The “next normal” for the CPG industry is becoming clearer after the changes of the last 18 months. This means that, to close the year strong, you must take a bolder, transformational approach to how you do business. Here are our top five approaches.
1 Collaboration
CPG businesses can ensure they close the year stronger and better placed for success by strengthening their relationship with retailers. In a recent survey, 76% of retail category managers said manufacturer-retailer collaboration was “more or much more” important than five years ago.
So, the next normal means taking time to forge closer relationships with them via meetings, sharing industry best practices, and innovation that leads to more customer-centric decision-making.
Other ways to strengthen the relationship include
- creating value for both of you,
- regional programs to reach new consumers
- retailer-specific marketing programs
2 Data Analytics
The next normal means making sure your category managers find a way of streamlining the challenging amount of data they have access to in order to extract usable information. This means understanding:
Consumer behavior
You can’t assume a customer’s needs and preferences will have remained the same each month. To close the year strong, understand your recent data and plan to act on the insights.
Product performance
Managers need to start tracking data on a per-product basis. These analytics are critical to the industry’s next normal. Although CPG product performance differs between retailers and markets, you can plan now to optimize your product performance in 2022.
Automated product pricing
With real-time tracking of customer habits, CPG companies with many products can use these data to develop automated product pricing for agility in the marketplace.
3 New Channel Organization
Due to the rise of multiple channels for distribution, more consumers now shop online for convenience. In order to close the year strong, CPG companies need to be where customers are and implement new strategies to facilitate these changes.
Some of the strategies you can put in place now for the next normal include:
- D2C channels. Integrate click-to-pay on social media instead of clicking through to your website. You can therefore compete with completely D2C startups.
- Subscription models. Customers like to make a series of purchases at a lower price.
- Flexible payment methods. Customers want a convenient experience.
4 Staying Informed
The next normal means keeping an eye on the press, industry reports, and evaluations to stay on top of changes and trends in the industry.
For example, you might note the rise in the share of global growth happening in emerging markets in China and Indonesia.
Watch now for
- trends in demand,
- changes in consumer buying patterns
- supply chain volatility, or
- labor shortages.
This will help you allocate your resources where they’re best used and close the year strong with a competitive advantage.
5 On-time Delivery
Delivering on time is essential for the next normal in the CPG industry. Therefore, review your delivery systems now and establish better logistics processes to improve them.
For example, you might use Business Intelligence to budget your transport spend, or invest in a cloud provider who can organize optimum delivery methods and multiple delivery channels.
Want to Talk Through the Above Points?
Momentum CPG can help you assess your current situation and close the year strong. We’re committed to helping you overcome any and all sales barriers. Request a consultation today and bring in the next normal with flair.