consumer goods companies to consumer marketing · the economist intelligence unit conducted the...

New directions Consumer goods companies hone a cross-channel approach to consumer marketing A report from the Economist Intelligence Unit Sponsored by Oracle

New directions Consumer goods companies hone a cross-channel approach to consumer marketing

Contents

Preface 2

Executive summary 3

About the survey 3

Introduction shifting behaviours shifting priorities 5

Nurturing engagement loyalty and sales across multiple channels 7

The e-commerce opportunity 9

A cross-channel perspective mixing the old with the new 11

Direct connections drive consumer insights 12

Conclusion the road ahead 13

Appendix survey results 15

copy Economist Intelligence Unit Limited 2012 1


Preface

New directions Consumer goods companies hone a cross-channel approach to consumer marketing explores the shifting behavioursmdashand prioritiesmdashof consumer goods companies towards their consumers

The Economist Intelligence Unit conducted the survey and analysis and wrote the report The fi ndings and views expressed in this report do not necessarily reflect the views of the sponsor The author was Rob OrsquoRegan Gilda Stahl edited the report and Mike Kenny was responsible for layout We would like to thank all of the executives who participated in the survey and interviews for their valuable time and insight

February 2012



Executive summary

Consumer goods (CG) manufacturers are aggressively exploring ways to integrate new channels such as social media and mobile into the marketing mix to attract and engage consumers However they

are not ready to abandon traditional approaches to consumer marketing CG marketers say they want to increase engagement with consumers and improve their direct-to-consumer initiativesmdashbut are they really ready to do so

Perhaps CG companies looking to get closer to consumers ought to think more like retailers which have made significant investments in understanding consumer behaviour and sentiment across physical and digital environments New directions consumer goods companies hone a cross-channel approach to

consumer marketing an Economist Intelligence Unit report sponsored by Oracle draws on a survey of 221 CG executives as well as in-depth interviews with corporate leaders in the CG industry to explore the changing face of consumer marketing Key findings in our research include the following

l Pushing traditional media through new media channels is not enough to reach todayrsquos more plugged-in product-savvy consumer An increasingly complex non-linear buying process requires a different approachmdashone that integrates multiple channels to put their brands wherever consumers are in a way that encourages participation not passive consumption of marketing messages

l CG companies are experimenting with new ways to establish and enhance direct two-way relationships with their target consumers across multiple channels Over the next 12 months survey respondents plan to leverage social media for such activities as product promotion (73) capturing consumer feedback (63) and customer service (62) In addition social media participation is growing in importance as a tool to increase consumer loyalty Nearly twice as many respondents say it

About the survey the Middle EastAfrica and 3 from Latin America The respondent pool was senior 40 were C-level executives and the remainder were senior executives

In October 2011 the Economist Intelligence Unit and managers All respondents were from companies conducted a global survey of 221 consumer goods (CG) with over US$1bn in revenue A mix of CG segments executives sponsored by Oracle Thirty-one percent was represented including food and beverage (53) of respondents hailed from the Asia-Pacifi c region personal and household products (30) non-durables 27 from North America 28 from Europe 10 from (11) tobacco (4) and agribusiness (2)



will become a top priority in the next 12 months (up to 33 from 17 today) Deeper relationships CG marketers believe will enhance brand loyalty and drive product sales either directly (through digital commerce) or via traditional retail channels

l Vibrant online communities can serve as an entreacutee into e-commerce and other direct-to-consumer sales for CG manufacturers that have traditionally sold through third-party retail channels Forty-one percent of respondents to the Economist Intelligence Unit survey say they expect to sell products directly to consumers over the next 12 monthsmdashup from the 24 who say they currently offer direct sales

l Survey respondents and other CG executives see their nascent e-commerce efforts as complementary to not competing with existing retail channels Forty-one percent of respondents say they work with their retail partners on a variety of marketing sales and service programmes However 23 of respondents say that while they collaborate with retail partners they are also committed to expanding their competing direct-to-consumer strategies

l An increasingly complex relationship between CG manufacturers and their retail partners is just one example of the evolving nature of CG makersrsquo direct-to-consumer marketing efforts As marketers experiment with new channels such as social media and mobile they are discovering that traditional messaging wonrsquot work in these new media But they are not prepared to simply abandon the old in favour of the new Instead they are finding that a blend of digital media and traditional methods such as in-store marketing is the most effective way to establish two-way relationships with consumers



