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

New directions
Consumer goods companies
hone a cross-channel approach
to consumer marketing
A report from the Economist Intelligence Unit
Sponsored by Oracle
© Economist Intelligence Unit Limited 2012
1
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
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
Contents
© Economist Intelligence Unit Limited 2012
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
2
New directions: Consumer goods companies hone a cross-channel approach to consumer marketing explores
the shifting behaviours—and priorities—of 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 refl ect the views of the sponsor. The author was

Rob O’Regan. 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
Preface
© Economist Intelligence Unit Limited 2012
3
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
C
onsumer 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 initiatives—but 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 signifi cant 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 fi ndings in our research include the following:
l Pushing traditional media through new media channels is not enough to reach today’s more plugged-
in, product-savvy consumer. An increasingly complex, non-linear buying process requires a different
approach—one 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
Executive summary
About the survey
In October 2011 the Economist Intelligence Unit
conducted a global survey of 221 consumer goods (CG)
executives, sponsored by Oracle. Thirty-one percent
of respondents hailed from the Asia-Pacifi c region,
27% from North America, 28% from Europe, 10% from
the Middle East/Africa and 3% from Latin America.
The respondent pool was senior: 40% were C-level
executives, and the remainder were senior executives
and managers. All respondents were from companies
with over US$1bn in revenue. A mix of CG segments
was represented, including food and beverage (53%),
personal and household products (30%), non-durables
(11%), tobacco (4%) and agribusiness (2%).
© Economist Intelligence Unit Limited 2012
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
4
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 entrée 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 months—up 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 makers’ direct-to-consumer marketing efforts. As marketers
experiment with new channels such as social media and mobile, they are discovering that traditional
messaging won’t work in these new media. But they are not prepared to simply abandon the old in
favour of the new. Instead, they are fi nding 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.
© Economist Intelligence Unit Limited 2012
5
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
C
onsumers’ 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 24.3 hours online monthly, according to comScore, an Internet marketing research
company. Increasingly, consumers’ 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 visitors’ average time spent on the social network increasing from 4.6 hours
to 6.3 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.
Introduction: shifting behaviours, shifting
priorities

Social networking (US)
Share of total time spent online
(%)
Source: />l
0
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8
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12
14
16
18
20
Jun-2008
Jul-2008
Aug-2008
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Apr-2009
May-2009
Jun-2009
Jul-2009
Aug-2009

Sep-2009
Oct-2009
Nov-2009
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Feb-2010
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Jul-2011
Aug-2011
Sep-2011
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Dec-2011
© Economist Intelligence Unit Limited 2012
New directions

Consumer goods companies hone a cross-channel
approach to consumer marketing
6
As consumers spend more time online—frequently researching, discussing and even directly
purchasing consumer goods ranging from household and personal-care items to apparel and consumer
electronics—efforts 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 activities—in-store marketing (73%), co-marketing with retail partners
(61%) and print/television ads (60%)—as 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 print/TV advertising
(59%).
While these fi gures show that engagement priorities are shifting, marketers also understand
the importance of integrating communications across all of these channels—not managing each
independently—to deliver a more consistent and personalised buying experience to consumers.
“Our go-to-market strategy is to win wherever people shop,” says Alex Tosolini, vice-president of global
e-business at Procter & Gamble (P&G). “As more people move their shopping habits online, we want to be
present when and where they want to make a purchase.”
The goal for P&G 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
fi nally 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.
“Our 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
purchase”
Alex Tosolini, Vice-president
of global e-business,
Procter & Gamble
© Economist Intelligence Unit Limited 2012
7
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
CG
manufacturers 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 marketers’ increased emphasis on social media: test programmes show
that nurturing engagement and loyalty through social media can have a direct impact on sales. P&G’s
Secret deodorant brand, for example, has fostered a Facebook community with more than 1.3m 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 “Fearless” campaign, the Secret brand has increased
Nurturing engagement, loyalty and sales across
multiple channels
1 Highest
priority

