Consumer Goods Companies Need to Do More to Harness Digital Technology for Marketing or Risk Falling Behind
August 25, 2014 - Bangalore, Karnataka, India And East Brunswick, New Jersey, United States
A new study by Forbes Insights and Wipro Limited confirms that if companies are not taking advantage of digital technologies to improve marketing efforts, they are falling behind their competitors. According to the study, 65% of executives say their companies need to do more to harness digital technology to improve marketing effectiveness. In addition, 61% say their companies need to do more in terms of harnessing marketing data to improve effectiveness in complementary areas such as product development and logistics.
These are among the major findings of ‘The race is on: Keeping pace with the Consumer Goods leaders in digital marketing and technology’, a new study from Forbes Insights, commissioned by Wipro Limited (NYSE:WIT), a leading Information Technology, Consulting and Business Process Services company. The study surveyed 125 C-level executives from large, global consumer goods companies, in the United States, Europe and Asia Pacific, from sectors such as consumer electronics, over-the-counter pharmaceuticals, food, beverages, home & personal care and apparel & footwear.
“This study shows that many companies still have a long way to go to realize the full potential of digital marketing,” says Bruce Rogers, Chief Insights Officer and head of the CMO Practice for Forbes Media. “A trailblazing group of transformative companies is leading the way and achieving closer alignment between marketing and other departments. Others need to forge ahead or risk falling behind.”
Hiral Chandrana, VP & Global Business Head, Consumer Goods, Wipro Limited said, “Executives today face a bewildering array of digital marketing technologies.
It not only requires integrated website, mobile and social media strategies, alongside well-conceived and executed data privacy and security strategies, but also concepts such as omni-channel and analytics which add to the complexity. But at the same time, the collective capabilities of these technologies to grow and optimize sales and marketing are too important to be ignored.”
He added, “The rapid shift to digital is providing businesses, across consumer industries, with more opportunities than ever before, to connect and engage with their customers. How well businesses are able to implement digital technology has a direct impact on business results and will keep them ahead of their competitors.”
Additional findings from the report include:
- Forty-two percent of executives believe their current approach to digital marketing is too fragmented—rising to 47% among companies with greater than $17 billion in sales. The larger the organization, the more products and divisions, the greater the likelihood there will be fragmentation.
- Silos contribute to the challenge: Digital marketing is often organized as a separate function (37%), while e-commerce often operates as a separate business unit (39%).
- Half of executives, 50%, report that in one or more instances, their digital marketing has failed to integrate with essential back-end processes.
- Nonetheless, 20% of companies describe themselves as transformative. These are the leaders, companies that have already embraced a broad array of digital strategies: social, mobile, web and analytic tools and technologies transforming not only sales and marketing but also the overall business
- To improve digital marketing effectiveness, companies are seeking closer alignment between marketing and IT.
- Companies are looking to expand their use of external resources/providers for digital marketing
- Forty-three percent of executives believe their IT departments are so busy they are unable to help with digital marketing technology needs.
- Fifty-nine percent indicate that their companies are amenable to adopting a greater degree of technology outsourcing—specifically, a model where a third-party, full-service technology provider is able to assist with a greater degree of both front-end marketing and back-end operational processes.
- Fifty-eight percent say they are open to working with consultants who can help manage both front- and back-end digital marketing processes.
The report titled “The race is on: Keeping pace with the leaders in digital marketing and technology,” can be downloaded here: www.wipro.com/consumer-goods-transformation/
About Wipro Ltd.
Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Business Process Services company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of "Business through Technology" - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner's approach to delivering innovation, and an organization wide commitment to sustainability, Wipro has a workforce of over 140,000, serving clients in 175+ cities across 6 continents. For more information, please visit www.wipro.com
Forbes Insights is the strategic research and thought leadership practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 50 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights conducts research on a host of topics of interest to C-level executives, senior marketing professionals, small business owners and those who aspire to positions of leadership, as well as providing deep insights into issues and trends surrounding wealth creation and wealth management.
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Source: Business Wire India