Last year, the top 25 US food and beverage companies drove 45 percent of category sales, but only 3 percent of growth. The remaining 97 percent of sales growth was driven by smaller players. Historical market leaders need to take steps to recapture their share of industry growth.
Nielsen Breakthrough Innovation Report, June 2016
DOWNLOAD REPORT [PDF]Accenture conducted an independent assessment of 45+ CPG companies across geographies to identify performance based on four areas: digital strategy, digital production / delivery, digital consumer engagement and digital enterprise.
This “outside-in” view of a company’s digital footprint is based on publicly available data.
We see a tremendous disparity in digital performance across companies, with CPG lagging both disruptors and non-CPG industries.
Digital Performance
CPG disruptors and non-CPG industries outperform CPG companies in digital performance by a significant margin.
While CPGs see the opportunity, they have not merged digital initiatives seamlessly with their corporate strategy.
DIGITAL STRATEGY
83% recognize digital as a trend that impacts its markets and/or operations…
VS
DIGITAL KPIs
…But only 22% are communicating specific financial KPIs aligned to internal digitization initiatives
LEADERSHIP (SOCIAL MEDIA)
Only 40% of CPG C-Suite leadership have been active on social media in the last month
HOST START-UP INCUBATORS
Only 28% of CPG companies host incubators (e.g. investment funds, facilities) for digital start-ups
CPG companies employ data-heavy planning tools, but have further to go in utilizing digital technologies in designing products and managing the supply chain.
DIGITAL DESIGN
Only 57% of CPG companies have open innovation initiatives
DIGITAL PRODUCTS
49% of CPG companies are enhancing their product portfolio with new intelligent/ smart/digitized features
DIGITAL SUPPLY CHAIN (IoT)
28% of CPG companies use IoT technology to streamline their supply chain…
DIGITAL SUPPLY CHAIN (BIG DATA)
Only 53% have used big data analytics to manage the supply network
CPGs are furthest ahead in digital marketing, but still have opportunities in consumer intimacy and selling / service.
CONTENT & MARKETING
Behavior trackers, e.g. cookies, are used to monitor online activity of consumers by 85% of CPG companies
VS
INSIGHT GATHERING
26% of CPG companies provide a users’ forum for consumers to view and comment on products and services
DIGITAL SELLING
49% of CPG companies provide consumers with a similar purchase experience digitally, off-line, and across different physical stores
DIGITAL SERVICE
49% of CPG companies provide consumers with access to self service via digital means (e.g. initiate change to order online, submit request on social media)
CPG companies are far behind in building their digital infrastructure, talent and organization.
DIGITAL INFRASTRUCTURE
40% of CPG companies highlight the fact that they routinely assess digital infrastructure and digital capability (e.g. IT audit)
DIGITAL SKILLS
Less than half of CPG companies provide employees with training on digital skills…
AND
DIGITAL TRAINING
…Similarly, only 47% offer employees training on digital platforms
DIGITAL ORGANIZATION
Only 32% of CPG companies have initiatives to break silos within the organization to adapt to a digital agenda
Taking a holistic approach to the “new”—operating model transformation vs. business model transformation:
Getting started—Brilliant basics:
Be faster, more agile, more relevant—meeting consumers where they engage—and utilizing emerging technologies like AI to drive product development.
Grow the core—Extending reach through modern enterprise:
Move beyond process efficiency and resetting the cost base; transform to an agile organization that links into a broader ecosystem of capabilities and partners.
Grow the new—Beyond renovation to innovation:
Unlock trapped value by exploring new businesses and business models.
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