This is what FMCG do better than anybody else – This is a $Billion Dollar Business founded on things that people pick up and buy without any real consideration. Lets be honest, nobody wakes up in the morning thinking about buying OXO cubes, or the latest cereal that goes out of date in a month. However what this branding does do is make people more aware of the product and increase the chances of it being picked up when they come to buy, say stock cubes. You just have to think about some of the great adverts that have appeared in history and the warm fuzzy feelings you have for them: I’m sure if I asked most people to name a brand of tea, brown sauce, or cereal brand, most peoples answers would be the same. Just because video makes presentations a little more interesting than listening to my voice the next slide shows an advert for milk, and again highlights how well marketers have branded a product like milk!
So moving on to the second area that traditional FMCG manufacturers do well… Point of Sale information. Again this is a multi-million pound industry, with the likes of Dunn Humby and Kantar making enormous amounts of money by applying highly complex data mining algorithms to understand and segment the purchase makers of the products bought. The upshot from this is that supermarkets can, tailor their offers or store setups to place products most likely to sell together, or manufacturers to target and position their products to the relevant audiences. Point of Sale information is so valuable and sophisticated that today it can be used to track supply levels in shop and automatically work out and order replacement stock given the number of units sold… All pretty sophisticated, I’m sure you’ll agree. Of course if this all of this works so well, why should the FMCG vertical care about online if there is no consideration stage to the purchase?
I’m sure the IAB will forgive me for stealing one of there slides to make my point But spend on display for FMCG has jumped from 10% to 13% of the market in one year…. In fact
Looking back over the past 2 years we can see significant growth in this area.
So lets move onto a different area, and bench the idea of traditional marketing for consumer goods, and think about what the internet does best… And how we can use these tools together with well established traditional marketing.
I think we can all appreciate that measurability is a modern day fundamental of internet advertising, you just need to think of a few metrics that are used each day: CPC CTR CPE View thru rates Conversion Rates Bounce rates. To name but a few.
This goes hand in hand with measurability and goes back to the fundamentals of marketing. By understanding the audience you can segment, target and position your product to give yourself the highest chance of success.
This is where the interent goes beyond TV marketing and branding, the internet is a perfect portal for people to discuss and talk about anything. Social Media vendors such as Facebook and Twitter allow people to share instantly their experience or can allow instant feedback to a manufacturer to refine or reposition there products if something is not quite right.
So we have discussed how the FMCG market previously worked, and we have discussed what thing the internet is really good at. So how can we marry the positives of both of these?
On screen we can see a FireFly video asset from Tribal Fusion, This asset will roll out from the MPU when hovered over for 2 secs or clicked, and then will push out to a larger format. The next slide shows what happens after.
So we have set the scene for how we can use these the power of traditional marketing, with the internet, but how does theory translate into the real world? Well lets have a look at an example with the insights team ran at tribal fusion.
Kellogg's ran a campaign for rice kipsies squares to uncover the audience that engaged with the product and were eventually driven to an online quiz. Is this the same audience as the P.O.S information or does the digital footprint represent something else?
Tribal Fusion is a behavioural network and the insights products allows us to look at users traits to understand the audience in more depth than traditional media. Teenagers with love of music and fashion Distinct trend with users with a passion for music . Acne skin care mirrors the importance of appearance. Social networking is a daily part of teenagers lifestyle. Dreams of affluence High end fast cars associated with Urban Music such as Lamborghini and Audi A3. Dream getaways and luxury products Out of reach to the teenager Is this the point of sales housewife that we previously saw?
Again Tribal fusion insights can dig deeper into the data and uncover what these unique audience is in market to purcahse. Advertiser is not competing against other FMCG companies but against all “Share of wallet” products. Partnering with, say an MP3 / audio company, for a free give away may attract the younger more engaged market. Digital is the medium of choice for the “corner shop” cash centric youth audience. Plan marketing mix for on and offline accordingly
Michael Pearmain ¦ UK Insights Manager Using digital media to not only reach customers, but to engage them