The Internet connects suppliers and retailers with millions of consumers every day. Discover how networking sites can gauge shoppers’ attitudes, raise brand awareness and reinforce positive associations with the category.
SIDEBAR: EXPERT TIPS FOR SOCIAL MEDIA
As candy retailers and suppliers explore sites such as Twitter, Facebook and YouTube, they are realizing their impact on brand awareness and company credibility.
Social media is definitely sparking consumers, with more than 105 million in the U.S. using these sites. What’s more, two out of three participants in a recent social media marketing industry report noted an increase in web site traffic, subscribers or opt-in lists after investing just six hours per week.
“I equate this to the beginning of e-commerce. A lot of retailers looked around and said, ‘Can I really make money doing this?’ Some retailers didn’t know if they would have anything to gain, and others ventured in, and while it was not profitable for many years, it’s now the bright spot in the industry,” asserts Ellen Davis, vice-president of the National Retail Federation. “In fact, the online world is growing much faster than the traditional retail sector.”
One NRF study shows 60 percent of retailers added or improved Facebook pages in 2009, and 59 percent added or improved Twitter pages.
“Before the holidays, companies seemed to be trying to gain as many Facebook and Twitter followers as they possibly could so that when the holidays came, they could promote different areas and direct people to their web site,” Davis tells Candy & Snack TODAY.
Social media’s ability to attract varying age groups is a plus, Davis notes. Brands targeting consumers between the ages of 15 and 18 might invest in placing information on Facebook rather than a web site because two-thirds of these consumers visit social networking sites weekly, according to results of a 2008 Forrester Research, Inc. survey that looked at consumer packaged goods marketing.
NRF research has also found social media is an effective way for retailers to reach other valuable consumers.
“It’s very popular among moms, who are a huge target among retailers. It’s also popular among more educated shoppers with higher incomes. And the young adult crowd, which a lot of retailers are trying to cultivate, is very active in social media,” Davis says.
But, she points out, it’s easy to overdo it. “Retailers should understand they need to exercise caution and be really strategic in how many times they reach out to consumers.”
Food marketing expert Phil Lempert defines social media as technology increasing the breadth and depth of word of mouth.
“It’s reputation on steroids,” Lempert tells Candy & Snack TODAY. “It’s really understanding what people want and doing it in a way that’s engaging and personal to them. Putting out an email with a logo and a price is not going to engage shoppers.”
Social media is a targeted, inexpensive and effective way to relate to consumers and build relationships that drive sales, he says.
Supporting his claim, a review of more than 100 companies’ media use from the digital consulting firm Altimeter Group and the social media platform Wetpaint shows companies with high social media activity levels — including Starbucks Corp., PepsiCo Inc. and the American Honda Motor Co., Inc. — increased revenues by an average of 18 percent in 12 months.
The least active companies saw sales drop an average of six percent during the same period, according to the study.
Twitter is said to connect more than 50 million users, and while that seems small compared with Facebook’s 350 million, many candy companies are exploring Twitter’s outreach capabilities.
