Basic Mills ups give attention to ‘linked commerce’ claiming it’s ‘the following evolution of selling’
US consumer goods company General Mills, which includes Haagen-Dazs, Old El Paso and Green Giant Sweet Corn, is looking to better meet consumer demand and prove that “Connected Commerce” isn’t just a buzzword as it focuses on attracting First – Party dates increased.
In an interview with investors yesterday (September 22nd) detailing the company’s Q1 results, the company confirmed plans to further develop its connected commerce strategy “Accelerate”, which aims to enhance physical and digital marketing experiences personalize and integrate for customers.
“Connected commerce is based on data, digital capabilities, measurement and execution so that General Mills can be part of the consumer journey, building strong one-to-one relationships and driving differentiated growth for our brands,” said Jeffrey Harmening, CEO.
As an example, he cited the digitization of his Box Tops for Education program in the US, which has been converted into a mobile app and allows first-party data to be collected. As part of the initiative, the brand donates money to schools for every label redeemed on its products.
Other examples are the pet food brand Blue Buffalo, which launched a social media platform called Buddies, and Häagen-Dazs ‘“omnichannel approach” in China, which has increased interaction with younger consumers, General Mills’ more first party – Provided data that enables them to build personal relationships and develop future innovations.
“The data generated enable us to optimize our personalized marketing measures and refine our advertising campaigns. Connected commerce is an important way to boldly build our brands in the future, ”said Harmening.
“Our first steps towards creating a differentiated networked tradability are encouraging. And we know there is a lot more to do, so keep investing in this area and moving forward. “
Vice president of investor relations Jeff Siemon added that while the term “connected commerce” may sound like a buzzword to some, General Mills sees it as “the next evolution in marketing.”
He said brands need to think of e-commerce and physical retail at the same time, as the former has grown in importance over the past year.
He highlighted that 85% of the company’s e-commerce sales now come through its trading partners, explaining that brands need to be “good at e-commerce” as well as physical stores.
The data generated enable us to optimize our personalized marketing measures and refine our promotions.
Jeffrey Harmening, General Mills
Siemon also highlighted how important relationships provide quality data, which in turn leads to more accurate marketing and innovation.
“The data just keeps getting better for our retailers, it just keeps getting better for us. That will certainly play a role, but you only trust the data of people who you actually trust, ”says Siemon.
“So the trade relationships we have are also important because we go to the market and talk about what’s going on in the environment. We have to make sure we have these [good] Relationships.”
In terms of marketing investments, Siemon pledged that despite the additional cost pressures on the company, the company will maintain its “strong support” for priority brands.
Unilever is accelerating digital expansion to invest and grow. “We still believe we have strong ideas and will continue to support them [brands]. I think as we move forward we will continue to support our data analytics skills and investments, ”said Siemon.
General Mills outlined its “Accelerate” strategy in February to define its path to the “next growth chapter” by focusing on branding, innovation, growing and implementing more sustainable practices.
General Mills’ direction echoes FMCG giant Unilever, who said digital channels like e-commerce will “clearly remain a key” as the pandemic subsides and he will make important decisions to be a digital leader .
Another FMCG player, Reckitt, praised his increased use of data in the transition to more “precision marketing” and meant that he was able to “spray and pray” marketing practices.
General Mills’ net sales rose 4% to $ 4.5 billion (£ 3.3 billion) in the first quarter, despite operating profit declining 1% to $ 844 million (£ 616 million).