In this article, we define the market opportunities, trends, data collection methods, and approaches to developing and profiting from consumer insights(analytics or intelligence).
CPG, a two trillion dollar market in USA is a facinating, fast changing industry with in USA and non-standardized industry outside USA, especially in Asia, where half of the humans live. Almost 80% of the product innovations fail.
The top CPG companies are
Proctor and Gamble $82 B Cincinatti, OH
UNILEVER N V N Y [UN] $52.4 B Rotterdam, AL
PEPSICO INC [PEP] $35.1 B Purchase, NY
SARA LEE CP [SLE] $16.3 B Chicago, IL
GEN MILLS INC [GIS] $12.0 B Minneapolis, MN
CONAGRA FOOD INC [CAG] $11.7 B Omaha, NE
KELLOGG CO [K] $10.9 B Battle Creek, MI
CAMPBELL SOUP CO [CPB] $7.6 B Camden, NJ
DEL MONTE FOODS CO [DLM] $3.2 B San Francisco, CA
MCCORMICK & CO [MKC] $2.7 B Sparks, MD
CORN PRODUCTS INTL [CPO] $2.6 B Westchester, IL
How are they going to address the raising new trends in CPG, what are the new trends? – Here is a facinating site (with well collected set of advertisement pictures) where they talk about 8 consumer trends published in 2008 January.
The PDF version for download of this very well written trends is here.
This site is impressive.
Looking at this site, it is clear web is the medium of communication for info sharing to begin consumer relationship/incrementally tease the relationship/start selling/creating loyalty/expanding consumer base/innovating. These are easy to expand, less expensive, and reach global consumers in no time.
These things point out seven layers of consumer relationship and accompanying data gathering and data intelligence; the consumers are actually segmented as a funnel relationship; it is all about knowing your consumer and creating and thriving with their relationship. It is all the up to creating a cult of your consumers. Apple is a great example. There are many variations of this. You do not have to go to the cult level. The basic spirit of the funnel methodology is as follows.
– know who is out there and who enters and who does not enter your click vs. brick stores – coming into your radar; just a cookie level relationshiop. Know (using simple visitor stats and understanding what attracts persistent visitorship) and attract first layer consumers and testers; the rest of the following involves mechanistic designs of consumer rewards and interactions.
– know who could be converted to providing email address for more involved engagement (secont tier relationship)
– know who would like to commit to the brand (RSS/BLOG/two line questions) – third layer of relationship
– know who is willing to buy (fourth layer of relationship)
– who is loyal (coming back second time – fifth layer)
– who is willing to recommend (sixth layer)
– who is willing to influence product innovation (seventh layer relationship)
We will see what are some basic data collection and analysis and how to utilize the powerful HH level data from companies that provide such data assets, which is a well grown industry in USA. This may not be possible or not so pervasively available in other countries.
From Data Monster & Insight Monster