Improving CPG Brand Awareness via Premium Searches

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John Doe was just looking for suggestions to a great vacation destination, but he ended up with 117,000 search results on Google. Like most internet users, he had difficulty choosing what link to click. He basically got lost in a jungle of search results. The thing is that such instances of information overload can actually provide smart CPG (Consumer Packaged Goods) marketers with a window of opportunity.

In this current life on the fast lane, brand awareness will reign supreme. This batch of packaged consumer goods can be the present popular objects, but if the consumers do not know that they exist, or are not aware of what the products offer, they will not make a purchase. Because this is the case, the CPG marketers must think of revolutionary and new methods to facilitate the connection between the brands and the consumers. Aside from this, they must perform this operation in a manner that takes advantage of their available assets. The good news is that integrating notable awards, seasonality and customer reviews into premium search ad copy will assist marketers with their tasks.

Since the consumers are more likely updated with current trends (thanks to the evolution and affordability of computers and the Internet) and are interested to know what other people have to say about a specific topic, they will have the urge to purchase goods that have been recommended by reputable individuals and are current. Simply put, consumers will look for validation prior to purchasing a product.

If the CPG marketers are able to integrate notable awards, seasonality and customer reviews into the premium search ad copies about packaged consumer goods, they will be able to capitalize on this mentality. Doing do allows them to build a potent message that will enhance the awareness of the brand and will resonate with the buyers.

The Advantages of Global Trade

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The method in which we usually define local trade is actually no different from the definition of worldwide trade. The sole difference is that the instance of commerce will go over geographical hurdles. A nation will think about trading globally in the hopes that their GDP (Gross Domestic Product) will be given a quick boost.

Actually, worldwide commerce is not a new concept in the international trading Philippines environment. People have been trading beyond borders since the time that they discovered how to get to other islands by boat. Of course, with the innovations in various technologies and the different lifestyles of individuals, the methods that are used in commerce (including the varied forms of transport that are available nowadays) is very complex and more profitable compared to the past. Globalization, industrialization and the creation of a lot of multinational firms have forever altered the process in which countries do business with each other.

Global trade is also vital to the value of the lives of the people at present. Imagine if the options for the consumers are restricted to what they can produce regionally. If there are no services and goods that are provided by other nations, they would be living in a limited universe. This would contradict the standard of humankind needing to grow and expand.

The thing is that international commerce involves big amounts of money, because aside from the price of the service or item, the government of this country will normally impose time costs, tariffs and whatever expenses that are involved when transferring the merchandise into another nation where policies, culture, systems, and language are known as major roadblocks.

Do not be alarmed if the entities that benefit from these international trading Philippines activities are the ones who work in medium-sized corporations and startup businesses which have decent services or merchandise to offer. If they play their cards right, it will mean more business for them.

The Effect of the Bioterrorism Act on Food Exports

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During the year 2002, the United States FDA (Food and Drug Administration, the food control group of the Department of Health and Human Services) enacted the Bioterrorism Act (Public Heath Security and Bioterrorism Preparedness and Response Act) to take extra steps to guard the populace from an actual or threatened terrorist attack on American food supplies and other emergencies that are related to food. 

Philippine food exporters must be aware of the new regulations that the FDA has established to carry out this important act. To summarize, these new rules require food businesses to register their company with the FDA, and the FDA must be informed when there will be a new shipment of food that is imported from other countries. Advance notice of these shipments lets the FDA (supported by the CBP (Bureau of Customs and Border Protection)) effectively focus on their import inspections and protect the food supply of the country against public health crises or terrorist acts. Aside from these requirements, food suppliers and distributors that are exporting their goods to America have to submit relevant information about their conveyance and cargo to the Customs department prior to the merchandise arriving at the border. 

Food suppliers and distributors can register in the website of the FDA, or submit a CD-ROM or paper form with their registration information. More information on this topic and frequently asked questions can be found at: http://www.cbp.gov/xp/cgov/trade/trade_programs/is_initiatives/bioterrorism/. 

For the guidance of the Philippine food exporters, shipments that arrive via road transportation must have their paperwork secured no less than 120 minutes prior to arriving at their destination. If the shipments will be transferred by train, the documents have to be approved by the FDA at least 240 minutes before the rail transport gets to its destination. If an airplane will deliver food, papers have to the issued and approved at least 240 minutes prior to arrival. Finally, food that is transported by water must have their documents secured at least 320 before the shipment arrives.

Understanding Trade between the Philippines and America

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The Philippines and the United States have been close trading partners for over a century. The TIFA (Trade and Investment Framework Agreement) was put into action in November 1989, where contracts like the Philippine minimum access obligations implementation of 1998, the intercepting illegal transportation of apparel and textiles contract of 2006, and the customs trade and administration protocol contract of 2010 were signed under.

Facts about the Philippines – U.S. Trade

Aside from being the traditional major foreign investor for the Philippines, America is also the country that trades the most commodities with this nation. In 2011, two-way services and goods that have been exchanged between a Philippine goods exporter and the United States summed up to $22 billion, while imports had a total of $12.1 billion, and exports made $9.9 billion. In that same year, the trade deficit for services and products that came from America was $2.2 billion and U.S. stocks of direct foreign investment in the “Pearl of the Orient” went above $5 billion.

Analysis on Exports and Imports

In 2012, the Philippines ranked 33rd in the commodities export market for the U.S. Merchandise that was exported to the Philippines earned $8.1 billion, and this was 4.6% higher than the total of 2001, but lower than the result of 2000 (8.3%).

