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CPG Industry: Top 7 Ways to Boost your Marketing

Are you struggling to promote your products within the CPG industry? Are you just starting to learn the basics of marketing and want a great way to better promote your products? The CPG market, valued at $2 trillion, is extremely competitive. But don’t worry, there are several quick and easy ways to help market your products in the CPG industry.

CPGs, or consumer packaged goods, are products that consumers use often and therefore need to be replaced either in retail stores or online often. Typically, CPGs have a relatively lower price and are purchased by every class of consumer. Additionally, CPGs are packaged in small amounts and intended for only a couple of uses. CPGs include but are not limited to: food, houseware products, toiletries, and cosmetics. Like any other type of product, CPGs have marketing strategies that work best to promote their products. 

CPG industry

CPG Tip 1: Know your Target Audience 

Before you can start a marketing campaign in the CPG industry, you must first know who is buying your products. This is very important because different demographics of consumers respond to marketing messaging differently. Additionally, different consumer demographics use different social media sites and like to consume different content. This is important because you do not want to spend a lot of money advertising on a social media site like Facebook, just to find out that your target audience uses Twitter much more often.

Assuming you are already aware of your target audience, next you need to research their buying patterns. This will make you more aware of ways your product can benefit them. You can highlight these benefits in the positioning of your marketing campaign.

What if you do not know who your target market is? There are several ways you can find your target demographic. Look at your competition and see what groups of people are buying their products. You should also look at CPG industry trends. Is there any overlap with the types of people who are purchasing your products? Try to pay attention to their age, gender, ethnicity, and lifestyle choices. This will help you identify your target market.

If this does not work, you could also send out a survey that asks your customers basic demographic questions. Keep in mind if you send out a survey you might want to provide an incentive to your customers for filling it out. This could include a sweepstakes or coupon. Obviously you do not have to provide an incentive, but an incentive would increase the number of responses your survey receives. 

consumer packaged goods

CPG Tip 2: Emphasize your Brand’s Values

In the CPG industry, many products can start to look the same to consumers. This is why it’s important that your brand and it’s messaging stands out among your competitors. There are several CPG brand marketing appeals that appeal to consumers.

One is emphasizing sustainability. Many consumers care about the environment and want to purchase products that are environmentally friendly. In fact, over 73% of consumers are willing to buy a different product to help the environment. This is especially true among the millennial and generation z demographics. So if your target market skews younger you might want to consider emphasizing the aspects of your product that help the environment.

Another CPG brand marketing value that consumers respond well to is authenticity. Many consumers prefer to support small businesses over large corporations. If you are a small business incorporating your story into your packaging could be a great way to attract customers. This is especially true if you have a small family business. Tell the story of how your family came up with the idea for your product. Storytelling is extremely important in marketing and advertising. In a time when many consumers feel disconnected to the products they buy, adding authenticity to your product can help. 

CPG Tip 3: Try a Subscription Model

Ever since Netflix has helped popularize the monthly subscription model, other industries have tried to try the model for themselves. This includes the CPG industry. Several consumer packaged goods have found success with this model. This can range anywhere from Hello Fresh, a meal preparation company, to Dollar Shave Club, a grooming company. Consumer packaged goods work really well as a subscription model because consumers will constantly need more of the product.

Additionally, subscription models based around consumer packaged goods make for great gifts because everyone can use products like razors or meals. If a consumer likes your product and they sign up for a subscription service model, they no longer have to think about purchasing your product anymore. This means that the consumer will most likely continue to be loyal to your brand. 

CPG industry trends

CPG Tip 4: Increase your Brand’s Social Media Presence 

Having a strong social media presence is crucial for a brand today, and when done well it can create enthusiasm for your product. Look at the CPG industry trends and see what other brands are doing for ideas. Study how consumers respond to social media posts. More importantly, find out which social media platforms your target audience is most likely to use. Different social media platforms attract different types of consumers and knowing which is most likely to have your target audience is crucial.

Are you trying to target consumers in the Generation Z and millennial demographics? Then you may want to consider using TikTok. Aiming for the generation x and baby boomer demographic? Try Facebook. Study the trends on each platform and see how other companies in the CPG industry have used the platform’s unique characteristics to their advantage.

A good example of a CPG company using social media is Oreo’s on TikTok. During Halloween there was a trend on TikTok to dress up as a ghost. Oreo’s saw this as an opportunity and dressed up an Oreo as a ghost. This may seem really simple, but Oreo’s TikTok was well received and promoted their brand well. 

CPG Tip 5: Study your Competitor’s Success 

It is not enough to just look at the CPG industry trends. You also have to look at what your competitors are doing. Think to yourself, why might a consumer might pick their product over yours? Look at how their packaging is. Is it more bright and colorful? More serious? If you can find out the appeal other brands in the CPG industry have, you can better position your product.

This does not mean that you should copy your competitor’s branding. In fact, it is probably better if you are able to come up with a positioning that makes your product stand out. Does your competitor’s product sell well because it has bright colorful packaging? Then maybe consider making a version of your packaging that incorporates more color and see how it does. There are no guarantees that this will work, but it can give you some good ideas on directions your brand could head in. 

CPG brand marketing

CPG Tip 6: Increase the Number of Channels Consumers Can Buy your Product From 

There are a lot of different types of consumers as part of the CPG industry, and these different consumers have different preferences on where they purchase their products. Many consumers would prefer to make all of their purchases online. There are others who want to see the product in person before they make their final purchase. You could be missing out on an entire group of customers by only having your product online or in person.

If you only sell your products in retail, look into having them available for purchase on your brand’s website. Additionally, consider selling your product on other online retail sites like Amazon. Having your product available on Amazon is a great way to convince Amazon customers to give your product a try. This is especially true since more consumers than ever before are purchasing their products online. 

CPG Tip 7: Market your Product Based on your Location  

Positioning your product based on a location has been a very successful CPG brand marketing strategy for several brands. Many consumers have a lot of pride about where they are from and want to buy products that remind them of their home. This strategy works really well with CPG companies that sell food products. This is in large part because many places have meals that are specific to their region. There are a lot of examples of how this is used in marketing, but some of the most common include the “Philly Cheesesteak” or the “New York Pizza.”

Even if you sell a product that is not related to food, this can still work. You can include landmarks or part of the regional culture into your packaging. Even if you are from a small town you can emphasize many of the shared cultural elements that other small towns have. If you are struggling to position your product you might want to consider using a location based approach. 

Hopefully, you now have a little bit more insight into the CPG industry and how it operates. Try using some of these tips in your marketing strategy in the future, the results might surprise you. The CPG industry can be very competitive and is very reliant on marketing, so at the very least knowing the trends in the industry can help you. If you need help with CPG marketing, contact SEO Design Chicago today! We have experience implementing marketing strategies for CPG companies.

consumer packaged goods marketing

FAQs about Marketing for the CPG Industry: 

  • What are CPGs?
  • What are some examples of CPGs?
  • Is it better to sell CPGs in stores or online?
  • Does the subscription model work for CPGs?
  • How big is the CPG industry?

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