Beyond making and selling products - rethinking CPG brands in a digital age

UNTIL recently, CPG (consumer packaged goods) companies could rely on a time-tested formula to create brand loyalty: provide a trusted, competitively priced product, and then invest in advertising and in-store promotions to grow consumer mindshare.

Digital is turning this formula on its head by fostering liquid expectations among consumers. "If Coke comes in a personalised bottle, and Birchbox make-up is available on subscription," they ask, "why can't every brand do these things?"

In turn, we see the rise of the digital-savvy, hard-to-please "fluid consumer" - on whom big-budget campaigns have less impact than they did. More important to these consumers is the sense that the brands they buy are making a positive difference to their lives. An additional complication is that servitisation and subscription-based business models are making brands less visible. Amazon Dash[1], which enables customers to re-order essential products at the push of a button, makes life easier for consumers - but this means they no longer have to choose between comparable products in the supermarket aisle. As a result, traditional marketing activity - whether packaging or poster advertising - is less effective.