The challenge for CPG Companies
CPG companies today are dealing with many challenges. Informed, value-conscious consumers, in combination with intensifying cost pressures, have contributed to elusive growth.
A recent McKinsey Report discussed the challenges for CPG companies, examining the best practices that set the most successful companies apart from their competition. The customer and channel management practices of the ‘winners’ include the following five imperatives for growth:
- Identify pockets of growth and align resources against them.
- Overinvest in ‘power partnerships’ with top customers.
- Take a data-driven approach to revenue-growth management.
- Commit to omnichannel retail.
- Develop an ‘insights’ factory.
These imperatives enable CPG companies to differentiate themselves from the competition.
The benefits of utilising technology like the Opmetrix mobile field sales solution can have a significant impact, with even a small percentage difference in sales growth delivering impressive results. Companies that excel in revenue growth management (RGM) are increasingly integrating decision making around pricing and trade promotion. Opmetrix provides many functional, practical benefits for your sales teams. Save time, remove double handling, reduce costs, increase sales, streamline call cycles, and have the data you need at your fingertips to provide premium customer service. Literally tick those compliance boxes in a pain-free way to ensure your teams are providing best value.
There’s no denying that retailers have the advantage over CPG manufacturers, and retail buyers are using their leverage at the negotiating table. We spoke with Carol Spieckerman, an internationally recognised retail and brand thought leader, who assists clients globally to future-proof their retail and brand strategies. With massive changes in the retail and consumer landscape, consumer-goods manufacturers must rethink the way they manage key accounts, and may find helpful her interesting insights on retail execution.
Retail is the land of opportunity, which can in some ways be intimidating for old-school companies. “The landscape has never been more open, and to keep up they may need to find partners with particular capabilities. Retailers can leverage partnerships to extricate data insights and make it actionable”, she said.
Retail organisations are changing, and the consumer is more informed than ever. However, companies also have the ability to shape consumer behaviour like never before. “There’s a real opportunity to forge relationships with new buyers by talking more broadly about customer insight, value, content and data – not just about price and benefits. Your sales team can have bigger conversations, deepening relationships with an individual retailer, or working more broadly with different retailers in a given space with different branding scenarios.There’s more brand awareness, and true scale is no longer driven in a single channel. While companies can very quickly commoditise their product by talking about price differentiation, retailers need to bring more to the table.”
Challenging times indeed, but also opportunities for CPG teams exploring new key account management models.