E-commerce: Build, Drive and Earn E-commerce Growth for Retail Success

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Executive Summary: Everything Is New Again

E-commerce is a key digital pillar for CPG strategy. E-retail is a phenomenal growth lever, and firms are beginning to realize its potential as a powerful marketing channel as well.

  • Retailers are investing to build e-commerce capabilities and simplify the shopping experience.
  • E-retail development is occurring at a furious pace.
  • Amazon is the top online retailer and actively setting the bar in the e-commerce competitive landscape.

CPG manufacturers can grow e-commerce sales by up to 150 percent by building a strong online presence and earning shopper awareness. Online visits influence online and in-store shopper behavior.

  • Consumers visit e-tail locations to understand the latest products, trends and money-saving opportunities.
  • Brick-and-mortar brands must establish a solid presence along their shoppers’ paths to purchase.
  • Delivering the right message at the right time requires a keen understanding of how brick-and-mortar shoppers move in the online world.

The online “pull” environment has rendered traditional CPG marketing programs ineffective. Everything manufacturers and retailers know about competition in the brick-and-mortar world needs to be redefined in the online realm.

  • In the brick-and-mortar marketplace, retailers invest significant sums of money to build inventory before brand promotion efforts truly begin.
  • Online, the burden of creating demand is placed on the manufacturer, not the retailer, and demand creation precedes inventory build-out.
  • Smaller, more nimble digital-first firms have a significant advantage over traditional in-store brand leaders.

Framework to Win: IRI’s Build-Drive-Earn strategy will help position traditional brick-and-mortar manufacturers to excel in the online CPG marketplace.

  • BUILD a presence on e-retailers’ sites as good as owned-brand webpages.
  • Use your media executions to DRIVE shoppers to your brand presence on e-retailers.
  • Integrate marketing and media executions to EARN online and in-store.

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