Introduction shifting behaviours shifting priorities

Consumersrsquo online activities continue to expand but are marketers devising novel strategies to engage these consumers In the US Internet users average 32 hours a month online while Europeans

spend an average of 243 hours online monthly according to comScore an Internet marketing research company Increasingly consumersrsquo Internet time is spent on social networks which in the US account for one out of every six minutes spent online Facebook alone reaches 73 of the total US Internet population each month with visitorsrsquo average time spent on the social network increasing from 46 hours to 63 hours per month over the past year

Mobile access to the Internet is on the rise as well A survey conducted by the Pew Internet Project in July 2011 found that 87 of US smartphone users access the Internet and e-mail from their devices and 68 do so daily One-quarter of these users said the smartphone is their preferred device for accessing the Internet

Social networking (US) Share of total time spent online ()

20

18

16

14

12

10

8

6

4

2

0

Jun-

2008

Jul-

2008

Aug-

2008

Sep-

2008

Oct-

2008

Nov

-200

8De

c-20

08Ja

n-20

09Fe

b-20

09M

ar-2

009

Apr-

2009

May

-200

9Ju

n-20

09Ju

l-20

09Au

g-20

09Se

p-20

09Oc

t-20

09N

ov-2

009

Dec-

2009

Jan-

2010

Feb-

2010

Mar

-201

0Ap

r-20

10M

ay-2

010

Jun-

2010

Jul-

2010

Aug-

2010

Sep-

2010

Oct-

2010

Nov

-201

0De

c-20

10Ja

n-20

11Fe

b-20

11M

ar-2

011

Apr-

2011

May

-201

1Ju

n-20

11Ju

l-20

11Au

g-20

11Se

p-20

11Oc

t-20

11N

ov-2

011

Dec-

2011

Source httpblogcomscorecom201106facebook_linkedin_twitter_tumblrhtml



ldquoOur go-to-market strategy is to win wherever people shop As more people move their shopping habits online we want to be present when and where they want to make a purchaserdquo Alex Tosolini Vice-president of global e-business Procter amp Gamble

As consumers spend more time onlinemdashfrequently researching discussing and even directly purchasing consumer goods ranging from household and personal-care items to apparel and consumer electronicsmdashefforts by marketers to reach these consumers when and where they shop have lagged In an Economist Intelligence Unit global survey of business professionals from CG companies respondents cited three traditional marketing activitiesmdashin-store marketing (73) co-marketing with retail partners (61) and printtelevision ads (60)mdashas most important for consumer engagement

Marketers appear ready to pick up the digital pace however Seventy-three percent of respondents say social media will be an important part of consumer engagement over the next year second only to in-store marketing (74) Digital marketing (66) will rise to the third spot ahead of printTV advertising (59)

While these figures show that engagement priorities are shifting marketers also understand the importance of integrating communications across all of these channelsmdashnot managing each independentlymdashto deliver a more consistent and personalised buying experience to consumers

ldquoOur go-to-market strategy is to win wherever people shoprdquo says Alex Tosolini vice-president of global e-business at Procter amp Gamble (PampG) ldquoAs more people move their shopping habits online we want to be present when and where they want to make a purchaserdquo

The goal for PampG and others is to establish and enhance direct two-way relationships with their target consumers Deeper relationships CG marketers believe will increase brand loyalty and drive product sales either directly (through digital commerce) or via traditional retail channels The opportunity is finally catching the attention of senior management in the EIU survey 74 of CEO-level respondents say social media is a priority for increasing loyalty over the next 12 months



Nurturing engagement loyalty and sales across multiple channels

CGmanufacturers have discovered that the most effective engagement activities involve a two-way exchange between the brand and its consumers Fifty-nine percent of survey respondents

say they use consumer marketing to increase interaction with their brands Over the next 12 months respondents plan to leverage social media for product promotion (74) capturing consumer feedback (63) and customer service (62) In addition social media participation will nearly double over the next 12 months (from 17 to 33) as a top priority for marketers looking to increase consumer loyalty

There is a tangible reason for marketersrsquo increased emphasis on social media test programmes show that nurturing engagement and loyalty through social media can have a direct impact on sales PampGrsquos Secret deodorant brand for example has fostered a Facebook community with more than 13m fans More than one-half of those members regularly engage with the fan page through activities such as posting commenting or uploading their own videos The page also features coupons free samples and other promotions Since launching its Facebook-driven ldquoFearlessrdquo campaign the Secret brand has increased

Please rank in order of priority the importance of the following methods for increasing customer loyalty over the next 12 months Please rate on a scale of 1 to 5 where 1=Highest priority and 5=Lowest priority ( respondents)

