Tag Archive for: pr trends for cpg

3 Marketing Trends for CPG Startups

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Not too long ago, DTC brands were on a tear. The Consumer Packaged Goods (CPG) industry grew at an incredible rate during the 2020 pandemic lockdown – to $933 billion up 10.4% from the previous year. And it wasn’t just the big brands who saw that growth, boutique CPG brands reported revenue growth up 18.3%, compared to 7.5% from large CPG brand manufacturers. But recent changes in digital marketing, along with supply chain issues, have made 2022 more challenging for startup DTC brands. So, given the squeeze they’re experiencing, what CPG marketing trends will give them the most bang for their buck?

 

More recently, CPG and DTC brands have seen some challenging times, especially those in the earlier phases who had hoped to grow with VC funding. But since VC funding has become more competitive, it’s more important than ever for consumer brands to leverage all their strengths.

CPG and DTC Brands with Purpose

This first one is a bit of a misnomer because, realistically, purpose-driven CPG brands are an inside-out job, not simply a marketing initiative. And yet, for those CPG startup brands who can find an authentic purpose, the activation opportunities are endless. This isn’t so much a CPG marketing trend as much as it is a brand proposition.

47% of consumers say they’d switched products or services after a company violated their personal values. 

Consumers are increasingly demanding sustainable and natural products in everything from beauty to wellness to food. Searches for “cruelty-free” products increased by 400% between 2012-2022. And it isn’t just consumers. 86% of employees want to know they work for organizations with an environment, social, and ethical business practices (ESG). While we typically think about large brands doing most of the heavy lifting on ESG initiatives, startup CPG brands can create a bigger splash, reduce operational expenses, and increase customer loyalty by doing their part as well.

CPG PR & Influencer Marketing

TV ads are still the first choice for legacy CPG companies, and that’s because they know becoming a household name takes repeated exposure. But ambitious startup brands without the multi-million dollar ad budget are finding excellent success with CPG PR and even seasonal sprint PR programs. From wellness products to beauty products, CPG brands know the value of trusted recommendations, like magazines.

Trust isn’t a CPG marketing trend – it’s a requirement. 

And because of the importance of the trust factor, startup CPG brands are also turning to influencer marketing. But they’re doing it most often with micro-influencers (between 1,000-10,000 followers). While micro-influencer campaigns are considerably more effort to manage, the results can be impressive because micro-influencers typically have higher conversion rates and that’s because they are more relatable and trustworthy than celebrities.  And it isn’t only CPG brands finding success with micro-influencers, consumer tech brands are doubling down on influencer campaigns too.

 

Product Personalization

Marketing trends for CPG startups come and go, but one consumer trend that isn’t going away is personalization. With new AI technologies, this will become even more relevant, even for challenger brands. Consumers are opening their pocketbooks for DTC startups that offer personalized products; 71% of consumers expect personalization. In some cases, consumers are willing to give up product effectiveness to a more tailored product. From personalized product recommendations to celebrating milestones, today’s consumer expects even CPG startups to know them as customers.

Millennials, already spending more on self-care than any other generation before (2X more than baby boomers) are driving the demand for personalized CPG products. Already, 70% of the top DTC subscription brands use product quizzes to help personalize the customer experience. Not only does this increase consumer loyalty, but it provides a pleathora of data that can be used in future retargeting and PR campaigns.

Millennials are also driving another CPG trend: CBD. While 28% of consumers already use CBD, 56% of millennials do. They’re leading the charge that fuels the 4X growth in CBD products projected between 2020-2026. From pets to skincare, CBD is still a very in-demand product.

 

One thing is for certain, CPG startups aren’t going away, and neither are marketing trends for CPG startups. The internet has supercharged the consumer’s ability to find and purchase products – and it means CPG products in every category have more competitors than ever before. Brands that invest in savvy CPG marketing and PR will have the upper hand with customer acquisition and loyalty. And that means they’ll have more longevity than ever before. Whether you’re looking to be the next big brand, or looking to exit with an IPO, keeping your finger on the pulse of today’s trends super charges your future.

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4 Trends for Marketing and PR During a Recession

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Marketing and PR during a recession? Who does that? Well, the answer may surprise you: brands that grow the fastest. Why? Studies who brands that market during recessions gain additional advantages because it’s less noisy and easier to be seen and heard. Make your marketing and PR budget go further by tapping into these consumer trends.

Consumer Brands: Remember the Lipstick Effect

Coined by Leonard Lauder in 2001, the term “lipstick effect” when he observed that lipstick sales are inversely correlated to economic health. Why? Because consumers still want to treat themselves and small indulgences fit the bill, even during economic downturns. Luxury lifestyle brands do this with their perfume and makeup offerings. Yes, $69 for Hermes lipstick is a lot for lipstick, but for the Hermes customer or aspirational customer, $69 is an easy purchase compared to a $6,000 purse. Consumer PR and marketing during a recession can help you gain market share and grow when you offer your customers a way to sport your brand without making a gigantic purchase.

What’s your brand’s “lipstick”? What is the product that makes customers feel like they’re treating themselves without large expenditure? 

Find the Fun with Your Customers

What did the post-pandemic consumer teach us? They want fun and frivolity in the pandemic’s wake – and they STILL want that, perhaps even more, with all the gloomy news about a recession. While you, as a CEO, or CMO, might feel doubly beat up, it’s really up to you to bring the fun. From marketing to PR, if you give consumers something fun to talk about or a sense of escapism, consumers will find a way to your party, because they really want to have fun. So while you may be cutting your marketing or PR budget, make sure the things you keep are fun-filled. Not only will this improve your bottom line, it will attach fun to your consumer’s experience of your brand, which means they’ll associate you with fun after the recession too.

What’s your customer’s ideal way to escape? Find them and play with them there. 

Make Lasting Memories with Nostalgia

When uncertainty strikes, consumers love to “remember when.” Whether it’s nostalgia-based packaging or scents to connections to movies and songs, yesterday always brings comfort to consumers. If you’re a legacy brand with long-time customers, then you should absolutely take this opportunity to remind your customers of the good ole days you had together. If you’re a new brand and you don’t have that depth, you can trigger fond memories through partnerships and advertising.

What era makes your customers nostalgic?

Avoid Deep Discounts that Train Customers

If you train your customers to wait until the next sale, they will never buy if there isn’t one, whether or not there is a recession. Resist the urge to devalue your own brand right now. Not only do price discounts squeeze your margins during a time when you can least afford them, constant discounting feels desperate. Desperation is never a great look, especially for luxury brands. To maintain brand and positioning, the beloved cupcake brand Sprinkles resisted the urge to discount during the pandemic:

“Customers had been taught by other bakeries to expect that the product at the end of the day was worth less than at the beginning. But with our just-in-time baking system, these cupcakes were as fresh as their morning relatives. Even then, as tempting as it was to sell off those last few cupcakes at a discount right before closing, I knew we had to stand firmly behind the price. I preferred to donate those cupcakes than to eat into the value of our brand.” -Candace Nelson, founder.

The better option is to carve out a single day (or two) that your brand will offer value pricing, and when you do, look for ways to add value to your current price rather than discounting the product itself. You could offer a gift with purchase or a VIP experience.

Budget planning for marketing and PR during a recession feels less fun than when budgets are flush, but the reality is, you can make major headway during a recession AND you can enjoy the process and the output just as much if not more.

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