New directions: Consumer goods companies hone a cross-channel approach to consumer marketing

New directionsConsumer goods companies hone a cross-channel approach to consumer marketing A report from the Economist Intelligence UnitSponsored by Oracle

© Economist Intelligence Unit Limited 20121

New directionsConsumer goods companies hone a cross-channel approach to consumer marketing

Preface 2

Executive summary 3

About the survey 3

Introduction: shifting behaviours, shifting priorities 5

Nurturing engagement, loyalty and sales across multiple channels 7

The e-commerce opportunity 9

A cross-channel perspective: mixing the old with the new 11

Direct connections drive consumer insights 12

Conclusion: the road ahead 13

Appendix: survey results 15

Contents



2

New directions: Consumer goods companies hone a cross-channel approach to consumer marketing explores the shifting behaviours—and priorities—of consumer goods companies towards their consumers.

The Economist Intelligence Unit conducted the survey and analysis and wrote the report. The fi ndings and views expressed in this report do not necessarily refl ect the views of the sponsor. The author was Rob O’Regan. Gilda Stahl edited the report, and Mike Kenny was responsible for layout. We would like to thank all of the executives who participated in the survey and interviews for their valuable time and insight. February 2012

Preface



Consumer goods (CG) manufacturers are aggressively exploring ways to integrate new channels such as social media and mobile into the marketing mix to attract and engage consumers. However, they

are not ready to abandon traditional approaches to consumer marketing. CG marketers say they want to increase engagement with consumers and improve their direct-to-consumer initiatives—but are they really ready to do so?

Perhaps CG companies looking to get closer to consumers ought to think more like retailers, which have made signifi cant investments in understanding consumer behaviour and sentiment across physical and digital environments. New directions: consumer goods companies hone a cross-channel approach to

consumer marketing, an Economist Intelligence Unit report sponsored by Oracle, draws on a survey of 221 CG executives as well as in-depth interviews with corporate leaders in the CG industry to explore the changing face of consumer marketing. Key fi ndings in our research include the following:

l Pushing traditional media through new media channels is not enough to reach today’s more plugged-in, product-savvy consumer. An increasingly complex, non-linear buying process requires a different approach—one that integrates multiple channels to put their brands wherever consumers are, in a way that encourages participation, not passive consumption of marketing messages.

l CG companies are experimenting with new ways to establish and enhance direct, two-way relationships with their target consumers across multiple channels. Over the next 12 months, survey respondents plan to leverage social media for such activities as product promotion (73%), capturing consumer feedback (63%) and customer service (62%). In addition, social media participation is growing in importance as a tool to increase consumer loyalty. Nearly twice as many respondents say it

Executive summary

About the survey

In October 2011 the Economist Intelligence Unit conducted a global survey of 221 consumer goods (CG) executives, sponsored by Oracle. Thirty-one percent of respondents hailed from the Asia-Pacifi c region, 27% from North America, 28% from Europe, 10% from

the Middle East/Africa and 3% from Latin America. The respondent pool was senior: 40% were C-level executives, and the remainder were senior executives and managers. All respondents were from companies with over US$1bn in revenue. A mix of CG segments was represented, including food and beverage (53%), personal and household products (30%), non-durables (11%), tobacco (4%) and agribusiness (2%).



4

will become a top priority in the next 12 months (up to 33%, from 17% today). Deeper relationships, CG marketers believe, will enhance brand loyalty and drive product sales, either directly (through digital commerce) or via traditional retail channels.

l Vibrant online communities can serve as an entrée into e-commerce and other direct-to-consumer sales for CG manufacturers that have traditionally sold through third-party retail channels. Forty-one percent of respondents to the Economist Intelligence Unit survey say they expect to sell products directly to consumers over the next 12 months—up from the 24% who say they currently offer direct sales.

l Survey respondents and other CG executives see their nascent e-commerce efforts as complementary to, not competing with, existing retail channels. Forty-one percent of respondents say they work with their retail partners on a variety of marketing, sales and service programmes. However, 23% of respondents say that while they collaborate with retail partners, they are also committed to expanding their competing direct-to-consumer strategies.

l An increasingly complex relationship between CG manufacturers and their retail partners is just one example of the evolving nature of CG makers’ direct-to-consumer marketing efforts. As marketers experiment with new channels such as social media and mobile, they are discovering that traditional messaging won’t work in these new media. But they are not prepared to simply abandon the old in favour of the new. Instead, they are fi nding that a blend of digital media and traditional methods such as in-store marketing is the most effective way to establish two-way relationships with consumers.



