In an era defined by digital connectivity and unrestricted access to information, the role of creative digital marketing in capturing the attention of consumers has never been more crucial. Zib Digital NZ unravels the impact of creative campaigns on brand perceptions of NZ consumers.
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Zib Digital NZ, a leading digital marketing agency in Auckland, specialising in innovative strategies tailored for the New Zealand market, explores the evolving landscape of digital marketing and its creative appeal on New Zealand consumers in 2024. With a focus on understanding the shifting preferences and behaviours of Kiwi consumers, Zib Digital aims to provide valuable insights for businesses seeking to navigate the dynamic world of online advertising.
With extensive experience in digital marketing in Auckland and ongoing insights in consumer data, Zib Digital uncovered several key trends shaping the digital marketing landscape in New Zealand. One of the most notable findings is the increasing emphasis on visual storytelling as a powerful tool for engaging audiences and driving brand affinity. With platforms like Instagram and TikTok dominating the social media landscape, businesses are leveraging visually compelling content to connect with consumers on a deeper level.
As the influence of user-generated content (UGC) also shapes consumer perceptions and purchase decisions, Zib explains that by encouraging users to share their experiences and opinions, brands can foster a sense of authenticity and trust that resonates with today’s discerning consumers. Zib recognises the importance of harnessing UGC as a strategic component of digital marketing campaigns to enhance brand credibility and engagement.
As an SEO company in Auckland, Zib Digital specialises in traditional digital marketing and SEO practices, however the team of specialists holds a strong focus on disrupting traditional digital marketing methods.
Having established a shift in content optimisation strategies, Zib explores the role of emerging technologies, such as augmented reality (AR) and virtual reality (VR) in driving immersive brand experiences and consumer engagement.
With AR filters, VR simulations and interactive gamification becoming increasingly prevalent, Zib pushes the creative boundaries, encouraging clients to explore new opportunities to captivate audiences and create memorable brand interactions.
A spokesperson from Zib Digital, states “The digital marketing landscape in New Zealand is evolving at a rapid pace and businesses must adapt their strategies to meet the changing needs and preferences of consumers. Our research highlights the critical importance of creativity in capturing the attention and loyalty of NZ consumers. By delivering engaging, personalised experiences across digital channels, our clients can cut through the ‘content noise’ and drive meaningful connections with their audience.”
By embracing visual storytelling, user-generated content and emerging technologies, New Zealand based digital marketers can create memorable brand experiences that resonate with audiences and drive business success in the ever-evolving digital era.
Learn more about digital marketing and SEO in Auckland at Zib Digital.
About the company: Zib Digital NZ offers a comprehensive suite of services, including search engine optimization (SEO), pay-per-click advertising (PPC), social media marketing and content creation. With a mission to empower businesses to thrive in the digital landscape Zib Digital leverages cutting-edge strategies and technology. From small startups to established enterprises, Zib is committed to driving tangible results and exceeding client expectations.
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As the market gets crowded, getting consumers to try one product gets increasingly difficult due to a plethora of choices. Additionally, the technology revolution in India has witnessed OTT players bundling with telcos in order to reach more users. With players like Netflix and Disney+ Hotstar present in English entertainment, Lionsgate India claims to have carved its niche with its OTT platform, Lionsgate Play. As per market intelligence platform, Statista, the OTT market in India is valued at Rs 33,823 crore and is expected to grow to is expected to reach Rs 48,403 crore at a compound annual growth rate of 7.43% by 2029. As per a FICCI-EY report, paid video subscriptions reached 99 million in 2022, across almost 45 million households in India, with a total viewership of around 135 to 180 million users. The report further suggests video subscription revenues grew 27% in 2022 to Rs 6800 crore.
Lionsgate India recorded a total income of Rs 79.09 crore in FY23, an increase of 0.3% from Rs 78.85 crore in FY22. However, the net profit narrowed 48% to Rs 2.34 crore in FY23 to Rs 4.5 crore in FY22, as per regulatory filings accessed by business intelligence platform, Tofler. In a conversation with BrandWagon Online, Anushree Bhardwaj, director-marketing, Lionsgate India, talks about the company’s marketing strategies, its focus on licensing and theatricals, and the future roadmap.
Lionsgate Play is competing against the likes of Netflix, Hotstar, and JioCinema, among others. What is the strategy adopted by Lionsgate India to compete against these players?