1 Highest 2 3 4 5 Lowest priority priority

Product promotions 43 34 14 4 4

Print coupons 9 33 19 13 26

Online coupons 14 24 24 16 21

Loyalty programmes 30 31 20 7 13

Online communities 21 32 24 13 10

Social media participation 33 31 18 11 7

Digital marketing 23 36 24 11 6

In-store marketing 46 28 15 8 4

Shopper marketing 31 32 18 8 11

Ratingreviewsrecommendations 20 30 27 11 12

Source Economist Intelligence Unit survey October 2011



ldquoThe rules of engagement are very different Our actions must reflect what our brands stand for and we have to give consumers the opportunity to participate and co-create with our brands in a responsible wayrdquo Venky Balakrishnan Vice-president of marketing innovation Diageo

market share by 7 ldquoWhen you see this level of engagement you know something is rightrdquo says Mr Tosolini

Social media is not the only emerging channel PampG is using to connect directly with consumers In November 2011 the company announced a partnership with a start-up called Mobeam to distribute digital coupons via mobile phones The companies plan to begin testing the solutionmdashwhich requires enhancements to existing handsetsmdashin 2012

Diageo is another CG manufacturer that has also turned to social mediamdashFacebook specifi callymdashto enhance its consumer marketing efforts and drive retail beverage sales The global spirits maker expanded its brandsrsquo collective fan base from 35m to 12m in one year and an in-house study conducted with Facebook and Nielsen on five of Diageorsquos US brands showed that increased Facebook activity resulted in a 20 increase in sales across those brands

ldquoThe rules of engagement are very differentrdquo says Venky Balakrishnan Diageorsquos vice-president of marketing innovation ldquoRather than just talk about it our actions must reflect what our brands stand for and we have to give consumers the opportunity to participate and co-create with our brands in a responsible wayrdquo



The e-commerce opportunity

V ibrant online communities can also serve as an entreacutee into e-commerce for CG manufacturers that have traditionally sold through third-party retail channels Forty-one percent of survey respondents

say they expect to sell products directly to consumers over the next 12 monthsmdashup from the 24 who say they currently offer direct sales The percentage is even higher in the Asia-Pacific region with 48 of those respondents expecting to offer direct sales over the next 12 months This is possibly a refl ection of Asian consumersrsquo increasing use of mobile phones for shopping and the expected adoption of mobile wallet services from Google Nokia and others which will expand the mobile commerce market

CG companies have good reason for wanting a piece of theUS online CPG sales e-commerce market In the US online revenues for the CG brands(US$ bn)

25 traditionally slowest to adopt e-commerce are expected to more than double (through online retail and direct channels) over the next three years from US$12bn in 2010 to US$25bn by 2014 according to Nielsen

5

8

12

17 Survey respondents and other CG executives see their nascent e-commerce efforts as complimentary to not competing with existing retail channels The goal as PampGrsquos Mr Tosolini stated is to be wherever the consumer is To this end 41 of respondents say they work with their retail partners on a variety of marketing sales and service programmes However 23 of respondents say that while they collaborate with retail partners they are also committed to expanding their competing direct-to-consumer strategies

2006 2008 2010 2012 2014 Some CG companies are already finding success with e-Source httpblognielsencomnielsenwireconsumer commerce initiatives For example Solo Cup a US$16bn provider

five-things-to-know-about-online-grocery-shopping of single-usedisposable products (eg paper cups and plates)

launched a digital storefront (solocupalicecom ) in partnership with alicecom in August 2011 that users can access from Solorsquos corporate website as well as its Facebook page

ldquoLinking the storefront into our website and Facebook page makes it easier and more accessible for consumers to buy Solo products while they are already engaging with the brand onlinerdquo says Chris Klem the companyrsquos director of consumer marketing Solo Cuprsquos online storefront also allows the company to


41


ldquoThe path to purchase is no longer linear Wersquore partnering with everybody including what you would call traditional retailers to fi gure out the most relevant way to do thatrdquo Alex Tosolini Procter amp Gamble

How do you view your relationship with retailers as it relates to consumer engagement ( respondents)

We work together to serve consumers through a variety of marketing sales and service programmes

We continue to work with retail partners but we are also committed to expanding our competing direct-to-consumer strategies 23

We share consumer data and insights to enable better planning though we act on those insights separately 22

We battle for shelf space with other brands 9

We compete with retailersrsquo private-label offerings 5


promote and sell a broader selection of niche items that are harder to find in brick-and-mortar stores Ms Klem says To date Solo has seen a ldquonice liftrdquo in sales from the digital store she notes without offering specifi cs

When toymaker Mattel launched an e-commerce website in 2009 (shopmattelcom) it used a heavy dose of video to increase consumer engagement and distinguish its offerings from those found on traditional retail sites The company in effect turned video into a direct sales tool in the first year as many as 42 of the top-selling products on the Mattel site appeared after a visitor clicked on a video Mattel cross-promotes the store and specific products heavily through its Facebook page and Twitter account