Consumers’ online activities continue to expand, but are marketers devising novel strategies to engage these consumers? In the US, Internet users average 32 hours a month online while Europeans

spend an average of 24.3 hours online monthly, according to comScore, an Internet marketing research company. Increasingly, consumers’ Internet time is spent on social networks, which in the US account for one out of every six minutes spent online. Facebook alone reaches 73% of the total US Internet population each month, with visitors’ average time spent on the social network increasing from 4.6 hours to 6.3 hours per month over the past year.

Mobile access to the Internet is on the rise as well. A survey conducted by the Pew Internet Project in July 2011 found that 87% of US smartphone users access the Internet and e-mail from their devices and 68% do so daily. One-quarter of these users said the smartphone is their preferred device for accessing the Internet.

Introduction: shifting behaviours, shifting priorities

Social networking (US)Share of total time spent online (%)

Source: http://blog.comscore.com/2011/06/facebook_linkedin_twitter_tumblr.html

0

2

4

6

8

10

12

14

16

18

20

Jun-

2008

Jul-

2008

Aug-

2008

Sep-

2008

Oct-

2008

Nov

-200

8De

c-20

08Ja

n-20

09Fe

b-20

09M

ar-2

009

Apr-

2009

May

-200

9Ju

n-20

09Ju

l-20

09Au

g-20

09Se

p-20

09Oc

t-20

09N

ov-2

009

Dec-

2009

Jan-

2010

Feb-

2010

Mar

-201

0Ap

r-20

10M

ay-2

010

Jun-

2010

Jul-

2010

Aug-

2010

Sep-

2010

Oct-

2010

Nov

-201

0De

c-20

10Ja

n-20

11Fe

b-20

11M

ar-2

011

Apr-

2011

May

-201

1Ju

n-20

11Ju

l-20

11Au

g-20

11Se

p-20

11Oc

t-20

11N

ov-2

011

Dec-

2011



6

As consumers spend more time online—frequently researching, discussing and even directly purchasing consumer goods ranging from household and personal-care items to apparel and consumer electronics—efforts by marketers to reach these consumers when and where they shop have lagged. In an Economist Intelligence Unit global survey of business professionals from CG companies, respondents cited three traditional marketing activities—in-store marketing (73%), co-marketing with retail partners (61%) and print/television ads (60%)—as most important for consumer engagement.

Marketers appear ready to pick up the digital pace, however. Seventy-three percent of respondents say social media will be an important part of consumer engagement over the next year, second only to in-store marketing (74%). Digital marketing (66%) will rise to the third spot, ahead of print/TV advertising (59%).

While these fi gures show that engagement priorities are shifting, marketers also understand the importance of integrating communications across all of these channels—not managing each independently—to deliver a more consistent and personalised buying experience to consumers.

“Our go-to-market strategy is to win wherever people shop,” says Alex Tosolini, vice-president of global e-business at Procter & Gamble (P&G). “As more people move their shopping habits online, we want to be present when and where they want to make a purchase.”

The goal for P&G and others is to establish and enhance direct, two-way relationships with their target consumers. Deeper relationships, CG marketers believe, will increase brand loyalty and drive product sales, either directly (through digital commerce) or via traditional retail channels. The opportunity is fi nally catching the attention of senior management: in the EIU survey, 74% of CEO-level respondents say social media is a priority for increasing loyalty over the next 12 months.

“Our go-to-market strategy is to win wherever people shop. As more people move their shopping habits online, we want to be present when and where they want to make a purchase” Alex Tosolini, Vice-president of global e-business, Procter & Gamble



CG manufacturers have discovered that the most effective engagement activities involve a two-way exchange between the brand and its consumers. Fifty-nine percent of survey respondents

say they use consumer marketing to increase interaction with their brands. Over the next 12 months, respondents plan to leverage social media for product promotion (74%), capturing consumer feedback (63%) and customer service (62%). In addition, social media participation will nearly double over the next 12 months (from 17% to 33%) as a top priority for marketers looking to increase consumer loyalty.

