5 CPG marketing strategies to bolster your brand

Consumer preferences are shifting faster than you can say “brand loyalty,” and the line between traditional consumer packaged goods (CPG) brands and direct-to-consumer (DTC) models is getting blurrier by the minute. This shift in CPG marketing can be exciting, but it can also be overwhelming at times.

With so many shiny new technologies and strategies vying for your attention, it can be hard to know where to invest your time and resources. Cut through the noise and zero in on the following approaches that are delivering real results for CPG brands.

5 CPG marketing strategies to boost awareness and conversions

The consumer packaged goods industry represents companies that manufacture and sell products that are quickly consumed and frequently replaced, such as food, beverages, personal care items, and household products. CPG giants like Procter & Gamble, Unilever, and PepsiCo have traditionally relied on retailers to reach consumers, but the rise of DTC brands has disrupted the market.

In recent years, many DTC companies, such as Dollar Shave Club, Casper, and Warby Parker, bypass traditional retail channels and sell their products directly to consumers online, leveraging data-driven insights to create personalized experiences and build loyal customer relationships.

As a result, consumers now expect a higher level of engagement, personalization, and transparency from brands, including traditional CPG companies. They no longer make purchasing decisions based solely on product availability in stores. Instead, they seek out brands that align with their values, offer unique experiences, and foster genuine connections. To meet these changing consumer expectations, traditional CPG brands must update their marketing practices and adopt new strategies.

Here are practical marketing strategies for all companies within the CPG industry—be it a traditional CPG retailer, DTC brand, or CPG manufacturer.

1. Find hidden marketing opportunities with micro-segmentation

Consumer goods companies have long been using broad consumer groups to guide their marketing. But now, with lots of detailed consumer data available, these companies can find and target many smaller groups, each with their preferences, behaviors, and reasons for buying. By using advanced technology and computer programs to analyze the data, brands can find new areas for growth and develop CPG marketing campaigns that connect with specific groups of consumers.

For example, instead of aiming at a general group like “health-conscious millennials,” a consumer goods company can find and connect with specific smaller groups like:

• Young people who love fitness and often buy plant-based protein supplements online
• Working professionals between the ages of 25 and 30 who want organic, locally sourced ingredients and follow social media influencers who care about the environment

By tailoring messages and products based on how they are sold to these specific micro groups, brands can improve their CPG marketing plans and increase sales.

Additionally, micro-segmentation can be used to drive visits to offline stores. By understanding the specific preferences and behaviors of smaller consumer groups, brands can create targeted in-store promotions and events that resonate with these segments.

For example, a brand could offer exclusive in-store discounts on plant-based protein supplements for fitness enthusiasts or host a local farmers’ market event featuring organic products for environmentally conscious professionals. These targeted efforts can increase foot traffic and sales in physical retail locations while strengthening the brand’s connection with these micro-segments.

CPG marketers can also use predictive analytics combined with micro-segmentation to understand what consumers will want in the future. They can do this by looking at lots of data from different places—like social media platforms, search queries, and past purchases—to find new trends and market changes and analyze this against the micro-customer segments.

2. Make the most of your first-party data to create hyper-personalized experiences

In today’s competitive world of CPG, brands that can create super-personalized experiences really stand out. With all the challenges and rules around using third-party cookies, it’s time for CPG brands to make the most of the data they collect directly from consumers through their own websites, apps, and loyalty programs.

This first-party data is a goldmine for CPG marketing strategies. It can include purchase history, product preferences, demographic information, and customer engagement metrics. By analyzing this data, CPG brands can identify patterns and segments, allowing for precise targeting and personalization.

One company that has made significant strides in growing its first-party data records is global CPG giant PepsiCo. Between 2022 and 2023, PepsiCo increased its global first-party data by an impressive 50%, primarily by incentivizing consumers to share their email addresses in exchange for participation in reward programs.

To make the most of first-party data for hyper-personalization, you need to invest in robust data management and data analytics tools. This includes customer data platforms (CDPs) that can unify data from multiple sources as well as AI-powered analytics solutions that can help derive actionable consumer insights from your data. By breaking down data silos and leveraging advanced analytics, you can create a more comprehensive view of your customers and deliver more targeted, effective personalization.

Here are a few ways you can use first-party data to increase your conversions.

Tailor product recommendations based on individual activities

One way to use first-party data for hyper-personalization is through personalized product recommendations. By tracking a customer’s purchase history and browsing behavior, you can suggest products that align with their individual tastes and needs.

For example, a snack brand could recommend new flavors or product lines based on a customer’s past purchases, increasing the likelihood of repeat sales and brand loyalty.

Deliver custom content and offers through advanced customer segmentation

Another opportunity for hyper-personalization in CPG marketing lies in targeted content and promotions. You can use first-party data to segment your audience based on demographics, lifestyle, and purchase behavior and then deliver customized content and offers that resonate with each group.

