The Mind of the Consumer

I like peanut butter. Who cares, right? Well consumer goods (CG) companies care, and not just those who manufacture peanut butter. Don't forget the jelly and the bread; maybe banana and honey instead. CG companies are so interested in knowing how consumers interact with a brand that they are beginning to analyze blogs, online forums and social networks. It's called text analytics, and not only are they literally analyzing the words you use, but they are wondering what you really mean by the way you use them. For instance, I said "I like peanut butter," but if I am in an online forum dedicated to peanut butter (um, I am not) then perhaps I actually love peanut butter. The resulting insight would undoubtedly change the way a company markets to me.

There are plenty of theories around consumer decision-making, but it can essentially be broken down into two schools of thought. Traditionally, CG companies say it's at the shelf - "the first moment of truth." Many solution providers are striving to better enable insights here. For example, at the 2008 IRI Reinventing CPG & Retail Summit last month in Orlando, Fla., IRI unveiled its liquid data solution - ILD - and according to IRI Chairman Dr. Romesh Wadhwani, this will be the "Google" of sales and marketing insights. For more on automated analytics and the future of insights, read the "Between the Lines" and hear from Sunny Garga, president, business and consumer insights, IRI.

Speaking of Google, at a recent press day I attended, Kevin Kells, national industry director, consumer packaged goods for Google, stated that 70 percent of consumers research a product online before buying it. The other school of thought I mentioned - and Google's philosophy - is to go where the consumer is. Currently, Google is working with CG companies on new marketing strategies with this approach. The "Top This TV Challenge" from H.J. Heinz is one example. This project was so successful - lifting ketchup sales for the first time in years - Heinz is doing it again.

For other success stories around analytics and insights, check out our cover story with and our Best Practices: Data & Insights section.

What is your company doing? Going to the consumer or letting the consumer come to you? Let me know. [email protected]