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Consumer Packaged Goods

Consumer Packaged Goods

Global CPG Brands: Lessons And Opportunities


Global CPG Brand Strategy

It wasn’t that long ago that competition took place between products, and the criteria for choice between rivals was customer benefits. Product vs product. Today, for globally scaled brands, the competition is really between the reach and co-ordination of different configurations of value chains, and the criteria for choice for customers is the quality of the experiences delivered as a result.

It’s fascinating to see how this is playing out in the CPG aka FMCG space – because here the global brands are amongst the most valuable in the world. The 2014 Brand Footprint reveals all top 50 global CPG brands were chosen at least 500 million times over the past year. They made it into shoppers’ carts through a range of strategies: they talked to consumers’ heightened awareness of health issues; they delivered convenient solutions for people’s busy lives; they were smart sized in ways that made them affordable;  they were genuine and relevant in their communications and encouraged consumers to talk amongst themselves; they were increasingly personalized in order to build deeper and closer relationships; and more and more they were weighted towards one of three categories – affordable luxury, premium, or basic.

What surprised me the most though was that, according to Brand Footprint, there are still significant opportunities for these huge consumer packaged goods brands to grow their footprints. In fact, the average market penetration across the entire Top 50 is just 20%. That means their value chains have some way to go if they are to dominate across markets.

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Consumer Packaged Goods

Creative Strategy: Design For Outcomes


I’ve always loved this quote from Dean Poole. Design, he says, is creating things for clients who “don’t know what they want until they have seen what you’ve done, then they know exactly what they want and it’s not what you did.”

So often, companies get design wrong. Designers frequently argue clients get the aesthetic wrong. That may be true, but I think it’s deeper than that. Actually, more than one party can get the function of design wrong. Design actually fails when people haven’t designed in human terms exactly how they want the recipient to act/react.

Recently, Seth Godin observed that great design is about getting people to do what you want. “The goal,” he says, “is to create design that takes the user’s long-term needs and desires into account, and helps him focus his attention and goals on accomplishing something worthwhile.”

I agree – and that changes the question that every brand owner should ask of their designer. The question is not so much “will they like what they see?” but “what will happen next?”. As a result of what has been designed, will they pick up the book?, will they find their way to the train?, or will the design not work and the shopper will walk past his favorite can of tomatoes because he didn’t recognize it anymore?

Design works when people do what you want them to do as a result of what they are presented with. Look for that to happen. Look closely.

Explore Brand Storytelling Strategy at The Un-Conference: 360° of Brand Strategy for a Changing World
Featuring John Sculley October 17-18, 2013 in Miami Beach, Florida
A unique, competitive-learning workshop limited to 50 participants
As in Your marketplace — some will win, some will lose, All will learn

Sponsored byThe Brand Storytelling Workshop

FREE Publications And Resources For Marketers

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Consumer Packaged Goods

How CPG Brands Can Win At Shelf


Branding Strategy Insider helps marketing oriented leaders and professionals like you build strong brands. To that end we’re happy to answer your marketing questions. Today we hear from Bill, a Senior Brand Manager in Chicago, Illinois who writes…

I’m a long time reader who will be attending The Un-Conference. My question — After an initial success of our functional beverage product introduction, we have experienced a drop in sales within the retail channel. Our prices are competitive with other brands. We believe our label describing our functional benefits may no longer be resonating with consumers. We’ve tested various descriptive words in various decorative packaging design themes. We came away with a lot of information about what words and designs people like–but no useful information revealing why our brand is losing momentum and sales. What would you suggest we do next?”

Thanks for your question Bill. Fixing words on your packaging that need fixing is an easy thing to do. Influencing consumers to reach for your product at shelf rather than the other alternative is a very difficult thing to do. It’s tempting to go for the quick tactical fix – some clever copywriting and a few design tweaks. You must think bigger. To win the battle at shelf requires your product represent a greater, more valuable idea to the consumer than the words and decorations used on the label to describe its function and benefits.

Consumers must value “the reason to believe” your promise. Certainly, product attributes, functions and benefits form the building blocks that differentiate one thing from another. Being different from your competitors is not enough to win at shelf.

Consumers demand and expect products to function and deliver the promised benefits. Today everything is good. On the shelf, good = the same. Abundant choice and clutter has made today’s consumers deaf and blind. They’re immune to buzz words, descriptors, starbursts and flashy colors. To win at shelf requires your product represent a higher ideal steeped in shared values and a greater experience. If it doesn’t, it better be the cheapest price. (If that is not a goal — re-focus)

To get consumers reaching for your brand rather than your competitors requires they hold a perception in their mind of a desired experience that’s difficult to substitute.

If the product doesn’t represent a higher ideal and is functionally the same as everything else, copywriting and graphic design, no matter how clever and cool, won’t be effective in building long term sales growth and brand value even if you win some design awards.

To win at shelf consider these points:

  • Forget about features and benefits, they are most likely antes in the category. Reconnect your brand team with the core purpose and higher ideal the product was created for in the first place (besides making money).
  • What does your product represent to people that is highly valued and difficult for them to replace. Craft a clear and relevant value proposition based on that.
  •  Find out who really cares about this proposition and why. Determine if these people represent a sizable market opportunity for your product to grow on and win their advocacy.
  •  Develop a compelling positioning idea that focuses your organization and your marketing resources on the “one thing” your brand can own in the mind. This is the art of sacrifice. Define a high value target consumer segment and aim your creativity and marketing resources only at them.
  • Craft a relevant and credible story of value that people you serve really care about. Build your brand storytelling platform on the higher ideal rather than functional features and benefits.
  • Design product packaging around the primary ideal and experience your high value consumers really care about.
  • Rinse and repeat for future product introductions.
Bill, we wish the best for your brand at shelf. See you in San Diego.
Have a question related to branding? Just Ask The Blake Project
Sponsored ByThe Brand Positioning Workshop

Compete. Win. Learn. The Un-Conference: 360° of Brand Strategy for a Changing World
Featuring John Sculley May 16-17, 2013 in San Diego, California
A unique, competitive-learning workshop limited to 100 participants
As in Your marketplace — some will win, some will lose, All will learn

Branding Strategy Insider is a service of The Blake Project: A strategic brand consultancy specializing in Brand Research, Brand Strategy, Brand Licensing and Brand Education

FREE Publications And Resources For Marketers

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