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Brandwatch Report/ Household &Personal Care Products an Industry Analysis Through the Lens of Social Media

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Brandwatch Report/ Household &Personal Care Products an Industry Analysis Through the Lens of Social Media Brandwatch Report/ Household & Personal Care Products/ 2014 An industry analysis through the lens of social media. / 2014 Report/ Household and Personal Care Products Report/ Care Household and Personal Brandwatch Report Household & Personal Care Products/ 2014 Why read this? Contents “ If you tell me that price is the only thing that matters to customers, I respond that 3 An Industry Primer nothing about this product matters to them. If all that we’ve got to care about is the price, then the price is the discussion, not the item itself. ” 4 Social Advertising / 2014 Seth Godin – author, entrepreneur and marketer 5 An Evolving Industry As social media creates an increasingly interconnected 10 Scope of this Report society, the relationship between brands and consumers is rapidly evolving. The following report will shed light on 11 Household Products how everyday household brands can take full advantage 21 Personal Care of social media by maintaining strong relationships and clear relevance to consumers. 32 Implementing the Right Technology 34 References Report/ Household and Personal Care Products Report/ Care Household and Personal 2 Book a demo with us brandwatch.com/demo Household & Personal Care Products An Industry Primer Throughout the monotony and surprises of our daily lives, there are some products that are so ingrained into our routines that we can easily forget how helpful or While it’s a rare consumer who anxiously awaits the next purchase of laundry detergent, toothpaste or bath soap, these are the products that keep a household functional – the unsung heroes of consumer goods. Basic household goods hold a unique position in the consumer products world. They are relatively inexpensive and regularly / 2014 replaced in the household cycle. For consumers, that generally means the decision to purchase is not as permanent or emotionally charged as, for example, buying a car or a new suit would be. For consumers, that means they will continuously be faced with the option to switch brands as interests or preferences change. This report will outline many of the industry changes, brand tactics and social media strategies necessary to Report/ Household and Personal Care Products Report/ Care Household and Personal 3 Book a demo with us brandwatch.com/demo Household & Personal Care Products Social Advertising: Bigger spend for greater gain Every day we are confronted with hundreds of In 2013, FMCG and CPG brands household products. While consumers seem to feel boosted their spend by a considerable 6.8%, giving them a 25% share of the advertisements have little effect, brands feel differently. $557 billion total advertising spend that year. (1) RELATIVE FACTORS INFLUENCING SHOPPERS’ IMPRESSION OF BRANDS In Q1 2013, FMCG video ad campaigns generated almost 8.7 million shares, Personal / 2014 experience representing 25.3% of all shares globally. (2) Package and logo design The opportunity for brands to amplify their products’ experience and public image abounds within social media. Word-of-mouth Of 1,500 shoppers surveyed, 70% say Personalized they’ll share a brand experience on offers & contact social media while 80% claim they’ll favor brands that interact directly. (3) Advertisements MOST IMPORTAnT SECOnD THIRD FOURTH LEAST IMPORTAnT Report/ Household and Personal Care Products Report/ Care Household and Personal 4 Fig.1 data from Path to Purchase Institute / Crossmark / Marketing Werks (1) Nielsen; (2) Unruly Analytics; (3) P2PI & Crossmark Household & Personal Care Products An Evolving Industry/ Despite how established most Household and Personal An Ipsos study reports that 86% Care products are, consumers still demand innovation. of global consumers are ‘very or somewhat’ interested in trying new ‘Very’ or ‘Somewhat’ IntereSted SECTOR PERCEIVED AS ‘EXTREMELY’ offerings from household product In tryIng new ProdUCtS OR ‘VERY’ INNOVATIVE brands. Consumers are expecting 100 100 brands they know and trust. / 2014 80 80 With the best-selling non-food CPG launches of 2013 demonstrating the power of promising healthier, worry- 60 60 free expectations and experiences, as well as providing low cost options 40 40 – innovation is key. In a 2013 report, three household products achieved % GLOBAL CONSUMERS % GLOBAL CONSUMERS % GLOBAL 20 20 out of over 9,500 new launches (1). Despite this, according to an Ipsos 0 0 study, only 34% of global consumers FOOD HOUSEHOLD believe that household product brands PERSOnAL CARE PharmaPersonal Finance Computer Household are ‘extremely or very’ innovative. Report/ Household and Personal Care Products Report/ Care Household and Personal