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Tuesday, August 01, 2017

Alexa Disruptive to CPG Retail Brands?

Does this take us back to the old-time, self service store?    True we can ask for a particular brands, influenced by advertising, but the quick way is to just ask for the product.  Perhaps driven by price or delivery time,  but maybe not even that.     And the AI will assign the product.  Note that saying 'AI' is overplaying this.  It will start with simple logic, easy to implement.   But it will change the nature of the moment of truth.  Disruptive to CPG process.   How will CPG react to that?   Other expert comments at the link below.

How disruptive is Alexa to CPG brands?  By Lee Peterson
Through a special arrangement, what follows is an excerpt of an article from WayfinD, a quarterly e-magazine filled with insights, trends and predictions from the retail and foodservice experts at WD Partners. .... 

“Alexa, order a 12-pack of toilet paper, a case of bottled water and a bag of tortilla chips.”

Welcome to the new moment of truth.

If you’re the brand manager of a CPG product, this existential threat should shake you to your brand-loving, MBA-trained core. The in-store marketing model that has ruled the consumer products industry for more than a century is being replaced by a talking cylinder.

Artificial intelligence and the generation of smartphone shopping assistants, from Siri to chatbots, are upending the traditional path to purchase, but they are all brand agnostic. Those ephemeral intangibles long considered the essence of a brand don’t matter. Price and delivery time are more likely to drive preference and selection in this new AI-driven store.    .... " 

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