The New 5 P’s of CPG Marketing

October 30th, 2019 Posted by Agency Services, brand marketing, change, CMO, Consumer insight, Growth, Higher Purpose, Marketing Strategy, storytelling, Transformation 0 comments on “The New 5 P’s of CPG Marketing”

Planning shifts to a set of consumer-savvy principles

During the old command, control and persuasion era of brand building, the common ground for planning coalesced around the legacy 5 P’s of marketing: product, price, promotion, place and people. Brands took charge of their destiny and managed their future progress mostly with increased advertising spending.

Now, things have dramatically changed.  Technology has:

  • Shifted control of brand engagement to consumers
  • Massively disrupted and reshaped food culture and preferences
  • Knocked down the barriers to entry for new food and beverage ideas
  • Enabled these ideas to rapidly find a market and scale
  • Allowed the small and artisanal to gain traction, and redefine what quality expectation is
  • Empowered people to share experiences and influence the trajectory of business
  • Changed the face of brand communication, now about relevance and deeper meaning
  • Exposed the inauthentic and triggered the move to greater transparency
  • Informed the growth of online communities and the role of credible influence to build trust

Perhaps the most salient example of transformation yet is the landmark 2017 Deloitte and FMI study revealing the disruption of the old taste, price and convenience purchase behavior yardsticks for food and beverage products. These legacy drivers are now eclipsed by a new set of criteria including health and wellness, transparency, visibility to the supply chain and food safety.

The primary conclusion from all of this – is the rise of consumer-centric planning based on recognition that future growth is shaped by a brand’s ability to create and hold alignment with the needs, interests, desires and concerns of their core users. For the most part, the original 5 P’s were inwardly focused on the company’s products and self-directed decisions. Now the move to consumer control requires a more enlightened view of strategic plans founded on up-close customer insight.

Here are the new 5 P’s of marketing planning:

Engagement has moved beyond the product to include other important areas of value and meaning to people.

  1. Purpose

Purchases are now symbolic of what consumers want the world to believe they think is important. Thus shared values have surfaced as a core tenet in brand preference and the consumer’s willingness to engage rather than avoid marketing outreach. Purpose isn’t philanthropy. Consumers want to attach themselves to brands that carry deeper meaning and intentionally build their business around a higher purpose that rises above transactions – focused on authentically improving the consumer’s life and the world around us.

  1. Pride

People want to be inspired by use of the brand. Purchases are not secured through analytical arguments and fact-based selling of yore. Today’ consumers arrive at their decisions from the heart not the head, based on a feeling they have in the presence of the brand. Inspiration, aspiration, desire, impact and purpose form the recipe for baking the emotional attachment people have with the brands that matter to them.

  1. Partnership

If brands now exist to improve the lives of their users and become an enabler of their aspirations, then this less self-centered approach automatically requires a measure of authentic partnership between the players. How do genuine partners operate? Reciprocity today is an important component in how brands and consumers interact with each other. As a true lifestyle partner, brands can operate as coaches and guides on the path to a healthier, happier life that people aspire to lead.

  1. Protection

Brand relationships must be built on a foundation of belief and trust. These qualities now are earned through experience and verified by sources and voices people trust. Consumers want to feel secure in the knowledge that favored brands will always have their best interests and safety at heart, and will not put them at risk either through degradations of standards or processes that put the company’s self-interest above their own.

  1. Personalization

We are awash in data about the preferences and interests of users. Brands know more about consumer preference than ever before, ushering in a new era of customization. Product offers can be tailored to the consumer’s specific needs and interests. How this condition manifests will be a key component in strategic planning in the years ahead. People will come to expect that brands understand who they are, what they care about and will deliver products that meet those needs.

Bernadette Jiwa, one of our most literate and erudite marketing minds, has an uncanny ability to distill transformative change into its most fundamental elements. Here’s how she recently expressed the relationship between brands and consumers:

“Most marketing makes the company the hero.

Most companies go to great lengths to prove that their product is better.

Most marketers’ main aim is to close the sale.

The most effective marketing makes the customer the hero.

Beloved brands show people who they can become in the presence of their product. 

The best marketers give people something to believe in, not just something to buy.”

Increasingly brand relationships are taking on the characteristics of human friendships where honesty, openness and trust are paramount. The great news in all of this is the potential reward of curating tribes of believers who “join” the brand not as buyers but as fans and followers.

Most exciting is the depth and breadth of “voice” brands can earn by moving from source of product to resource and partner. We’re no longer dependent on the artifice of paid cinematic style advertainment to encounter, inform and converse with our best customers. Instead, we now have the freedom to engage with them genuinely…authentically…you know, like people.

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Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

 

 

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