CPG, also known as consumer packaged goods, is an industry that sells products that people consume and replenish regularly. These include toiletries, food and beverages, over-the-counter medication, and much more.
We’re going to look at how CPG marketing works, why it’s important, the marketing challenges this industry faces, and finally, inspire you with some standout CPG marketing campaigns.
What is CPG marketing?
CPG marketing encompasses the methods and strategies employed to promote CPG to target customers. It involves a combination of online and offline strategies, which consist of paid and organic marketing initiatives to promote various CPG brand’s products. CPG marketing aims to promote brand awareness, inspire customer loyalty, and generate sales for CPG brands.
Why is CPG marketing important?
In a marketplace inundated with a vast array of CPG items from numerous brands, whether stacked on shelves in brick-and-mortar stores or digital shelves showcased online, cutting through the noise to capture consumer attention is a daunting task without a solid CPG marketing strategy.
The CPG market is fiercely competitive, with countless brands vying for consumer loyalty. Setting your product apart from the competition is essential to ensure it catches the eye of potential customers.
This is where CPG marketing comes into play. With a well-crafted strategy, you can cultivate customer loyalty and elevate your brand’s visibility, prompting customers to specifically choose your products over other brands.
To truly stand out in the CPG space, understanding your customers is key. This entails offering products aligned with their wants and needs, cultivating a robust brand identity, defining a unique selling proposition (USP), and executing strong marketing CPG initiatives.
CPG marketing challenges and solutions
It’s no secret that major industries encounter challenges—it’s inevitable—and the CPG market is no exception. With cutthroat competition and never-ending shifting consumer preferences, navigating this landscape presents unique hurdles.
Let’s explore three common challenges and potential solutions in CPG marketing.
Complexity in the buyer’s journey
The buyer’s journey has become more complex. Today’s shoppers encounter a cacophony of influences that guide their product choices.
Whether it’s stumbling upon a product on social media, encountering an ad, or being swayed by a compelling in-store promotion, the channels of influence seem endless.
This poses a challenge for retailers and CPG companies, who must constantly vie for consumer attention. Even when a potential customer shows interest, they may not immediately purchase, requiring an omnipresent presence to stay top-of-mind.
Solution
CPG brands can no longer afford to overlook the nonlinear nature of the customer’s journey to purchase. Instead, they must embrace a marketing strategy that adopts an omnichannel approach. One effective method is integrating QR codes into CPG product packaging.
QR Code packaging enables consumers to engage directly with the product and brand using their smartphones, where they conduct research, evaluate options, and compare brands.
By incorporating QR codes, brands create a seamless omnichannel experience. Consumers simply scan the code to access information about the product and brand, providing them with more opportunities to connect with the brand before making a purchase.
Learn about how to incorporate QR Codes into your omnichannel strategy on our blog.
Consumer preferences have changed
As consumer demands for transparency continue to rise, particularly among younger generations prioritizing sustainability, brands are facing increased pressure to provide a comprehensive view of their products’ lifecycle.
Transitioning from harmful environmental practices to more sustainable ones is no longer sufficient; brands must also demonstrate their commitment to sustainability convincingly.
With younger consumers becoming adept at identifying greenwashing tactics, CPG brands must find genuine and impactful ways to showcase their transparency.
Solution
CPG companies can respond to this growing need for transparency with 2D barcodes. Our Bitly GS1-compliant 2D Barcodes contain a Global Trade Item Number (GTIN) for seamless scanning at checkout, along with a URL feature that empowers users to include additional information for consumers to access.
CPG brands can utilize these innovative Bitly GS1 Compliant 2D Barcodes to connect customers with content detailing their product lifecycle or sustainability initiatives, enabling informed purchasing decisions. It’s a win-win solution for both brands and consumers alike
Learn more about how QR Codes can help brands be more transparent about their sustainability practices.