There is a tangible reason for marketers’ increased emphasis on social media: test programmes show that nurturing engagement and loyalty through social media can have a direct impact on sales. P&G’s Secret deodorant brand, for example, has fostered a Facebook community with more than 1.3m fans. More than one-half of those members regularly engage with the fan page through activities such as posting, commenting or uploading their own videos. The page also features coupons, free samples and other promotions. Since launching its Facebook-driven “Fearless” campaign, the Secret brand has increased

Nurturing engagement, loyalty and sales across multiple channels

1 Highestpriority

2

3

4

5 Lowestpriority

Product promotions

Print coupons

Online coupons

Loyalty programmes

Online communities

Social media participation

Digital marketing

In-store marketing

Shopper marketing

Rating/reviews/recommendations

Please rank in order of priority the importance of the following methods for increasing customer loyalty over the next 12 months. Please rate on a scale of 1 to 5, where 1=Highest priority and 5=Lowest priority. (% respondents)

Source: Economist Intelligence Unit survey, October 2011.

43 34 14 4 4

9 33 19 13 26

14 24 24 16 21

30 31 20 7 13

21 32 24 13 10

33 31 18 11 7

23 36 24 11 6

46 28 15 8 4

31 32 18 8 11

20 30 27 11 12



8

market share by 7%. “When you see this level of engagement, you know something is right,” says Mr Tosolini.

Social media is not the only emerging channel P&G is using to connect directly with consumers. In November 2011 the company announced a partnership with a start-up called Mobeam to distribute digital coupons via mobile phones. The companies plan to begin testing the solution—which requires enhancements to existing handsets—in 2012.

Diageo is another CG manufacturer that has also turned to social media—Facebook specifi cally—to enhance its consumer marketing efforts and drive retail beverage sales. The global spirits maker expanded its brands’ collective fan base from 3.5m to 12m in one year, and an in-house study conducted with Facebook and Nielsen on fi ve of Diageo’s US brands showed that increased Facebook activity resulted in a 20% increase in sales across those brands.

“The rules of engagement are very different,” says Venky Balakrishnan, Diageo’s vice-president of marketing innovation. “Rather than just talk about it, our actions must refl ect what our brands stand for, and we have to give consumers the opportunity to participate and co-create with our brands in a responsible way.”

“The rules of engagement are very different. Our actions must refl ect what our brands stand for, and we have to give consumers the opportunity to participate and co-create with our brands in a responsible way” Venky Balakrishnan, Vice-president of marketing innovation, Diageo



V ibrant online communities can also serve as an entrée into e-commerce for CG manufacturers that have traditionally sold through third-party retail channels. Forty-one percent of survey respondents

say they expect to sell products directly to consumers over the next 12 months—up from the 24% who say they currently offer direct sales. The percentage is even higher in the Asia-Pacifi c region, with 48% of those respondents expecting to offer direct sales over the next 12 months. This is possibly a refl ection of Asian consumers’ increasing use of mobile phones for shopping and the expected adoption of mobile wallet services from Google, Nokia and others, which will expand the mobile commerce market.

CG companies have good reason for wanting a piece of the e-commerce market. In the US, online revenues for the CG brands traditionally slowest to adopt e-commerce are expected to more than double (through online retail and direct channels) over the next three years, from US$12bn in 2010 to US$25bn by 2014, according to Nielsen.

Survey respondents and other CG executives see their nascent e-commerce efforts as complimentary to, not competing with, existing retail channels. The goal, as P&G’s Mr Tosolini stated, is to be wherever the consumer is. To this end, 41% of respondents say they work with their retail partners on a variety of marketing, sales and service programmes. However, 23% of respondents say that while they collaborate with retail partners, they are also committed to expanding their competing direct-to-consumer strategies.

Some CG companies are already fi nding success with e-commerce initiatives. For example, Solo Cup, a US$1.6bn provider of single-use/disposable products (e.g., paper cups and plates),

launched a digital storefront (solocup.alice.com ) in partnership with alice.com in August 2011 that users can access from Solo’s corporate website as well as its Facebook page.

