Cpg Where Does Marketing Go Next 2011 0415 Short V5

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I was asked this question by a client. It was provocative enough to share some broad answers.

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Cpg Where Does Marketing Go Next 2011 0415 Short V5

  1. 1. CPG Marketing: Where Are We Going? Branding Rain Growing Brands through Strategy, Analytics & Teamwork Jay Sullivan April 15, 2011
  2. 2. <ul><li>“ Our brand managers were trained on the notion of the 30 second spot. </li></ul><ul><li>“ We now have the tools and network to get away from one directional marketing into true conversations with consumers. But, we do not know how to manage this. It is so new. </li></ul><ul><li>“ Our people are unprepared.” </li></ul><ul><li>John Bryant (CEO Kellogg) </li></ul>
  3. 3. Questions <ul><li>What is unique about marketing in these times? </li></ul><ul><li>How should we manage our brands? </li></ul>
  4. 4. Six Topics <ul><li>The Great Recession </li></ul><ul><li>Consumers </li></ul><ul><li>Retailers </li></ul><ul><li>Shopping </li></ul><ul><li>Mobile </li></ul><ul><li>Social </li></ul>
  5. 5. 1. Economy Changed Us <ul><li>9% unemployed, 18% including underemployed. </li></ul><ul><li>We are now value shoppers, some “need to” some “want to.” </li></ul><ul><li>Prices are up, driving switching. </li></ul><ul><li>Gas prices impact trips. </li></ul><ul><li>It really changed us! </li></ul>
  6. 6. 2. Shifting Consumer Segments <ul><li>Boomers remain the 800 lb. gorilla in the room. </li></ul><ul><ul><li>50% of spending, 25% of population. </li></ul></ul><ul><li>Hispanics and Asians fast growing and locally concentrated. </li></ul><ul><ul><li>Local communities, emerging needs. </li></ul></ul><ul><li>Special communities with attitudes & needs. </li></ul><ul><ul><li>Green, organic, sustainability. </li></ul></ul><ul><ul><li>Health, wellness and obesity. </li></ul></ul><ul><li>New tools, data and analytics will allow us to target more tightly. </li></ul>
  7. 7. 3. Power Has Shifted to Retail <ul><li>More marketing money goes into trade, 65-70% estimated. </li></ul><ul><li>Store brands are good, better than ever, and affordable. </li></ul><ul><li>Retailers are smarter, and using card data more effectively. </li></ul><ul><li>This change will not be reversed. </li></ul>
  8. 8. 4. Introducing Shopper Marketing <ul><li>Not just consumers, they are shoppers doing shopping. </li></ul><ul><li>Best marketers are taking these roles. </li></ul><ul><li>Trips are critical to retailers. </li></ul><ul><li>Retailers open to help. </li></ul><ul><li>We need to mesh consumer and shopper segments. </li></ul>
  9. 9. 5. We Shop and Choose On-The-Go <ul><li>We are consuming media, asking questions on-the-go. </li></ul><ul><li>Smart Phones will have 50% penetration at the end of 2011. </li></ul><ul><li>This is already impacting where & how we shop. </li></ul><ul><li>Location based services estimated to become $8B. </li></ul><ul><li>Loyalty programs are just emerging in this third screen. </li></ul>
  10. 10. 6. We are Connecting & Influencing in New Ways <ul><li>Who were the big guns 5 years ago? Where is MySpace? </li></ul><ul><li>Every brand wants it, but most are not sure how to get it. </li></ul><ul><li>Still, these platforms have rules, audiences and content. </li></ul><ul><li>With understanding, we can influence the brand discussion. </li></ul><ul><li>Social is moving into our marketing mix and ROI strategy. </li></ul>
  11. 11. Six Topics <ul><li>Economy has shifted to value with a global influence </li></ul><ul><li>Consumer segments shift in expected, but important ways </li></ul><ul><li>Retailers have new power and are flexing it </li></ul><ul><li>Shopping emphasis changes marketing focus </li></ul><ul><li>Mobile goes everywhere, will influence most every choice </li></ul><ul><li>Our social tools broaden word of mouth impact </li></ul>

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