Bookmark Email Print page

Growth and revenue for consumer packaged goods

While the current market crisis affects each segment of the CPG industry in different ways, it would be a terrible mistake to forget about the growth opportunities and the importance of revenue protection. There are unique opportunities for M&A, you can capitalize on the vulnerability of others and steal market share. At the same token you need to make sure protecting your own customers and talent.

With the economic confidence being at historical low and scarcity of resources it is essential to understand and own your revenue and profit pools.

How can Deloitte help you navigate

1. Choosing where to play: Deloitte value compass

To provide a solid basis for decision making and to channel precious investment capacity, consumer products companies need more dynamic and relevant models and data analysis to segment, understand and track the evolution of their markets.

Probing questions from the business:

  • Where should we prioritize our investments in brands, channels and key accounts?
  • How big are the current revenue and profit pools and how are they changing?
  • How do these revenue and profit pools break down between geographies, channels, consumer segments, occasions and product formats?
  • How are we performing in terms of value capture relative to competitors and to our strategy

Deloitte has designed the Deloitte Value Compass allowing each business to navigate the changing landscape. The Deloitte Value Compass enables better informed decision making about “where to play”. This may involve relocating investment refocusing resources, or simply making minor adjustments in market focus to capture significantly more value.

The Deloitte Value Compass brings together multiple data sources, in-depth industry analysis and insight and a range of well informed economic and market scenarios.

Please contact Koen De Staercke for more information

2. Put your customer first

Trends are slightly different depending on the sub-segment you are operating in, but the overall trend resulting from this economic downturn confirms: a reduced customer spending and a recognized impact on the customer’s loyalty, client profitability and servicing of clients in a profitable way. Consumers are inclined to scrutinize each purchase more closely, particularly in terms of branded vs. private label products. CPG companies will need to clearly differentiate their products from competitors’ if they hope to grow (i.e., steal) market share in 2009.

A series of different challenges that will require action without damaging potentially a customer relationship companies

Deloitte supports CPG companies in defining a highly effective Customer Relationship Management strategy allowing a constant monitoring, measuring and managing consumers and their changing behavior and expectations.

Please contact Koen De Staercke for more information

3. Pricing and Profitability Management 

At the onset of an economic downturn, a company’s traditional reaction is to focus on controlling costs, retaining their largest customers, and hoping to ride out the storm.

At best, this is half a strategy. Companies that focus on revenue, pricing and overall profitability can survive and even thrive during a recession, but only if they go about it in an effective way. A foundational understanding of the business and visibility into transaction level margin performance are required to make the right decisions.

Deloitte can help building sustainable cross-functional capabilities to effectively set and capture prices. Elements of pricing for value include: developing the optimal pricing strategy, executing effectively the pricing policies, measuring and controlling at the transactional level and aligning technology with pricing processes

Please contact Yvo Vandeweyer for more information