Disloyalty to CPG brands
The days of unwavering brand loyalty are fading as consumers are presented with an ever-expanding array of choices, particularly in the CPG sector. With a plethora of options available, consumers are increasingly willing to explore new brands in search of more affordable alternatives.
Research from a recent customer loyalty survey underscores this trend, revealing that 59% of American consumers would readily swap a product for a more budget-friendly option. In the same survey, 18% of respondents attributed affordability as a barrier to maintaining brand loyalty.
This survey highlights a clear link between loyalty and affordability. Brands must recognize that consumer allegiance can’t be taken for granted, especially when high prices can push customers away. Providing affordable options is essential for fostering lasting consumer loyalty in today’s competitive market.
Discover more about how CPG brands can benefit from using QR Codes.
Solution
The survey also revealed positive findings: 50% of respondents stated that a loyalty card would influence their decision to stay loyal to a brand, with 43% indicating that loyalty equates to receiving better pricing deals as customers.
This presents a valuable opportunity for CPG companies to retain their customer base by offering incentives such as loyalty programs, exclusive coupons for loyal customers, or engaging in competitions.
Even better, QR Codes can seamlessly integrate into these initiatives. For instance, brands can incorporate QR Code-enabled coupons on products or in-store banners, allowing customers to easily redeem discounts at checkout with a simple scan.
Find out how you can foster customer loyalty and inspire repeat customers.
CPG marketing campaigns
Looking for inspiration from top-tier CPG companies showcasing masterful marketing in action? Look no further! Here are two world-class CPG brands that are not only excelling in their marketing strategies but are also leveraging QR Codes in their campaigns!
(Note: All marketing campaigns mentioned below were found during our online research for this article.)
Pepsi’s Super Bowl debut
In 2021, CPG giant Pepsi made waves by pioneering an unprecedented marketing move: they crafted a unique AR (augmented reality) experience for customers, simulating the stage and performance of the Super Bowl Halftime show. Partnering with Canadian superstar The Weeknd, who headlined the Super Bowl halftime, Pepsi placed QR Codes on their cans.
When scanned, these QR Codes transported customers into an immersive virtual world where they could watch The Weeknd’s performance on a virtual stage, providing an unforgettable augmented reality experience.
Key takeaways: Pepsi’s integration of AR QR Codes brought novelty to the customer’s brand experience through their packaging. By incorporating The Weeknd into the augmented reality experience, Pepsi seamlessly connected the can to the anticipation of his Super Bowl performance, enhancing the overall brand engagement.
L’Oréal Paris’s try on makeup
CPG powerhouse L’Oréal Paris captured attention with a groundbreaking marketing campaign that allowed potential customers to virtually try on makeup, eliminating the need for physical application or removal.
With the assistance of QR Codes, users could simply scan to experiment with lipstick shades, foundation colors, lip gloss, and more—all with a single scan!
This innovative approach not only promotes their makeup range but also encourages users to interact with the brand engagingly and conveniently. Potential customers can enjoy the fun of trying out new shades by simply taking out their smartphones in-store and scanning.
The brand also leveraged Instagram to market its new virtual try-on methods, attracting new customers to retail stores.
Key takeaways: L’Oréal Paris’s utilization of AR-empowered QR Codes offers a hassle-free way to engage shoppers.
With younger consumers already accustomed to using smartphones in brick-and-mortar stores, they now have an additional incentive to reach for their phones—to interact with the brand’s products and instantly see if lip shades, foundations, or hair colors suit them in the camera’s reflection.
Level up CPG marketing with Bitly
Investing in CPG marketing within a vast industry like CPG isn’t just a luxury—it’s a must. Despite the challenges CPG marketers encounter, there are always solutions and creative opportunities, such as integrating Bitly QR Codes and 2D Barcodes, to stay nimble in a competitive market.
A bonus? You can easily track campaign metrics using the Bitly Analytics feature—all conveniently available on the Bitly Connections Platform.
Get started today to take your CPG marketing to new heights!