ElectronicCamera Media & Video Food & Beverage 5 Fig.2 and Fig.3 data from Ipsos (1) Ipsos Household & Personal Care Products An Evolving Industry/ cont... If consumers’ greatest concern is their personal experience with a product (Fig.1), then Ipsos’ study User Post/ Dove’s new initiative draws a clear argument for the importance of innovating regarding beauty is awesome. that experience, whether that be through the physical to women that they are product or through brand relationships. beautiful, regardless of appearance / 2014 ways to understand and build stronger relationships with their consumers. FMCG/ CPG brands recognize the huge potential yield that social media data provides. Twitter/@djkiddchris building, maintaining and understanding their social media communities. User Post/ Love this response RT @armano: File under real time. Tide responds to Onion bit.lyLwglhl Report/ Household and Personal Care Products Report/ Care Household and Personal Twitter/ @KatieMillerMn 6 Book a demo with us brandwatch.com/demo Household & Personal Care Products An Evolving Industry/ cont... Consumers of household products regularly use social Data from a recent survey (1) shows media to express their opinions. that 29% of respondents said they frequently use social networking sites to express disappointment about a Consumers WHo use soCial netWorks to express disappointment aBout Brands household purchase, brand or retailer. 50 Respondents were more likely to complain about household products / 2014 40 than any other vertical. 30 20 User Post/ % OF RESPONDENTS This black ice air freshener 10 they put in this car STINKS!!! Smells like a terrible cologne. 0 ews Travel n Apparel Telecoms Household ElectronicsRestaurantAutomotive Appliances Food Brands Entertainment Personal Care Sports related Alcoholic bev. Educational Inst. on-alcoholic bev. Financial Services n Magazine & Twitter/ @SoulofKiku Healthcare/Pharma Report/ Household and Personal Care Products Report/ Care Household and Personal 7 Fig.4 data from ROI Research and Performics (1) Crossmark Household & Personal Care Products An Evolving Industry/ cont... Consumers are more inclined to trust recommendations In fact, a nielsen study showed that than advertisements. Public opinions matter. 84% of global online consumers always or sometimes take action from recommendations from people RELATIVE RANKING OF FACTORS THAT AFFECT SHOPPERS’ IMAGE OF A BRAND they know (Fig.5). While CPG brands continue to spend huge on advertising, 100 they may not be fully capitalizing on the influence of social media and / 2014 80 online peer-to-peer interactions. 60 This clearly indicates that CPG/FMCG brands need to be online in order to 40 monitor the chatter in their industry and ensure that they’re in the frontline. % GLOBAL CONSUMERS % GLOBAL 20 Brands today need to be able to respond to all customer-related issues 0 in order to keep themselves at the forefront of customer opinion. TV Ads Emails Radio Ads TV program Online video Mobile Ads Online opinion ewspaper Ads Magazine Ads Pre-Movie AdsOnline banners n Editorial content Mobile text Ads Recommendation Branded websites Brand sponsorshipBillboardSearch & outdoor results Ads Social networks Ads Report/ Household and Personal Care Products Report/ Care Household and Personal 8 Fig.5 data from Nielsen Household & Personal Care Products An Evolving Industry/ cont... Forrester suggests that the more visible a brand is on Following this trend, research social media, the more likely they’ll be recommended. consumers have a much higher regard CONSUMER LIKELY TO RECOMMEND BRANDS vs. CONSUMERS for brands who have a vocal presence on social media than those who don’t. 10 In fact, 56% of those who interact with a brand through social media feel 8 / 2014 more connected to that brand. The same study also revealed that 6 The perceived when brands provide timely responses, quality of customer customers are 50% more likely to buy services on social 4 media channels from the brand and 71% are likely to MENTIONS PER DAY MENTIONS encourage friends to buy the product. 2 not only do brands need to be present online but they also need to be behind the scenes. Brands need to analyze 0 and understand what’s happening A FEW TIMES A yEAR AT LEAST MOnTHLy 82% OF COMPAnIES BELIEVE online in order to really differentiate AT LEAST WEEKLy AT LEAST DAILy THEy PROVIDE SUPERIOR CUSTOMER themselves in an inundated market. SERVICE On SOCIAL MEDIA Report/ Household and Personal Care Products Report/ Care Household and Personal 90% OF COnSUMERS DISAGREE 9 Fig.6 data from Forrester Research Household & Personal Care Products Scope of this Report/ These consumer insights and industry developments set the stage for the importance The following report outlines several opportunities for brands selling everyday products to use social media to gain a deeper understanding of and stronger connection to
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