“Linking the storefront into our website and Facebook page makes it easier and more accessible for consumers to buy Solo products while they are already engaging with the brand online,” says Chris Klem, the company’s director of consumer marketing. Solo Cup’s online storefront also allows the company to

The e-commerce opportunity

US online CPG sales(US$ bn)

Source: http://blog.nielsen.com/nielsenwire/consumer/five-things-to-know-about-online-grocery-shopping/

5

2006 2008 2010 2012 2014

8

12

17

25



10

promote and sell a broader selection of niche items that are harder to fi nd in brick-and-mortar stores, Ms Klem says. To date, Solo has seen a “nice lift” in sales from the digital store, she notes, without offering specifi cs.

When toymaker Mattel launched an e-commerce website in 2009 (shop.mattel.com), it used a heavy dose of video to increase consumer engagement and distinguish its offerings from those found on traditional retail sites. The company, in effect, turned video into a direct sales tool: in the fi rst year, as many as 42% of the top-selling products on the Mattel site appeared after a visitor clicked on a video. Mattel cross-promotes the store and specifi c products heavily through its Facebook page and Twitter account.

P&G is also stepping into the e-commerce space, including new social commerce stores. In June 2011, P&G launched Facebook stores for seven of its brands: Tide, Gillette, Olay, Gain, CoverGirl, Luvs and Febreeze. Products purchased from these storefronts are fulfi lled by a P&G partner, eStore Retail Services, an online retailer that also sells P&G home care, health and other products through a dedicated site called PGestore.com. These are just part of the company’s efforts to connect with consumers wherever they choose to shop.

“The path to purchase is no longer linear,” says Mr Tosolini. “We need to connect our brands all along that new, non-linear path. We’re partnering with everybody, including what you would call traditional retailers, to fi gure out the most relevant way to do that.”

“The path to purchase is no longer linear. We’re partnering with everybody, including what you would call traditional retailers, to fi gure out the most relevant way to do that” Alex Tosolini, Procter & Gamble

We work together to serve consumers through a variety of marketing, sales and service programmes

We continue to work with retail partners but we are also committed to expanding our competing direct-to-consumer strategies

We share consumer data and insights to enable better planning, though we act on those insights separately

We battle for shelf space with other brands

We compete with retailers’ private-label offerings

How do you view your relationship with retailers as it relates to consumer engagement?(% respondents)

Source: Economist Intelligence Unit survey, October 2011.

41

23

22

9

5



Social media campaigns are an increasingly important part of the marketing mix—but they remain just one part.

In-store marketing, for example, is a priority among survey respondents: 46% say in-store marketing will be their highest-priority channel for improving customer loyalty over the next 12 months, up from 41% over the past 12 months. Product promotions will also increase in signifi cance (to 43% from 41%), as will shopper marketing programmes (to 31% from 22%).

Budgets are beginning to refl ect this two-pronged approach as well. Twenty-two percent of respondents say they have increased the share of total spending dedicated to trade promotion (i.e., partnering with retailers and wholesalers) to complement direct-to-consumer programmes. Another 29% say consumer marketing programmes have had no effect on trade promotion spending. One-quarter of the respondents have shifted some trade promotion budget to direct-to-consumer programmes.

“There is a massive intersection of things happening in social media and in the stores,” says Diageo’s Mr Balakrishnan. “A lot of information is extending downstream from marketing channels into the store. We need to present useful information that they can act on at the point of purchase.”

Some CG companies are fi nding an upstream approach works as well: using packaging and other in-store marketing promotions to drive consumers back online, where they can engage further with the brand. US-based Orabrush, for example, labels its tongue-cleaning products with “As Seen on YouTube” to fuel what the chief marketing offi cer, Jeffrey Harmon, calls “the engagement loop”. Viral videos drive consumers to retail outlets, which drive them back online to see more of Orabrush’s original video content, which increases awareness, engagement and loyalty. Consumers can purchase Orabrush products however they want—through retail outlets such as Wal-Mart and CVS or online from the Orabrush website. Orabrush expects sales to grow from US$2m in 2010 to US$10m in 2011.

The takeaway is clear: an innovative blend of social media engagement and in-store marketing—including options to purchase online, in a retail store, or even through mobile devices—are proving to be a valuable combination for attracting and retaining customers. This approach requires CG manufacturers to look at the consumer landscape in a far different way than they have traditionally—and adjust their marketing programmes accordingly.

