Google CPG blog - News and Notes from Google"s CPG Vertical

Brand Managers Need to Practice Consumer Collaboration

Monday, September 28, 2009


Posted by Guest Blogger: Dave Knox, Procter & Gamble Brand Manager


Brand Managers have historically been reliant on Consumer Research such as focus groups and surveys to be “in-touch” with consumers. But in this day of 24/7 access to consumer opinions from blogs, Twitter, and Facebook, Brand Managers need a new approach for understanding why people buy their brands. One of the most powerful ways to do so is through Consumer Collaboration. In its most simplistic form, Consumer Collaboration is about monitoring and participating in the conversations around our brands, listening to changing opinions in real-time. It is about tapping into what Google calls the “Database of Consumer Intentions” to gain a new sense of what our consumers are thinking each and every day. In fact, Google is a company making it easy for marketers to be in touch with the “database of intentions” every day through tools like Wonder Wheel, Insights for Search, Blog Search, and YouTube Insights for Video.

But true Consumer Collaboration is about going beyond that, giving marketers a chance to tap into the passion of consumers and collaborate with brand advocates. The world of digital gives CPG Marketers the chance to harness the energy of consumers to build remarkable brands.

In that regard, the need for moving towards a mindset of Consumer Collaboration is driven by three facts:
  1. Consumers are sharing their opinions about the brand, with, or without, a Brand Manager's blessing.
  2. Consumers will be heard whether or not companies give them an outlet.
  3. The amount of information about our brands (and access to that information) has never been greater.
Today’s Brand Managers must recognize a new approach to move beyond research and instead focus on collaborating with our consumers and your most passionate fans. This means we should invite consumers to collaborate with us to improve our brand. Scott Cook, founder of Intuit and Board Member of P&G, eBay and Amazon calls these “User Contribution Systems.” As Cook pointed out in the Harvard Business Review:

"Every day, millions of people make all kinds of voluntary contributions to companies -- from informed opinions to computing resources -- that create tremendous value for this firm's customers and, consequently, for their shareholders,"

This fact has not been lost on CPG Brand Marketers. Whether it is Tide using the services of Get Satisfaction, or Hugo Boss Fragrance tapping into consumer creativity with HugoCreate.com, brands are starting to see the true value of Consumer Collaboration.

However, one of the best examples actually comes from a non-CPG company: Starbucks with their program, MyStarbucksIdea.com. Launched in March 2008, the site arrived one year after Howard Schultz famously wrote an internal memo that said “[we] desperately need to look into the mirror and realize it's time to get back to the core and make the changes necessary to evoke the heritage, the tradition, and the passion that we all have for the true Starbucks experience.” MyStarbucksIdea was a way to regain that heritage and passion by inviting Starbucks loyalists to collaborative on reinvigorating the brand. As Starbucks describes the site:

What would make your Starbucks experience perfect? We know you've got ideas - big ideas, little ideas, maybe even totally revolutionary ideas - and we want to hear them all. That's why we created My Starbucks Idea. So you can share the ideas that matter to you and you can find out how we're putting those ideas to work. Together, we will shape the future of Starbucks.

When the site first launched, the critics classified it as nothing more than a “glorified comment card.” But over the past year, Starbucks has shown that they are truly committed to making the site much more than that. In the spirit of Consumer Collaboration, Starbucks enrolls people throughout the lifetime of an idea. At the heart of the process is a team of Idea Partners - Starbucks employees who are experts in their respective field. These Idea partners read all ideas and comments on the site, but also guide ideas through the Starbucks organization. And just as important, they keep consumers up to date via the Ideas in action blog where Starbucks writes about the ideas that are recommended for implementation and details where they are in the process (Under Review, Reviewed, Coming Soon or Launched).

This is consumer collaboration at its finest. Starbucks isn’t inviting consumers to a two hour focus group where they give ideas and never talk to the company again. Instead they are inviting people to give their opinions and providing an outlet to do so. The result is that consumers are acting like part-owners of the company because their ideas are being heard. More brands need to follow the lead of Starbucks in this area, leveraging the power of digital to practice true Consumer Collaboration.