PampG is also stepping into the e-commerce space including new social commerce stores In June 2011 PampG launched Facebook stores for seven of its brands Tide Gillette Olay Gain CoverGirl Luvs and Febreeze Products purchased from these storefronts are fulfilled by a PampG partner eStore Retail Services an online retailer that also sells PampG home care health and other products through a dedicated site called PGestorecom These are just part of the companyrsquos efforts to connect with consumers wherever they choose to shop

ldquoThe path to purchase is no longer linearrdquo says Mr Tosolini ldquoWe need to connect our brands all along that new non-linear path Wersquore partnering with everybody including what you would call traditional retailers to figure out the most relevant way to do thatrdquo



An innovative blend of social media engagement and in-store marketingmdash including options to purchase online in a retail store or even through a mobile devicemdash are proving to be a valuable combination for attracting and retaining customers

A cross-channel perspective mixing the old with the new

Social media campaigns are an increasingly important part of the marketing mixmdashbut they remain just one part

In-store marketing for example is a priority among survey respondents 46 say in-store marketing will be their highest-priority channel for improving customer loyalty over the next 12 months up from 41 over the past 12 months Product promotions will also increase in significance (to 43 from 41) as will shopper marketing programmes (to 31 from 22)

Budgets are beginning to reflect this two-pronged approach as well Twenty-two percent of respondents say they have increased the share of total spending dedicated to trade promotion (ie partnering with retailers and wholesalers) to complement direct-to-consumer programmes Another 29 say consumer marketing programmes have had no effect on trade promotion spending One-quarter of the respondents have shifted some trade promotion budget to direct-to-consumer programmes

ldquoThere is a massive intersection of things happening in social media and in the storesrdquo says Diageorsquos Mr Balakrishnan ldquoA lot of information is extending downstream from marketing channels into the store We need to present useful information that they can act on at the point of purchaserdquo

Some CG companies are finding an upstream approach works as well using packaging and other in-store marketing promotions to drive consumers back online where they can engage further with the brand US-based Orabrush for example labels its tongue-cleaning products with ldquoAs Seen on YouTuberdquo to fuel what the chief marketing officer Jeffrey Harmon calls ldquothe engagement looprdquo Viral videos drive consumers to retail outlets which drive them back online to see more of Orabrushrsquos original video content which increases awareness engagement and loyalty Consumers can purchase Orabrush products however they wantmdashthrough retail outlets such as Wal-Mart and CVS or online from the Orabrush website Orabrush expects sales to grow from US$2m in 2010 to US$10m in 2011

The takeaway is clear an innovative blend of social media engagement and in-store marketingmdash including options to purchase online in a retail store or even through mobile devicesmdashare proving to be a valuable combination for attracting and retaining customers This approach requires CG manufacturers to look at the consumer landscape in a far different way than they have traditionallymdashand adjust their marketing programmes accordingly

US-based Kraft Foods for example has leveraged the power of consumer engagement across multiple channels to increase sales of its Philadelphia Cream Cheese brand In 2009 Kraft launched Real Women of Philadelphia an online community of Philadelphia users and introduced a series of videos designed to



help reposition Philly Cream Cheese not strictly as a spread for bagels but as a key ingredient for making dips casseroles and other recipes As the number of video views and user-generated recipe submissions increased so did cream cheese sales rising 5-8 annually over the past three years

ldquoThe results blew us awayrdquo says Howard Friedman senior vice-president of marketing for Kraft Cheese amp Dairy ldquoWe achieved a scale and scope we never could have imaginedrdquo

Direct connections drive rich consumer insights

Consumer insights can drive brand-building and product development However the ability to capture and analyse the data required to develop those insights is still evolving According to an EIU survey of senior executives in large consumer goods (CG) companies gathering consumer insights to improve product (44) and marketing programmes (35) are important objectives of their direct-to-consumer efforts ldquoSocial media and Facebook in particular is proving to be extremely rewarding in helping us listen to and understand consumers and to help our brands build different types of relationships with consumersrdquo says Alex Tosolini vice-president of global e-business at Procter amp Gamble (PampG)

Access to the right data is critical to marketersrsquo consumer-focused initiatives Nearly three-quarters (72) of respondents agree that their ability to capture and analyse ldquobig datardquo has improved their efforts to attract and retain customers In addition 58 believe their organisation is ldquovery effectiverdquo at leveraging customer data and

insights to improve interactions with consumers Unsurprisingly this figure rises among larger companies 72 of respondents at companies with revenues of US$5bn-10bn say they are very effective at leveraging customer data

