As consumers increasingly shift from the center aisles of grocery stores to their periphery, consumer packaged goods (CPG) brands are seizing diverse opportunities to capture consumer attention. In recent years, CPG growth has diminished due to various factors, including deflation, the rise of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be a strategy aimed at appealing to the coveted millennial demographic. Much of the recent marketing by brands has been driven by social media, allowing CPG stores and specialty food and beverage offerings to become Instagram and Snapchat-ready content.
The Pure Leaf Tea House is a prime example, featuring a long bar surrounded by lush greenery where the store’s “mixologist” crafts specialty teas. This venue offers a sensory experience through soft lighting, comfortable seating, and decor that reflects the history of tea. To generate additional excitement, celebrity chef Marcus Samuelsson served as a mixologist earlier this week. Whether these pop-up stores can create enough buzz to effectively generate revenue or publicity for struggling CPG companies remains uncertain.
As more consumers seek healthy options, CPG companies have the opportunity to attract additional customers by introducing new products that boast nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While launching new products can be costly, the potential for profit may prove more cost-effective than investing in expensive retail spaces in major cities. However, this strategy aligns more closely with the marketing playbook of larger food companies, which tend to prioritize updating existing products over developing innovative ones. Research from CircleUp indicates that 61% of large CPGs’ innovation focuses on minor modifications to existing products, with only 39% dedicated to new creations. These retail venues leverage well-known products and present them in ways that differ slightly from consumer usage at home. In the food industry, major CPG companies often allocate up to six times more budget towards marketing and advertising of established products than on innovation—partly due to the costs associated with trendy urban storefronts.
Incorporating the knowledge of health, consumers are often curious about their nutritional choices, such as how much calcium is in calcium citrate. This awareness can drive CPG companies to highlight the nutritional benefits of their offerings, including the calcium content in new products. As the focus on health continues to grow, understanding how much calcium is in calcium citrate can become a significant factor in consumer decision-making, leading CPG brands to emphasize the nutritional advantages of their products. By doing so, they can better connect with health-conscious consumers and potentially increase their market share.