CPGmatters: ConAgra Aims to Integrate Digital into Shopper Marketing

Through a special arrangement, presented here for discussion is a summary of a current article from the monthly e-zine, CPGmatters.
For ConAgra Foods, the issue is not how to create a digital strategy, but rather how to integrate it into its overall shopper marketing approach.
“We take an almost unbiased look to make sure it delivers on the creative or communication platform and make it feel like one consumer campaign,” said Jon Shen, director of interactive marketing at ConAgra, adding that ConAgra has a team dedicated to making sure the shopper marketing plan feels cohesive. He made these comments in a presentation recently in Chicago at the Shopper Marketing Expo produced and hosted by the Path to Purchase Institute.
Mr. Shen added, “We don’t think of it as the traditional path to purchase any more. Technology has changed how people move through the traditional purchase cycle, and how they advocate or denigrate a product.”
For example, he noted that someone can be on Facebook with a complaint about what a manufacturer is doing and then that message gets copied and pasted to 150 “close friends.”
The influence of reviews and people’s opinions is really critical, added another speaker, Tom Brown, executive vice president, RPM Connect.
The dialogue for marketing efforts needs to include a wide variety of functions at the manufacturer level, the manufacturer’s agency and the retailer. These conversations should be held early in the process so that new learnings can be applied to the program before it launches.
“Early on we get reaction from senior leadership. Are we missing anything? Is there a way to make it bigger?” Mr. Brown said.
Different digital and traditional media are considered that will increase awareness of the brand and drive purchase intent.
“We look for ways to get on the shopping list,” Brown said. “Retailers are doing a good job with digital lists. They learn what consumers are searching for on their site and then offer coupons and recipes.”
Social media enables manufacturers and retailers to test and learn so they don’t make the same mistake twice, according to the speakers.
“We work across digital, and bring the marketing and merchandising agenda together for execution,” said Rachael Norton, vice president – shopper marketing at ConAgra. “Our dialogue with retailers has changed. We can talk about what marketing is best for them.”
She said ROI used to be the sole focus, but now the objective is driving brand equity and creating a long-term relationship with the customer. “It may be a solution, not so much a brand focus.”
Understanding the long-term impact of the market in total remains a challenge, Ms. Norton summed up “We need to have a dialogue — conversations, not just e-mails.”
Discussion Questions: In what ways is social and other digital media changing the traditional shopper marketing roles of vendors and retailers? How should conversations between the two change?
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10 Comments on "CPGmatters: ConAgra Aims to Integrate Digital into Shopper Marketing"
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It is essential to create a proactive cross-channel digital media strategy based on an understanding of the media consumption and behavior of your brand’s target audience(s). It is from this foundation that you design a communication response strategy matrix based the correct digital channel to be used for a particular customer segment and where they are in the brand interaction process- awareness, acquisition, retention, post sale celebration and loyalty. It will further fragment and dilute your brand if you provide independent digital solutions simply reacting to perceived shopper trends. Take the time to identify and truly understand your targeted audience media behavior and how they want to be valued, surprised and delighted.
I believe the goal for a company’s social and other digital media strategy is to get their brands to be part of the consideration set. It’s not about instant gratification of purchase, but rather a long-term commitment to enhancing and maintaining positive brand equities that motivate purchase. In that context brand messages take on a new focus where they build on each other.
Social media is the next “internet.” The conversations will be going on whether we are a part of them or not. To not have a well-orchestrated, cross-industry business partner digital strategy is to leave huge revenue opportunities on the table. As we see more and more CPG and retailers working together on targeted social channel promotions, we see that new and existing shoppers are making decisions based upon the messaging that the partners are delivering via the web.
I still struggle with the stubbornly prevailing split between consumer marketing and shopper marketing … they are all people and in the case of many brands they are the same people! You need to understand them through a single view and similarly you should market to them consistently across the different channels.
Separation of insight and communication functions will only lead to fragmentation of the consumer/shopper experience and inefficient spend in the company.
Digital is creating more possibilities for fragmentation, but also opportunities. For the CPGs that can crack digital and remove this fragmentation there is an advantage to be had — especially if this can be amplified via collaboration with retailers.
There are many ways in which social media, and other digital-enabled marketing strategies influence shopper marketing. The main goal needs to be adding value to the overall customer experience. Tactics include everything from a Q/A across social media, to introducing in-store digital technology like tablets for associates, to smartphone apps that localize the customer’s engagement with the brand and/or retailer.
This is just a snapshot of how shopper marketing is revolutionized, and many retailers/brands are already on board.
In ConAgra’s case, they’re making the right move by adjusting ROI goals to focus on establishing a relationship with the consumer, learning about them, and adjusting appropriately.
One way for brands/retailers to launch digital media campaigns is to hire partner agencies that specialize in this niche, ever-changing space.
Digital, social, and more importantly — mobile is forcing a change that should have happened anyway. Category management’s biggest failing is that it did not create integration; arguably it made integration harder across consumer and trade teams. For marketing to be effective it needs to be integrated. Mobile makes this mandatory rather than merely desirable. Shoppers cannot be limited to the shop floor. Marketers need to recognize the differences between shoppers and consumers and integrate them into a cohesive marketing mix.