We have been clear from day one on our target group, the content and the brand’s identity. The OTT (over-the-top) industry is a competitive space and there are big players of the world, investing millions of dollars to build these businesses. Our character from the first day has been to serve the underserved. In India, we are not speaking to the mass but to the global urban customers. As a platform, we try to give the consumers reminders of what is new and we try to get them on our platforms. The consumer would not usually come to the platform and watch something every week but if even one or two pieces of content have struck a chord, the consumer usually buys the subscription. We focus on the right content strategy which is premium Hollywood-scale content that we make available to our consumers.
We’ve experimented with the pricing models in an attempt to figure out how to sample our content. There are free episodes available on the app. For our Indian original, we released a free episode on YouTube and if the episode interests them enough, the consumers could come on the platform and subscribe to watch the remaining part.
While content strategy to the right pricing strategy are important, one of the most important focuses is on our distribution where we have collaborated with like-minded brands and ensure that we are available with them. Our partnership with Amazon Prime Video or JioCinema has helped Lionsgate Play get the visibility that we need with our consumers.
It is these three core things for us. Firstly, getting the right content and ensuring that you are reaching out with the right content pieces to your target audience, telling them periodically what you have for them. Secondly, it is important to have the right pricing strategy in place while understanding how is it comfortable to pay for the consumers, making all those options available. Lastly, it is important to keep working on a large distribution to pipelines which is partnerships.
What are Lionsgate India’s marketing strategies for the next fiscal year?
I don’t see many changes when it comes to marketing strategies. We want to deep dive and ensure that people know the kind of content that we have on the platform. We still want to ensure that the top 10-15 metros know about us and have sampled us in some form or the other. We will try and bring at least 50-60 premieres in a year. Our proposition is one premiere a week and we will try and bring those many premieres on the platform. Of late we have witnessed that there is a slight preference for movies as compared to series so we are trying to double down on that.
At the beginning of every year, we sampled the English premium community and we heard chatter around awards. This year, we built the House of Global Awards. We’ve been having all the awards with us for the last three to four years. We plan to take that ahead in a big way and it is a part of our content strategy because that’s important for our consumers.
When it comes to media, we are looking at investing in long-term gains. Digital is an important piece for us. We have two deals with the Mumbai and Delhi airports and we have recently partnered with publications in terms of print for better visibility. We also need to build a brand out and work on our awareness because that’s not as high.
We’re also personalising our marketing for next year. The passionate area for next year is WhatsApp marketing because we can segment dice and slice our audience base and land that piece of content to your consumer in their WhatsApp. The biggest consumer problem that my user is facing is confusion in deciding what to watch which is ultimately leading them to go back to their comfort watching. We are trying to solve that problem by simplifying our user experience (UX).
How has Lionsgate Play been able to personalise its marketing strategies?
We work on understanding user behaviour. We try and understand everything from the first time the consumer continues on the app, what they consumed and ultimately, did they ended up consuming the content piece that led them to the platform. There are periodic nudges to the consumer, the more personalised it is and more readable for them, the better our click-through rates are.
We have been sending emails and notifications. However, I feel that people turn a blind eye to it. WhatsApp is a medium that is versatile and is on our radar this year. We are very particular about a consumer’s content consumption and recommendations outside the platform.
The company in 2023 focussed more on licensing and theatricals and less on the production business. Why so and how has it impacted the revenue of the company? What strategies are you using for customer acquisition?
Production is a global call that we’ve taken. We have produced three large pieces of content with popular movie stars. Our ethos is very clear and is very similar to what we do in the US. We are a content company first so we build the right content, which will lead to the audience. During the pandemic, we saw different platforms ousting each other by consumers but there was no stickiness. People come, they sample a piece and then they move on to the next platform wherever their favourite content is playing. Hence, we’ve been particular about profitability. You will not see us indulging in fancy marketing campaigns or content pieces but we do our bit when it comes to experiences or the right content which we know will have takers.
Our consumer acquisition strategies are simple. We can’t be everything to everyone. We identify the consumer and we rope them in using communication that resonates with them. We try and showcase multiple content pieces through advertisements. We have multiple landing pages so we use a lot of technology and data science in our marketing initiatives. Secondly, the platform needs to have a strong brand identity to get customers to stick. We are constantly building social communities, whether it be Instagram, X, or YouTube. We are trying to connect with people and connect with them snackable content. Thirdly, it is important to use multi-marketing channels. It has to be a mix of account-based marketing (ABM), personalised marketing, and digital marketing. We have to be in multiple places like the music app the consumers are on, and the news platform they are on. We are also working on free trials and demos because not all consumers are affluent enough to buy the subscription at one go.
