Reimagining CPG Brand Recognition: Innovation for Gen-Z Consumers

The Changing Landscape for CPG Brands

Traditional methods of brand recognition—reliant on mass media advertising, in-store promotions, and shelf space dominance—are increasingly losing their efficacy. The proliferation of digital platforms, coupled with the rise of empowered, information-rich consumers, means that CPG companies must innovate to remain relevant.

The shift from a product-centric to a consumer-centric approach is evident. Today’s consumers, particularly Millennials and Generation Z, expect more than just a product—they seek brands that resonate with their values, offer personalised experiences, and engage them across multiple channels. This shift has forced CPG companies to rethink their strategies, embracing digital transformation, leveraging omnichannel marketing, and investing in data-driven insights to foster deeper connections with their audiences.

CPG brands must not only compete on the quality of their products but also on the richness of the experiences they offer. As new players emerge with agile, direct-to-consumer models and digital-first strategies, established CPG companies must innovate or risk obsolescence. The challenge is not just to maintain market share, but to engage a new generation of consumers who value authenticity, sustainability, and seamless digital interactions.

What We’ll Cover

In this article, we’ll explore the critical strategies that consumer packaged goods (CPG) companies must adopt to stay relevant in an increasingly digital world. We’ll delve into:

• The Digital Transformation of CPG Branding: How digital platforms and personalisation are reshaping consumer engagement.
• Digital, Online, and Omnichannel Strategies: The importance of a cohesive brand presence across multiple touchpoints.
• Understanding New Generations and Audiences: Insights into what drives Millennials and Gen Z, and how brands can align with their values.
• Data-Driven Insights: Leveraging analytics and AI to anticipate consumer needs and measure the ROI of innovative strategies.
• Strategic Recommendations for CPG Brands: Practical steps for future-proofing brand recognition and maintaining consumer loyalty.

The Digital Transformation of CPG Branding

Evolution of Consumer Engagement

Consumer engagement in the CPG sector has undergone a seismic shift in recent years, driven by the rise of digital platforms and changing consumer behaviours. Traditional methods—such as television advertisements, print media, and in-store promotions—once dominated the landscape. However, the effectiveness of these approaches has dwindled as consumers increasingly turn to digital channels for information, entertainment, and shopping.

In 2023, digital advertising spending in the UK alone reached £23.5 billion, a 9.2% increase from the previous year, with expected digital advertising spending for 2025 to exceed £40 billion, with an anticipated growth rate of around 4.5% from the previous year reflecting the growing importance of online platforms in reaching consumers. This shift is not merely a migration of budgets from one medium to another but signifies a fundamental change in how consumers interact with brands. Digital channels offer a level of interactivity, personalisation, and immediacy that traditional media cannot match.

For CPG brands, this evolution requires a rethinking of how they approach consumer engagement. No longer is it sufficient to broadcast a one-size-fits-all message; today’s consumers expect brands to engage with them on a personal level, delivering content and experiences that are relevant to their individual needs and preferences. This has led to a surge in the use of data-driven marketing strategies, where brands leverage consumer data to create highly targeted campaigns.

Personalisation at Scale

Personalisation has emerged as a key differentiator for CPG brands in the digital age. Consumers are increasingly expecting brands to understand their preferences and deliver tailored experiences. According to a recent study, 80% of consumers are more likely to make a purchase when brands offer personalised experiences. This trend is particularly pronounced among younger consumers, who have grown up in an era of algorithm-driven recommendations on platforms like Netflix and Spotify.

To meet these expectations, CPG brands are turning to big data and advanced analytics. By analysing consumer behaviour, purchase history, and social media activity, brands can create detailed profiles of their target audience. This enables them to deliver personalised content, product recommendations, and promotions at scale.

However, personalisation at scale is not without its challenges. It requires significant investment in data infrastructure, as well as a deep understanding of consumer behaviour. Moreover, brands must navigate the fine line between personalisation and privacy, ensuring that they use consumer data responsibly and transparently. We will soon be exploring the role of personalisation and privacy with GDPR in mind.

