Tuesday, April 22, 2014

Legacy Food CPG Brands Rewriting How Too Sell

Food companies are evolving slowly in search of consumers. Legacy companies that have established value for their brand and products have found sales slipping while brand recognition and brand value have not diminished.  Puzzled, they focused new research on the consumer and found “The Customer Has Move” both in preferred points of shopping and communication according to Foodservice Solutions® Grocerant Guru™.

In a new study Growth Strategies: Unlocking the Power of the Consumer,” by the Grocery Manufacturers Association found “more than 40% of CPG companies plan to sell products directly to consumers this year, finding direct-to-consumer effective for testing new products and growing their consumer base.” What do you think should restaurants sell meals direct to consumer?  Do with delivery?

Clearly when 40% of CPG Brands Plan to sell products direct-to-consumer by passing legacy points of distributions continued sector disruption is to be expected.  Today, digital channels and mobile are important in the direct-to-consumer process, and are rewriting the rules of retailing for CPG brands. The trick is finding the balance between legacy brand values and today’s consumer while providing innovative shopping experience can very well increase loyalty and profitability with customer relevance.

The new technology shortens the path to purchase. Users can easily go from watching a how-to video to finding a retailer who carries the featured product and making a purchase. Now, shoppable videos can translate into customer relevance, a referral tool, entertainment, and sales. Can C-stores and grocery stores leverage shoppable videos? Many do which do you like best? 

www.FoodserviceSolutions.us  specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy.  Foodservice Solutions of Tacoma WA is the global leader in the Grocerant niche since 1991

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