When hiring new providers, make sure they have the same objectives as your business and a strong drive to make your brand shine.
Apply In-House or Outsourcing – Doing so offers expertise in many areas and provides additional speed for your daily marketing needs.
Try Gigs – Look for innovative ideas from people and startups by creating talent contests and leveraging crowdsourcing.
Automate Your Processes – Using the latest technology will help you avoid repetitive tasks and optimize the best data for your strategies.

A new year, loaded with new challenges, new customers, and innovations is ahead. While it may sound a bit overwhelming, once you take a step back and a long look, you can find inspiration from the big players in the industry to accomplish your marketing challenges on time and within your budget.

We invite you to discover more strategies and trends the thriving CPGs are applying in our latest white paper “How will Giant CPGs handle marketing challenges in 2022?”. Read it FREE here.

https://121corp.com/white-paper

Brands

The role of CPG’s in a hyperconnected world

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August 16, 2021

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.

Brands

Creativity: The non-negotiable ingredient

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October 29, 2020

Creativity! What is creativity exactly? Agencies worldwide take the challenge to take Fortune 500 companies’ brand materials and communication to the next level. Creativity is one of those things that not everyone can actually put into words. So, what does it mean to be creative?

Bestselling author and journalist Daniel Pink says Creativity is “Giving the world something it didn’t know it was missing.”

Steal Like an Artist author, Austin Kleon defines Creativity as “Taking what’s in front of you and everybody else and making something new out of it.

Today we associate Creativity with so much more. We think about imagination, ingeniousness, Innovation, invention, and originality. As Entrepreneur magazine states, Creativity is the best solving tool there is, and we agree entirely. Advertising is about reaching your target audience with audacity. Consumers want to see ads they actually like. We all love a good campaign. It makes us want to share it and participate in it.

CPG Power brands are cautious about messing with their brand’s equity. Implementation must be done creatively but without disturbing the brand’s guidelines.
This is why brands develop strict brand books so that every agency that manipulates their materials doesn’t generate different materials that don’t go along well. Can you imagine hundreds of agencies deforming a power brand’s logo? It would be too painful to watch!

Creativity on Adapting Global Campaigns (without losing a brand’s identity)

Global advertising and creative agencies such as IPG, GROUP M, Publicis, WPP Group, Dentsu, among others, take months to develop truly mindblowing campaigns. However, implementation agencies are in charge of adapting global campaigns into regional and seasonal materials.

Creativity shouldn’t be lost on adaptation. On the contrary, a good dose of it should be injected into materials. Ask our designers. We have loooots of fun delivering attractive pieces of content.

Old Spice, a Procter & Gamble brand, is known for its irreverent campaigns. The iconic “Hello Ladies” has resulted in hundreds of campaigns that will always give you a good laugh. We know we do. We have a lot of fun while adapting and developing engaging ad materials for social and e-comm channels.

Mucinex, Reckitt Benckiser’s flu remedy, is most certainly a fun brand to work with thanks to Mr. Mucus, the star we love to dismiss from their ads. KY, also from RB, is vibrant and creative. Having both a line for women and men makes them stand out because of their bold and unapologetic communication. Consumers find it genuine and playful, good to know, considering the nature of their brand.

Effective implementation is about providing artistic value on adaptation material, adding verbal, visual, and creative sound elements to elevate a brand’s communication. Creativity is not always valued at first. However, taking it into account will make campaigns more appealing as they roll out, and consumers get to appreciate our work.

Speed and Agility: A match made in heaven

Agility & Speed are not the same. Being agile means always in a position to take account of market changes and act on them. Speed is something we were born with, not be that braggy. Improving a consumer’s omnichannel experience over time is something brands should consider. Marketing teams must take so much change into the equation.

Brand Managers and Marketers require their agencies to deliver on very, very, veryyyyy short notice. Let’s just say we’ve developed entire product range adaptations in less than 24 hours. Its an arduous task, but we are ready to get our hands busy.

The world, as we knew it changed. Today brands require creativity if they want to stand out on social media, A+ pages, and every major e-commerce platform. Online Seasonal Sales have stolen the spotlight from brick and mortar stores.

At 121, we swear by our speed, our reputation precedes us as we are a reliable partner delivering POS and Packaging design as well as Web Solutions. Today we do so much more than that. 2020 propelled us immensely into the world of content. Social and e-comm are booming right now, and our clients started demanding astonishing amounts of it in a blink of an eye. Let’s make great things happen!

CPG

The CPG Marketing Evolution

Sustainable Packaging Materials

The Importance of Packaging Design in Marketing

How CPGs are Stretching their Models for 2022

The role of CPG’s in a hyperconnected world

Creativity: The non-negotiable ingredient

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