Omnichannel Presence

It’s no longer sufficient for brands to operate in silos. Consumers expect a seamless experience across all touchpoints, whether they are interacting with a brand online, in-store, or through social media. This is where omnichannel marketing comes into play—a strategy that integrates various channels to create a cohesive and consistent brand experience.

Research shows that companies with strong omnichannel strategies retain 89% of their customers on average, compared to 33% for companies with weak omnichannel strategies. For CPG brands, this means ensuring that their messaging, branding, and customer service are consistent across all platforms.

A successful omnichannel strategy requires a deep understanding of the customer journey. CPG brands need to map out every touchpoint where a consumer might interact with their brand, from initial discovery through to purchase and post-purchase engagement. By integrating data from all channels, brands can gain a holistic view of the customer and deliver a more personalised and relevant experience.

In practice, this might involve synchronising online and offline marketing efforts, ensuring that promotions and messaging are aligned across channels, and leveraging technology like CRM systems to track customer interactions and preferences. A CPG brand that masters omnichannel marketing can not only improve customer satisfaction but also drive higher conversion rates and increase brand loyalty.

Digital, Online, and Omnichannel Strategies

Integrating Digital into Brand Strategy

For CPG companies, integrating digital into their brand strategy is no longer optional—it’s imperative. The digital landscape offers a unique opportunity to reach consumers in a more targeted and efficient manner. With the rise of social media, mobile applications, and digital content, brands can now interact with their audience in real-time, delivering personalised experiences that resonate on a deeper level.

Digital integration involves more than just having a presence on social media or running online ads. It requires a comprehensive and aligned approach with the overall brand strategy. This means ensuring that every digital interaction—whether it’s through a website, app, or social media platform—reinforces the brand’s identity and values.

One critical aspect of digital integration is the use of data analytics to inform decision-making. By analysing consumer behaviour across digital channels, CPG brands can gain insights into what resonates with their audience, allowing them to fine-tune their strategies and deliver more effective campaigns. This data-driven approach enables brands to respond quickly to market trends, tailor their messaging, and ultimately drive better results.

The Rise of E-Commerce and Direct-to-Consumer Models

The rise of e-commerce has fundamentally altered the CPG landscape, giving brands direct access to their consumers in ways that were previously unimaginable. In 2024, global e-commerce sales are expected to reach £4.5 trillion, accounting for 22% of all retail sales worldwide. This shift towards online shopping has forced CPG companies to rethink their distribution strategies, increasingly embracing direct-to-consumer (D2C) models.

D2C models offer several advantages for CPG brands. First, they eliminate the middleman, allowing brands to capture higher margins and have greater control over their pricing and distribution. Second, they provide valuable data on consumer behaviour, enabling brands to personalise their offerings and build stronger relationships with their customers.

For example, a CPG brand that launches a D2C platform can track every interaction a customer has with their website—from browsing and purchasing to post-purchase support. This data can be used to create personalised marketing campaigns, offer tailored product recommendations, and improve customer satisfaction.

However, transitioning to a D2C model requires significant investment in digital infrastructure and a shift in mindset. CPG brands must be prepared to manage logistics, customer service, and digital marketing in-house, which can be a daunting task for companies that are used to relying on traditional retail channels. Nonetheless, the potential rewards—greater customer loyalty, higher margins, and valuable consumer insights—make it a worthwhile investment.

Omnichannel Marketing Strategies

As consumers move fluidly between online and offline environments, the need for a robust omnichannel strategy has never been greater. Omnichannel marketing involves creating a seamless and integrated experience across all channels, ensuring that consumers receive a consistent message no matter where they interact with the brand.

For CPG companies, an effective omnichannel strategy can significantly enhance brand recognition and customer loyalty. Research indicates that omnichannel shoppers have a 30% higher lifetime value than those who shop through a single channel. This highlights the importance of creating a unified brand experience that spans both digital and physical.