Some are still getting their arms around big data sets Twenty-nine percent say they collect plenty of consumer data but do not have the tools to analyse them effectively while 32 believe they do not collect enough data to develop meaningful consumer insightsmdashhigh numbers given advances in the tools and technologies used to capture store and analyse consumer data

The goal for many of these companies is fine-tuning their methods for leveraging the data they are collecting The good news is that CG marketers do not have to strain their budgets to figure out the best approaches because digital media enable them to test and learn quickly with minimal investment

ldquoWith social media you can test learn and expand quickly on a limited budgetrdquo says Howard Friedman senior vice-president of marketing for Kraft Cheese amp Dairy ldquoYou donrsquot have to spend a million dollars to see if something worksrdquo



Conclusion the road ahead

Pushing traditional media through new media channels is no longer enough to succeed in todayrsquos CG market An increasingly complex non-linear buying process requires a different cross-channel

approachmdashone that puts brands wherever consumers are in a way that encourages participation not passive consumption of marketing messages

In some cases being wherever the consumer is means selling products to them when they are ready to buy As CG companies continue their experimentation with direct-to-consumer salesmdashthrough their own online storefronts or social mediamdashthey will need to start thinking more like the retailers with which they have long partnered

This shift in mindset will require changes in the marketing mix to accommodate increased investments in social media mobile and other digital channels Measurement models will need to change as well as marketers focus on advanced metrics and analytics that measure not just exposure to ads but also engagement with the brand across multiple channels Of course marketers will also have to translate these engagement metrics into tangible business benefits including customer loyalty and ultimately increased sales

Better measurement begins with better data In the era of Big Data CG companies need to identify which data provide the best insights into consumer behaviours and interactions with their brand or the product categories in which they compete (see sidebar page 12) Then they need to ensure that the right processes and tools are in place to capture and analyse these data

Strategic partnerships will continue to play an important role as the consumer marketing efforts of CG companies mature The nature of these relationshipsmdashwith retailers marketing services fi rms and technology providersmdashmust evolve to accommodate new cross-channel objectives and an increasing emphasis on engagement loyalty and direct sales In particular CG companies must carefully manage existing relationships with their retail partnersmdasheven as they experiment with their own onlinesocial sales models

As CG marketers rethink their approach to consumer marketing they will need a strong commitment from senior management to increase investments in new direct-to-consumer initiatives By blending traditional methods with emerging approaches CG marketers can continue to find new ways to increase consumer engagement deepen brand loyalty and increase direct and indirect sales across physical digital and mobile channels


Appendix New directions Survey results Consumer goods companies hone a cross-channel

approach to consumer marketing

Appendix survey results Percentages may not add to 100 owing to rounding or the ability of respondents to choose multiple responses

Please rate the importance of the following marketing channels for your consumer engagement efforts over the past 12 months Please rate on a scale of 1 to 5 where 1=Very important and 5=Not at all important ( respondents)

1 Very 2 3 4 5 Not at all important important

E-mail 24 26 17 19 14

Printtelevision ads 36 24 21 7 11

Social mediamarketing (eg Facebook YouTube Twitter) 20 34 23 16 7

Mobile devices (eg smartphones tablets) 13 22 27 22 15

Direct mail 18 21 22 17 22



Consumer loyalty programmes 27 32 17 15 9

Corporate websitesblogs 22 30 26 17 4

Co-marketing with retail partner 21 40 25 6 6

Consumer catalogues 15 27 26 15 17


Appendix Survey results


Please rate the importance of the following marketing channels for your consumer engagement efforts over the next 12 months Please rate on a scale of 1 to 5 where 1=Very important and 5=Not at all important ( respondents)


E-mail 24 31 20 15 11



Mobile devices (eg smartphones tablets)

Direct mail

In-store marketing

23

18 21

26 29 13

22 15

9

24

50 24 18 4 5

Digital marketing

Consumer loyalty programmes

Corporate websitesblogs

26

36

40 20

26 18 8

7 7

11

24 38 20 13 5


Consumer catalogues 15 28

What percentage of your total sales was achieved through the

24 13

What are the objectives of your direct-to-consumer

20

following channels over the past 12 months initiatives (Average respondents) Select all that apply

( respondents) Through retail partners

41 Enhance brand awareness Through wholesale distributors 70

27 Increase sales Directly to consumers (eg through your website or social media sites) 69 21 Increase interaction with brand Through third-party direct-to-consumer sites (eg Alicecom Amazon) 59

