Confronting Market Challenges: Why Consumer Packaged Goods Companies Must Reimagine Revenue Growth Management Strategies
In the face of today's volatile market dynamics, Consumer Packaged Goods (CPG) companies must strategically reassess elements like their price-pack architecture. The goal? To strike a delicate balance between shopper affordability, profit, and category expansion. This challenging task calls for innovative solutions that outperform traditional approaches.
A recent report from McKinsey & Company, "Winning with Commercial Excellence: Ten Lessons for Consumer Goods," provides valuable insights into how top-tier consumer goods companies are developing robust commercial capabilities. These capabilities empower them to outmaneuver the competition and drive profitable growth, even amidst turbulent times.
One key strategy involves executing more granularly, focusing on channel, customer, and audience needs. For instance, Revenue Growth Management (RGM) teams that adopt this strategy are 3.5 times more likely to deepen their understanding of customers, retail margins, and product performance than their competitors. Moreover, physical stores that incorporate a degree of agility into their processes are 1.7 times more likely to seize new opportunities.
The report emphasizes the importance of investing in modeling and scenario-building capabilities. These capabilities equip companies to respond rapidly to changes and plans, particularly in hyperinflation environments. Interestingly, companies that leverage predictive and prescriptive analytics, such as machine learning, are seven times more likely to succeed than those reliant on historical and descriptive analytics like post-event promo ROI.
With modeling and scenario-building capabilities, you can navigate price strategies, explore different pack architectures, and optimize product portfolios across multiple retailers.
So, what does this mean for your business?
AI-driven scenario-building capabilities, like those offered by HIVERY Curate, enable businesses to optimize their assortments and reduce supply chain complexities. The power of AI allows CPG brands to tailor their brand portfolios to each retailer, taking into account unique shopper purchase behavior. As a result, CPG brands can ensure local relevance, efficient merchandising, and operational streamlining in their plans by retailer and category.
Our team of experts at HIVERY is ready to assist you in unlocking these benefits. Explore the potential of HIVERY Curate as your reliable co-pilot in navigating these challenges. Run different supply chain scenarios and witness the impact. By leveraging store-specific data, you can simplify your supply chain with finely-tuned assortment plans that cater to local shoppers' preferences and distribution center constraints, all while streamlining store operations.
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