This strategy involves several key steps:

1. Consistency Across Channels: Ensure that branding, messaging, and customer experience are consistent across all platforms, from websites and social media to in-store displays and packaging.
2. Integrated Technology: Use technology to connect online and offline data, enabling a holistic view of the customer. This can include integrating CRM systems, loyalty programs, and point-of-sale data to create a seamless experience.
3. Personalisation: Leverage data to deliver personalised experiences at every touchpoint, from personalised product recommendations online to tailored promotions in-store.
4. Real-Time Engagement: Use digital tools to engage with consumers in real-time, whether through social media interactions, live chat support, or real-time promotions based on location or behaviour.

Engaging with Digital Experiences

Interactive games, AR filters, or virtual try-ons—offer consumers an entertaining and memorable way to connect with a brand and showcase new ways the brand is exploring technology, which is quickly becoming a trademark for an innovative company. By providing interactive and immersive content, CPG brands can foster deeper engagement, which is crucial in today’s competitive market landscape.

As discussed in our previous article, “Redefining Customer Engagement in 2024“, brands that leverage digital experiences are more likely to create lasting impressions and build stronger connections with their audiences. This is especially true for younger consumers, who value experiential marketing and are more likely to share these experiences across social media platforms, thereby extending the brand’s reach organically.

For example, a CPG brand might develop a mobile app featuring a gamified loyalty program, where consumers can earn rewards for participating in brand-related challenges or sharing their experiences online. This strategy not only incentivises engagement but also transforms brand interaction into a form of entertainment, enhancing both consumer satisfaction and brand loyalty.

Moreover, these digital experiences can be seamlessly integrated across online and offline channels. A consumer might begin an interaction in-store, such as scanning a QR code on a product to unlock a digital game or AR experience, and then continue engaging with the brand through the app or website at home. This creates a continuous loop of engagement, keeping the brand top-of-mind and fostering a deeper connection with the consumer.

By strategically incorporating engaging digital experiences within an omnichannel framework, CPG brands can differentiate themselves in a crowded marketplace and build stronger, more loyal relationships with their audience.

Understanding New Generations and Audiences

Generational Differences

As consumer behaviour evolves, it is essential for CPG brands to understand the distinct preferences and values of different generational cohorts, particularly Millennials and Generation Z. These younger generations are not only more diverse but also more discerning, with expectations that differ significantly from those of their predecessors.

Millennials, who have grown up during the rise of the internet and social media, value authenticity, transparency, and social responsibility. They are more likely to support brands that align with their ethical values, such as sustainability and fair trade practices. Moreover, they favour personalised experiences, preferring brands that understand their individual needs and offer tailored solutions.

Generation Z, the first fully digital-native generation, takes these expectations even further. They demand seamless digital experiences, instant gratification, and real-time interaction with brands. Gen Z consumers are adept at filtering through marketing messages and are more influenced by peer recommendations, online reviews, and user-generated content than traditional advertising. For them, a brand’s presence on social media is critical, and they expect brands to engage with them on these platforms in authentic and meaningful ways.

Cultural Shifts

Cultural trends also play a significant role in shaping consumer expectations, particularly among younger generations. Today’s consumers are increasingly concerned with issues such as environmental sustainability, social justice, and health and wellness. These concerns are driving purchasing decisions, with many consumers actively seeking out brands that reflect their values.

For CPG brands, this means that it is no longer enough to simply offer a quality product. Brands must demonstrate their commitment to these cultural values through their actions and communications. This can involve anything from adopting sustainable sourcing practices to engaging in social advocacy campaigns. Brands that successfully align with these cultural shifts can differentiate themselves in the marketplace and build deeper connections with their audience.

Moreover, the rise of the “conscious consumer” means that transparency is more important than ever. Consumers want to know where their products come from, how they are made, and what impact they have on the environment and society. Brands that provide this information openly and honestly are more likely to earn the trust and loyalty of their customers.