2

3

4

5 Lowest
priority
Product promotions
Print coupons
Online coupons
Loyalty programmes
Online communities
Social media participation
Digital marketing
In-store marketing
Shopper marketing
Rating/reviews/recommendations
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)
Source: Economist Intelligence Unit survey, October 2011.
43 34 14 4 4
9 33 19 13 26
14 24 24 16 21
30 31 20 7 13
21 32 24 13 10
33 31 18 11 7
23 36 24 11 6
46 28 15 8 4

31 32 18 8 11
20 30 27 11 12
© Economist Intelligence Unit Limited 2012
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
8
market share by 7%. “When you see this level of engagement, you know something is right,” says Mr
Tosolini.
Social media is not the only emerging channel P&G 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 solution—which requires
enhancements to existing handsets—in 2012.
Diageo is another CG manufacturer that has also turned to social media—Facebook specifi cally—to
enhance its consumer marketing efforts and drive retail beverage sales. The global spirits maker
expanded its brands’ collective fan base from 3.5m to 12m in one year, and an in-house study conducted
with Facebook and Nielsen on fi ve of Diageo’s US brands showed that increased Facebook activity resulted
in a 20% increase in sales across those brands.
“The rules of engagement are very different,” says Venky Balakrishnan, Diageo’s vice-president of
marketing innovation. “Rather than just talk about it, our actions must refl ect what our brands stand
for, and we have to give consumers the opportunity to participate and co-create with our brands in a
responsible way.”
“The rules of
engagement are
very different.
Our actions must
refl ect what our
brands stand for,
and we have to
give consumers

the opportunity
to participate and
co-create with
our brands in a
responsible way”
Venky Balakrishnan, Vice-
president of marketing
innovation, Diageo
© Economist Intelligence Unit Limited 2012
9
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
V
ibrant online communities can also serve as an entrée 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 months—up from the 24% who
say they currently offer direct sales. The percentage is even higher in the Asia-Pacifi c region, with 48%
of those respondents expecting to offer direct sales over the next 12 months. This is possibly a refl ection
of Asian consumers’ 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 the
e-commerce market. In the US, online revenues for the CG brands
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.
Survey respondents and other CG executives see their nascent
e-commerce efforts as complimentary to, not competing with,
existing retail channels. The goal, as P&G’s 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.
Some CG companies are already fi nding success with e-
commerce initiatives. For example, Solo Cup, a US$1.6bn provider
of single-use/disposable products (e.g., paper cups and plates),
launched a digital storefront (solocup.alice.com ) in partnership with alice.com in August 2011 that
users can access from Solo’s corporate website as well as its Facebook page.
“Linking the storefront into our website and Facebook page makes it easier and more accessible for
consumers to buy Solo products while they are already engaging with the brand online,” says Chris Klem,
the company’s director of consumer marketing. Solo Cup’s online storefront also allows the company to
The e-commerce opportunity
US online CPG sales
(US$ bn)
Source: />five-things-to-know-about-online-grocery-shopping/
5
2006 2008 2010 2012 2014
8
12
17
25
© Economist Intelligence Unit Limited 2012
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
10
promote and sell a broader selection of niche items that are harder to fi nd in brick-and-mortar stores, Ms

Klem says. To date, Solo has seen a “nice lift” in sales from the digital store, she notes, without offering
specifi cs.
When toymaker Mattel launched an e-commerce website in 2009 (shop.mattel.com), 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 fi rst 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 specifi c products heavily through its Facebook page and Twitter
account.
P&G is also stepping into the e-commerce space, including new social commerce stores. In June 2011,
P&G launched Facebook stores for seven of its brands: Tide, Gillette, Olay, Gain, CoverGirl, Luvs and
Febreeze. Products purchased from these storefronts are fulfi lled by a P&G partner, eStore Retail Services,
an online retailer that also sells P&G home care, health and other products through a dedicated site called
PGestore.com. These are just part of the company’s efforts to connect with consumers wherever they
choose to shop.
“The path to purchase is no longer linear,” says Mr Tosolini. “We need to connect our brands all along
that new, non-linear path. We’re partnering with everybody, including what you would call traditional
retailers, to fi gure out the most relevant way to do that.”
“The path to
purchase is no
longer linear.
We’re partnering
with everybody,
including what
you would call
traditional
retailers, to fi gure
out the most
relevant way to do
that”
Alex Tosolini,

