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Market and consumer archetypes: Winning in a digital world

In a digital world, an archetypes strategy will be more successful than organizing by geography.

Overview


CPG companies face a seemingly impossible task: how to effectively target well over 7 billion individual consumers in a world that continues to rapidly globalize as well as localize. Most of these consumers are no longer simply defined by where they live, but are highly fragmented, with rapidly changing preferences. They are also increasingly digital and mobile. To tackle this challenge, embark on an archetypes strategy.

Key Findings

  1. Pool common characteristics, rather than geographic proximity: This approach – known as managing by archetype – allows you to balance relevance with the benefits of global scale.

  2. Focus sales and distribution capabilities market archetypes: By grouping markets with similar commercial environments, routes to market, consumer and customer types, KPIs and required capabilities to succeed, you can develop fit-for purpose programs that build capability in line with common market needs.

  3. Organize R&D marketing and media by consumer archetypes: Grouping consumers by similarities, regardless of geography, enables you to drive consumer engagement, relevance and loyalty. Each consumer archetype requires a customized approach and dedicated marketing and media teams to deliver tailored offers.

  4. Use digital to enable change and scale at speed: Mobile technologies and the cloud offer economically viable visibility and enable execution through long and indirect channels.

Analysis

CPG companies need to reconsider how they create and cluster specific groups of both markets and consumers:

A market archetypes approach helps CPG firms be more targeted in enabling the relevant capabilities required to deliver a market level strategy, but with the commonality required to economically scale. The practical reality is that while one size clearly does not fit all, not every market requires the most advanced capabilities, tools and technologies to succeed.

A consumer archetypes strategy enables CPG firms to specifically tailor both their products and related offers in ways that help increase engagement, relevance and loyalty. By grouping these sets of consumers – whether the over 50s, or the health conscious, or others – consumer goods firms can ensure their propositions are developed and marketed appropriately

Recommendations

To implement an archetypes strategy, CPG companies must organize their systems and processes, supply chains, distribution, sales, R&D, marketing and media activities around their archetypes. The end game is an organization that is capable of reaching specific sets of both markets and consumers quickly and cost-effectively. The organizations that do so will realize efficiencies and scale that drive competitive advantage and profitable growth.

The size of the prize:

  • Expand reach in new markets and consumer segments

  • Reduce cost to develop new capabilities

  • Increase speed to market

  • Increase consumer relevance

  • Win at POS in all routes to market

  • Enable margin improvement