MarTech Podcast™ Episode Summary: "Secrets To CPG Marketing Success"
Podcast Information:
- Title: MarTech Podcast™ // Marketing + Technology = Business Growth
- Host: Benjamin Shapiro (I Hear Everything)
- Guest: Tom Burgess, President of Snip Media
- Episode Title: Secrets To CPG Marketing Success
- Release Date: December 30, 2024
Introduction
In this episode of the MarTech Podcast™, host Benjamin Shapiro welcomes Tom Burgess, President of Snip Media, to delve into the intricacies of Consumer Packaged Goods (CPG) marketing. The conversation centers on effective marketing strategies, the evolving landscape of media networks, and the delicate balance between pricing and brand building.
Elevator Pitch
Timestamp: [01:51]
Shapiro initiates the discussion by asking Burgess for an elevator pitch. Burgess succinctly explains Snip Media's role:
"Snip helps CPG brands with engagement, audience activation, driving redemptions and purchases of products... We reach tens of millions of users each month, in a very loyal environment, a very trusted environment."
— Tom Burgess [02:19]
Secrets to CPG Marketing Success
Timestamp: [03:12] - [07:05]
Burgess explores the dynamic nature of CPG marketing, emphasizing that strategies must adapt to fluctuating market conditions. He highlights several key trends:
- Changing Consumer Behavior: Declines in store visits and dollar spend necessitate strategic adjustments.
- Evolving Media Networks: Transition from traditional programmatic advertising to specialized retail media networks.
- Test and Learn Approach: Brands are increasingly adopting experimental strategies to identify effective channels.
"Brands are trying to combat these trends by testing different channels... It's a big test and learn environment."
— Tom Burgess [06:15]
Shapiro relates these insights to the rise of Direct-to-Consumer (D2C) models, noting the shift from reliance on physical stores to online marketplaces like Amazon and Walmart.
Retail Media Networks: Trend or Trash?
Timestamp: [07:05] - [09:00]
In the "Trend or Trash" segment, Shapiro questions the efficacy of retail media networks compared to traditional open web programmatic campaigns.
Burgess confirms that retail media networks are a sustaining trend with significant benefits:
- Accurate Attribution: Unlike the probabilistic nature of open web targeting, retail media networks provide precise attribution data.
- First-Party Data Utilization: Leveraging first-party data enhances targeting accuracy and campaign effectiveness.
"Retail media networks have a place, they're real. The data is amazing, especially the reporting data."
— Tom Burgess [09:36]
However, Burgess also points out challenges:
- Metric Alignment: Differing metrics across various retail networks make standardized comparisons difficult.
- Evolving Sophistication: While reporting data is robust, targeting capabilities are still developing.
Shapiro underscores the strategic advantage of retail media networks in influencing conversions beyond mere ad placements, such as preferential product placement and enhanced search rankings.
"Retail media networks work because they track down to the actual conversion you want and influence your conversion rate outside of just the traditional digital display media."
— Benjamin Shapiro [12:48]
Double Down or Diversify: Media Mix and Pricing Strategies
Timestamp: [12:46] - [15:39]
Transitioning to the "Double Down or Diversify" segment, the discussion focuses on whether CPG marketers should prioritize discounting to drive sales or adopt more varied strategies.
Key Points:
- Economic Cycles Influence Strategies: In downturns, consumers may gravitate towards store or private label brands, prompting brands to adjust their discounting tactics.
- Risks of Over-Discounting: Reliance on discounts can lead to a "race to the bottom," undermining future pricing power when economic conditions improve.
- Value Over Price: Emphasizing product value—such as quality and health benefits—can mitigate the need for constant discounting.
"It's always about the value promotion as opposed to the product value... showing higher quality or better ingredients."
— Tom Burgess [15:12]
Shapiro echoes this sentiment, advocating for strong branding to create customer loyalty that resists price competition.
"Building a brand not only lowers your cost per acquisition over time but also helps deflect price pressure."
— Benjamin Shapiro [15:19]
Building a Brand vs. Competing on Price
Timestamp: [16:30] - [17:13]
The conversation highlights the importance of brand storytelling and differentiation in avoiding price wars. Shapiro cites Liquid Death as a prime example of a brand that successfully commands premium pricing through unique branding and market positioning.
"If you have a coherent brand and a story, a narrative, a selling point that means something to someone, they are going to lean towards your product."
— Benjamin Shapiro [16:30]
Burgess concurs, noting that brands focusing on value rather than discounting can sustain higher margins and foster long-term customer loyalty.
"The inevitable race to the bottom is what everybody's trying to avoid."
— Tom Burgess [16:34]
Case Study: Liquid Death
Timestamp: [16:34] - [17:07]
Shapiro highlights Liquid Death, a canned water brand that distinguishes itself through edgy branding and a strong narrative, allowing it to maintain premium pricing despite being in a commoditized market.
"Liquid Death can resist price pressure because the brand feels like something I should spend an extra dollar on."
— Benjamin Shapiro [16:59]
Burgess adds that the brand's cool and unique image contributes significantly to its market resilience.
"It's cool too, right? Let's face it, it's cool. It's the new hip thing and that always helps."
— Tom Burgess [17:07]
Conclusion
Timestamp: [17:13] - [18:45]
Shapiro wraps up the episode by reiterating the critical role of branding and strategic flexibility in CPG marketing success. He emphasizes the need for marketers to focus on creating value-driven narratives and leveraging diverse media channels through a test-and-learn approach.
"Until next time, my advice is to just focus on keeping your customers happy."
— Benjamin Shapiro [18:45]
Final Remarks:
- Connect with Guests: Listeners are encouraged to reach out to Tom Burgess via LinkedIn or visit Snip Media's website at snip.com.
- Stay Updated: Subscribe to the MarTech Podcast™ for daily episodes and access detailed summaries at martechpod.com.
- Engage with the Community: Follow the podcast on Twitter, Instagram, and Facebook at @martechpod.
This episode provides invaluable insights into navigating the complex CPG landscape, emphasizing the importance of adaptive strategies, robust branding, and the intelligent use of technology-driven media networks to achieve sustained business growth.