CPG Brand Marketers—Quick Question:
How are you feeling?
OK, that‘s a tad broad (not that I don't want to hear the answer!). I’ll try again:
How are you feeling ?????????? ??????? ??
I ask because apparently, despite squeezing blood from turnips to eke out ??, share, profit, all while maintaining brand salience, NPS, and (fill in your favorite brand health metric), ?????? ???? ????????????????????.
Yes, it’s been tough since the pandemic, yes food prices are still high, yes, AI is and will be an RBD (Really Big Deal.) ?
Since most of us have likely not had the chance to examine the Full Magnitude of the Situation, lucky us--McKinsey & Company to the Rescue! In their recent article they share their thoughts on ?????? ?????? ?????????????????? ?????? ??????????????/ ????????????????/???????????? ???? ???????????? ???????????????? ????????????????.?(link in comments.)
Never to jump too quickly to solutions, the suited brainiacs ?? first headlined the dynamics of the last few years that landed us where we are:
1?? ???????????????????? ???????????????? ??????????????????????: reduced loyalty, driven by younger consumers, has forced legacy brands to reinvent themselves to stay relevant
2?? ???????? ???? ?????? ?????? ?????????????? ??????????: Continued shifts to brands created by trusted retailers, without a perceived quality tradeoff
3?? ??????????? ???? ?????? ?????????? ?????????? ??????????????????: We’re past the indie/challenger brand heyday of the 2010’s, where we saw tons of new brand entries that spoke to consumers wanting authenticity, values driven, and personalization bolstered by generous support from retailers with a stake in their successes. Enter #4:
4?? ????????????? ???? ?????????????? ??????????????: After the free flowing days of 2015-2020, Covid kicked off a dramatic pullback in PE/VC investment to launch and scale these brands, plus less retailer excitement as categories got overcrowded. Net, smaller brands aren’t faring as well.
Sooooo...Kinda Brutal! ?? Where to start?!?
Well, as the problem solvers they are, McKinsey's outlined a comprehensive Dual Agenda for CPG orgs to adapt and thrive in the new climate:
?? ?????????????????? ??????????????????: through M&A, a sharper focus on high growth categories, and new business models that can surround core categories
????????????????? ???????????????????? ????????????????????:? A sobering to-do list in and of itself! The broad strokes include: Revenue Growth Management, a Digital Marketing Revolution,” a focus on Share Growth through Premiumization, and next level Cost Reduction enabled by AI.
Whoa. We've got some serious work to do....Kudos if you've been prepping for these changes for a while now! For the rest of us....we’ve got this!!
???????? ????: ???????? ???????????? ?????? ?????? ???????????????? ???? ?????????????????????? ???? ???????????? ???????????????? ???? 2025?
#growthstrategy #CPGindustry #managingchange #marketinsights