As far as importing products to America during 2012 is concerned, the Philippines ranked 35th in terms of supplying goods. The United States imported $2.3 billion worth of agricultural products, including branded items such as “Ding Dong Mixed Nuts”, “Growers Peanuts”, various fruit juices and preserved fruit products from “Del Monte”, and “Charantia Ampalaya Tea” from the Philippines.

Analysis on Investments

According to Philippine goods exporter data, the U.S. FDI (Foreign Direct Investment) stock in the Philippines during 2011 was worth $5.3 billion. This is a slight decrease from the year before (1.1%). Most of the U.S. FDI that gets documented belongs to the sector of manufacturing. On the other hand, the FDI of the Philippines to America during 2011 was worth $114 million. This was an increase of 10.7% from the past year.

Trends in Drink and Food Distribution, Processing and Manufacturing

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It is constant collaboration that connects those entities that are involved in a supply chain which makes it significant. Before the Philippine food and beverage industry came up with their rules and regulations to facilitate order and a controlled state, the farmers would simply produce a food item and then go to the towns to look for potential customers. They made use of this primitive strategy for a long time, hoping that their gamble would pay off and they would be lucky to get buyers. The buyers on the other hand were hoping that the prices of the food items would be fair and affordable. Nowadays, this method of commerce still applies, but depending on how long the supply chain is, further discussions or negotiations may occur before the merchandise is eventually delivered to the consumers.

The current focus of the Philippine consolidator is what the customer needs instead of what the supplier is willing to provide. In an international food chain, the farmers will not initially manufacture and then search for a market. What happens is that the people who control the supply lines will choose what they think the consumers require, or can be encouraged to want, and then push through with designing the chain of supplies which are needed to deliver the items.

The merchandise can be customized to cater to different consumer preferences from the start. The bottom line is that food delivery channels are powered by demand, to the point that the members of the food and beverage industry would be better off discussing consumer demand instead of the supplies.

So that it will be easier for the Philippine consolidator to closely study the international food chains, it is a good idea to make use of the evolving processes of international value chain studies. It examines the value put in a commodity as it goes through the supply chain.

An Analysis of the Philippine Food Sector

 

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Conventional food service and retail formats, specifically dry and wet markets and neighborhood “sari-sari” (“sari” means variety) stores, are places where a lot of Filipino consumers frequent. Modern food service and retailing still needs to grow, but it is quickly making progress. These things, combined with the expanding and big divide between the poor and the rich, result in conflicting food ingestion trends in the Philippines.

Generally speaking, locally manufactured and/or made items and low to average priced products that are imported are consumed through the conventional markets. The medium to high priced merchandise that is imported by the distributor of foods from the Philippines is primarily located in supermarkets that are owned by foreigners or restaurants in five star hotels in the heart of capital cities like Manila.

Most of the food that is consumed in this country is mass produced by local corporations, These 11,000 (including companies like the RFM Corporation and San Miguel) manufacture food across all the main food sectors, like snack foods, dairy products, vegetables and fruits, processed meats (beef, pork and poultry), and noodles. These mass produced foods are paired with rice, meat, vegetables and fresh fruit to make up the staple diet for middle to low class Filipinos who number most in the various consumer segments of the nation.

But then, some of the middle class and high income earners want imported and non-traditional foods that are “ready-to-eat”. This results in the eventual modernization of the food retailing segment in the Philippines. The traditional retail segment is going through major transformations through the rapid growth of convenience stores, hypermarkets and supermarkets, aside from the quality of the products that are being offered.

The laws that restricted international retailers that did business in the country were taken away in the year 2000, so most of the current retailers are local. An example of a distributor of foods from the Philippines is Pricesmart, Rustans, Robinsons and the SM Hypermarkets or Supermarkets.

How the Food and Beverage Industry Affects Employment

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There is no doubt that the business of selling drinks and food is a prime source of employment around the world. Because the international processing of beverages and food is considered a major manufacturing department, this line of work accounted for 4% of global GDP (Gross Domestic Product) and has more than 22 million workers happily employed.

Approximately more than 1 million individuals work as wholesale food distributors for any of the big multinational drink and food production firms. Based on statistics for the year 2002, Nestle hires about 25,000 employees worldwide (around the same figures as Unilever does). Other large employers include Kraft (an estimated 109,000), Tyson (an estimated 120,000), PepsiCo (an estimated 142,000), and Sara Lee (an estimated 154,000). The ten most lucrative fast food chains that are mostly owned by Americans hire around 5 million employees, with McDonald’s leading this statistical data with 1.5 million workers. Grocery enterprises like Carrefour, Tesco and Wal-Mart hire 2.25 million employees in more than 30 nations.

With the use of ISIC Code 15, Production of food items and drinks (United Nations International Standard Industrial Classification), employment data has been shown fluctuating over the last few years. Based on the data that was gathered from the OECD (Organization for Economic Co-operation and Development), employment in this department has gone up, particularly in their member nations. The number of workers in Canada between the years 2003 and 2005 is at 1.9%, Spain went up to 6.7%, and France increased by 7.3%.

At the other side of the coin, other nations seem to have dramatic losses in terms of the employment status of wholesale food distributors. In the United States, for example, the employment rate in 2005 went down to an estimated 1.64 million compared to the 1.68 million rate that they had two years ago.