How has Lionsgate Play’s collaboration with Amazon Prime Video worked out for the company?
Prime Video, specifically, we’ve been able to leverage their reach and that’s been a game changer for us. Prime Video has been an important discovery channel for us. While we are available on the Play Store or the Apple Store, we are also available on the Prime Video Store. Prime Video does very well in terms of marketing the overall product, and they have the most engaged set of audiences who love OTT on their platform. We have worked together many times with their marketing teams. When two brands are promoting something together with all their might, it makes it more powerful.
Secondly, our partnership team is constantly working on ensuring that we have discoverability on their page because they have so much content stored that people can discover. Prime Video also has many partners so they work around the clock to ensure that the landscape and the titles are always visible on the Prime Video platform. The partnership has paid off very well for us and them and we plan to continue it in the times to come.
Is the company planning to expand its library? Is the company planning to expand into other language content?
We’ve done that with one part of it being local production. While we are an English-speaking nation, we are not an English-consuming nation. Dubs have played a huge role there. We’ve dubbed our content in four to five languages Kannada to Tamil Hindi to Marathi, and at times even Bhojpuri.
Our consumer wants access to premium global content at their fingertips, and that’s what we are here to provide. Local production is not off the charts because we at some point would look at pouring into it when we are clear about the content strategy. However, we are trying to go deeper with our dubbed content. We have local programming available on the platform. Our maximum consumption comes from our famous box sets and English content.
How do you intend to expand into other geographies?
OTT still is an urban phenomenon, but sports are making it wider and the convenience of a particular screen that people have available to themselves unlike a family viewing is interesting. When it comes to other geographies, we are already present in South Asia, we present in the Philippines, and Indonesia. We recently launched in Bangladesh with a partner called Grameenphone. The building of the pipeline for South Asia will continue. However, India remains a key player and, India acts as a blueprint for all other markets in the way we have launched India and the way we’ve grown India is the blueprint for other markets. We want to replicate the success of India in other markets.
What are the ambitions of the company?
We want to be the definition of thrilling, fast and something that people can access quickly. We want our consumers to watch content and be on the edge of their seats and the content that you will see on the platform is going to be that.
Our strategy of bringing different types of live events or awards on the platform is also in line because the audience can’t wait for the weekend or two days later to read about it. The moment these awards are announced, our teams work around the clock to ensure that our consumers have that information. We will double down on fast, exciting content and fast, exciting marketing.
Secondly, we want to reach more people and a wider audience in India. We are going to focus a lot more on subtitles and dubs so that language is not a barrier. We are also trying to see if there are any other languages that we need to get into in India. We will continue to invest in community building on different social media and YouTube is playing a huge role in fueling the next level of growth in online discovery. We are doubling down on our presence there. We are here for the long haul so we are going to be experimenting with different kinds of revenue models, but currently we are only SVOD (subscription video-on-demand) model we also want to understand how is it that sampling can be done.
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(MENAFN– Khaama Press)
In recent years, the digital marketing landscape has been dominated by a new player that has captured the imagination and attention of millions: TikTok. With its user base rapidly expanding across the globe, TikTok has become a hotspot for advertisers looking to tap into a dynamic and engaged audience. This surge in interest has led to an astronomical rise in the use of TikTok Ads, making it one of the most talked-about subjects in the realm of social media marketing today.
TikTok’s advertising platform is ingeniously designed to blend seamlessly into the user experience, offering various ad formats that include everything from in-feed videos to immersive full-screen ads. These ads appear on the user’s“For You” page, ensuring maximum visibility and engagement. Unlike traditional social media platforms that have long dominated the digital advertising space, TikTok’s unique algorithm and content-driven approach offer a fresh and highly effective avenue for reaching target audiences.
The appeal of TikTok Ads lies in their ability to leverage the platform’s highly creative environment. Advertisers are encouraged to craft content that resonates with TikTok’s user base, which is predominantly Gen Z and Millennials, by tapping into trends, music, and challenges that drive the platform’s virality. This has opened up new possibilities for brands to connect with consumers in a more authentic and engaging manner, breaking away from the conventional ad formats that many have grown accustomed to scrolling past.
Moreover, the success of TikTok Ads is backed by impressive metrics. According to recent data, TikTok boasts over a billion active users worldwide, providing a vast playground for advertisers to increase brand awareness and drive sales. The platform’s video ads, in particular, have shown remarkable efficacy in achieving higher engagement rates compared to other social media platforms. This is largely due to TikTok’s algorithm, which prioritizes content discovery, allowing brands to reach beyond their followers and tap into a broader audience.
