By Roger Garrett, Senior Portfolio Manager, International
03 August, 2016
Last month I wrote about consumer companies attempting to improve profits through premiumisation of their product ranges. Many are also embracing the new digital age with real gusto as a means of better engaging with their customers. Gen Y and millennials are important markets for consumer companies and these customers are digital natives, expecting everything online, with high use of mobile and social media.
As such building a digital strategy is an essential part of both attracting the targetted consumer's attention, and informing them of products by listening to consumer feedback, often done through social networks. Companies can use the wealth of data available to be more precise in their digital marketing efforts to an increasingly fragmented market. L'Oreal report that YouTube has 45 billion views on beauty products each year, so the potential reach through this channel alone is enormous.
Companies also realise they need to be innovative in their approach in the digital age. McDonalds has perhaps stolen an early march on its competitors with its involvement with the phenomenon that is Pokémon Go. The initial success of Pokémon Go is unparalleled and McDonalds have been able to dramatically increase traffic into their stores by being part of the virtual reality game. No doubt they and others will look to capitalise on Pokémon Go's success through more innovative and targetted means.