EXPERIENTIAL MARKETING FOR CPG
BY BRIAN COUCH | SEPTEMBER 12, 2022
What is an experiential marketing and why should CPG companies use it
Experiential marketing is part of a brand’s marketing strategy focused on creating experiences for consumers to interact with a brand to build brand equity and product affinity. This can be done through events, product demonstrations, and other interactive activities.
CPG companies use experiential marketing because it allows them to connect with existing customers and potential customers on a more personal level. It also allows brands to stand out from their competitors by creating unique experiences that cannot be found elsewhere. Experiential marketing can lead to a higher ROI, create positive public relations opportunities, and attract new customers at a higher rate than other strategies, making it an essential tool for CPG companies.
How to create an experiential marketing campaign
When creating an experiential marketing campaign, it is important to keep the following in mind:
Set objectives and KPIs
What do you want to achieve with your campaign? What are your key performance indicators? It is essential that all stakeholders are aligned to the brief or the agency will not be able to create a comprehensive response.
Identify your target audience
Who are you trying to reach with your campaign? Who should the project convey information too?
Choose the right location
Where will your target audience be located? What markets over-index for your product or best represent your target audience? Are there special events that index high with your core demographic open to experiential or sales promotions?
Create an engaging experience
What can you do to make sure your target audience has a positive experience with your brand? How do you want the experience to impact brand recognition and brand image? While the ultimate goal is to sell more of your product what positive influence can be created with an authentic promotion?
Promote your campaign
How will you let people know about your campaign? What are the best platforms to advertise/promote the event or sponsorship? Choosing an entity that aligns with your customer or potential customer is key. Advertising with the right partner(s) will ensure access to the right people in a targeted way that should deliver value.
How will you know if your campaign was successful? What other factors besides sales on a specific product are important to you? Does the brand have an interest in other facets of sales promotion, is an increase in brand recognition important, what other business drivers are you hoping to influence?
The benefits of using experiential marketing for CPG brands
There are many benefits of using experiential marketing for CPG brands, including:
Connecting with consumers on a more personal level
Customers want to identify with the products and services they incorporate into their lives and experiential is a key step in engaging and bringing a brand to life.
Creating unique experiences that can lead to higher brand awareness and loyalty
The quality of the experience is important and will lead to a higher likelihood that consumers will adopt the product. A great brand experience is worth more than any words corporate branding experts can concept.
Generating a higher ROI than other marketing strategies
Experiential allows a brand to be more tangible and consumers can engage beyond logo recognition or the preferences of a celebrity spokesperson. All of the marketing disciplines have a place but research is clear that quality experiential will lead to high conversion and increased consumer recognition, repeat sales, and paid trial.
Building stronger relationships with customers
Customers want to engage with brands outside of the store environment. They are looking for brands that share common interests and can be more than a corporation in a faceless industry. Consumers expect that their preferred brands will share common social causes and their advertisements and brand identity will be aligned as well.
Gaining valuable insights into consumer behavior and an opportunity to gather 1st party data
Experiential is a perfect platform for a company to engage the consumer gather feedback on a product or service while taking a key step of soliciting feedback. It is a great chance for an organization to ensure consumer input is incorporated into experiential strategy and future brand building opportunities.
Brands should not ignore the chance to engage consumers and gather 1st party data while activating experiential. It is a great chance to get people to opt-in for future communications allowing a brand to increase brand equity and share about other products headed to the marketplace in the future.
The future of experiential marketing for CPG brands
The future of experiential marketing for CPG brands is bright. As consumers become more and more interested in interacting with brands on a personal level, CPG companies will need to continue to create unique and engaging experiences. Experiential marketing will also become more important as CPG companies look to connect with customers in new and innovative ways.
In Conclusion, CPG companies should be leading with experiential marketing. It is an essential tool for connecting with consumers on a more personal level, building stronger relationships, and generating higher ROI. With the continued rise of social media and mobile technology, experiential marketing will become even more important for CPG brands in the future.
What are your thoughts? Have you seen any successful experiential marketing campaigns for CPG brands? Let us know in the comments below!