Winning in challenging markets, and beyondStrategies for consumer product companies |
Given the current state of the global economy, many consumer products industry leaders will have no choice but to focus on the short term around costs, liquidity and even business survival. However, the current economic environment also offers opportunities for companies to reflect on how they are run today and what needs to be different to be prepared for the future. Below are a selection of value propositions to help consumer products businesses navigate and take advantage of the more challenging market conditions they now face.
Read our executive summary and download our umbrella publication 'Winning in challenging markets, and beyond', which provides a comprehensive overview of the current landscape for consumer products companies.
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Supply chain planning Production must be optimised to ensure maximum efficiency and responsiveness. Inventories must be reduced to the minimum levels necessary to support customer service objectives. Distribution must be carefully planned to ensure that the right product is at the right place at the right time and at the right cost – and promises to customers must be met. |
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Supply chain network optimisation Markets and supply bases continually shift; customers forever need additional and more specific services; transportation costs and capabilities evolve; companies merge; technologies advance. Yet through it all, supply chain networks remain relatively static. Most are structured to meet the needs of the past, not the needs of the present and future; they are built around historical products and supply bases. |
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Business planning in challenging markets The current economic climate places unprecedented pressures on executives to understand and then communicate the potential performance envelope for their businesses. Companies that can retain financial stability, access quality information, adapt their operations, and develop and deploy high quality strategies are the ones most likely to be the winners. |
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Portfolio strategy The recession is impacting how much money consumers spend and also the way in which they spend it. Competition amongst consumer-focussed businesses is tough and pressure on margins accentuated. As a result, businesses are under significant pressure to make prudent investments decisions and achieve maximum returns. Being clear about “where to play” is critical in these challenging times. |
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Choosing where to play Deciding where to play and gaining the necessary stakeholder commitment to the investments to be made requires robust, fact based insights into how the landscape of available revenue and profit pools is evolving. |
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Channel strategy Determining the optimal channel mix to serve target consumer segments in each market and how best to support and develop those channels profitably. |
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Shopper marketing Successfully adopting the more shopper centric marketing disciplines that are increasingly important in today’s fragmented and complex media environment. |
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Pricing and promotions Optimising price setting, pricing execution and the returns on investment in trade and consumer promotion activities. |
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Sourcing optimisation Balancing security of supply with cost and providing a platform to reinforce the credentials of the brand through responsible and sustainable resource use. |
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Intelligent rightsizing and workforce transition Reducing costs while maintaining brand and business reputation and retailing skills that will be crucial to future growth. |
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Supply chain finance Improving liquidity and business stability through innovative approaches to funding trade. |
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Reducing HR and people costs Reducing the cost of the HR function while nurturing talent and providing high quality HR services to managers and staff. |
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Achieving sustainable IT cost reduction Delivering enhanced services to the business while setting new level of ambition in IT cost reduction targets. |
