CPG stands for Consumer Packaged Goods and refers to products or items that consumers use on a daily basis. These items must be restocked regularly, including essential commodities like food supplies, bathroom products, pet foods, etc.
A peculiar thing about the CPG market is that it has shallow brand loyalty and hence is an excellent field for new entrepreneurs. For the same reason, the CPG market is competitive and on the verge of becoming saturated.
E-commerce and CPG market
The e-commerce industry had tried a great deal to penetrate the CPG market, and most of the efforts hadn't found fruit until the Covid-19 pandemic hit the world. The online sales of CPG products skyrocketed during the lockdown period. Even the verticals that didn't have much movement in the online stores sold out.
Top 4 CPG Marketing Strategies to prepare for 2023
With people accustomed to the convenience the e-commerce stores offer when it comes to purchasing CPGs, it's time to level up your CPG marketing strategies, get better at the competition and become a lead runner in the space.
Here are some tactics that will help you with the same:
1. Increase product reviews (CPG Digital Marketing Strategy).
Most people surf online for reviews before they actually buy a product. They scour every nook and corner of the internet to see if the product is worth the money. Thus, it would be best if you increased your online reviews as much as possible.
A common practice to increase reviews is to reward your customers for doing the same. At the end of their purchase, enquire if they want to leave a review or feedback on your product or service. If they do that, offer them a small discount that can be redeemed at their next shopping.
2. Partner with relevant brands to lead website users to your site (CPG Brand Marketing Strategy).
People often search the product/brand's website to learn more about the product and how they can incorporate it into their daily lives. If they are impressed, they go to the Where to Buy tab on the website and look for trusted distributors or resellers.
If you are a proud product reseller, contact the brand and request them to feature your e-commerce site on their page. This way, you can direct the website users to your e-commerce site, and they can make a purchase.
With that said, if the company lists many retailers on this specific page, you should up your game by making your website seamless and highly user-friendly. The customer will indeed look through multiple resellers to ensure they get a good deal for the product.
If you have a great website that offers a super easy shopping process and if you offer some benefits on each purchase, you have the upper hand to be selected by the customer.
3. Step into the retail media advertising arena (CPG Brand Marketing Strategy).
Retail media advertising is gaining traction more than ever. Retail media allows various brands to showcase their product on your website. E-commerce giants like Amazon and Walmart already do.
Many brands offer several loyalty programs and rewards for their customers. With highly targeted personalization, you can advertise to your customers while they are purchasing. So, for example, a customer is buying a face wash. With targeted retail media ads, you can show them ads for moisturizers or sunscreens that they are highly likely to purchase.
4. Invest in content marketing (CPG Digital Marketing strategy).
If you are in the e-commerce business, building a digital presence is vital for your business. You can get help from social media advertising to showcase your site through personalized ads. Additionally, remember the power of compelling content. People like to feed on hooking, engaging content â€“ be it in videos, picture posts, or even attention-worthy captions.
Descriptions on product pages are also valuable content that people like to see. They may not even need any extra nudge to purchase the product if they are mesmerized by the detailed description they read of a product.
Leverage the power of social media ads and content marketing, for they are here to stay for a while.