A footwear brand, for instance, could send targeted tips for footwear maintenance as well as product recommendations to customers and leads based on their age, footwear preferences, concerns, in-app searches, and previous purchases. They can also use demographic info to send discounts and deals available at local stores to increase foot traffic.

Create individually tailored loyalty programs and rewards

CPG brands can also leverage first-party data to create personalized customer loyalty programs and rewards. By tracking a customer’s account details, purchase frequency, ad spend, and product preferences, you can tailor loyalty perks and incentives to individual customers.

For instance, a coffee brand could offer personalized rewards like complimentary beverages on birthdays or exclusive access to new blends based on a customer’s favorite roasts.

Enhance customer experience through data-driven insights

In addition to these CPG marketing tactics, you can use first-party data to optimize the overall customer experience. By analyzing customer feedback, reviews, and engagement metrics, you can identify pain points and opportunities for improvement across your owned channels.

A pet food brand, for example, could use first-party data to improve its online ordering process, such as making it easier for customers to reorder their favorite products and manage their subscriptions.

3. Choose a diverse mix of content formats for your content marketing strategy

Content marketing is a powerful tool for CPG brands looking to engage consumers, build brand awareness, and drive long-term loyalty. Creating valuable, helpful, and engaging content that connects with their target audience allows CPG marketers to establish their brands as trusted sources of information and inspiration.

To develop a successful CPG content marketing strategy, you need to focus on creating a diverse mix of content formats and topics that align with your brand identity, target audience, and marketing goals. Here are some of the most effective content types for CPG marketing:

• Educational content: Provide helpful tips, tutorials, and guides related to your products or the broader lifestyle categories they fit into. For example, a cooking oil brand could create recipes, cooking technique videos, and kitchen organization tips.
• User-generated content (UGC): Encourage customers to share their own experiences, photos, and videos featuring your products and showcase this content across your marketing channels. (See more on this in the next section.)
• Interactive content: Develop quizzes, polls, and games that engage consumers and provide valuable insights into consumer behaviors and preferences. This type of content can also help increase brand awareness and social sharing.
• Storytelling and brand heritage content: Share the unique history, values, and personality of your brand through compelling storytelling content, such as origin stories, employee spotlights, and behind-the-scenes glimpses into your production processes.
• Lifestyle and inspiration content: Create content that showcases how your products fit into your target audience’s lifestyles and aspirations, such as style guides, home decor ideas, or wellness tips.

An example of a CPG brand excelling in content marketing is Red Bull. The energy drink giant has built a comprehensive content ecosystem that spans multiple formats and channels, from its print magazine called “The Red Bulletin” to its high-production-value video content showcasing extreme sports and events. Red Bull has been consistently creating content that aligns with its brand identity of adventure, excitement, and pushing limits.

To ensure the success of your CPG content marketing initiatives, continuously measure and analyze the performance of your content using metrics like engagement rates, time on page, social shares, and conversions. Use these insights to refine your content strategy over time, doubling down on the topics and formats that resonate most with your audience.

4. Integrate authentic storytelling into user-generated content and influencer partnerships

With so many brands competing for the attention of consumers, you need an approach that’s simple yet stands out and connects with your audience on a deeper level. One of the most effective ways to do this is by integrating authentic storytelling into all your influencer content and user-generated content (UGC). By showcasing real people and their inspiring stories in your social media marketing, you can build trust and emotional connections beyond traditional product-focused advertising.

When using UGC and storytelling for CPG marketing, you need to focus on finding stories that resonate with your brand values and identity. These stories should not only highlight the positive impact of the featured individuals but also show how your brand’s products fit into their lives and contribute to their success or well-being.

Here are different types of UGC content to explore:

• Lifestyle integration: Showcase how real consumers incorporate the brand’s products into their daily routines, making it relatable and practical. For example, Califia Farms, one of the popular CPG brands for plant milk and creamers, shares UGC content on their social media, where customers show how easy and quick it is to create their own drink at home with their products.
• Achievements and milestones: Celebrate customers’ personal successes and milestones, fostering pride and community. A fitness drink company might share stories of customers achieving personal health goals, like running their first marathon powered by their products.
• Product reviews and testimonials: Encourage users to share honest feedback and experiences with the product, building trust and credibility. A skincare brand can feature testimonials from everyday users praising the effectiveness and the ease of using their products, helping potential customers see real results.
• Challenges and competitions: Create interactive campaigns on social media where consumers participate and share their experiences, encouraging customer engagement. A snack company could host a recipe challenge, asking customers to share their creative ways of using the product, creating buzz and new ideas.
• Before-and-after transformations: Showcase the impact of the product through authentic before-and-after social stories or images submitted by users. For example, a cleaning brand might display side-by-side images of homes cleaned using their products, demonstrating their effectiveness visually.
• Cause-based campaigns: Focus on campaigns that tie into charitable efforts or social causes, encouraging consumers to support a meaningful mission. A bottled water brand might run a campaign donating a portion of sales to clean water initiatives, inviting customers to contribute to a worthy cause with every purchase.
• Social impact storytelling: Highlight stories of individuals making a positive societal impact, positioning the brand as socially responsible. For example, an apparel CPG, like a company that sells socks, could share reels of employees volunteering at local shelters and providing free products, showing the brand’s commitment to community support.

