Shopper Marketing - May 2016 - 82


VIRTUAL ROUNDTABLE: E-COMMERCE

In 2014, Ad Age reported that packaged
goods marketers had begun to "wade
warily" into e-commerce. Who were the
first to get their feet wet?
DANNY SILVERMAN: P&G and Unilever began
investing heavily in the e-commerce channel
around 2010. Over the next few years, most
other manufacturers were debating whether
the channel would become important enough
to invest in, but only a few, like Johnson & Johnson, actually jumped in. It wasn't until 2014 to
2015 that the industry universally acknowledged that e-commerce was where all future
growth would come from. The shopper was already there and waiting for better online shopping experiences. Retailers are playing catchup, too, with heavy investments from Walmart,
Target, Home Depot and others.
GREG STEVENS: CPGs realize this is a channel

they need to get into and they're doing it in
a big way. One of the important trends that's
well underway at this point is that all the major CPGs are hiring e-commerce teams - VP of
e-commerce, or, in the case of one beverage
manufacturer, CEO of e-commerce. These are
roles that didn't exist two years ago. This is a
significant investment on their part to gain hu-

man capital to jumpstart their digital presence.
STEVE KINSEY: For most of (GSK's) products

and their categories - OTC healthcare medicines and related items - the percent purchased
online is in the low single digits. Even so, it's
becoming less of a sideshow and increasingly
something that can no longer be ignored.

E

-commerce may not be a "sideshow," but
for CPG marketers it's still a strange new
space that blurs the distinction between
consumer and shopper and requires them to
assemble a new bag of tricks. The strategies
they use to get attention in retail stores don't
work online.
What new concepts must CPG marketers
wrap their heads around in order to
succeed?
KINSEY: One of the key terms we're focused on
is the digital shelf. As a shopper, I hate not being
able to pick up a product and read the label or
not being able to step back and take a quick
glance at the various brands and products next
to each other on the shelf. So how can we recreate that experience online? Better yet, how can
we deliver more?

" Every retailer has different requirements. Our
challenge is to understand these requirements
and create ways to meet them."
Jen Brevick, Coca-Cola Co.
82

y SHOPPER MARKETING MAY 2016



Table of Contents for the Digital Edition of Shopper Marketing - May 2016

Contents
Shopper Marketing - May 2016 - Intro
Shopper Marketing - May 2016 - 1
Shopper Marketing - May 2016 - 2
Shopper Marketing - May 2016 - 3
Shopper Marketing - May 2016 - Contents
Shopper Marketing - May 2016 - 5
Shopper Marketing - May 2016 - 6
Shopper Marketing - May 2016 - 7
Shopper Marketing - May 2016 - 8
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