US-based Kraft Foods, for example, has leveraged the power of consumer engagement across multiple channels to increase sales of its Philadelphia Cream Cheese brand. In 2009, Kraft launched Real Women of Philadelphia, an online community of Philadelphia users, and introduced a series of videos designed to

A cross-channel perspective: mixing the old with the new

An innovative blend of social media engagement and in-store marketing—including options to purchase online, in a retail store, or even through a mobile device—are proving to be a valuable combination for attracting and retaining customers.



12

help reposition Philly Cream Cheese not strictly as a spread for bagels, but as a key ingredient for making dips, casseroles and other recipes. As the number of video views and user-generated recipe submissions increased, so did cream cheese sales, rising 5-8% annually over the past three years.

“The results blew us away,” says Howard Friedman, senior vice-president of marketing for Kraft Cheese & Dairy. “We achieved a scale and scope we never could have imagined.”

Direct connections drive rich consumer insights

Consumer insights can drive brand-building and product development. However, the ability to capture and analyse the data required to develop those insights is still evolving. According to an EIU survey of senior executives in large consumer goods (CG) companies, gathering consumer insights to improve product (44%) and marketing programmes (35%) are important objectives of their direct-to-consumer efforts. “Social media, and Facebook in particular, is proving to be extremely rewarding in helping us listen to and understand consumers and to help our brands build different types of relationships with consumers,” says Alex Tosolini, vice-president of global e-business at Procter & Gamble (P&G).

Access to the right data is critical to marketers’ consumer-focused initiatives. Nearly three-quarters (72%) of respondents agree that their ability to capture and analyse “big data” has improved their efforts to attract and retain customers. In addition, 58% believe their organisation is “very effective” at leveraging customer data and

insights to improve interactions with consumers. Unsurprisingly, this fi gure rises among larger companies: 72% of respondents at companies with revenues of US$5bn-10bn say they are very effective at leveraging customer data.

Some are still getting their arms around big data sets. Twenty-nine percent say they collect plenty of consumer data but do not have the tools to analyse them effectively, while 32% believe they do not collect enough data to develop meaningful consumer insights—high numbers given advances in the tools and technologies used to capture, store and analyse consumer data.

The goal for many of these companies is fi ne-tuning their methods for leveraging the data they are collecting. The good news is that CG marketers do not have to strain their budgets to fi gure out the best approaches, because digital media enable them to test and learn quickly with minimal investment.

“With social media, you can test, learn and expand quickly on a limited budget,” says Howard Friedman, senior vice-president of marketing for Kraft Cheese & Dairy. “You don’t have to spend a million dollars to see if something works.”



Pushing traditional media through new media channels is no longer enough to succeed in today’s CG market. An increasingly complex, non-linear buying process requires a different, cross-channel

approach—one that puts brands wherever consumers are, in a way that encourages participation, not passive consumption of marketing messages.

In some cases, being wherever the consumer is means selling products to them when they are ready to buy. As CG companies continue their experimentation with direct-to-consumer sales—through their own online storefronts or social media—they will need to start thinking more like the retailers with which they have long partnered.

This shift in mindset will require changes in the marketing mix to accommodate increased investments in social media, mobile and other digital channels. Measurement models will need to change as well, as marketers focus on advanced metrics and analytics that measure not just exposure to ads, but also engagement with the brand across multiple channels. Of course, marketers will also have to translate these engagement metrics into tangible business benefi ts, including customer loyalty and, ultimately, increased sales.

Better measurement begins with better data. In the era of Big Data, CG companies need to identify which data provide the best insights into consumer behaviours and interactions with their brand or the product categories in which they compete (see sidebar, page 12). Then they need to ensure that the right processes and tools are in place to capture and analyse these data.

Strategic partnerships will continue to play an important role as the consumer marketing efforts of CG companies mature. The nature of these relationships—with retailers, marketing services fi rms and technology providers—must evolve to accommodate new cross-channel objectives and an increasing emphasis on engagement, loyalty and direct sales. In particular, CG companies must carefully manage existing relationships with their retail partners—even as they experiment with their own online/social sales models.

As CG marketers rethink their approach to consumer marketing, they will need a strong commitment from senior management to increase investments in new, direct-to-consumer initiatives. By blending traditional methods with emerging approaches, CG marketers can continue to fi nd new ways to increase consumer engagement, deepen brand loyalty and increase direct and indirect sales across physical, digital and mobile channels.

Conclusion: the road ahead

14 © Economist Intelligence Unit Limited 2012

AppendixSurvey results


Appendix: survey resultsPercentages may not add to 100% owing to rounding or the ability of respondents to choose multiple responses.