The effectiveness of TikTok Ads is not just anecdotal. Many brands, from small businesses to global corporations, have reported significant returns on their TikTok advertising investments. Success stories abound, with companies achieving viral fame and substantial business growth through creative and well-executed TikTok campaigns. These successes underscore the platform’s potential as a powerful tool for digital marketing strategies.
However, the rise of TikTok Ads also presents new challenges for advertisers. The platform’s content-driven nature demands high creativity and an in-depth understanding of TikTok’s unique culture and user behavior. Brands must navigate these waters carefully, crafting ads that not only capture attention but also add value to the user experience. The ephemeral nature of trends on TikTok also requires advertisers to be agile, adapting their strategies to keep pace with the rapidly changing landscape.
As TikTok continues to evolve and expand its advertising capabilities, it is poised to redefine the digital marketing arena further. With features like augmented reality filters and shoppable ads in the pipeline, TikTok Ads are set to offer even more immersive and interactive experiences for users. For advertisers willing to embrace this new frontier, the opportunities are boundless.
In conclusion, the meteoric rise of TikTok Ads represents a pivotal shift in digital marketing, highlighting the growing importance of social media platforms in shaping consumer behavior and preferences. As more brands flock to TikTok to connect with its vibrant and engaged user base, the platform is likely to remain at the forefront of digital advertising innovation. The success stories emerging from TikTok are a testament to the platform’s potential to revolutionize marketing strategies, making it a subject that continues to captivate and attract audiences across the United States and beyond.
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In today’s fast-paced digital world, mobile marketing has emerged as a crucial strategy for businesses aiming to connect with consumers on the go. With the ubiquitous presence of smartphones, reaching potential customers through mobile channels is not just an option but a necessity for companies seeking to remain competitive and relevant. This article delves into the world of mobile marketing, exploring its significance, strategies, challenges, and future trends.
Understanding the Mobile Marketing Landscape
The landscape of mobile marketing is continually evolving, driven by technological advancements and changing consumer behaviors. For instance, the proliferation of smartphones has led to a significant shift in how people access information, shop, and interact with brands. Mobile marketing leverages this shift, using various channels such as SMS, mobile apps, social media, and emails optimized for mobile devices. It’s a dynamic field that requires marketers to stay updated with the latest trends and consumer preferences.
Crafting Effective Mobile Marketing Strategies
Developing an effective mobile marketing strategy involves understanding your target audience and the channels they frequent. Personalization is key in mobile marketing. Tailoring messages to individual preferences and behaviors can significantly boost engagement rates. Additionally, incorporating multimedia elements like videos and interactive content can enhance user experience. A notable example of innovative mobile marketing is the Spribe Aviator game, available on platforms like Pari Match, click here to read more. It demonstrates how engaging content can attract and retain users.
Overcoming Challenges in Mobile Marketing
Mobile marketing has huge potential, but it also has its own unique difficulties. One of them is the need for creating sharp and exciting advertising materials, while also finding out about privacy issues and how you can protect them. Finally, to jump past this barrier of privately owned mobile phones and various other wirelessly enabled devices, one must produce top-quality, on-point fresh cheesy wheezes with a catchy headline tagline key feature or other feature. Included tools like analytics can give you an insight into the behaviors and preferences of consumers. Secondly, mobile marketing must adapt to the changing algorithms of rapid-paced platforms and keep abreast of legislative changes. It is this flexibility that ensures compliance for marketing professionals while effectively penetrating their target audience.
Measuring Success in Mobile Marketing
The effectiveness of a mobile marketing campaign is measured through various metrics such as click-through rates, conversion rates, and engagement levels. Utilizing analytics tools to track these metrics helps in understanding what works and what doesn’t, allowing marketers to refine their strategies for better outcomes. Additionally, measuring user retention and lifetime value is vital for long-term success. These indicators help marketers to not only attract but also retain customers, turning them into loyal brand advocates. By continuously monitoring and adapting strategies based on these metrics, businesses can maximize the ROI of their mobile marketing efforts.
Future Trends in Mobile Marketing
As technology continues to evolve, so will the trends in mobile marketing. We are likely to see a rise in the use of artificial intelligence, augmented reality, and personalized content. These technologies will enable marketers to create more immersive and customized experiences for users, further enhancing the effectiveness of mobile marketing strategies. The integration of voice search and chatbots is also expected to transform how consumers interact with brands on mobile devices, making interactions more natural and user-friendly. This evolution will open new avenues for engaging customers in a more interactive and personalized manner, revolutionizing the mobile marketing landscape.
