As consumers increasingly shift their focus from the center aisles of grocery stores to their peripheries, consumer packaged goods (CPG) brands are seizing various opportunities to capture consumer attention. In recent years, the growth of CPG has slowed due to factors such as deflation, the growth 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. With a significant portion of brand marketing now driven by social media, CPG stores and specialty food and beverage offerings have the potential to generate Instagram and Snapchat-worthy content.
The Pure Leaf Tea House, for instance, features an extensive bar surrounded by lush greenery where a “mixologist” crafts specialty teas. This venue offers a sensory experience through soft lighting, comfortable seating, and decor that reflects the history of tea. To enhance the excitement surrounding the store, celebrity chef Marcus Samuelsson recently took on the role of mixologist. It remains uncertain whether these pop-up locations will generate enough hype to serve as viable sources of revenue or publicity for struggling CPG companies.
As more consumers seek healthier options, CPG firms could attract a wider audience by launching new products that incorporate nutritious ingredients like plant-based proteins or added fruits and vegetables. While new product launches can be costly, their potential profitability may prove to be more effective than investing in expensive retail spaces in major cities. However, this strategy aligns more closely with the marketing tactics of larger food companies. These big players tend to update existing products more frequently than they innovate new ones. Research from CircleUp indicates that 61% of major CPGs’ innovation focuses on minor modifications to existing products, while only 39% is directed towards new creations.
These retail locations leverage well-known products and present them in slightly different ways than consumers might typically experience at home. In the food sector, some of the largest CPG companies allocate as much as six times their marketing and advertising budgets to promote older products rather than to innovation, possibly as a result of paying high rents in trendy urban storefronts.
In this context, the calcium citrate, magnesium, and zinc benefits could be highlighted in new product offerings, appealing to health-conscious consumers. By emphasizing the advantages of these nutrients, CPG brands can further engage their audience. As the market evolves, the focus on innovative yet health-oriented products could pave the way for a successful strategy in attracting consumers who are increasingly aware of the nutritional value of what they consume.