1 Veryimportant

2

3

4

5 Not at allimportant

E-mail

Print/television ads

Social media/marketing (eg, Facebook, YouTube, Twitter)

Mobile devices (eg, smartphones, tablets)

Direct mail

In-store marketing

Digital marketing

Consumer loyalty programmes

Corporate websites/blogs

Co-marketing with retail partner

Consumer catalogues

Please rate the importance of the following marketing channels for your consumer engagement efforts over the past 12 months. Please rate on a scale of 1 to 5, where 1=Very important and 5=Not at all important. (% respondents)

24 26 17 19 14

36 24 21 7 11

20 34 23 16 7

13 22 27 22 15

18 21 22 17 22

47 26 18 4 4

15 38 28 11 8

27 32 17 15 9

22 30 26 17 4

21 40 25 6 6

15 27 26 15 17




1 Veryimportant

2

3

4

5 Not at allimportant

E-mail

Print/television ads

Social media/marketing (eg, Facebook, YouTube, Twitter)

Mobile devices (eg, smartphones, tablets)

Direct mail

In-store marketing

Digital marketing

Consumer loyalty programmes

Corporate websites/blogs

Co-marketing with retail partner

Consumer catalogues

Please rate the importance of the following marketing channels for your consumer engagement efforts over the next 12 months. Please rate on a scale of 1 to 5, where 1=Very important and 5=Not at all important. (% respondents)

24 31 20 15 11

34 25 18 11 13

42 31 15 7 5

23 26 29 13 9

18 21 22 15 24

50 24 18 4 5

26 40 20 7 7

36 26 18 8 11

24 38 20 13 5

26 38 22 6 8

15 28 24 13 20

Through retail partners

Through wholesale distributors

Directly to consumers (eg, through your website or social media sites)

Through third-party, direct-to-consumer sites (eg, Alice.com, Amazon)

Other

What percentage of your total sales was achieved through the following channels over the past 12 months?(Average % respondents)

41

27

21

8

4

Through retail partners

Through wholesale distributors

Directly to consumers (eg, through your website or social media sites)

Through third-party, direct-to-consumer sites (eg, Alice.com, Amazon)

Other

How do you see percentages of your total sales shifting over the next 3 years?(Average % respondents)

40

25

21

10

5

Enhance brand awareness

Increase sales

Increase interaction with brand

Gather consumer insights to improve product

Cross-sell (eg, line extensions or bundling)

Gather consumer insights to improve marketing programmes

Use as testing ground for new products

Thwart private-label sales

We don’t currently market or sell directly to consumers but we may in the future

We have no plans to ever market or sell directly to consumers

What are the objectives of your direct-to-consumer initiatives? Select all that apply.(% respondents)

70

69

59

44

36

35

30

13

8

5




Promote products or services as part of a marketing campaign

Paid advertising

Provide customer service

Gather feedback to drive product/service requirements

Sell products (eg, social commerce)

Other

How have you used social media to engage with consumers over the past 12 months, and how do you intend to use it over the next 12 months? —Previous 12 monthsPlease select all that apply.(% respondents)

66

55

44

42

24

3

Promote products or services as part of a marketing campaign

Gather feedback to drive product/service requirements

Provide customer service

Paid advertising

Sell products (eg, social commerce)

Other

How have you used social media to engage with consumers over the past 12 months, and how do you intend to use it over the next 12 months? —Next 12 monthsPlease select all that apply.(% respondents)

73

63

62

59

41

4

1 Highestpriority

2

3

4

5 Lowestpriority

Product promotions

Print coupons

Online coupons

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


Please rank in order of priority the importance of the following methods for increasing customer loyalty over the past 12 months. Please rate on a scale of 1 to 5, where 1=Highest priority and 5=Lowest priority. (% respondents)

41 35 15 3 6

9 22 29 16 24

6 22 23 18 31

23 30 21 10 17

10 25 26 22 16

17 29 23 18 13

12 29 29 18 12

41 28 15 9 7

22 27 27 11 13

13 30 29 12 16




1 Highestpriority

2

3

4

5 Lowestpriority

Product promotions

Print coupons

Online coupons

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


Please rank in order of priority the importance of the following methods for increasing customer loyalty over the next 12 months. Please rate on a scale of 1 to 5, where 1=Highest priority and 5=Lowest priority. (% respondents)

