On the sports pitch, you position yourself before making the crucial move that brings success. It’s no different in business. The CPG market is cutthroat this year. You got yourself ready for a new year. So here are four steps to position your brand for growth.
However, note that “steps” doe not imply a specific order! They should all happen in sync, just as the sports team positions themselves as a unit.
1 Leverage Data-Driven Marketing Strategies
As the CPG landscape becomes increasingly competitive, harnessing the power of data analytics informs your marketing strategies and positions your brand for growth. McKinsey reports that CPG brands utilizing data-driven marketing at scale can see up to a 5% increase in net sales value. That’s worth pursuing to sustainably scale your business!
For example, supposing your product is a healthy snack bar:
A data-driven approach allows you to target advertising more effectively to segments of health-conscious audiences in the specific channels they use. Maybe also to newer audiences as you spot unexpected variations in incoming data.
This kind of data-driven intelligence helps you to be agile and effective when growth opportunities present themselves.
2 Embrace Technological Innovation and AI
The integration of artificial intelligence (AI) into your CPG operations is a key trend for 2024 – and crucial to position your brand for growth against the competition who will be doing just that!
For example, AI can:
- Improve demand forecast accuracy to reduce over- or understocking.
- Automate quality control, detecting faults more efficiently than human supervision.
- Optimize supply chains in terms of best routes, minimizing transport costs, and managing your warehouse.
And just as most brands who ignored the advent of the internet suffered losses, those who ignore AI will not be positioned for growth this year. However, choose your entry point carefully, taking into account where it will best benefit your growth.
3 Focus on Sustainability and Consumer Values
Consumers have spoken loudly on the topic of sustainability and ethical trading! To position your brand for growth means aligning yourself with these values in whatever way is possible for your product.
This involves not only ensuring your products are environmentally friendly and ethically sourced but also transparently communicating these efforts to consumers.
For example, a laundry detergent can become more desirable if you replace non-natural ingredients as far as possible, use eco-friendly replacements, check the sourcing chain for ethical practices – and find ways to communicate that clearly to your market segment.
4 Innovate to Meet Evolving Consumer Demands
To position your CPG brand for growth you should also engage in brand development via R&D and innovation. We say this not because the the tax credit was doubled last year(!) but because rapid shifts in customer preferences mean you have to adapt quickly to the marketplace.
Consumers are increasingly leaning towards health and sustainability.
So – for example, a health brand could
- develop a healthier product variant (think in terms of all the components of your product!),
- reformulate existing products to meet new health standards, or perhaps
- seek a strategic partnership with a health organization to offer credibility in the market.
Don’t forget to innovate not only in product development but also in packaging, marketing strategies, and distribution channels. These can further position your CPG brand for growth in the dynamic market of 2024.