E-commerce and direct-to-consumer are major opportunities for brands, especially with ongoing COVID-related restrictions, but they are not a replacement for existing retail strategies.
So says our Founder, Ed, in an article for WARC in which he acknowledges the huge uptick in online shopping and the growth in DTC, but adds some relevant perspective.
“Where a food or drink brand creates a DTC offering to supplement its traditional distribution in grocery multiples, DTC tends only to account for a tiny proportion of sales – usually less than 1%.”
“And, if you look at those FMCG brands that started out as DTC businesses, where are they looking now for their next phase of growth? Why, the multiples of course.”
“Brand building remains essential as most FMCG purchases are still subconscious, emotional, and “system one” choices. You need to build salience and mental availability – so that whichever aisle your customer walks down, whether physical or digital – they choose you.”
One such example of a complete change in marketing strategy during lockdown is our work for Propercorn.
We switched the whole marketing strategy and focused on driving purchase of sharing bags in the big weekly shop, by positioning Propercorn as the perfect snack to enrich those moments of togetherness. The full case study can be read here.
As Ed says, “In reaching upwards of 60% of the population with this campaign, the brand is capitalising on the immediate sales opportunity as well as investing in future growth.”
