CPG Taps High-growth Channels, Hispanic Market: Study
According to the 2012 Customer and Management Channel Survey released at the GMA Executive Conference, consumer packaged goods companies (CPG) winning in their category tend to outperform their peers in four key areas: bold investment in growth areas; use of analytics to fine-tune pricing and promotion; prioritization of retailer relationships; and commitment to talent development and strategic planning efforts.
Findings from “Winning Where it Matters: A Focused Approach to Capturing Growth,” a collaboration between the GMA, McKinsey & Company and Nielsen, revealed that winning CPG companies are three times more likely to invest in growth channels and the Hispanic market, 50 percent more likely to use pricing optimization tools, five times more likely to view retailer collaboration as a strategic priority, and invest twice as much time in talent development.
“Best-practice sales strategy continues to include heavy investment in emerging channels, an emphasis on customer collaboration and a focus on investing in next-generation capabilities,” said Brian Lynch, senior director, business and industry development for the Washington, D.C.-based GMA. “Specifically, focus on dollar, club and online channels, joint retailer-manufacturer initiatives and time spent nurturing high-potential sales talent all received high marks as particularly effective by survey participants.”
As consumers make more product and brand purchase decisions in-store, shelf performance becomes an area where CPG companies can gain market share, according to the “battle at the shelf” analysis, a new fixture of the annual survey. Often, performance hinges on how well companies manage assortment optimization, with many companies reporting challenges striking the right balance with their efforts in this regard.
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