This guest post is written by Procter & Gamble Brand Manager, Dave Knox. Dave serves as P&G’s Corporate Marketing Brand Manager for Digital Business Strategy, responsible for driving digital innovation and capability across P&G's 300+ brands worldwide. The Digital Business Strategy team makes the strategic choices on which digital brand building skills and innovations will be areas of focus for P&G's brands. Author of the branding blog, HardKnoxLife.com, Dave was named by AdAge as “1 of 25 Media People You Should Follow on Twitter.

Think 2010: Google Webinar - Using Data to Better Connect with Your Customers

Wednesday, September 23, 2009


Attracting the right customers to your website will help you finish off 2009 strong and charge ahead in 2010. Few marketers realize that there is free data available, which is easy to access and can help you better target your advertising.

Please join us to discuss where to find this data and how to utilize it to make educated decisions and develop a sound targeting strategy.
Avinash Kaushik will lead a discussion to share ways for “Using Data to Better Connect with Your Customers.” You'll learn how to find and use data from Google Trends for Websites, Insights for Search, and Ad Planner. Avinash will offer tips for using this data to focus on your most relevant audiences and maximize your return-on-investment immediately. And you'll walk away knowing how to make the most relevant decisions to drive your business forward.


Avinash Kaushik
Analytics Evangelist
Author and Blogger
Google, Inc.


Avinash Kaushik is the author of both Web Analytics 2.0 and best-selling Web Analytics: An Hour A Day. He is also the Analytics Evangelist for Google and the co-founder of Market Motive Inc.

As a thought leader, Avinash puts a common sense framework around the often frenetic world of web research and analytics, and combines that with this philosophy that investing in talented Analysts is the key to long term success. He is also a staunch advocate of listening to the consumer, and is committed to helping organizations unlock the value of web data. Avinash works with some of the largest companies in the world to help them evolve their online marketing and analytics strategies to become data driven and customer centric organizations. He is a frequent speaker at industry conferences in the US and Europe, such as Ad-Tech, Monaco Media Forum, iCitizen, and SES, as well as at major Universities, such as Stanford, University of Virginia and University of Utah.

You'll find Avinash's web analytics blog, Occam's Razor
here.

Webinar Date & Time
Tuesday, October 6th 2009
1:00 pm – 2:30 pm EST / 10:00 am – 11:30 am PST

Register Here

Real Time Trends Show How Consumers Are Driven to Search After Exposure to Product Introductions on TV

Tuesday, September 15, 2009

A review of the Google Hot Trends that took place on September 14th show the usual suspects..."US Open Mens Final 2009" was number 1..."Monday Night Football Schedule 2009" was number 2...and "Kayne and Taylor Swift Vdeo" was number 5 (looks like Kayne's behavior at the VMAs has driven Americans to search in masses, to comment and re-live the moment).

When scouring the list of hot trends for CPG type products, someone may notice "fiber wafers" at number 93.

Fiber wafers? That might seem like an odd search query; how many people could be motivated to search for something as specific and niche as fiber wafers in a high enough volume to hit #93 on the Hot Trends List?

Clicking on the word in the Google Hot Trends tool brings up some clues, via Related Searches: fiber biscuits, dr. oz tv show, dr oz, dr oz website, tv guide listings...

Search volume trends by the hour look like:


It looks like searches peaked at around 12 Noon on September 14 -- the same day as the season premiere of the Dr. Oz Show -- evidence that TV triggers consumers to search at the same time as watching TV or shortly thereafter. Even for CPG products!

Further, Dr. Oz's expertise -- he is an American cardiothoracic surgeon and author, with his own YouTube channel, who was a featured health expert on “The Oprah Winfrey Show” for more than five seasons and 55 episodes -- seems to have influenced the public. He recommends taking a fiber wafer one hour before a fast food meal to curb an unhealthy appetite and aid in making healthier fast food choices.

Will fiber wafers now be part of the vocabulary of every American seeking healthier ways? Perhaps.

