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Subject: RE: UKNM: Fast Summit
From: Ross Sleight
Date: Wed, 16 Sep 1998 16:39:44 +0100

QAA21124
Sender: owneratchinwag [dot] com
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Tony Coyle wrote:

>The current way big FMCG marketers are treating the web � la P&G/FAST is
wrong. FMCG >products are not easily marketed on the web. It can be done,
but cannot be achieved >using old FMCG marketing methods. The quicker the
P&G's of this world wake up to that >the better.

I completely disagree with this.

In order to achieve one to few / one to one marketing, you need a large
database to actually segment before you collaboratively filter. Without
mass market databasing efforts, P&G will never actually be able to target
individual products to small groups of people. If they can actually engage
their offline databases (and these hold the right info for online users)
then great, but my thought is that they will have to go about it from
scratch online. They will need to reach a significant number of individuals
to get them into their databases and the way they achieve that is through
sponsorship or advertising on key content affinity sites. For example - an
important area of P&G is babycare - and it is vital to actually reach mums
to be 6 months or sooner than the planned birth (a la Bounty packs) to
ensure brand loyalty for product purchase. Voila Parenttime.com - a clear
example of an FMCG client using the web for what it is good for. Once they
have hit an audience level that they can begin to segment and understand
buying patterns then they could (as an extreme) retail direct as the
products in question are bulky and are in constant use - a necessity -
making them attractive packages for online purchase. But even if they
don't, they still own a valuable relationship. And I'm sure P&G are of the
same thought as Disney as looking for "share of life" as their core consumer
proposition.

Additionally, they need to build up their own databases in order that
retailers online do not have the same power over customer databases that
they do in the real world. Tesco's own their loyalty card registrations -
the P&G's of this world will need to own their customer database online as
well as in online retail environments. Because if they don't they will lose
the ability to re-contact and cede this to the online retailer. And if you
are buying a virtual gondola end in an online retailer, it will be extremely
important that the added value of re-contacting the consumers that take up

that promotional offer lies with the promoter rather than the retailer.

I'm not saying FAST was a complete success or will be in the future - but if
you examine what P&G have experimented with over the past four years and
understand how they see the web fitting into the future of their customer
relations, then I think they are close to cracking an important nut. My
argument in favour is simple - you need to mass market/broadcast to make one
to few/one to one marketing at all cost effective in time, volume or outlay
terms. I think P&G know this.

Ross Sleight
Strategy Director
BMP interAction



Replies
  RE: UKNM: Fast Summit, Peter Beech

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