Step inside any convenience store and you’ll find a litany of choice for potato chips. They can be thick, thin, wavy, or flavored, but at the end of the day, they’re all potato chips.
Consumer packaged goods (CPG), like potato chips, are easily replaced, regularly used, and commonly purchased. To get shoppers to buy your product over your competitor’s, you need a strong marketing strategy. The right language, logos, and advertisements can help a product stand out from the competition.
Learn more about how consumer packaged goods companies use marketing to build brand identity, boost sales, and differentiate their products in a crowded marketplace.
What is CPG marketing?
CPG marketing is how businesses promote consumer packaged goods to the buying public. CPG marketing can serve a variety of business goals—such as increasing brand awareness and influencing consumer behavior—but it has one overarching purpose: to sell more goods.
Effective marketing strategies are essential for CPGbusinesses looking to stand out in a marketplace that has seemingly unlimited offerings.
Consumer packaged goodscompanies are businesses that sell products consumers use regularly and replace often. CPG product categories include food and beverage items, household supplies like cleaning products, cosmetics, and over-the-counter medications.
Challenges of the CPG industry
Succeeding in the consumer packaged goods industry requires a stellar product, a flexible team, and a compelling marketing strategy. These are some of the challengesCPG marketers confront:
Product differentiation
The CPG industry is highly competitive. There are many similar options in any given product category, and CPG brands may struggle to draw attention to themselves as a result. Developing an effective differentiation strategy helps to distinguish your product from the competition. This marketing practice focuses on creating a unique brand identity to connect with consumers.
Changing consumer preferences
Legacy CPG brands may have trouble adapting to changing consumer preferences. The beverage industry, for example, has seen a spike in demand for healthy, sustainable products in recent years, according to a report by Nielsen. When customer desires shift, CPG brands may have to alter their product or develop new marketing strategies to stay relevant.
Changing consumer behaviors
The popularity of online shopping has ballooned in recent years—online sales in the CPG industry increased from 4% to 10% between 2019 and 2022. This shift in consumer behavior presents an opportunity and a challenge for CPG companies—especially those who rely on in-person shopping to drive sales. As a result, brands have to adjust their marketing strategies in order to reach people online. For example, online advertising and social media are key tactics for CPG companies.
Consumer relationships
Consumers today have a plethora of choices, and this abundance can make it difficult for CPG companies to build strong relationships. With CPG, customers may prize convenience and cost over brand loyalty. Strong brand marketing can help cultivate an emotional connection by engaging customers in meaningful interactions and providing personalized, relevant content.
CPG marketing strategies
CPG marketing can help your brand distinguish itself from competitors and be top of mind when customers are making purchases. Here are some CPG marketing strategies to consider:
Digital marketing
Businesses use digital marketing to promote a product or service online. This includes marketing activities such as paid search, paid social, display advertising, and email marketing. A solid digital marketing strategy can help CPG brands reach customers shopping online. This broad marketing category encompasses many of the techniques listed below.
Offline marketing
Offline marketing is all non-digital promotions. Offline CPG marketing efforts can include billboard ads, print advertisements, radio spots, and TV ads, the latter still being where CPG companies spend the most.
In-store marketing
In-store advertising continues to be a crucial way for brands to distinguish themselves, as 90% of CPG shopping happens offline. Having endcap displays, free samples, and in-store promotions are effective offline marketing strategies that can influence shoppers at the time of purchase.
Social media marketing
CPG companies can use social media marketing to build an online community, interact with customers, and participate in trends. This includes paid social media marketing, organic social, and influencer marketing campaigns. Maintaining social media accounts lets CPG companies communicate directly with loyal customers by replying to posts or resharing user-generated content.
For some companies, social media is a chance to showcase a different side of their personality. CPG brands like MoonPie and Old Spice have achieved viral success by sharing humorous, organic social media content. Others, like healthy ramen brand immi, focus on product education and brand stories.
Omnichannel marketing
Omnichannel marketing is a blend of offline and online marketing. For CPG brands, it’s a way to meet consumers wherever they are. Omnichannel marketing focuses on establishing a consistent brand identity across a variety of consumer touchpoints.
Imagine that you own a CPGcompany selling probiotic passion fruit gummies. If your product is available in stores and online, you could use omnichannel marketing to run online advertisements and purchase end-of-aisle displays in grocery stores.
With this approach, you create multiple consumer touchpoints. Consumers who saw your ads online may be more likely to pick up a product in the store. Customers who saw the store display will have a tangible memory of your product if they see online ads.
Experiential marketing
Experiential marketing involves inviting customers to participate in real-world or virtual events. This strategy aims to build deep connections with customers by creating memorable, positive experiences. For CPG companies, an in-person marketing event can also provide customers with an opportunity to see or even sample your product. Brand activations like pop-up shops and live events are examples of experiential marketing techniques.
Experiential marketing activities are often creative and whimsical. A CPGcompany selling affordable, nutritious frozen waffles, for example, could stage a brand activation by attempting to set the world record for the tallest stack of waffles. The brand could invite local residents to watch the waffle tower construction in person and livestream it on social media for far-flung fans, garnering eyeballs and media coverage.
Influencer marketing
Partnering with influencers to promote products on social media platforms or blogs can help CPG companies reach an engaged audience. Influencers often focus on a specific type of content such as travel, food, or wellness. Working with a relevant influencer ensures that your marketing messages reach the right demographic. A toothbrush company, for example, might find success by partnering with a travel influencer.
Content marketing
Content marketing is the process of creating and sharing original written or visual material to appeal to your audience. This strategy can deepen relationships by engaging consumers with interesting, appealing content. It primarily consists of organic content—material that is distributed without paid advertising promotion. Organic CPG marketing materials may include blog posts, videos, tutorials, or recipes.
Insights-led marketing
This CPG marketing strategy relies on data-driven decision-making. Marketers collect and analyze data to gain deeper insights into consumer behavior. CPG brands can leverage this information to help make marketing decisions.
CPG marketing FAQ
What does CPG marketing mean?
CPG marketing refers to a wide range of promotional activities by a consumer packaged goods brand. CPG marketing strategies can include digital marketing such as online ads and social media marketing, in addition to offline activities like brand activations and end-of-aisle displays.
What is an example of a CPG?
CPG products are packaged, consumable items that consumers use and replace frequently. This broad product category includes everything from toothpaste to potato chips. Household cleaning products, cosmetics, over-the-counter medicines, and canned beverages are all examples of CPG products.
Why is CPG marketing important?
CPG companies rely on marketing strategies to increase brand awareness, drive sales, and build loyal followings. A solid marketing plan can help CPGbusinesses differentiate its products in a competitive marketplace and achieve long-term growth.