Only search will tell.

Posted by Jenny Liu, Industry Marketing Manager, CPG

Channel Migration: Escalation of Deal-Seeking Drives Battle for Share to a New Level

Tuesday, September 08, 2009

Posted by Guest Blogger Susan Viamari, Editor of Times and Trends, Information Resources, Inc.

Recent reports point to an improving U.S. economy, but battle-weary shoppers remain fully entrenched in savings mode. Consumers are looking to trim back expenditures wherever possible. Dining out is down sharply, self-care is pervasive, and trading down—even out—is an increasingly common part of consumers’ money-saving strategies. Today, consumers are infinitely more aware of how and where their money is being spent.

Last year, when Information Resources Inc. (IRI) explored channel migration trends within the monthly Times & Trends report, supercenters were securing sizable share gains across every major CPG department. These gains cut across income segments, reinforcing the notion that reaction to economic turmoil ran broad and deep.

The recession continues to play out. Consumers are evolving rituals and CPG shopping strategies based on their current financial situation, confidence in the future, prices, promotion and a rapidly changing value perception. Many of the rituals that are developed in response to today’s difficult economic environment will remain long after the recession has ended. IRI’s August issue of Times & Trends, “Channel Migration 2009: The Blurring of Shopper Loyalty,” clearly illustrates that shopper loyalty has become an exponentially more complex phenomenon over the past two years.



Supercenters play a major role in providing U.S. consumers with affordable CPG solutions and continues to gain share of consumers’ CPG dollars. But, retailers from competing channels have stepped-up efforts to attract and retain shoppers, and supercenter share gains have waned over the past year. Innovative marketing efforts, such as every-day low price strategies being developed and rolled out across several large grocery retailers, and CVS’s Beauty 360 concept, are being well-received by deal-seeking shoppers, resulting in mitigated losses and/or slight gains across a majority of retail channels. (Note: Gains come largely at the expense of the mass merchandise channel, which is in a multi-year slide due to consumers’ increasing preference for one-stop shopping and the on-going conversion of traditional mass merchandise stores to supercenter formats.) The battle for share of CPG spending continues.

Retailers and manufacturers are notching up their efforts to connect with and influence consumers with the help of a powerful—and growing—marketing tool: the Internet. One of the early CPG players to the game was Walmart. The retailer’s first foray into the social media scene was an internal social network where employees could share ideas and get answers to questions. The idea gained traction and has led to several new online initiatives, including free classifieds on Walmart.com and several theme-based blogging sites. Other CPG marketers are joining in, showing presence on Twitter, Facebook and other online blogging sites. Reach and impact is multiplied greatly by non-affiliated bloggers posting their thoughts and experiences online for all to see.

And consumers are certainly logging on to the Web en masse. According to Internet World Stats, three-quarters of Americans are now online. Penetration has increased 60 points since 1995, and migration to online living remains strong. In IRI’s recent “Consumer Dynamics” survey, shoppers predicted that 76% of their shopping decisions will be made before they get to the store. In a recessionary economy, and likely beyond, consumers are embracing the Internet as a money-saving tool. For example, IRI research reveals that 44% of shoppers are using the Internet to find coupons, and 52% rely on Internet-based research to obtain basic healthcare information.

The Internet has brought immediacy to shopping discovery efforts. A rapidly growing number of shoppers indicate that information from the Internet or email has influenced their health and beauty care product purchases. The medium provides an excellent opportunity to connect with consumers in the privacy of their own home, and it serves as a central repository for comments from other shoppers. The power of the Internet is vast and quickly intensifying. CPG marketers that are able to effectively leverage this tool to understand and connect with key shopper and target groups will have a powerful competitive advantage in the battle for share of CPG spending.

For more on the burgeoning battle for share of CPG spending, and the important role the Internet is playing in informing and influencing fiscally-weary shoppers, read IRI’s August 2009 issue of Times & Trends, “Channel Migration 2009: The Blurring of Shopper Loyalty”.

For more great insights into critical trends impacting the CPG industry, be sure to check out IRI's CPG Blog.