I read an interesting study, titled Digital pioneers now, CPG market leaders tomorrow: GMA. It went on to discuss how proactive CPG companies that use digital marketing today are ahead of the game and positioned to be leaders in the future, apparently leaving those not currently investing in digital marketing in the dust.
The urgency of getting on the digital train is backed up with statistics showing exponential growth in e-commerce for CPG goods. I’m not exactly sure I would use that particular statistic to back up the fact that forward thinking CPG brands should be using digital marketing.
First off, until we find the secret sauce for selling fresh grocery items on the web, e-commerce for CPG goods is unlikely to take off. That said, once again a new round of entrepreneurs are tinkering with the same ideas that WebGrocer and other online grocery start-ups failed miserably at 15 years ago. Technology has come a long way since then, though so it’s not out of the realm of possibility that this latest bunch will find success.
The more important reason that CPG companies should pursue a digital marketing plan is because of the change in the traditional purchase decision making model. Consumers are much more likely to research brands than in the past and look for thought leaders online for validation. The decision-making process clearly involved the consumer spending a substantial amount of time online prior to purchase. That should be as good enough of a reason as any for CPG companies to step up their digital marketing programs.
Photo Credit Rick Bolin on Flickr