Conclusion
Mobile marketing is an essential tool for businesses in the digital age. Its ability to reach consumers directly on their most personal devices offers unparalleled opportunities for engagement and conversion. As we move forward, the key to success in this realm lies in understanding and adapting to the evolving digital landscape, focusing on personalization, and leveraging the power of emerging technologies. Businesses that can skillfully navigate the complexities of mobile marketing will find themselves well-positioned to connect with their audience in meaningful and impactful ways.
(Devdiscourse’s journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)
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The UK government is currently reviewing a bill that would see a number of important changes to digital marketing put in place. The regulations proposed in the bill cover everything from influencer culture to tech giants’ practices. It also outlines that the base country of the organisation doesn’t matter and all will be upheld to this standard. This is all in an attempt to create a fairer digital market for the consumer and smaller tech businesses.
As the government bill itself puts it: “A Bill to provide for the regulation of competition in digital markets; to amend the Competition Act 1998 and the Enterprise Act 2002 and to make other provision about competition law; to make provision relating to the protection of consumer rights and to confer further such rights; and for connected purposes.”
In the making since 2021, as of writing the Bill is going through its 2nd reading in the House of Commons and still has to pass through the House of Lords.
If this Bill were to go through, however, the industry is likely to see a shakeup akin to the GDPR of 2016. Every website and brand will be affected in some way, with so many regulations introduced in the Bill.
So, what are these regulations? And how do they affect the different aspects of digital marketing? Take a look at our guide to the UK’s Digital Markets, Competition and Consumers Bill.
What will affect affiliates? Reviews
The big issue for affiliates and influencers is the concept of reviews. According to the BBC, the bill “bans people receiving money or free goods for writing glowing reviews.”
As much as we would like to think all our favourite influencers are being honest about how much they love the products they are peddling, that is rarely the case. Who really gasps when they open a makeup product?
However, this point is very vague. Affiliate bloggers will have to wait until the Bill passes through the House of Commons before getting details of how they are to avoid getting fined for a dishonest review and how the UK government intends to determine what is an honest or dishonest review.
What will affect small tech? Market dominance
It’s no secret that there are basically the big five tech companies (Google, Amazon, Apple, Meta and Microsoft) that make up the sun of the tech industry, and the rest simply orbit around them trying to survive. It doesn’t make for a very fair playing field, which has repercussions for other tech companies and the consumer. Therefore, this Bill aims to level the digital markets playing field at least a little with various regulations.
The statement from the Department for Business and Trade says: “[The Bill] also establish new, faster tools to address the unique barriers to competition in digital markets, allowing the Competition and Markets Authority (CMA) to proactively drive more dynamic markets and prevent harmful practices such as making it difficult to switch between operating systems.”
What will affect tech giants? App stores
One particular way the Bill aims to level things is with the sharing of App stores. Apple’s app store, for example, is notoriously limited. You have to pay a steep price to be featured on there, eating into any profits an app startup might have, and be under the strict review of Apple’s standards. More often than not this means rejecting apps that might offer a more affordable alternative to big names like Adobe, for example.
Sticking with Apple as the example, the iPhone company might be forced to allow iPhone and iPad users to download apps from other sources, like Google Play or Android, forcing search engines to share data.
What will affect the consumer? “Forgetting” subscriptions
Chapter 2 of Part 4 says: “This chapter imposes duties on traders in relation to subscription contracts, provides rights for consumers if those duties are breached and provide rights for consumers to cancel subscription contracts during cooling off periods.”
Namely, number 250 of the Bill addresses reminder notices, where customers are to be contacted when their free trial is up so that they have ample time to cancel their subscription before the first payment is taken, or “at least 3 working days before the last cancellation date” but “not more than 5 working days before the last cancellation date” if they wish.
The statement from the Department for Business and Trade says: “The Bill will also support consumers through new and improved rights to deal with bad business practices such as subscription traps. This includes better information up front as well as easier exiting and earlier cancellation rights.”
Businesses are not likely to like that, since it could put a dent in profits due to the sheer forgetfulness of consumers.
If you are interested in more affiliate and social media marketing insights, take a look at our blog for all the latest news and advice. Or for a more personalised approach, book a free call with a member of our team.
