If You Want to Break Through The Mundane at Retail Build a New CPG Cross Selling Partnership for 2018
CPG companies will pay a premium for great in-store displays that generate excitement and create an experience—something reminiscent of summer fun/childhood memories. But how much more excitement could be created if several CPG companies put together a campaign with several different brands, evoking different aspects of the summer fun experience: Jennie O’s turkey burgers and brats with King’s Hawaiian Bread and a new Stubb’s barbecue sauce. These cross-selling partnerships are building excitement across the retail landscape and adding to the in-store experience. If your brand is looking to grow its distribution and sales in the upcoming quarters adding a new CPG cross selling partnership is worth the investment, and here are 5 reasons why.
1) Exciting Partnerships + Field Sales Technology = Enticing Experiences
Partnering among CPG companies has always been difficult but now it seems to be on the verge of extinction as many CPG companies have excluded it from their sales and marketing mix. And for some CPG companies, you can’t blame them. There’s a variety of different distribution methods available making retail execution difficult. Different products sell better in different stores making it difficult to push sales. It also requires a lot of resources and collaboration. But on the other hand, no one ever took customers by surprise doing what is easy. And with today’s reporting and retail execution applications, companies can truly execute one-of-a-kind in-store experiences, something the CPG industry is in need of.
2) Gaining New Shoppers is Priceless
One huge advantage to collaboration is that a customer who may be familiar with another CPG company’s product hasn’t yet tried yours, or vice versa. They might have grown up eating a certain brand of English muffin but never paired it with this brand of tea. Now you have a mingling of the familiar—familiar tastes reminiscent of nostalgic experience—paired with something fresh. Consumers love both and they generally need a balance.
3) Increase New Item Success Rate
If you look at a Gartner Hype Curve, with any new product there will always be the early adopters. There will always be kids looking for the new kind of cereal or Millennials searching for a different kind of packaged ethnic food. But that’s a small number at first. Change is hard and many people will buy the same thing over and over. To encourage the sense of adventure, it helps to pair a new product with something familiar that the bulk of people already like. This creates positive associations that are more likely to influence people to try something new.
Media companies use this strategy constantly so people are already “trained.” If you look at Hulu or Netflix, they’re always throwing something new into the mix and it’s not all one kind of movie. Music streaming companies like Spotify become popular because they introduce music buffs to new groups they haven’t heard before.
By pairing up, the grocery aisles could be the gastronomic equivalent, throwing popular classics together with something new to help people broaden their taste experiences. And customers don’t have to go all-out to expand their horizons, like going to an Ethiopian restaurant when they’ve never heard of Kitfo. This is helping them experiment in a way that requires minimum investment by the consumer.
4) Data InSights & Analytical Partnerships
Building this kind of partnership also gives you interesting and useful data for future partnerships, promotions, and R&D. Which pairings are most successful? Which least? What can you glean from the collaborations that work to ensure future cross selling partnership will grow continually more successful.
5) Free Likes, Tweets, and WOM Shout Outs
Finally, with a collaboration, all parties can use TPR if needed and their own social media followings to promote the deal. If you’ve got four collaborators, that’s four Facebook, Snapchat, Instagram and Pinterest accounts working toward the same goal.
Running promotions and building partnerships like this are more work. But they generate excitement and the curiosity of consumers to try new things, especially when they rotate often. So for 2018 what CPG partnerships would best complement your brand?