Procter & Gamble
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
We share consumer data and insights to enable better planning, though we act on those insights separately
We battle for shelf space with other brands
We compete with retailers’ private-label offerings
How do you view your relationship with retailers as it relates to consumer engagement?
(% respondents)
Source: Economist Intelligence Unit survey, October 2011.
41
23
22
9
5
© Economist Intelligence Unit Limited 2012
11
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
S
ocial media campaigns are an increasingly important part of the marketing mix—but 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 signifi cance (to 43% from 41%), as
will shopper marketing programmes (to 31% from 22%).
Budgets are beginning to refl ect this two-pronged approach as well. Twenty-two percent of
respondents say they have increased the share of total spending dedicated to trade promotion (i.e.,
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.
“There is a massive intersection of things happening in social media and in the stores,” says Diageo’s
Mr Balakrishnan. “A 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 purchase.”
Some CG companies are fi nding 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 “As Seen on YouTube”
to fuel what the chief marketing offi cer, Jeffrey Harmon, calls “the engagement loop”. Viral videos
drive consumers to retail outlets, which drive them back online to see more of Orabrush’s original video
content, which increases awareness, engagement and loyalty. Consumers can purchase Orabrush products
however they want—through 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 marketing—
including options to purchase online, in a retail store, or even through mobile devices—are 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 traditionally—and 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
A cross-channel perspective: mixing the old
with the new
An innovative
blend of social
media engagement
and in-store
marketing—
including options
to purchase online,
in a retail store,

or even through
a mobile device—
are proving to
be a valuable
combination
for attracting
and retaining
customers.
© Economist Intelligence Unit Limited 2012
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
12
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.
“The results blew us away,” says Howard Friedman, senior vice-president of marketing for Kraft Cheese
& Dairy. “We achieved a scale and scope we never could have imagined.”
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. “Social 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 consumers,” says Alex Tosolini, vice-
president of global e-business at Procter & Gamble (P&G).

Access to the right data is critical to marketers’ consumer-focused
initiatives. Nearly three-quarters (72%) of respondents agree that
their ability to capture and analyse “big data” has improved their
efforts to attract and retain customers. In addition, 58% believe
their organisation is “very effective” at leveraging customer data and
insights to improve interactions with consumers. Unsurprisingly,
this fi gure 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 insights—high
numbers given advances in the tools and technologies used to
capture, store and analyse consumer data.
The goal for many of these companies is fi ne-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 fi gure out the best
approaches, because digital media enable them to test and learn
quickly with minimal investment.
“With social media, you can test, learn and expand quickly on a
limited budget,” says Howard Friedman, senior vice-president of
marketing for Kraft Cheese & Dairy. “You don’t have to spend a million
dollars to see if something works.”
© Economist Intelligence Unit Limited 2012
13
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
P

ushing traditional media through new media channels is no longer enough to succeed in today’s
CG market. An increasingly complex, non-linear buying process requires a different, cross-channel
approach—one 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 sales—through their own
online storefronts or social media—they 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 benefi ts, 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 relationships—with retailers, marketing services fi rms and
technology providers—must 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 partners—even as they experiment with their own online/social
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 fi nd new ways to increase
consumer engagement, deepen brand loyalty and increase direct and indirect sales across physical,
digital and mobile channels.
Conclusion: the road ahead

14
© Economist Intelligence Unit Limited 2012
Appendix
Survey results
New directions
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.
1 Very
important
2

3

4

5 Not at all
important
E-mail
Print/television ads
Social media/marketing (eg, Facebook, YouTube, Twitter)
Mobile devices (eg, smartphones, tablets)
Direct mail
In-store marketing
Digital marketing
Consumer loyalty programmes
Corporate websites/blogs
Co-marketing with retail partner
Consumer catalogues

