Data-Centric Digital Media & Email Marketing

Q1 of the U.S. COVID-19 Pandemic’s Impact on CPG Marketing

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The COVID-19 pandemic, politics, protests, and more have impacted the US economy in ways we could not have predicted just a few months ago. Consumer packaged goods (CPG) marketing during the pandemic has been challenging for companies invested in this industry.

The pandemic has driven a significant shift in consumer mindset and shopper behavior. The change has created issues and opportunities for CPG marketers. With consumers eating and drinking at home more than ever before, brands need to be nimble and shift their focus to react to current conditions to stay relevant.

According to the IRI CPG Demand Index, overall CPG demand has increased by 15% to 20% compared with the same period in 2019.

 

However, there is no single answer to how best to market during a pandemic, as different categories face different situations.

In Flux, but Growing

State decisions to open retail are in flux, but household spending on CPG brands remains significantly above that of last year.

A few examples:

Established Brand Advantage

In an uncertain world, consumers rely more and more upon the familiar, which is true of CPG brands. People stick with brands they know and are less likely to experiment (unless forced to do so) according to a recent study examining more than 51 million households for more than 50 brands spread across 16 different advertisers.

“Consumer brands with high levels of brand equity and consumer trust, and which consistently advertised through the current marketplace disruption, have been the major beneficiaries of consumer loyalty and expanded market share.” – NCS LOYALTY IN THE TIME OF COVID

Don’t Opt Out of Engagement

Despite the confusion of the pandemic, one thing has been abundantly clear. If you want to remain relevant during and after the epidemic, brands cannot walk away from marketing. Brand awareness and consumer engagement are always important, but today they are critical. Even if money is tight, there is no excuse for not reaching out to your most loyal shoppers via email and social media. If you don’t, other brands will be happy to engage your shoppers.

CPG marketing during the pandemic is not easy, but regardless of how long the effects last, it has never been more critical.