The marketing budget is often the first thing that’s cut during a down economy. There’s been a lot of bad economic news this year, and some companies are re-arranging their marketing budgets in these uncertain times. Here are a few thoughts on keeping your brand relevant as well as managing your marketing dollars in the coming year.
CPG Marketing Survival Tips
The Harvard Business Review says the corporate knee jerk reaction to a down economy is just wrong, stating, “On average, increases in marketing spending during a recession have boosted financial performance throughout the year following the recession.”
In 2020, CPG marketing took a big hit, as marketing budgets fell faster than the employment rate, making it difficult to continue with business as usual for creative teams. Managing your marketing budget during these challenging times takes some new strategies to continue your efforts to build your brand despite financial cuts. Here are some CPG marketing strategies to consider:
- Stay adaptable. Look internally to your existing employees to make use of any hidden talents to cut vendor fees. Reorganize your team to go in-house whenever possible. Use employees’ social channels more. Consider marketing partnerships with other businesses to cut costs. Use PR over advertising spend.
- Leverage increased news consumption as an advertising opportunity. Consumers have been pouring over the news to find out the latest coronavirus crisis information. Advertisers should be paying attention to these trends. Digital video and podcasts are also still hot during the COVID crisis.
- Focus on the safety of your brand during uncertain times. It’s something that is frequently on the minds of consumers living in a troubled world. Emphasizing the trusted nature of your products will forge a tighter bond with your target audience.
- Prioritize existing channels. If you’re spending money anywhere, focus on your existing efforts. CPG marketing should target customer retention as a guaranteed strategy for ROI. Ask customers to refer you to their colleagues to increase your client base.
- Look for additional revenue sources. Are there government programs to help with labor overhead, such as internships? What about crowdfunding for a product launch? Are there new product streams that you haven’t monetized?
- Increase content. Blow it up. Content is a low-cost way to increase presence — and sales — at a time when people are hungry for a distraction. There are so many channels where content marketing provides ROI; it can get hard to track. Focus on the areas where your ROI is clear to get the most bang for the dollar.
Take Advantage of CPG Opportunities
There are opportunities inherent in crisis mode. Consider one report that stated:
- 56% of consumers are happy to hear that your brand is assisting others during the pandemic.
- 43% of consumers say it’s reassuring to hear from known and trusted brands during this time.
CPG marketing is (and should be) alive and well during what has become an unprecedented time of crisis. Stay alert for opportunities to build market share and product trust during this time; it is not the time to hunker down and hide.
Hangar12 is at the forefront of CPG marketing strategy and more. Planning your budget for the coming months and year is vital to your CPG marketing success. If you don't know where to begin, we can help. Download our "Sample CPG Marketing Budget" to use as a guide. Simply fill out the form below to receive instant access.
Now that you know how to create a budget, download our "CPG Digital Marketing Campaign Performance Benchmarks” to help track your ROI.