subject: CPG Companies Can Gain Ground on Private Label With Effective Social Networking [print this page] CPG Companies Can Gain Ground on Private Label With Effective Social Networking
After posting record gains in 2009 the private label growth that so disturbed CPG companies did slow in 2010, but that does not mean that the threat is over, or that those store brands are not going to fight back. Although the slowed growth is good news for the big name brands, now is not the time for complacence.
One marketing approach that CPGs can use to their great advantage over their private label competitors is social media marketing. Establishing a valid and constant presence on the big social media sites like Facebook and Twitter has not been of great importance to some CPG companies. Their executives have yet to see the value of devoting marketing dollars and employee time to social networking. But right now that kind of thinking can be a real mistake.
Even though they may be looking for a bargain wherever they can as the effects of the recession linger on the majority of consumers are willing to be loyal to their favorite brands, as long as the price is close to that of the store brand alternative. Connecting with these customers in an informal, fun way through social networking can be a very effective way to increase this sense of loyalty as well as find new fans for your brand.
Some companies have been using social networking to such great effect that their campaigns became bona fide media sensations. One great example was the recent Mountain Dew Facebook campaign that many marketing experts consider to be the "bar setter" for successful CPG social media marketing.
In July 2009, Mountain Dew began its social media quest on Facebook and Twitter to find extreme fans to help craft an all-new flavor under the campaign moniker DEWmocracy 2.
Fifty applicants were selected to sample and record their reactions to seven new experimental flavors. The top three flavors were chosen and testers were organized into product teams called Flavor Nations - one for each flavor.
These teams of amateurs were then left to design a label for their flavor and select a marketing agency to help promote their team's offering. After months of planning in April 2010 the new flavors hit retail shelves around the country and the teams representing the competing flavors -Distortion, Typhoon and White Out -were tasked with using the power of social media to garner votes for their brand. More than 2 million votes later, White Out is now a permanent part of the Mountain Dew product line and selling well.
The Mountain Dew campaign is just a single example of the way that social media marketing can help CPG companies build a loyalty that will keep the consumer from turning back to private label brands once again. The opportunity is there for any CPG line to take advantage of the power of social media marketing, as long as such a campaign is well thought and implemented.
There is far more to gaining an effective presence in the world of social networking than creating a fan page and throwing up a few company logos or a discount coupon or two. Working with a company that understands the way that social media marketing works and can help your brand position itself to succeed is essential and if your marketing agency is not up for the challenge it might be time to start looking for one that is.
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