The total package: loyalty marketing in the world of consumer packaged goods (CPG)

Purpose – The purpose of this paper is to examine how consumer packaged goods (CPG) companies are harnessing the power of loyalty marketing to improve their sales and branding effectiveness. Design/methodology/approach – The paper cites examples of CPG loyalty efforts from Procter & Gamble, Tazo Tea, Huggies diapers, Moet Hennessey, Maker's Mark, Purina dog food and others, it outlines two primary models that CPG marketers are pursuing, each with their own approaches, levels of investment and possible outcomes. Findings – The paper explores the many obstacles CPG marketers must overcome if they desire to shift from mass advertising to a more customer‐centric marketing model and cites examples of successes and failures from a variety of organizations. Research limitations/implications – “The CPG industry has often been the odd man out even as brands in nearly all industries around the globe have pursued loyalty marketing as a primary tactic of their overall enterprise customer strategy”, note Hlavinka and Gomez. “Is it because the CPG industry views the retailers who sell their goods as their primary market, rather than the consumers who actually use them? Is it lack of concern for the consumer? Lack of focus? Lack of expertise? All of the above? These are the questions that our research set out to answer.”. Practical implications – The reader will come away with some specific ideas for improving the effectiveness of their private label credit card program. Armed with the knowledge of the scope and size of the private label credit card market, readers should gain insight that will improve their decision‐making about their own program. Originality/value – The paper takes a look at the emergence of loyalty programs in the consumer packaged goods industry and what is ahead for this burgeoning trends.