Today we’re going to discuss CPG marketing and give you 3 deadly truths about marketing consumer product goods.
- Today Key Points
1. What Does CPG Stand For In Marketing?
In the world of business marketing “CPG” stands for “Consumer Packaged Goods.” Consumer Packaged Goods are products that are intended for the everyday use of consumers. These goods are typically consumed very fast and are sold at a relatively low cost.
There are many types of CPG products, from different types of food, beverages, makeup, and even household items. The CPG sector contains a wide range of products that consumers use regularly in their everyday lives. Most of these products are products that the consumer feels like they need.
However, the market for CPG is extremely competitive. This is solely the reason why the majority of consumer product goods are sold at such a low rate. There are many alternative brands and options to choose from with every CPG product that is sold. Having a CPG marketing strategy is crucial to building a strong presence in the market.
2. Why CPG Marketing Is Important
CPG marketing is extremely important because in this industry consumers have near-unlimited choices with zero switching costs. Think of any consumer packaged goods item (laundry detergent, soda, iced tea, frozen pizza, etc.) and you’ll find 10+ choices in your local supermarket or department store.
What makes things worse is with almost all of these fast-moving goods there are virtually zero switching costs, so for example, if you buy one brand of iced tea today, there’s no cost in trying a different brand tomorrow.
CPG marketing is used to create brand loyalty with consumers and to remind them of reasons to choose your product. Even the most recognizable brands can’t opt out of marketing their products. Brands like Coca-Cola, Pepsi, Starbucks, Budweiser, Kleenex, and Tide spend millions of dollars every year marketing their products to drive purchase consideration and stay ahead of the competition.
When understanding consumer product goods you have to understand that most of the CPGs sold are considered everyday necessities.
Everyday necessities are items that your target consumer uses daily such as food, beverage, or toiletries. Successfully marketing these products keeps your brand at the top of the consumer’s minds every day when they make these purchases.
Starbucks Example
Let’s take Starbucks for example, millions of people regularly visit Starbucks for their morning coffee and breakfast, but why? There are many other cheaper alternatives to go to such as Dunkin Donuts, Ellianos Coffee, McDonald’s, or even your local gas station. So why spend more money on Starbucks?
The reason is because of the trust and reputation they have built. Starbucks has one of the best CPG advertising tactics in the entire industry.
Do you remember Starbucks went viral for spelling people’s names wrong on their coffee cups?
This slight marketing tactic caused a dramatic surge in sales at Starbucks because people wanted to purchase a cup to see in which way their name would be misspelled. Even those who did not purchase a coffee would sit and laugh and chuckle over the funny ways people’s names were being misspelled.
Marketing tactics like these allow companies to penetrate a constant and recurring customer base, which creates a steady demand for their products. While also keeping their brand in the minds of their potential customers. Marketing your consumer product is a must if you want to compete in the competitive world of consumer product goods.
3. How to Market Consumer Product Goods
Marketing consumer packaged goods (CPG) is a very strategic and calculated process that can be relatively easy if done right. CPG marketing involves a combination of strategic planning and branding. Before you can market anything to anybody you must have a brand of your own. Digital or physical it doesn’t matter you have to know what your brand is and who you are targeting.
When marketing your CPGs you have to remember three important aspects of marketing branding, researching your market, and your unique selling proposition.
Branding
Creating a brand is super important in any business realm but even more important in a highly competitive one such as consumer product goods. Creating a strong brand is key to building brand awareness, authority, and loyalty; all three are major aspects of a business.
When creating a strong brand identity you want to pick a memorable name, logo, and slogan that relates to the product you are selling. Staying consistent with your branding online and on physical boxes and packages helps you build recognition for your target audience.
When branding your product you want to invest in appealing or informative packaging. The design of your choosing should directly relate to your brand and clearly convey the benefits of using your product.
In this age perception matters. Investing in a creative design that speaks to your target audience can and will increase the sales of your product. In this highly competitive industry standing out is a must. You have to take attention away from your competitors so you can elevate, and package branding is a great way to do it.
Market Research
Market Research is one of the most important parts of marketing yourself in the CPG industry. Gaining information about your market is the key to beating your competitors and getting your products off of the shelves faster. You must want to learn and become familiar with your industry and target audience Look at your competition to help guide you in the industry if a majority of your competitors are going after the same target audience chances are you should as well. When analyzing data, adopt a mindset to unveil the story it tells and draw meaningful conclusions.
Unique Selling Proposition (USP)
What makes you so different? This is the first question your consumer is going to ask when they see your brand especially if it’s new. You must clearly define what makes your product new and exciting and communicate this effectively to your audience.
Your USP should exaggerate the problem you are fixing or the need you are filling. Make sure to properly show the consumers what they are getting out of your brand that they won’t get from your competitors.
Three Key Tips To Writing a Killer Unique Selling Proposition
- Describe Your Unique Qualities
When writing USPs describe what makes you different from every other brand in your industry. Explain why your consumers should choose your product over your competitors. Take a look at your competitors to what sets them apart. Once you’ve gathered all the info, use it to craft your own impressive USP that outshines theirs.
- Make It Memorable
Understanding your audience and addressing their needs is crucial to making a memorable USP. You must appeal to the emotions of your audience to create a personal connection with your customers. Choose memorable language and highlight the authenticity of your brand. Test your USP to ensure its lasting power in the market.
- Speak To Your Target Audience
You have to understand your target audience. Creating a USP is about identifying the unique values of your business and focusing on how it benefits your target audience. You must recognize your target market, analyze their needs, and develop a USP that resonates with your target audience.
Final Thoughts
CPG marketing is about making everyday products stand out in a crowded market Marketing these goods is essential to having a thriving product and thriving business.
Maintain focus on building a strong brand that makes your product unique, and speaks directly to your audience’s needs. Make sure to use market research as your secret weapon – know your competition, stay on top of trends, and make data-driven decisions.