Marketing has evolved since the days when the neighborhood milkman would drop off a few bottles of milk on every doorstep, but with the new announcement from Campbell Soup, it looks as though the milkman is making a comeback. The packaged food producer announced this summer that it will begin marketing its products online – new territory for the brand that is known for dominating grocery store isles. And the company is not alone. Many packaged food brands and grocery stores are aiming to increase their online presence with the intention that they will use the internet as a new frontier for food sales. Whether the idea of delivered groceries is new or not, the trend has been picking up momentum1. In fact, Coca-Cola recently re-released a soda called “Surge” – available only though Amazon2.
Many marketing professionals in the packaged food sector are beginning to realize the importance of an online presence. Without it, companies risk falling a step behind the competition or even becoming obsolete3. Even big-box stores like Walmart have turned their attention more heavily towards online sales, including sale of groceries and other packaged foods1.
While opportunities for profit associated with online grocery shopping may be limitless, there are good reasons the industry has held off for so long. First and foremost, established food producers such as Campbell Soup have little experience with marketing in cyberspace1. A far cry from designing grocery store displays, marketing to an online audience will require a whole new approach to sales and advertising. It’s a change many companies are hesitant to make1.
In the last decade, retail in general has started the transition to online sales, and since then have seen a decrease in sales in brick-and-mortar stores – so much so that stores have been closing due to competition from online sales. If history is the best indicator of the future, a transition to online sales of groceries and packaged foods could mean downsizing and closure of grocery stores3. On the other hand, access to foods not available in all areas will increase, and grocery shopping may become a chore of the past. Would these considerations convince you to shop for groceries online? How should these companies market their online groceries?
References
1. Schultz, E.J. (2014, September 16). Packaged-goods marketers wade warily into e-commerce. Advertisement Age. Retrieved from http://adage.com
2. Schultz, E.J. (2014, September 14). Coca-Cola brings Surge back in e-commerce experiment. Advertisement Age. Retrieved from http://adage.com
3. Kollewe, J. (2012, March 20). Over 20% of High Street shops ‘could close over next 5 years.’ The Gaurdian. Retrieved from http://www.theguardian.com/us
By Laura Neuffer
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