CPG Brand House Perceptions
According to the findings, some consumer perceptions surrounding the following CPG brands are as follows: P&G faced negative perception from millennial consumers on its mass-market approach to branding, Nestle faced some backlash over their continued action to draw water from California springs amidst drought in the area, and Unilever received negative publicity on their racist Dove advertising campaign.
Below are our deep findings.
Millennial consumers are skeptical of mass-market brands like the ones from P&G. They view P&G as a company that has a "one-size-fits-all approach". They want brands that appear to cater more to their individual preferences and not mass-marketed brands like Tide. This perception is one of the factors that impacted the slow growth in organic sales of the company's brands. In the first quarter of 2018, the company was able to achieve only 1% organic growth. To counteract this, the company has been working on making its brands' packaging more modern-looking such as the new pod-style it did with Tide.
Nestle's ongoing action of collecting water from Southern California springs continues to generate negative publicity as people protest against this operation. The company has installed pipes at the springs to collect water that is pumped into their Arrowhead spring water brand. Some people claim that doing this reduces the flow of the water to the natural streams that should be receiving the water. This was aggravated by the ongoing drought in the area. Nestle claims that they are not adding any pumps or artificial means of increasing their water collection from the springs.
Unilever's Dove brand was accused of being racist after releasing an advertising campaign for its body wash. In the ad, a white woman was shown after a black woman removed her shirt. The public saw this as a way to say that being black is seen as "dirty", and the black woman needs to be cleansed to become a "white" woman. To appease the public, the company pulled down the advertisement and apologized. Unilever has maintained its commitment to show the "beauty of diversity"; however, several consumers have already expressed their intention to boycott the company's products.
P&G is working on being more in touch with their consumers by releasing socially relevant advertisements. Recently, it got positive responses from consumers on its "Like a Girl" campaign. The company is well-known for supporting women's causes in the past. With around 45% of P&G board members being women, P&G's gender-related ads are liked for their authenticity and sincere desire to drive change.
Despite the backlash, Nestle's bottled water brands remain popular among the consumers as sales rose by 9% over the year. For the meantime, the company is actively seeking for other water sources to address the increasing customer demand.
Unilever has been working on the plan to have its brands seen in a more positive light by the public by aligning their brands with the "power of being good." Brands like Dove have been adopting the "sustainable living plan."