Digital Asset Strategy Demystified for CPG Companies

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Defining Digital Assets for a CPG Company

According to the latest IAMAI 2013 report on Internet usage in India, the number of internet users in India has reached 205 million by Oct, 2013 with a YoY growth of 40% over last year. Mobile internet users have more than doubled from 2012 and now stand at 130 million. The report also estimates that by June 2014, India will have 243 million internet users, at which point of time, it is expected to overtake the US as the second largest Internet base in the world. It is for these reasons that CPG companies have started realizing the power of digital marketing.

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). 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.

To succeed in the digital arena, CPG brands need to use digital to establish a frequent one-to-one communication with its consumers. Therefore brands need to employ as asset driven approach rather than just a campaign driven approach towards digital marketing. For e.g. Mentos India created a portal MentosIndia.com and started a “Batti Jalao” contest. This contest established communication with ~270,000 customers in just 3 months’ time and when the contest got over, the portal failed to attract any visitor. In another example, Nestle made a portal called Starthealthystayhealthy.in. This portal hosted content with central theme around pregnancy and baby care. The portal attracts more than ~100,000 visits every year. In the earlier exam...

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...technology, brands can provide a more interactive and fulfilling in-store experience to its customers. This will allow customers to get on the spot personalized offers and discount coupons. A feature called iBeacon in iOS based phones facilitates this interaction. Android based phones still do not have a comparative feature. In India, this is yet be adopted by any CPG brand.

10. 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 in collaboration with an equipment manufacturer, which tracked the distance & pace of a person’s run. Nike experienced an increase in 13% market share in shoes segment in just 2 years’ time.

A successful asset strategy should be continuously modified and optimized basis results drawn from analytics tools.

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