Or, for the very best advice from industry peers, register to join us for our ELEVATE Summit in July. Elevate aims to bring you the latest affiliate, performance, and partner marketing insights from across the globe and it’s all available to stream from our website.
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At the same time, the company is ramping up investments in media and innovation to help preserve elasticities and build unit demand by boosting consumers’ value perceptions of its products, executives said during the company’s third quarter sales and earnings call yesterday.
This strategy also would allow General Mills to hedge against additional possible price hikes, should they be necessary.
“We continue to forecast total input cost inflation of approximately 14 to 15% for the full year in fiscal 2023, including double-digit inflation in the second half. Looking beyond this fiscal year, we expect inflation to decelerate but remain above historical averages” in the mid-single-digit range for total input costs in fiscal 2024, CEO Jeff Harmening told investment analysts.
While commodity costs are coming down from their peaks, CFO Kofi Bruce attributed the ongoing inflation to continued labor pressure, energy costs and “other conversion costs that go into taking raw materials, creating value-added inputs that go into our products.”
Other harder to calculate but still potentially impactful costs contributing to inflation are added pressure from supply chain disruptions and product changes that allowed the company to continue to serve in a disrupted environment, Bruce said.
On that note, Harmening acknowledged General Mills service levels still are below its “normal range of 98 to 99%,” but it is improving and should reach 90% in the US by the end of the quarter.
Strategies for managing inflation
To manage rising inflation, Bruce said General Mills will “approach the fiscal year with an eye towards leveraging first, the productivity we get through our HMM cost savings programs. And to the extent that there is additional margin that we need to protect, we’ll use the other levers we have up to and including SRM.”
The company also will take into account inflation as it plans merchandising and marketing, said Jon Nudi, president of North American Retail at General Mills.
He explained that while General Mills is “getting back into merchandising in some categories that we couldn’t support from a service standpoint over the last few years,” it also knows that “ everyone in the industry is dealing with increased costs and inflation as well, so we expect to make sure that we’re rational from a merchandising standpoint as we move forward.”
Given that price points were up double digits across General Mills’ categories, the company is loath to pile on extra hikes, preferring instead to leverage price architecture and mix, Nudi said.
“We are much more sophisticated today than we were even a few years ago, and I think that’s helping us to make the right moves in the market, which is helping with the elasticities as well. So, it’s something we’ll stay focused on,” he explained.
Marketing, innovation investments keep consumers engaged
If price increases become necessary, General Mills is laying the foundation to justify them by investing in marketing and innovation – strategies that also should protect market share from private label if the economy drops into a recession.
“If we do run into a recessionary period, historically, we’ve held up pretty well. Obviously, private label does well during that period, but we’ve held our own and hold share relatively flat. It is really the third and fourth tier players in categories that seem to get hit the hardest from a share staple,” Nudi said.
General Mills’ ability to hold its own against private label “is not really an accident,” but rather can be attributed to its investment in consumer spending, Harmening said.
“We’ve been investing in marketing. And so, you see, over the last four years, our compound annual rate of growth and marketing spend is up, I think, about 4% or 5%” to keep pace with pound growth if not sales growth, Harmening said.
Explaining that “healthy investments in brands is critical for long-term growth,” Harmening said General Mill is investing behind “compelling, digitally enabled, high ROI campaigns, such as Cheerios’ heart health, 20% More Meat news on Blue Buffalo’s Wilderness line and our latest global Haagen-Dazs campaign.”
Innovation reinforces elasticities
General Mills also is investing in innovation to keep consumers engaged with brands and drive sales.
“Over the past three years, we’ve kept up our innovation pressure, and our new product retail sales have been 30% higher than the category average. We are continuing that focus with our fiscal 2023 innovation,” Harmening said.
As examples, he pointed to the company’s recent launch of mini versions of its Cinnamon Toast Crunch, Reese’s Puffs and Trix.
Many of these strategies already are paying off for General Mills, which reported net sales of $5.1b – a 13% increase – in its third quarter, along with a 16% increase in organic net sales. Operating profit also was up 20% in constant currency and earnings per share were up 17%.
“With stronger and more broad-based business momentum, we have raised our guidance and now expect organic net sales to increase 10 to 11%, adjusted operating profit to grow 7 to 8% in constant currency, and adjusted diluted earnings per share to grow 8 to 9% in constant currency,” Kofi said.
He added: “These profit and EPS ranges include a three-point headwind from divestitures and an estimated one-point headwind from the ice cream recall.”
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