8 Gather consumer insights to improve product Other 44

4 Cross-sell (eg line extensions or bundling) 36

Gather consumer insights to improve marketing programmes 35

How do you see percentages of your total sales shifting over Use as testing ground for new products the next 3 years 30

(Average respondents) Thwart private-label sales 13

Through retail partners We donrsquot currently market or sell directly to consumers 40 but we may in the future

Through wholesale distributors 8

25 We have no plans to ever market or sell directly to consumers Directly to consumers (eg through your website or social media sites) 5

21

Through third-party direct-to-consumer sites (eg Alicecom Amazon) 10

Other

copy Economist Intelligence Unit Limited 2012

5

15



How have you used social media to engage with consumers How have you used social media to engage with consumers over the past 12 months and how do you intend to use it over over the past 12 months and how do you intend to use it over the next 12 months mdashPrevious 12 months the next 12 months mdashNext 12 months Please select all that apply Please select all that apply ( respondents) ( respondents)

Promote products or services as part of a marketing campaign Promote products or services as part of a marketing campaign 66 73

Paid advertising Gather feedback to drive productservice requirements 55 63

Provide customer service Provide customer service 44 62

Gather feedback to drive productservice requirements Paid advertising 42 59

Sell products (eg social commerce) Sell products (eg social commerce) 24 41

Other Other 3 4

Please rank in order of priority the importance of the following methods for increasing customer loyalty over the past 12 months Please rate on a scale of 1 to 5 where 1=Highest priority and 5=Lowest priority ( respondents)



Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities

Social media participation

Digital marketing

In-store marketing

Shopper marketing

Ratingreviewsrecommendations

23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16
















How do you view your relationship with retailers as it relates Which of the following types of data are most important for to consumer engagement garnering valuable consumer insights ( respondents) Select up to three

( respondents)

We work together to serve consumers through a variety of marketing sales and service programmes Purchase data

41 61

We continue to work with retail partners but we are also committed Lifestyle data to expanding our competing direct-to-consumer strategies 38 23 Consumer demand data We share consumer data and insights to enable better planning 33though we act on those insights separately Market data

22 33We battle for shelf space with other brands Demographic data

9 31We compete with retailersrsquo private-label offerings

5 Promotion response data

31

Attitudinal andor psychographic data 24

Consumer sentiment data (eg social media monitoring) What has been the impact of your direct-to-consumer 16programmes on trade promotion Online behavioural data ( respondents) 11

Other Our percentage of trade promotion spending has not changed 1

29

We have shifted some trade promotion budget to direct-to-consumer programmes

25

We have increased the percentage of spending on trade promotion to complement direct-to-consumer programmes

22

Other 4

Dont know 21




Please rate your agreement with the following statements ( respondents)

Strongly Somewhat Neutral Somewhat Strongly Donrsquot know agree agree disagree disagree

Our ability to capture and analyse large data sets (eg ldquobig datardquo) has improved our efforts to attract and retain customers 27 45 21 5 1 1

We are very effective at leveraging customer data and insights to improve interactions with consumers 19 39 30 8 3 1

We donrsquot collect enough data to develop meaningful consumer insights 12 20 26 19 20 3

We collect plenty of consumer data but donrsquot have the tools to analyse them effectively

We share consumer data with our retail partners to improve our merchandisingmarketing programmes

7 22 27 23 19 2

11 40 31 9 6 4

We collaborate with key retail partners to leverage their consumer understanding and insights 21 39 24 9 3 4

Where do social media data fit in your demand signal In which country are you personally located repository (DSR) ( respondents) ( respondents)

United States of America We are exploring integration of social media data with our retail and 22

consumer demand signals (eg data stored in our DSR) India 31 17

Our strategy is to manage social media data United Kingdom separate from retail and consumer demand signals 7 20 United Arab Emirates We bring social media data into our demand signal repository (DSR) 6 13 Canada We donrsquot have a demand signal management strategy 5

36 Australia Italy 3

China Turkey Belgium Denmark Germany 2

Brazil Hong Kong Indonesia Poland Singapore Spain Switzerland Austria Czech Republic France Malaysia Netherlands Pakistan South Africa Sri Lanka

1

In which region are you personally based ( respondents)

Asia-Pacific 31

North America 27

Western Europe 25

Middle East and Africa 10

Latin America 3

Eastern Europe 3




Which industry segment do you belong to ( respondents)

Food and Beverage 53

Personal and Household Products 30

Non-durables (apparel footwear recreational goods office supplies) 11

Tobacco 4

Agribusiness 2

What are your companyrsquos annual global revenues in US dollars ( respondents)

$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47

Which of the following best describes your title ( respondents)

