May 2, 2024

10 Minute Read

Why Market Research Is Vital To Identify Your CPG Brand's Path Forward

Implementing marketing strategies without market research is like driving down the road with a blindfold on. "I Wanna Go Fast" - Ricky Bobby.

You have absolutely no idea where you're going. The possibility of hitting another car, or a tree, or driving off a cliff at any moment is inevitable.

 

RickyBobby-1

The same is true for marketing your brand without first identifying what guides your path forward, or what we like to call, True North. Without it lies a treacherous journey ahead with hidden obstacles at every turn that almost always result in heavy consequences. In the case of your brand, it means never reaching your end goal of putting your product or service in your audience hands.

Think of your True North as the guiding light to everything a brand must do – from branding, marketing, all the way to retail and customer experience. It can help navigate challenges, make critical business decisions and understand your audience better than they know themselves. Because in the end, people don’t buy what you do; they buy why you do it. That’s why ensuring you have the proper CPG (consumer packaged goods) market research to provide a crystal clear path to success and develop a purpose-driven brand strategy.

The big question is, "How do I get there?" 

Let's Throw Some Spaghetti At The Wall And See What Sticks. (please don't, it's messy)

This is also known as guessing or marketing without proper research. You’re setting your brand up for massive risk of failure if you dive head-first into marketing without research and strategy.

Spaghetti

Know How Your Audience Likes Their Coffee

People make emotional purchases from brands that are relevant to them and meet their needs. So, connecting with your audience should be your number one priority. Ultimately, brands need to capture the hearts and minds of their audience before earning a share of their wallet. Failure to do so can significantly impact brand affinity, product demand and sustainable sales growth.

The fastest way to drive your brand off the cliff is by misidentifying your audience's true position in the market. Failing to understand your audience's deepest challenges and how your product relates to them will ultimately lead to a catastrophic results. 

Brand_Launch_Plan

Avoid The Dumpster Fires

Nobody wants to burn through money, yet so many brands green light marketing strategies without first identifying what success looks like. True North helps refine your strategy, establish KPIs and allows for actionable goal-setting for the company. Yes, please.

In fact, a recent study indicates that approximately 26% of marketing budgets are wasted on ineffective strategies. Without a thorough R&D process, companies will dump sizable investments into product development, marketing and paid media without a clear understanding of their audience. 

It's imperative that you know exactly who they are, what they care about, what channels influences their decisions. Next thing you know, C-Suite will be asking why sales are down while competitors are killing it. It's no secret that turnover in the CMO role is more prevalent these days, so do yourself a favor and get in a position to be the brand that's winning. 

DeadPirate

Creative Fire Extinguished

When things aren't going well and that spark of hope for a successful launch is fleeting, frustration and desperation set in. You've exhausted the budget, the ROI isn't there and that creative fire you once had to bring this amazing product to people is now gone. You're left asking yourself why.

A tragic tale that's avoidable by simply choosing a different path: Prioritize market research for your CPG Brand launch. Yes, it takes time and costs money, but trust me, it's worth it.

CPG Marketing With A Purpose. Discover Your True North and Let It Guide the Way.

Thankfully, we’re here to help make sure the above scenario remains a nightmare that never manifests itself. Instead, let's focus on building a strong foundation for your company with an effective brand strategy that starts with proper R&D.

 

Step 1: Relevance

Begin by analyzing your audience. Gain a complete understanding of the industry, market landscape, and consumer trends. Know who they are, their needs, what motivates them, and where they live in terms of advertising channels. Ask yourself these questions about your core audiences:

  • What are their buying habits?
  • Why do they buy this type of product?
  • How and where do they buy? Online, In-store or both?
  • What influences their purchase decision?
  • Who are they shopping for?
  • What are their expectations? 

You can never have enough information about your audience. Some is good and more is even better. It’s also important to collect the following demographic information: 

  • Gender
  • Age range
  • Geographic locations
  • Income level

Knowing who you’re selling to better than they know themselves is pivotal in the success of your brand with consumers.

Competitor-analysis_1200pxW

Step 2: Differentiation

Next, it’s time to analyze and evaluate the competitive landscape. Start by answering the following questions: 
  • Who are your competitors? Identify the brands that are selling to the same audience as yours. 
  • How are you different from the competition? Use this information to determine your USP (Unique Selling Proposition). It's what makes you stand out in the crowd and on the shelf. 
  • What is the benefit of your brand vs competitors?
    Start with why your product matters to your audience, make that relevant, show how it adds value to their lives. 

Understanding your competitors' in the market allows you to optimally position your brand for success. It's all about creating demand and generating that intangible need to have your product in their cart.

audience

Step 3: Ownability

Don't leave your audience stranded on a deserted island. Focus on meeting your audience's needs and solving their problems in a way that's unique to your offering. First, it's important to take a look in the mirror and undergo some self reflection by conducting a self evaluation on the company. By using the information you've acquired about your target audience and the competitive landscape, you'll be able to identify which part of the market you can dominate. 

Maybe you truly do have the best product in the market with unparalleled design or best in class technology, which are all a solid start. Now, pair that with a story worth sharing, a best in class brand experience and you'll draw people in and create community.

Great brands find a way to make people feel like they are part of something bigger than themselves. That feeling keeps them coming back for more.

Put Your "X" On The Map & Chase After It Like There's No Tomorrow. 

Defining where you're going ensures your brand sets sail in the right direction and helps you allocate the right strategy, marketing initiatives and proper spend to achieve results. X marks the spot for buried treasure, and in this case that's where we find the gold. Where your product gets your customer's attention, people buy it instead of a competitor, and you make a whole lotta’ money doing it.

XmarksWe're passionate about helping brands realize their full potential by unlocking their value. By gathering the right market research, analyzing it, and determining a path forward with confidence, we guide and direct every strategy we develop and implement at Magnetic Creative.

As we continue to embark on these brand-building conquests, we are constantly challenging, pushing, and guiding towards sustainable growth. Let’s connect, and we’ll start uncovering your brand’s True North. 

Author - Dave Korinek
CEO | Global Brand Strategist @ MagneticCreative

Join the Discussion