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)
24 26 17 19 14
36 24 21 7 11
20 34 23 16 7
13 22 27 22 15
18 21 22 17 22
47 26 18 4 4
15 38 28 11 8
27 32 17 15 9
22 30 26 17 4
21 40 25 6 6
15 27 26 15 17
Appendix
Survey results
15
© Economist Intelligence Unit Limited 2012
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
1 Very
important
2

3

4

5 Not at all

important
E-mail
Print/television ads
Social media/marketing (eg, Facebook, YouTube, Twitter)
Mobile devices (eg, smartphones, tablets)
Direct mail
In-store marketing
Digital marketing
Consumer loyalty programmes
Corporate websites/blogs
Co-marketing with retail partner
Consumer catalogues
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)
24 31 20 15 11
34 25 18 11 13
42 31 15 7 5
23 26 29 13 9
18 21 22 15 24
50 24 18 4 5
26 40 20 7 7
36 26 18 8 11
24 38 20 13 5
26 38 22 6 8
15 28 24 13 20
Through retail partners
Through wholesale distributors
Directly to consumers (eg, through your website or social media sites)
Through third-party, direct-to-consumer sites (eg, Alice.com, Amazon)

Other
What percentage of your total sales was achieved through the
following channels over the past 12 months?
(Average % respondents)
41
27
21
8
4
Through retail partners
Through wholesale distributors
Directly to consumers (eg, through your website or social media sites)
Through third-party, direct-to-consumer sites (eg, Alice.com, Amazon)
Other
How do you see percentages of your total sales shifting over
the next 3 years?
(Average % respondents)
40
25
21
10
5
Enhance brand awareness
Increase sales
Increase interaction with brand
Gather consumer insights to improve product
Cross-sell (eg, line extensions or bundling)
Gather consumer insights to improve marketing programmes
Use as testing ground for new products
Thwart private-label sales

We don’t currently market or sell directly to consumers
but we may in the future
We have no plans to ever market or sell directly to consumers
What are the objectives of your direct-to-consumer
initiatives?
Select all that apply.
(% respondents)
70
69
59
44
36
35
30
13
8
5
16
© Economist Intelligence Unit Limited 2012
Appendix
Survey results
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
Promote products or services as part of a marketing campaign
Paid advertising
Provide customer service
Gather feedback to drive product/service requirements
Sell products (eg, social commerce)
Other

How have you used social media to engage with consumers
over the past 12 months, and how do you intend to use it over
the next 12 months? —Previous 12 months
Please select all that apply.
(% respondents)
66
55
44
42
24
3
Promote products or services as part of a marketing campaign
Gather feedback to drive product/service requirements
Provide customer service
Paid advertising
Sell products (eg, social commerce)
Other
How have you used social media to engage with consumers
over the past 12 months, and how do you intend to use it over
the next 12 months? —Next 12 months
Please select all that apply.
(% respondents)
73
63
62
59
41
4
1 Highest
priority

2

3

4

5 Lowest
priority
Product promotions
Print coupons
Online coupons
Loyalty programmes
Online communities
Social media participation
Digital marketing
In-store marketing
Shopper marketing
Rating/reviews/recommendations
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)
41 35 15 3 6
9 22 29 16 24
6 22 23 18 31
23 30 21 10 17
10 25 26 22 16
17 29 23 18 13
12 29 29 18 12
41 28 15 9 7
22 27 27 11 13

13 30 29 12 16
Appendix
Survey results
17
© Economist Intelligence Unit Limited 2012
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
1 Highest
priority
2

3

4

5 Lowest
priority
Product promotions
Print coupons
Online coupons
Loyalty programmes
Online communities
Social media participation
Digital marketing
In-store marketing
Shopper marketing
Rating/reviews/recommendations
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)
43 34 14 4 4
9 33 19 13 26
14 24 24 16 21
30 31 20 7 13
21 32 24 13 10
33 31 18 11 7
23 36 24 11 6
46 28 15 8 4
31 32 18 8 11
20 30 27 11 12
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
We share consumer data and insights to enable better planning,
though we act on those insights separately
We battle for shelf space with other brands
We compete with retailers’ private-label offerings
How do you view your relationship with retailers as it relates
to consumer engagement?
(% respondents)
41
23
22
9
5
Our percentage of trade promotion spending has not changed
We have shifted some trade promotion budget
to direct-to-consumer programmes