We’ll be discussing these cultural shifts more in-depth in an upcoming article, so make sure to follow our LinkedIn page for updates. If you’re interested in receiving our articles directly to your inbox, let us know by contacting us using the form below.

Case Study: Connecting with New Audiences

An excellent example of a CPG brand successfully connecting with new audiences through innovative methods is Dove’s “Real Beauty” campaign. Launched in 2004, this campaign challenged traditional beauty standards by featuring real women of various shapes, sizes, and ethnicities in its advertising. By doing so, Dove aligned itself with the growing cultural movement towards body positivity and inclusivity, resonating particularly with Millennials and Gen Z consumers who value authenticity and diversity.

The campaign not only helped Dove to increase its market share but also significantly enhanced brand loyalty among its target audience. According to a study by Unilever, Dove’s parent company, the “Real Beauty” campaign resulted in a 30% increase in sales and a 42% increase in brand perception as a brand that “celebrates diversity.”

This case illustrates the importance of understanding and embracing the values of new generations. By aligning their brand messaging and practices with the cultural and ethical values of their audience, CPG brands can build stronger, more meaningful relationships with consumers, driving both brand recognition and long-term loyalty.

Case Study: Engaging Gen-Z through the Roblox Metaverse

Another compelling example of a CPG brand effectively aligning with cultural shifts is Nivea’s innovative approach to engaging with Generation Z through the Roblox platform. We spoke with Annika Spitz, Digital Early Innovation Manager at Beiersdorf, who led the highly successful Nivea Tower Run game on Roblox. Through this initiative, Nivea tapped into the evolving digital habits of Gen Z, recognising that this demographic views Roblox not merely as a gaming platform, but as a vibrant community space where they can express their identities through deep customisation and user-generated content (UGC).

Gen Z users often spend up to three hours a day within the Roblox metaverse, making it a significant touchpoint for brands aiming to connect with future generations. In a world where brands need to fight for attention, Nivea managed to engage these users for a total of 21 years within the Roblox environment—equivalent to the time spent watching 44 million TikToks. This statistic underscores the deep connection and immersive experience the brand has successfully created. Understanding the immense purchasing power that Gen Z holds—and the importance of remaining relevant as this group begins to enter the workforce—Nivea seized the opportunity to position itself as a ‘cool’ and forward-thinking brand.

“There’s significant purchasing power in Gen-Z as they enter the workforce and begin to start families. Brands have a valuable opportunity to influence and redefine their audience by positioning themselves at touchpoints that resonate with these younger generations,” said Annika Spitz, highlighting the strategic importance of engaging this demographic.

The Nivea Tower Run game allowed users to interact with the brand in a space they consider their own, fostering a more authentic connection. By integrating Nivea into the daily routines and digital expressions of Gen Z, the brand not only enhanced its visibility but also solidified its relevance among a crucial, emerging consumer base.

“Brands have a valuable opportunity to influence and redefine their audience by positioning themselves at touchpoints that resonate with these younger generations,”

This case underscores the importance of engaging with new audiences on platforms where they naturally congregate and communicate. By understanding and participating in the digital cultures that resonate with younger generations, CPG brands can ensure they remain top of mind as these consumers’ purchasing power continues to grow.

Data-Driven Insights

Consumer Analytics

Data is the backbone of any successful CPG brand strategy. Consumer analytics provides brands with the insights needed to understand their audience’s behaviour, preferences, and purchasing patterns. By leveraging this data, brands can make informed decisions about product development, marketing strategies, and customer engagement initiatives.

The use of advanced analytics allows CPG brands to segment their audience more effectively, tailoring their messaging and products to meet the specific needs of different consumer groups. For example, by analysing purchase history and online behaviour, brands can identify high-value customers and develop targeted campaigns to increase their lifetime value. This data-driven approach ensures that marketing efforts are not only more efficient but also more impactful.

