Key Questions being faced by the C-Suite
According to a recent report by Economic Times, HUL almost tripled its ad spend in the digital space in FY13. The share stood at ~7 percent of the total of INR 26.35 billion (around USD 482 million) – this was the total as spend for 2012. In 2014 the share is expected to be around 10 percent of the total. Various other top CPG companies in India including Dabur and Nestle have significantly increased their digital spend over last few years.
Though there is significant urge in adoption of digital platforms to engage with consumers, CMOs and CIOs of CPG companies are still deciphering the digital assets which can be built to meet the brand’s strategic goals. The key questions being faced by them are:
• Which platforms should be used to build the asset? Should it be web, social or mobile based asset?
• What type of asset should be built? What will be the reason for existence of the digital asset?
• What KPIs should be measured to achieve the brand’s goals?
How is Digital being used by CPG Companies?
Digital assets being created by CPG companies are driven by following three major objectives:
1. Customer acquisition and engagement
2. Organizational effectiveness
3. Building an efficient partner (distributors and retailers) network
Some of the assets being created to meet the mentioned objectives are listed below:
Note: In this paper we will discuss the digital assets developed with consumer led objectives.
Consumer assessment to determine the platform for brand’s digital presence
The decision of the digital assets to be built by the brand begins with assessment of brand’s consumers. The brand needs to assess the segment in which most of its TG belongs.
Info-seekers: Internet users in this segment primarily access internet for seeking information on multiple issues, and accessing emails. These users are not mobile savvy and their primary mode of accessing internet in on their PC / Laptop. Digital assets built for these consumers should be web based portals / websites.
On-the-go: Internet users in this segment primarily access internet on mobile phones. As per IAMAI reports, there is a growth of 52% in smartphone penetration in this segment. Website / Portals built for these consumers should be mobile ready. Investing in mobile apps targeted to a need of the consumer segment can significantly enhance the brand imagery in consumer’s mind.
Social: Internet users in this segment are active information seekers on social media platforms. They are active on social media platforms like Facebook, Twitter, Pinterest etc. not only from web but also from mobile apps. Digital assets for these consumers should be built of social media platforms most often accessed by the TG.
Aficionadas: Users in this segment are heavy internet users. They are eternally...