Similar to the UGC content, the content promoted during the influencer marketing campaigns should also reflect your brand image, voice, and ethos. For example, a CPG brand that wants to identify itself with a quirky, funny image should partner with influencers who can create content that is whimsical, memorable, and entertaining. Make sure to align your influencer outreach campaigns with your brand image.

5. Implement programmatic advertising for efficient, data-driven campaigns

Programmatic advertising enables CPG companies to automate and optimize their brand’s advertising efforts. By leveraging data and machine learning algorithms, programmatic advertising platforms can help brands target the most relevant audiences, adjust bids in real time, and deliver personalized ad experiences across various channels.

To effectively utilize CPG advertising, you first need to define the different segments of your target audience as well as their characteristics and preferences. This will help guide your ad creative, placement, and bidding strategies.

For instance, a beverage brand looking to drive sales among health-conscious millennials could use programmatic advertising to target this specific audience segment with ads featuring the product’s low-calorie count and natural ingredients.

Here are a few other online advertising tactics for CPG brands to consider:

• Contextual targeting: Place ads on websites or alongside content relevant to your products. For example, a healthy snack brand could target ads to appear on fitness and wellness blogs.
• Behavioral targeting: Target users based on their past browsing and purchase behavior. For example, a coffee brand could target users who have previously purchased coffee makers or searched for coffee recipes.
• Demographic targeting: Reach specific audience segments based on age, gender, income, and other demographic factors. For example, a premium baby wipes brand could target ads toward eco-conscious, high-income millennial parents. The ad creative could highlight the wipes’ biodegradable materials, gentle formulation, and hypoallergenic properties to appeal to the audience’s desire for sustainability and safe products for their babies.
• Geofencing: Target users in specific locations, such as competitor stores or relevant events. For example, an energy drink brand could serve ads to users attending music festivals or sporting events.
• Cross-selling: Target users who have purchased one product with ads for complementary items. For example, a haircare brand could show ads for conditioners or hair treatments to customers who recently bought shampoo.

You can take advantage of programmatic advertising’s ability to deliver dynamic, personalized ad experiences and tailor their ad content to each user, increasing relevance and engagement.

Use Yelp Ads for targeted reach and conversions

Yelp Ads offers a unique opportunity for CPG brands to connect with local audiences and drive conversions on a national level. This is especially useful for multi-location businesses or CPG brands that operate in a supplier-distributor model.

There are three particular ways CPG brands can leverage Yelp Ads: Yelp Showcase Ads, Yelp Audiences, and Yelp Spotlight.

Yelp Showcase Ads are a great way for CPGs to strategically promote their products to local audiences based on the keywords they search for on Yelp. By using a Co-Branded Showcase Ad, you can promote your products in collaboration with local suppliers or partner retailers who have a Yelp Page. It helps your brand get in front of purchase-ready users who are just a few clicks away from conversion.

For example, a cleaning product brand could feature its new laundry detergent in an ad that would appear on a grocery chain’s Yelp Page or in searches for that grocery chain. This highlights both the brand and local availability, offering a tailored solution that connects global or national marketing efforts with local consumer needs.

You can customize Yelp Showcase Ads based on your target category, specific keywords, competitor targeting searches, locations, and more to get people to convert directly online or drive more visits to your partner retailer locations.

Yelp Audiences can significantly strengthen your CPG advertising campaigns by showcasing ads to users anywhere online based on their Yelp searches. By targeting these high-intent users, you can reach consumers who are already interested in your products or similar offerings. For example, a user may search for a natural skincare brand with keywords like “organic beauty products” or “natural skincare stores.”

Based on this activity, Yelp Audiences will display ads related to the skincare brand in other places on the web where this user is browsing. By targeting users based on their activity and reminding them of your products, you can increase your visibility and attract consumers who are more likely to convert.

Apart from these two, you can also use Yelp Spotlight to place timely ads with videos to promote your recent launches or time-sensitive deals on Yelp’s homepage as well as on the photo grids of other business pages that the user visits. It’s an effective way to announce your best deals online and get more people to visit your partner retailers’ stores.

Pivot to where your customers are

The future of CPG marketing belongs to brands and retailers that can keep up with the ever-changing needs and expectations of consumers. As the line between traditional CPG and DTC blurs, companies that can stay agile, innovative, and customer-centric will be best positioned to thrive. From leveraging programmatic advertising for targeted engagement to harnessing the power of first-party data for hyper-personalization, choosing a combination of these CPG marketing strategies will help brands thrive in the digital age.

Looking for more ideas to promote your brand? Check out these practical and proven strategies to market your products.