43 34 14 4 4

9 33 19 13 26

14 24 24 16 21

30 31 20 7 13

21 32 24 13 10

33 31 18 11 7

23 36 24 11 6

46 28 15 8 4

31 32 18 8 11

20 30 27 11 12

We work together to serve consumers through a variety of marketing, sales and service programmes

We continue to work with retail partners but we are also committed to expanding our competing direct-to-consumer strategies

We share consumer data and insights to enable better planning, though we act on those insights separately

We battle for shelf space with other brands

We compete with retailers’ private-label offerings

How do you view your relationship with retailers as it relates to consumer engagement?(% respondents)

41

23

22

9

5

Our percentage of trade promotion spending has not changed

We have shifted some trade promotion budget to direct-to-consumer programmes

We have increased the percentage of spending on trade promotion to complement direct-to-consumer programmes

Other

Don't know

What has been the impact of your direct-to-consumer programmes on trade promotion?(% respondents)

29

25

22

4

21

Purchase data

Lifestyle data

Consumer demand data

Market data

Demographic data

Promotion response data

Attitudinal and/or psychographic data

Consumer sentiment data (eg, social media monitoring)

Online behavioural data

Other

Which of the following types of data are most important for garnering valuable consumer insights? Select up to three.(% respondents)

61

38

33

33

31

31

24

16

11

1




Strongly agree

Somewhat agree

Neutral

Somewhat disagree

Strongly disagree

Don’t know

Our ability to capture and analyse large data sets (eg, “big data”) has improved our efforts to attract and retain customers

We are very effective at leveraging customer data and insights to improve interactions with consumers

We don’t collect enough data to develop meaningful consumer insights

We collect plenty of consumer data but don’t have the tools to analyse them effectively

We share consumer data with our retail partners to improve our merchandising/marketing programmes

We collaborate with key retail partners to leverage their consumer understanding and insights

Please rate your agreement with the following statements. (% respondents)

27 45 21 5 1 1

19 39 30 8 3 1

12 20 26 19 20 3

7 22 27 23 19 2

11 40 31 9 6 4

21 39 24 9 3 4

We are exploring integration of social media data with our retail and consumer demand signals (eg data stored in our DSR)

Our strategy is to manage social media data separate from retail and consumer demand signals

We bring social media data into our demand signal repository (DSR)

We don’t have a demand signal management strategy

Where do social media data fit in your demand signal repository (DSR)?(% respondents)

31

20

13

36

United States of America

India

United Kingdom

United Arab Emirates

Canada

Australia, Italy

China, Turkey, Belgium, Denmark, Germany

Brazil, Hong Kong, Indonesia, Poland, Singapore, Spain, Switzerland,Austria, Czech Republic, France, Malaysia, Netherlands, Pakistan,South Africa, Sri Lanka

In which country are you personally located?(% respondents)

22

17

7

6

5

3

2

1

Asia-Pacific

North America

Western Europe

Middle East and Africa

Latin America

Eastern Europe

In which region are you personally based?(% respondents)

31

27

25

10

3

3




Food and Beverage

Personal and Household Products

Non-durables (apparel, footwear, recreational goods, office supplies)

Tobacco

Agribusiness

Which industry segment do you belong to?(% respondents)

53

30

11

4

2

40

13

47

$1bn to $5bn

$5bn to $10bn

$10bn or more

What are your company’s annual global revenues in US dollars?(% respondents)

Board member

CEO/President/Managing director

CFO/Treasurer/Comptroller

CIO/Technology director

Other C-level executive

SVP/VP/Director

Head of business unit

Head of department

Manager

Other

Which of the following best describes your title?(% respondents)

4

16

4

4

12

16

8

10

26

1

Marketing and sales

General management

Strategy and business development

Customer service

Finance

Operations and production

Supply-chain management

IT

R&D

Information and research

Procurement

Human resources

Risk

Legal

Other

What are your main functional roles? Choose up to three.(% respondents)

40

33

32

20

19

18

9

9

6

5

5

3

2

0

4

20

Whilst every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd. nor the sponsors of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions or conclusions set out in the white paper.Co

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New directions: Consumer goods companies hone a cross-channel approach to consumer marketing

Business

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