We have increased the percentage of spending on trade promotion
to complement direct-to-consumer programmes
Other
Don't know
What has been the impact of your direct-to-consumer
programmes on trade promotion?
(% respondents)
29
25
22
4
21
Purchase data
Lifestyle data
Consumer demand data
Market data
Demographic data
Promotion response data
Attitudinal and/or psychographic data
Consumer sentiment data (eg, social media monitoring)
Online behavioural data
Other
Which of the following types of data are most important for
garnering valuable consumer insights?
Select up to three.
(% respondents)
61
38
33
33

31
31
24
16
11
1
18
© Economist Intelligence Unit Limited 2012
Appendix
Survey results
New directions
Consumer goods companies hone a cross-channel
approach to consumer marketing
Strongly
agree
Somewhat
agree
Neutral

Somewhat
disagree
Strongly
disagree
Don’t know
Our ability to capture and analyse large data sets (eg, “big data”) has improved our efforts to attract and retain customers
We are very effective at leveraging customer data and insights to improve interactions with consumers
We don’t collect enough data to develop meaningful consumer insights
We collect plenty of consumer data but don’t have the tools to analyse them effectively
We share consumer data with our retail partners to improve our merchandising/marketing programmes
We collaborate with key retail partners to leverage their consumer understanding and insights

Please rate your agreement with the following statements.
(% respondents)
27 45 21 5 1 1
19 39 30 8 3 1
12 20 26 19 20 3
7 22 27 23 19 2
11 40 31 9 6 4
21 39 24 9 3 4
We are exploring integration of social media data with our retail and
consumer demand signals (eg data stored in our DSR)
Our strategy is to manage social media data
separate from retail and consumer demand signals
We bring social media data into our demand signal repository (DSR)
We don’t have a demand signal management strategy
Where do social media data fit in your demand signal
repository (DSR)?
(% respondents)
31
20
13
36
United States of America
India
United Kingdom
United Arab Emirates
Canada
Australia, Italy
China, Turkey, Belgium, Denmark, Germany
Brazil, Hong Kong, Indonesia, Poland, Singapore, Spain, Switzerland,
Austria, Czech Republic, France, Malaysia, Netherlands, Pakistan,

South Africa, Sri Lanka
In which country are you personally located?
(% respondents)
22
17
7
6
5
3
2
1
Asia-Pacific
North America
Western Europe
Middle East and Africa
Latin America
Eastern Europe
In which region are you personally based?
(% respondents)
31
27
25
10
3
3
Appendix
Survey results
19
© Economist Intelligence Unit Limited 2012
New directions

Consumer goods companies hone a cross-channel
approach to consumer marketing
Food and Beverage
Personal and Household Products
Non-durables (apparel, footwear, recreational goods, office supplies)
Tobacco
Agribusiness
Which industry segment do you belong to?
(% respondents)
53
30
11
4
2
40
13
47
$1bn to $5bn
$5bn to $10bn
$10bn or more
What are your company’s annual global revenues in
US dollars?
(% respondents)
Board member
CEO/President/Managing director
CFO/Treasurer/Comptroller
CIO/Technology director
Other C-level executive
SVP/VP/Director
Head of business unit

Head of department
Manager
Other
Which of the following best describes your title?
(% respondents)
4
16
4
4
12
16
8
10
26
1
Marketing and sales
General management
Strategy and business development
Customer service
Finance
Operations and production
Supply-chain management
IT
R&D
Information and research
Procurement
Human resources
Risk
Legal
Other

What are your main functional roles?
Choose up to three.
(% respondents)
40
33
32
20
19
18
9
9
6
5
5
3
2
0
4
20
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.
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