Why Consumer Goods Brands Must Think More Like Retailers

Consumer Goods companies need to think and act more their retail partners as their participation in social media and online storefronts increase.
An Economist Intelligence Unit report, New Directions: Consumer goods companies hone a cross-channel approach to consumer marketing, sponsored by Oracle, reveals that 41% of respondents surveyed plan to sell products directly to consumers in 2012, a 24% increase over those currently offering direct sales.
"Consumer goods companies are no longer just through the new media channels to promote traditional promotional activities to achieve today's more product awareness of consumers.We need to integrate multiple channels, the brand on the consumer who encourages consumers and producers To establish a more interactive relationship, rather than passively marketing information. "
Key findings include:
The social media opportunity is finally catching the attention of senior management: 74% of CEO-level respondents say social media is a priority for increasing loyalty over the next 12 months.
Nearly a quarter of CG executives envisage direct-to-consumer replacing retail.
Nearly half of the respondents and other CG executives believe that their emerging e-commerce activities are complementary to existing retail channels rather than substitutes.
Today’s “plugged in” consumer is a part of a complex e-commerce chain that integrates multiple channels for brand engagement.
“Our go-to-market strategy is to win wherever people shop,” says Alex Tosolini, VP of global e-business at Procter & Gamble. “As more people move their shopping habits online, we want to be present when and where they want to make a purchase. The path to purchase is no longer linear.”
The survey was conducted in October, and the respondents came from Asia-Pacific (31%), Europe (28%), North America (27%), Middle East/Africa (10%) and Latin America (3%).
Industries included food and beverages (53%), personal and household products (30%), non-durables (11%), tobacco (4%) and agribusiness (2%).
Forty percent of survey respondents were C-suite executives, and the remainder, held senior management positions in companies with over US$1bn in annual revenue.
Global spirits maker Diageo grew its brands’ collective fan base from 3.5m to 12m in one year, with five of its US brands showing that increased Facebook activity resulted in a 20% increase in sales.
“The rules of engagement are very different,” says Venky Balakrishnan, Diageo’s VP of marketing innovation. “Not just talking about it, our actions must reflect what our brand represents, and we must let consumers have the opportunity to participate and co-create with the brand in a responsible way. ".
The study concludes that better measurement begins with better data, and strategic partnerships will continue an important role as CG companies manage existing relationships with their retail partners.