Companies that sell consumer packaged goods (CPGs) traditionally address two key challenges with their marketing strategies. The first is standing out in a crowded, competitive market; the other is creating demand for new products. Increasingly, these efforts happen on digital battlegrounds. To generate fresh demand, a CPG marketing strategy must approach content and competition in new ways—and that’s never been truer than in the wake of the pandemic.
Any discussion of marketing or demand generation within the CPG industry today requires taking a step back to understand how COVID-19 reshaped CPG brands. Initially, brands faced panic buying and rapidly scaling demand for items that left shelves bare and customers scrambling. Anticipating changes in consumer buying habits proved impossible as radical shifts hit the market weekly or monthly. The Consumer Brands Association estimates demand soared 21 percent in 2020; demand is expected to hover between 7.4 and 8.5 percent higher than the last “regular” year on record.
The changes introduced by the pandemic—from a rise in online shopping to more flexible brand loyalty—are set to stick around, suggests McKinsey. Consider the stats:
- Driven by convenience and value, 40 percent of consumers tried new brands.
- Online spending increased 35 percent year over year, suggesting the stickiness of digital shopping experiences is here to stay.
- Nearly 30 percent of consumers invested in changes to their homes, while other categories…