Cpg Companies Can Gain Ground On Private Label With Effective Social Networking

Cpg Companies Can Gain Ground On Private Label With Effective Social Networking

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After posting record gains in 2009 the private label growth that so disturbed CPG companies did slow in 2010, but that does not mean that the threat is over, or that those store brands are not going to fight back. Although the slowed growth is good news for the big name brands, now is not the time for complacence.

One newer marketing approach that CPG companies can use to gain an advantage over their store brand foes is social media marketing. Establishing a solid presence on site like Twitter and Facebook has yet to become a big priority for some CPG companies. Their management teams question the use of valuable marketing dollars and employee time to a social networking campaign. The fact is though in the current climate that kind of thinking can be a big mistake.

Even though they may be looking for a bargain wherever they can as the effects of the recession linger on the majority of consumers are willing to be loyal to their favorite brands, as long as the price is close to that of the store brand alternative. Connecting with these customers in an informal, fun way through social networking can be a very effective way to increase this sense of loyalty as well as find new fans for your brand.

Some companies have been using social networking to such great effect that their campaigns became bona fide media sensations. One great example was the recent Mountain Dew Facebook campaign that many marketing experts consider to be the "bar setter" for successful CPG social media marketing.

Back in July 2009 Mountain Dew began a search amongst their fans and followers on Facebook and Twitter foe a few die hard fans of the brand who were willing to help create a brand new flavor for the line. Nicknamed DEWmocracy 2 the search netted 50 loyal consumers who were invited to sample all seven of the proposed new flavors and share their reactions with both company execs and their friends online. They were then asked to choose the three flavors they considered to be the most promising and organize themselves into three teams - or Flavor Nations - to represent each of the winners.

These teams of amateurs were then left to design a label for their flavor and select a marketing agency to help promote their team's offering. After months of planning in April 2010 the new flavors hit retail shelves around the country and the teams representing the competing flavors -Distortion, Typhoon and White Out -were tasked with using the power of social media to garner votes for their brand. More than 2 million votes later, White Out is now a permanent part of the Mountain Dew product line and selling well.

The Mountain Dew campaign is just one example of the way CPG companies can build the customer loyalty they need to keep the private label threat at bay. Any CPG company, big or small, can use social network marketing to the same great effect, as long as their campaign is well thought out and effectively implemented.

There is far more to gaining an effective presence in the world of social networking than creating a fan page and throwing up a few company logos or a discount coupon or two. Working with a company that understands the way that social media marketing works and can help your brand position itself to succeed is essential and if your marketing agency is not up for the challenge it might be time to start looking for one that is.

About the Author:
To learn more about the many ways CPG companies can continue to compete against the threat of private label growth, Veux Marketing has compiled a Private Label Special Report available as a free download



Article Originally Published On: http://www.articlesnatch.com


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