Daily Insights

Partnering For Scale

By: Cymone Thomas | Jun 30, 2019

Retailer-brand relationships in the fast-moving consumer goods sector are often thorny as retailers tend to favor their private labels in digital marketing. Nevertheless, several brands in Gartner L2’s report on the topic show their peers how to find opportunities to collaborate with retailers both on site and on other platforms such as email and social media.

Email marketing is particularly untapped as brands have seen little success on a single-brand level. Some brands have attempted to bundle their efforts at the enterprise-level, but retailers still have access to a larger pool of consumers. On average, retailers’ email list sizes are eleven times greater than those of tracked brands in the U.K. Yet, only around 1% of retailers’ subject lines include these brands.

Pampers – this year’s Index leader in the U.K. – is one of few brands to leverage a retailers’ scale. Pampers partnered with Tesco to promote a small selection of premium products for Tesco’s Great Value Event. This activity, albeit for a brief two-week period, boosted Pampers’ nonbranded diaper visibility on Tesco by 15%, before returning to its regular visibility average.

Pampers’ parent company, P&G, was also one of the first to experiment with sponsored products on Sainsbury’s, propelling its brands to the top of search results ahead of its tracked peers and private labels. As local retailers expand opportunities for brands to promote themselves, FMCG brands will need to decide which email campaign and retailer works best for them in each scenario.