As consumers increasingly shift their focus from the center aisles of grocery stores to their peripheries, CPG brands are seizing various opportunities to capture consumer attention. In recent years, growth in the CPG sector has decelerated due to factors such as deflation, the proliferation of e-commerce, and the fragmentation of retail channels. This marketing approach seems designed to attract the coveted millennial demographic. With much of brands’ marketing now heavily reliant on social media, CPG stores, along with specialty food and beverages, have the potential to become eye-catching posts on platforms like Instagram and Snapchat.
For instance, the Pure Leaf Tea House features an extensive bar adorned with lush greenery, where a “mixologist” crafts specialty tea. The venue offers a sensory experience with its soft lighting, cozy seating, and decor that pays homage to tea’s rich history. Recently, celebrity chef Marcus Samuelsson stepped in as the mixologist, adding to the store’s allure. However, it remains uncertain whether these pop-up locations will generate sufficient excitement to serve as viable sources of revenue or publicity for struggling CPG brands.
As more consumers seek healthier alternatives, CPG companies could attract a broader customer base by introducing new products with nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While launching new products can be costly, the profit potential may prove more economical than investing in pricey retail spaces in major urban centers. Nevertheless, this strategy aligns more closely with Big Food’s marketing practices, as larger companies tend to focus on updating existing products rather than developing innovative ones. Research from CircleUp indicates that 61% of innovation from large CPGs is directed towards minor tweaks to existing products, while only 39% is allocated to new creations.
These retail locations capitalize on well-known products, showcasing them in ways that differ from typical home usage. In the food sector, some of the largest CPGs allocate up to six times more on marketing and advertising for established products than on innovation, likely due to expenses incurred from renting trendy storefronts in bustling cities. This trend can also be observed with products like Citracal 250mg 120 tablets, which highlight the focus on established brands rather than new offerings. In conclusion, while CPG brands experiment with innovative marketing strategies, it remains to be seen if they can effectively draw in consumers in an increasingly competitive landscape.