Board member 4

CEOPresidentManaging director 16

CFOTreasurerComptroller 4

CIOTechnology director 4

Other C-level executive 12

SVPVPDirector 16

Head of business unit 8

Head of department 10

Manager 26

Other

What are your main functional roles Choose up to three ( respondents)

Marketing and sales

General management 40

33

Strategy and business development 32

Customer service 20

Finance 19

Operations and production 18

Supply-chain management 9

IT 9

RampD 6

Information and research

Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock

Whilst every effort has been taken to verify the accuracy of this information neither The Economist Intelligence Unit Ltd nor the sponsors of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information opinions or conclusions set out in the white paper

20

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GENEVA Boulevard des Trancheacutees 16 1206 Geneva Switzerland Tel (41) 22 566 2470 Fax (41) 22 346 93 47 E-mail genevaeiucom


Contents

Preface 2

Executive summary 3

About the survey 3

Introduction shifting behaviours shifting priorities 5

Nurturing engagement loyalty and sales across multiple channels 7

The e-commerce opportunity 9

A cross-channel perspective mixing the old with the new 11

Direct connections drive consumer insights 12

Conclusion the road ahead 13

Appendix survey results 15



Preface



February 2012



Executive summary






















20

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Jun-

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-200

8De

c-20

08Ja

n-20

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b-20

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ar-2

009

Apr-

2009

May

-200

9Ju

n-20

09Ju

l-20

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p-20

09Oc

t-20

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ov-2

009

Dec-

2009

Jan-

2010

Feb-

2010

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-201

0Ap

r-20

10M

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010

Jun-

2010

Jul-

2010

Aug-

2010

Sep-

2010

Oct-

2010

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0De

c-20

10Ja

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11Fe

b-20

11M

ar-2

011

Apr-

2011

May

-201

1Ju

n-20

11Ju

l-20

11Au

g-20

11Se

p-20

11Oc

t-20

11N

ov-2

011

Dec-

2011











































5

8

12







41




















































E-mail 24 26 17 19 14




Direct mail 18 21 22 17 22












E-mail 24 31 20 15 11




Direct mail

In-store marketing

23

18 21

26 29 13

22 15

9

24

50 24 18 4 5

Digital marketing



26

36

40 20

26 18 8

7 7

11

24 38 20 13 5




24 13


20













21


Other


5

15









Other Other 3 4




Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16

















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20






Preface



February 2012



Executive summary






















20

18

16

14

12

10

8

6

4

2

0

Jun-

2008

Jul-

2008

Aug-

2008

Sep-

2008

Oct-

2008

Nov

-200

8De

c-20

08Ja

n-20

09Fe

b-20

09M

ar-2

009

Apr-

2009

May

-200

9Ju

n-20

09Ju

l-20

09Au

g-20

09Se

p-20

09Oc

t-20

09N

ov-2

009

Dec-

2009

Jan-

2010

Feb-

2010

Mar

-201

0Ap

r-20

10M

ay-2

010

Jun-

2010

Jul-

2010

Aug-

2010

Sep-

2010

Oct-

2010

Nov

-201

0De

c-20

10Ja

n-20

11Fe

b-20

11M

ar-2

011

Apr-

2011

May

-201

1Ju

n-20

11Ju

l-20

11Au

g-20

11Se

p-20

11Oc

t-20

11N

ov-2

011

Dec-

2011











































5

8

12







41




















































E-mail 24 26 17 19 14




Direct mail 18 21 22 17 22












E-mail 24 31 20 15 11




Direct mail

In-store marketing

23

18 21

26 29 13

22 15

9

24

50 24 18 4 5

Digital marketing



26

36

40 20

26 18 8

7 7

11

24 38 20 13 5




24 13


20













21


Other


5

15









Other Other 3 4




Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16

















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20






Executive summary






















20

18

16

14

12

10

8

6

4

2

0

Jun-

2008

Jul-

2008

Aug-

2008

Sep-

2008

Oct-

2008

Nov

-200

8De

c-20

08Ja

n-20

09Fe

b-20

09M

ar-2

009

Apr-

2009

May

-200

9Ju

n-20

09Ju

l-20

09Au

g-20

09Se

p-20

09Oc

t-20

09N

ov-2

009

Dec-

2009

Jan-

2010

Feb-

2010

Mar

-201

0Ap

r-20

10M

ay-2

010

Jun-

2010

Jul-

2010

Aug-

2010

Sep-

2010

Oct-

2010

Nov

-201

0De

c-20

10Ja

n-20

11Fe

b-20

11M

ar-2

011

Apr-

2011

May

-201

1Ju

n-20

11Ju

l-20

11Au

g-20

11Se

p-20

11Oc

t-20

11N

ov-2

011

Dec-

2011











































5

8

12







41




















































