Key Questions being faced by the C-Suite
According to a recent report by Economic Times, HUL almost tripled its ad spend in the digital space in FY13. The share stood at ~7 percent of the total of INR 26.35 billion (around USD 482 million) – this was the total as spend for 2012. In 2014 the share is expected to be around 10 percent of the total. Various other top CPG companies in India including Dabur and Nestle have significantly increased their digital spend over last few years.
Though there is significant urge in adoption of digital platforms to engage with consumers, CMOs and CIOs of CPG companies are still deciphering the digital assets which can be built to meet the brand’s strategic goals. The key questions being faced by them are:
• Which platforms should be used to build the asset? Should it be web, social or mobile based asset?
• What type of asset should be built? What will be the reason for existence of the digital asset?
• What KPIs should be measured to achieve the brand’s goals?
How is Digital being used by CPG Companies?
Digital assets being created by CPG companies are driven by following three major objectives:
1. Customer acquisition and engagement
2. Organizational effectiveness
3. Building an efficient partner (distributors and retailers) network
Some of the assets being created to meet the mentioned objectives are listed below:
Note: In this paper we will discuss the digital assets developed with consumer led objectives.
Consumer assessment to determine the platform for brand’s digital presence
The decision of the digital assets to be built by the brand begins with assessment of brand’s consumers. The brand needs to assess the segment in which most of its TG belongs.
Info-seekers: Internet users i...
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...e assets, companies put content on an exclusive theme which is also a lifestyle habit of the TG. (e.g. redbull.com - assets on theme of adventure, sports)
• Campaign / Contests led Facebook page, Twitter handle etc. to continuously engage, be in touch with TG. (e.g. L’Oreal, Gillette, etc.)
• Gamification: CPG firms use game thinking and game mechanics in non-game contexts to engage with customers. (e.g.Nike released the Nike+ iPod application, which tracked the distance & pace of a person’s run. Increase in 13% share in 2 years)
Platform to engage with brand loyalists
• eCommerce driven portals / Facebook page: In these assets, brands provide a platform to engage and purchase brand’s products online. Brands may also give free samples to consumers, thus encouraging new product use. (e.g. P&G’s rewardme.in, Nestlé’s nespresso.com, Kellogg’s tweet shop)
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