Friday, November 18, 2011

4460 blog 12: Home is Calling, on the Internet

These days, many people are out of work and more are looking to stretch a budget when they go grocery shopping. These consumers are cutting down on the amount of time spent eating out, which is good news for packaged food companies. It’s not great news, however; a lower budget means foregoing nonessential grocery items or buying generic grocery items. Many of these companies need to reach out to the consumer on a personal level, and they are having to fight hard to reach the budget-savvy consumer. Many of these companies are using online platforms to reach out to their customers.

According to this article, General Mills is using its Betty Crocker brand to expand its presence online. Betty Crocker has more than 1.4 million fans on its Facebook page, many of whom are under 35. These fans are connecting with the Betty Crocker brand through Facebook or applications and swapping recipes. Betty Crocker has begun producing e-books to reach its fans as well.

Pillsbury, another GM brand, is also utilizing the Internet to reach out to customers. Pillsbury is using a series of commercials from 2008 and broadcasting them online, hoping to remind consumers that they grew up with Pillsbury and use that nostalgia to their advantage. Especially during the holidays, Pillsbury wants people to remember the feelings of family that were experienced while, say, consuming a crescent roll. The idea is to utilize that emotional connection so that consumers will select Pillsbury over a cheaper generic brand, simply for the emotions that Pillsbury evokes. Since so many people are using Internet recipes to create meal plans and holiday menus, the importance of an Internet presence for older companies like Pillsbury and Betty Crocker can’t be overstated.

These tactics are showing results, as well. In General Mills’ first fiscal quarter, sales increased 5% from the same period a year ago, according to the article. This means that the campaigns are reaching consumers personally, which is the intention. The Internet is an underutilized platform for marketing among brands like Pillsbury and Betty Crocker. These brands are having to redefine themselves in the online age, and come up with both new and familiar forms of marketing to consumers.

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