Furthermore, consumer analytics enables brands to track the effectiveness of their campaigns in real-time. This allows for rapid adjustments to strategies based on what is working and what is not, leading to better ROI and more successful marketing outcomes. Brands that effectively utilise consumer analytics can not only improve their customer acquisition strategies but also enhance customer retention through personalised and relevant communications.

Predictive Analytics

As the digital landscape continues to evolve, the use of predictive analytics is becoming increasingly important for CPG brands. Predictive analytics involves using historical data, machine learning, and statistical algorithms to predict future outcomes. For CPG companies, this means anticipating consumer needs, identifying emerging trends, and staying ahead of the competition.

Predictive analytics can enhance the personalisation of marketing efforts. By predicting which products or services a customer is likely to be interested in, brands can deliver more targeted and relevant content, increasing the likelihood of conversion. This approach not only improves the customer experience but also maximises the effectiveness of marketing spend.

Artificial intelligence (AI) has introduced many exciting opportunities to explore this area further. AI-driven predictive models can analyse vast amounts of data at unprecedented speeds, uncovering patterns and trends that might otherwise go unnoticed. This has significant implications for CPG brands, as it enables more accurate demand forecasting, optimised inventory management, and better-informed decision-making.

At Jupiter and the Giraffe, we have been engaged in numerous recent discussions on how AI might help forecast and predict user behaviour more precisely. By integrating AI into predictive analytics, brands can gain deeper insights into consumer behaviour, allowing them to stay ahead of market trends and deliver more personalised, timely experiences.

ROI on Innovation

Investing in innovation is essential for CPG brands that want to remain competitive, but it’s equally important to measure the return on investment (ROI) of these efforts. Data-driven insights play a crucial role in evaluating the success of innovative strategies, whether they involve new product launches, digital marketing campaigns, or the adoption of new technologies.

To accurately measure ROI, CPG brands must establish clear metrics for success at the outset of any innovation initiative. This could include key performance indicators (KPIs) such as sales growth, market share expansion, customer engagement levels, or cost savings. By tracking these metrics over time, brands can determine whether their investments in innovation are delivering the desired results.

For example, a CPG brand that launches a new product line can use data analytics to track sales performance across different regions, customer segments, and distribution channels. This data can then be used to optimise marketing efforts, adjust pricing strategies, and identify opportunities for further product development.

Additionally, data-driven insights can help brands assess the long-term impact of their innovations on brand equity and customer loyalty. By understanding how new initiatives resonate with consumers and contribute to the overall brand perception, CPG companies can make more informed decisions about future investments in innovation.

Strategic Recommendations for CPG Brands

Future-Proofing Brand Recognition

To maintain a competitive edge in today’s increasingly digital and consumer-centric market, CPG brands must proactively take steps to future-proof their brand recognition. This involves embracing digital transformation, investing in advanced technologies, and staying closely attuned to the evolving needs and values of their consumers. It is essential for brands to prioritise personalisation and ensure that their marketing strategies are data-driven, enabling them to deliver highly relevant and impactful experiences to their audience.

A critical component of future-proofing is the adoption of a robust omnichannel strategy. Ensuring consistency across all consumer touchpoints—whether digital or physical—allows brands to create a seamless and compelling experience that resonates deeply with consumers. Moreover, the strategic use of AI and predictive analytics can enable brands to anticipate consumer behaviour, optimise marketing efforts, and maintain a competitive advantage by staying ahead of emerging industry trends.

There is no longer any question that exploring digital avenues is essential for sustained success in the CPG sector. Brands that do not engage with the rapidly expanding digital landscape risk being outpaced by more digitally adept competitors. From leveraging interactive websites and mobile applications to utilising AI-driven personalisation and advanced e-commerce platforms, the opportunities to engage with consumers through digital channels are vast. It is imperative for CPG brands to explore these opportunities strategically while monitoring the innovative approaches employed by other industry leaders. Failing to do so may result in losing consumer attention and loyalty to more agile, forward-thinking brands.

