Too many consumer packaged goods companies (CPGs) are losing household relevancy as consumer preferences shift, and channel complexities increase. What’s more, they’re experiencing unrivaled levels of disruption across operations. Legacy structures and processes are too static. To sustain growth and differentiation, CPGs must become end-to-end insights-driven consumer companies. Leaders and employees will need to solve for a new set of questions and embed intelligence throughout the company. This requires a fundamental mindset shift and new ways of working, starting at the top. Thinking about this in the context of three questions can help.
Question: How can we reimagine intimacy with end consumers and deliver a personalized experience?
Answer: Understanding consumer behavior on a granular level is critical when it comes to delivering personal experiences. But CPG’s are hindered by external factors and the lack of a cohesive end-to-end architecture that enables collections, curation and just-in-time insights to target the right consumer with the right messaging based on the consumers’ context.
Question: How can we sense and respond to demand volatility within days and create supply chain resiliency?
Answer: Linear supply chains won’t cut it. Today’s competitive environment calls for digital supply networks, ones that are integrated and continuously connecting plants, machines, workers, manufacturing, operations, and ecosystem players. Operational resilience and agility are enhanced by having data-driven intelligence in CPGs.
Question: How do you stay ahead of the evolving channel landscape and optimize performance at the outlet level?
Answer: Promotion optimization. Pricing. Price pack architecture. Retail negotiation. Excelling in any of these areas, let alone all, requires precision analytics and intelligent revenue growth management. CPG players need to equip sales and commercial teams with the ability to predict consumer behavior, in essence, to become intelligent consumer organizations and react rapidly.
Five things to get right
Reinventing CPGs means embedding intelligence and building data-driven muscles. And becoming less vulnerable to the market, consumer, and regulatory volatility. Here are five things to do differently now, to develop organization-wide strength and agility.