The market is booming.
If you want to enter the consumer-packaged-goods there’s never been a better time. The market is projected to be worth over $700 billion by 2020. If you’re looking for a lucrative career path then this is it.
But there one major hitch. If you want to get into this industry you need a great marketing plan and in an industry that changes as quickly as CPG that’s easier said than done.
Don’t worry though we’ve got the inside scoop. We’re here to help even the most inexperienced novice start their CPG marketing plan.
What Are Consumer-Packaged-Goods
Let’s start at the very beginning. Or by answering the basic question of “what is a CPG brand.”
CPG or consumer-packaged-goods are products that are used on a daily basis by clients. These can include anything from cigarettes, toothpaste, dish soap to clothing and food.
Because of how often these products are used they need to be repurchased frequently.
Now from a marketing perspective, this sounds great. Needing to be replaced constantly means that there will always be people in need of your services. The downside is that because of all the competition entering into this market is extremely difficult to succeed.
Companies that specialize in these products often need to be on top of marketing trends and
CPG Marketing 101
What is consumer packaged goods marketing and how is it different than marketing other products like durable goods.
In this industry surprisingly smaller newer companies tend to outperform larger companies as these companies tend to be more plugged into younger consumers.
Thes goods need to be aggressively marketed by setting your product apart from your competition.
What Does the CPG Market Look Like
Before you can decide to sell in a market you need to know how that market functions.
Typically the companies that do the best differentiate the products they offer and consistently stay on top on customer needs.
Your most valuable asset is market research. The ability to hone in on your customer’s needs better than your competition is what makes you able to succeed. This means that you need to read about different ways of collecting information about potential clients.
Appeal to the Global Market
What is CPG marketing’s greatest struggle? The entire world.
Gone are the days of simply running a local product and being able to reap a huge profit. If you want to compete in the CPG market you need to think about the personal needs of people across the worlds and how you can meet them.
In fact, the largest household CPG Procter & Gamble ranked number 1 for household products but only ranked number 55 globally. And despite making 66 billion annually many of its investors and shareholders are anxious to see new innovation coming from the company.
The CPG Market and Tech
Usually, these products were sold in regular brick and mortar stores but with younger and more tech-savvy audiences becoming clients the name of the game is e-commerce.
This means that your CPG brand marketing strategy needs to have a strong SEO (search engine optimization) component.
How to Manage Your CPG Sales Team
When it comes to CPG products getting products to their consumers requires coordination across multiple parts of the organization including:
- Human resources
Like a real estate agent selling a house, you might have to rely on home renovators and property inspectors to effectively prepare the house for sale you may have to rely on a large team of people to prepare your products for consumers.
We’re going to focus on sales and marketing to ensure you know how to effectively market the product.
When it comes to marketing the first thing you need to focus on is incentivizing employees. You need to be sure that each person on the sales team feels personally invested in helping the product sell and helping the company grow.
You also need to focus on ensuring that onboarding goes smoothly and that all new employees are well trained and have the tools to do the job.
If you’re going to have a global audience your marketing you need to be sure that your team represents and understand your audience.
Learn From the Best The Top Performing Companies
The top-performing companies tend to understand the importance of following their customers and
Customers don’t like price hikes but they are occasionally unavoidable. The best companies will only raise prices strategy. Try not to raise prices just to keep up with inflation.
If you want to raise product prices try to only do this if you have some new innovation or improvement to offer.
Top performing companies understand how their growth differs from that of other companies in their industry. They spend time and money separating themselves from the competition and
Outsource whatever doesn’t need to be done locally. If you have marketing tasks or backend programming tasks that need to be done they can be accomplished quickly by outsourcing them.
Be aware and always ready to meet your customer’s needs. Know the how where when and why of buying your products. Incentivize customer feedback and ensure your clients know you’re listening to their needs.
Take advantage of any opportunity no matter how small to grow your business. This is one business tend to forget as they grow. You can and should take advantage of incubators and venture units. Which basically are investors in your companies.
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CPG marketing is one of the most complex areas of marketing but it’s rewarding if you’re successful. If you want to know more about this industry or commercial real estate contact us today!