Collaborative Innovation

Innovation does not happen in isolation. For CPG brands to succeed, they must be open to collaboration—whether with tech companies, startups, or even their consumers. Partnerships can bring fresh perspectives, new technologies, and additional resources that are essential for driving innovation.

One area where collaboration is particularly valuable is in the development of digital experiences. By partnering with technology firms or digital agencies, CPG brands can create more sophisticated and engaging digital interactions, such as AR campaigns, gamified apps, or personalised online shopping experiences. These collaborations not only enhance the consumer experience but also enable brands to experiment with new formats and technologies without bearing the full burden of development.

Co-creation with consumers is another powerful strategy. By involving consumers in the development of new products, campaigns, or digital experiences, brands can ensure that their innovations are closely aligned with consumer desires and expectations. This not only increases the likelihood of success but also fosters a deeper connection between the brand and its audience.

Long-Term Consumer Engagement

Maintaining consumer engagement in a fragmented and fast-changing media landscape is a significant challenge for CPG brands. To build lasting relationships with their customers, brands must focus on delivering value at every touchpoint. This means providing not just products, but also experiences, content, and services that enhance the consumer’s life in meaningful ways.

One effective strategy is to build a strong brand community, both online and offline. By creating spaces where consumers can interact with each other and with the brand, CPG companies can foster a sense of belonging and loyalty. This might involve launching a brand app with exclusive content, organising community events, or encouraging user-generated content through social media campaigns.

Furthermore, brands should invest in loyalty programs that reward repeat purchases and encourage long-term engagement. These programs can be enhanced through the use of data analytics, allowing for personalised rewards and offers that resonate with individual consumers.

Finally, CPG brands should remain agile and responsive to changes in consumer behaviour and market dynamics. This requires continuous monitoring of consumer trends, ongoing investment in innovation, and a willingness to adapt strategies as needed. By staying flexible and consumer-focused, brands can maintain relevance and strengthen their position in the market over the long term.

Conclusion

In today’s rapidly evolving market, consumer packaged goods (CPG) brands face unprecedented challenges and opportunities. To increase brand recognition and inspire new generations of consumers, it is imperative for CPG companies to embrace digital transformation, invest in innovative strategies, and remain agile in the face of changing consumer behaviours.

From the adoption of omnichannel marketing strategies to the integration of engaging digital experiences, CPG brands must remain proactive in their efforts to connect with their audience. Understanding the unique preferences of Millennials and Generation Z, leveraging data-driven insights, and exploring advanced technologies like AI and predictive analytics will be crucial for brands aiming to stay ahead of the competition.

The future of CPG branding lies in a commitment to continuous innovation, strategic collaboration, and a deep understanding of the evolving digital landscape. By taking these steps, CPG brands can not only enhance their brand recognition but also build long-term consumer loyalty and drive sustained business growth.

If your brand is ready to explore the digital landscape and take advantage of the opportunities it offers, Jupiter and the Giraffe can help you craft a strategy that resonates with today’s consumers. From interactive presentations and websites to immersive digital experiences, we offer the expertise and tools needed to elevate your brand.

Visit our website to learn more about our services, or follow our LinkedIn page for the latest insights. If you’re interested in receiving our articles directly in your inbox, reach out through the contact form below.

Sources

Jupiter and the Giraffe – “Redefining Customer Engagement in 2024.”

McKinsey & Company – “The Future of Branding: Trends in the Consumer Packaged Goods Industry.”

PWC – UK forecast to maintain its position as the leading entertainment and media market

Unilever Study – Dove’s “Real Beauty” campaign impact on sales and brand perception.

Statista – Global e-commerce sales in 2023.

Epsilon – New Epsilon research indicates 80% of consumers are more likely to make a purchase when brands offer personalized experiences

Shopify – Global Ecommerce Sales Growth Report

Think With Google – Omni-channel shoppers: An emerging retail reality

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