E-mail 24 26 17 19 14




Direct mail 18 21 22 17 22












E-mail 24 31 20 15 11




Direct mail

In-store marketing

23

18 21

26 29 13

22 15

9

24

50 24 18 4 5

Digital marketing



26

36

40 20

26 18 8

7 7

11

24 38 20 13 5




24 13


20













21


Other


5

15









Other Other 3 4




Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16

















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20

















20

18

16

14

12

10

8

6

4

2

0

Jun-

2008

Jul-

2008

Aug-

2008

Sep-

2008

Oct-

2008

Nov

-200

8De

c-20

08Ja

n-20

09Fe

b-20

09M

ar-2

009

Apr-

2009

May

-200

9Ju

n-20

09Ju

l-20

09Au

g-20

09Se

p-20

09Oc

t-20

09N

ov-2

009

Dec-

2009

Jan-

2010

Feb-

2010

Mar

-201

0Ap

r-20

10M

ay-2

010

Jun-

2010

Jul-

2010

Aug-

2010

Sep-

2010

Oct-

2010

Nov

-201

0De

c-20

10Ja

n-20

11Fe

b-20

11M

ar-2

011

Apr-

2011

May

-201

1Ju

n-20

11Ju

l-20

11Au

g-20

11Se

p-20

11Oc

t-20

11N

ov-2

011

Dec-

2011











































5

8

12







41




















































E-mail 24 26 17 19 14




Direct mail 18 21 22 17 22












E-mail 24 31 20 15 11




Direct mail

In-store marketing

23

18 21

26 29 13

22 15

9

24

50 24 18 4 5

Digital marketing



26

36

40 20

26 18 8

7 7

11

24 38 20 13 5




24 13


20













21


Other


5

15









Other Other 3 4




Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16

















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20













































5

8

12







41




















































E-mail 24 26 17 19 14




Direct mail 18 21 22 17 22












E-mail 24 31 20 15 11




Direct mail

In-store marketing

23

18 21

26 29 13

22 15

9

24

50 24 18 4 5

Digital marketing



26

36

40 20

26 18 8

7 7

11

24 38 20 13 5




24 13


20













21


Other


5

15









Other Other 3 4




Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16

















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20





41




















































E-mail 24 26 17 19 14




Direct mail 18 21 22 17 22












E-mail 24 31 20 15 11




Direct mail

In-store marketing

23

18 21

26 29 13

22 15

9

24

50 24 18 4 5

Digital marketing



26

36

40 20

26 18 8

7 7

11

24 38 20 13 5




24 13


20













21


Other


5

15









Other Other 3 4




Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16

















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20










































E-mail 24 26 17 19 14




Direct mail 18 21 22 17 22












E-mail 24 31 20 15 11




Direct mail

In-store marketing

23

18 21

26 29 13

22 15

9

24

50 24 18 4 5

Digital marketing



26

36

40 20

26 18 8

7 7

11

24 38 20 13 5




24 13


20













21


Other


5

15









Other Other 3 4




Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16

















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20









E-mail 24 31 20 15 11




Direct mail

In-store marketing

23

18 21

26 29 13

22 15

9

24

50 24 18 4 5

Digital marketing



26

36

40 20

26 18 8

7 7

11

24 38 20 13 5




24 13


20













21


Other


5

15









Other Other 3 4




Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16

















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20













Other Other 3 4




Print coupons

Online coupons

9 22 29 16 24

6 22 23 18 31

Loyalty programmes

Online communities


Digital marketing

In-store marketing

Shopper marketing


23

10

17

12

22

13

25

29

41

30

29

30

27

26

21

23

29

28

29

27

10

22

15

12

18

18

11

17

16

13

12

9 7

13

16

















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20




















( respondents)


41 61





31




29


25


22

Other 4

Dont know 21











7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20














7 22 27 23 19 2

11 40 31 9 6 4









1


Asia-Pacific 31

North America 27

Western Europe 25


Latin America 3

Eastern Europe 3








Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20











Tobacco 4

Agribusiness 2


$1bn to $5bn 40

$5bn to $10bn 13

$10bn or more 47


Board member 4





SVPVPDirector 16



Manager 26

Other


Marketing and sales


33


Customer service 20

Finance 19



IT 9

RampD 6


Procurement

Human resources

Risk

Legal 0

Other

5

5

3

2

4

1


Cove

r S

hutt

erst

ock


20





Cove

r S

hutt

erst

ock


20





consumer goods companies to consumer marketing · the economist intelligence unit conducted the...

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