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Blog image How CPG Market Research Fuel Brand Growth

How CPG Market Research and Food Insights Fuel Brand Growth

March 6, 20247 min
Lauren Daniels photo
Lauren Daniels Tastewise

Supermarket aisles are a battleground with brands competing for attention, and promising solutions. For CPG brands to stand out and get into shoppers’ baskets, they must understand their customers’ language.

This language isn’t communicated through words but through preferences, habits, and buying decision influencers. Deciphering these cues is crucial for CPG market success.

Here’s where CPG market research and food intelligence come in – powerful tools that become your allies in navigating the complex world of consumer behavior.

What is CPG Market Research?

CPG market research is the process of gathering and analyzing data about consumer behavior, preferences, and trends related to products in the CPG industry. This includes understanding consumer needs, buying habits, demographics, and competitive landscape.

Market research can be conducted through various methods such as surveys, focus groups, online analytics, and social media monitoring.

Direct Dialogue: Unlocking Consumer Insights

Forget complex methodologies and lengthy questionnaires. CPG market research is essentially a direct conversation with your target audience.

Through engaging surveys, focused group discussions, or even observing shopping behavior in real time, you gain invaluable insights straight from the minds of potential customers.

Imagine being a fly on the wall as a group discusses their favorite snacks. You might discover that convenience and health are top priorities, leading you to develop a line of portion-controlled, nutrient-rich snack bars.

This approach, informed by direct consumer dialogue, allows you to create products that resonate deeply with their needs and desires.

Benefits of CPG Market Research

Here are some key benefits of CPG market research:

Boost sales and growth

By comprehending the desires, challenges, and aspirations of your customers, you have the opportunity to develop products that profoundly align with their needs. This approach not only cultivates brand loyalty but also propels sustained sales for CPGs.

Minimize costly mistakes

Pre-launch testing and feedback sessions help identify potential issues before committing significant resources. This translates to a more streamlined process and fewer products that fail to gain traction.

Data-driven decisions

Market research replaces guesswork with concrete evidence, empowering you to make informed decisions regarding product development, marketing strategies, and overall brand direction, ensuring long-term success.

Tracking industry trends

Market research and food insights can help brands stay on top of shifting industry trends, allowing them to adapt their strategies accordingly and maintain a competitive edge.

Make marketing decisions based on data

Using data for CPG marketing can help brands target the right audience, create effective campaigns, and measure their success accurately. This leads to a more efficient use of resources and a higher return on investment.

Improve operational efficiency

Market research can also reveal potential gaps in the supply chain or production process that may be hindering growth. Identifying these issues allows for targeted improvements and optimizations that can lead to increased efficiency and cost savings.

Expand into new markets

By conducting market research, you can identify new demographic segments or regions that may be interested in your products. This information allows you to expand your reach and tap into previously untapped markets, driving further growth for your brand.

What Should CPG Market Research Focus on?

Numerous CPG brands prioritize exploration over defined objectives. While brand discovery remains crucial, it’s vital to consider the pivotal factors influencing a CPG brand’s success. These can include:

Consumer preferences and behaviors

Market research should focus on understanding consumer preferences and behaviors. This includes identifying factors that influence purchasing decisions, such as price, packaging, convenience, and brand loyalty.

By understanding these factors, CPG companies can tailor their products and marketing strategies to better meet the needs of their target audience.

Competitor analysis

CPG companies need to stay informed about their competitors and the strategies they are using. Market research can provide insights into what products are performing well, how they are being marketed, and any potential gaps in the market that can be capitalized on.

This information allows CPG brands to adjust their strategies and stand out in a crowded marketplace.

Industry trends

Keeping up with industry trends is crucial for CPG companies to stay relevant and competitive. Market research can provide insights into emerging trends, customer preferences, and changes in consumer behavior.

This information allows CPG brands to adapt and innovate, staying ahead of the curve and meeting the ever-changing demands of their target audience.

Product development

Market research can also be used to gather feedback on existing products or test new product concepts. By understanding consumer needs and wants, CPG companies can develop products that are more likely to be successful in the market.

This can save time and resources by avoiding costly mistakes and ensuring that products meet the demands of their target audience.

Distribution channels

Understanding where consumers are most likely to purchase CPG products is essential for companies to effectively reach their target audience.

Market research can reveal the most popular distribution channels and help CPG brands determine the best way to reach their customers, whether it’s through traditional retail channels or online platforms.

Brand perception

Market research can also provide valuable insights into how consumers perceive a brand. This includes their attitudes, beliefs, and perceptions of the company’s products and overall image.

By understanding consumer sentiment, CPG companies can make necessary improvements to their branding strategies and ensure that they are accurately representing their values and meeting the expectations of their target audience.

Buyer’s Journey

Market research can also shed light on the buyer’s journey for CPG products. This includes understanding the key touchpoints and decision-making factors that influence a consumer to make a purchase.

By understanding the buyer’s journey, CPG companies can tailor their marketing strategies and messaging to effectively reach consumers at each stage of their decision-making process.

Intent to purchase

In addition to understanding the buyer’s journey, market research can also reveal consumer intent to purchase a specific CPG product. This can be determined through surveys and focus groups, as well as by analyzing online search data and social media engagement.

By identifying potential customers who have a high intent to purchase, CPG companies can target their marketing efforts toward these individuals and increase the likelihood of conversion.

Food Intelligence: Staying Ahead of the Curve

Food intelligence forms the backbone of successful CPG market research. It goes beyond understanding basic demographics and gets deeper into how consumers specifically interact with food products.

This is achieved through data analysis, trend identification, and leveraging insights from various sources.

Leveraging food intelligence platforms such as Tastewise provides valuable insights into consumer preferences, emerging trends, and market dynamics. This allows you to make well-informed decisions that promote innovation and expansion for your CPG brand.

As consumers become increasingly health-conscious and ethically aware, their dietary preferences are advancing.

Food intelligence helps you track these shifts, such as the rise of plant-based foods or the demand for ethically sourced ingredients. This allows you to adapt your offerings accordingly, ensuring your brand remains relevant in the CPG market.

Seize Opportunities and Reach Your Audience Effectively

Food intelligence also empowers you to capitalize on emerging food trends. Gaining insights into trends like gut-health-boosting snacks or personalized nutrition plans allows you to be an early adopter and develop innovative new product concepts, furthering your CPG growth strategy.

Today’s consumers discover and purchase food products in diverse ways. Food intelligence helps you identify the most effective channels for your target audience, allowing you to maximize your marketing reach and engagement.

Whether it’s social media marketing, influencer partnerships, or targeted advertising, understanding your audience’s online behavior allows you to connect with them where they are.

Understanding the human aspect through CPG market research and food intelligence is essential for navigating hurdles and establishing long-term success in the CPG sector.

Access to the vast array of consumer information can enable you to create goods that succeed, maximize your marketing efforts, and make tactical choices that will influence your brand’s trajectory.

Ultimately, this path leads to long-term success and allows you to meaningfully influence a future shaped by the requirements and aspirations of your devoted customers.

Ready to unlock the power of food intelligence? Explore Tastewise and discover how to empower your CPG brand to thrive.

What can food intelligence do for you?