Digital is becoming an increasingly important part of CPG marketing. Here's how you can reach customers & sell more stuff.

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Consumer Packaged Goods
THE NEW CONSUMER
SHOPPING JOURNEY

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THERE IS
NO OFFLINE
Digital influence on in-store sales has been on the rise since
2012, jumping from 12%1
to an estimated 49% by the end
of 20163
.
Consumers are embracing the wealth of information available
to them online, but according to a study by Deloitte1
, there’s
a gap between consumers’ behaviour and brands’ ability to
deliver desired experiences.
And it looks like companies are missing out.
According to Forrester2
, online experiences influenced about
US$1.3 trillion of in-store sales in 2015 ­— over 5 times more
than e-commerce sales, which raked in US$0.3 trillion. And
78% of respondents to a PwC survey said that they were
influenced in some way by social media in 20154
.
This indicates that digital experiences are now an integral part
of their shopping journey. And the influence is only growing.
While digital solutions are necessary to connect with this new
consumer, there isn’t a simple one size fits all solution. Digital
influence and the resulting digital needs vary by demographic
and industry.
1

3. DEMOGRAPHICS
INDUSTRY
18 to 24 year olds are the most digitally influenced age
range, but that’s not the only demographic consideration:
ethnicity, socio-economic status, and location all impact the
level of digital influence.
Consumers are using digital at different points during their
shopping journeys in each industry. The level of influence
digital has also varies depending on industry, and even
product category within that industry.
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Digital Influence isn’t just happening before heading
into a store either ­— consumers have started to use their
smartphones in-store to continue carving their own
shopping journeys, looking up additional information,
price-matching, and reading reviews all of which Deloitte
refers to as “mobile influence.”
In 2015 34% ­— or US$1 trillion ­— of in-store sales in
the US were influenced by mobile content3
, and ¾ of
the 23,000 global online shoppers surveyed by PwC
indicated they used their device while in-store4
.
MAKE IT MOBILE

5. WHAT ARE
THEY DOING?
36% - comparing prices with competitors
36% - researching products
31% - accessing a coupon/promo code
25% - checking reviews
And the numbers are even higher for millennials.
8 in 10 millennials (age 18-34) use mobile while in-store
35% - more likely to compare prices than shoppers over 35
43% - more likely to research product than shoppers over 35
38% - more likely to access coupon than shoppers over 35
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6. 2
Digital influence in the CPG sector depends on product
category, but sales in most product categories are at least
50% influenced by digital experiences, reaching as high
as 62% for electronics. On average, digital influence is
also most relevant during the pre-purchase stages of the
shopping journey: Inspiration, Browse/Research, and
Select/Validate.
The main exception to these findings is the Food and
Beverage category.
A CLOSER
LOOK AT CPG
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7. Digital influence in the food and beverage category is
lower than other categories, but it’s growing: 31% of sales
were digitally influenced according to Deloitte1
. And that
influence is taking place predominantly on consumers’
smartphones while they are in-store.
food
and beverage
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43% - look for coupons
39% - do price comparisons
37% - look up recipes
20% - read product reviews
And the stats are even higher for Millennials:
51% - find coupons
35% - compare prices
43% - look up recipes
38% - read product reviews
Respondents to a survey by allrecipes.com5
indicated that:

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Spin, Match & Win
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9. How People
Shop is Also
Changing:
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Deloitte reported in 2014 that 67% of shoppers already
know what and where they want to buy1
, indicating that
pre-shopping and the earlier stages of the consumer
shopping journey are less important to food and beverage
shoppers.
For Food and Beverage brands that are sold in grocery
stores, this change is of particular importance. A more
recent study by the Food Marketing Institute found that
millennials in particular are “last-minute” grocery shoppers,
with nearly 37% of respondents saying they only make a
grocery list right before going to the grocery store6
.

10. It’s an important trend to note. Millennials are going to
have the most buying power by 2017, and they look for
food and beverages in distinctly different ways:
1) They Change it Up
Most Millennials shop by recipe or meal and are less likely
to buy the same staples every week8
.
2) Where it Comes from Matters
Millennials are more interested in local, organic food with
recognizable ingredients and they like knowing where their
food comes from7
.
3) Value is Important
Millennials shop for low prices. 85% will change brands
based on price and 56% switch brands to save money with
coupons8
.
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11. Cut through the clutter with
Flip to Win
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12. creating
an impact
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Since shoppers — especially Millennials — typically don’t do
a lot of pre-shopping when looking for food and beverages,
targeting consumers via mobile at the Browse/Select and
Purchase/Pay stages of the consumer journey is the most
effective option.

13. The Bottom Line
Digital Influence in the CPG sector is growing -- and
brands need to evaluate their product offering in
order to identify appropriate strategies for connecting
with this new consumer. Connecting with consumers
at the right moments along the path to purchase and
providing product information as well as discounts will
be key for brands moving forward.
Sources: 1 https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-cb-navigating-the-new-digital-divide-v2-051315.pdf 2 https://www.luxurydaily.com/mobiles-in-
fluence-on-offline-sales-continues-to-grow-forrester/ 3 http://www.mediapost.com/publications/article/268210/mobile-influence-on-store-sales-tops-1-trillion.html 4 http://www.pwc.com/us/en/
retail-consumer/publications/assets/Total-Retail-Global-Report.pdf 5 http://www.pwc.com/us/en/retail-consumer/publications/assets/Total-Retail-Global-Report.pdf http://press.allrecipes.com/wp-con-
tent/uploads/2015/12/Allrecipes_2015_Grocery-Shopping-Digital_Trends_Measuring_Cup_low-res_26AUG2015.pdf 6 http://www.fmi.org/research-resources/u-s-grocery-shopper-trends-2015
http://awgadvertising.com/millennials-grocery-shopping-habits-the-list-low-prices-and-convenience/ 7 http://www.foodnavigator.com/Trends/Marketing/Who-made-my-tea-Stories-help-brands-reach-
savvy-millennials 8 http://awgadvertising.com/marketing-to-millennials-as-a-grocery-retailer/
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