How CPG Brands Succeed (and How CPG Brokers Can Help)

In 2016, McKinsey’s Consumer Packaged Goods Practice finished and released its latest customer and channel management survey. Just as it has done since 1978, the survey looks at the practices of numerous CPG businesses. 

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McKinsey’s survey assesses what companies that got higher sales (in their terminology, “winners”) did to outperform their less profitable peers (“others”). Since they came out, the survey’s findings have been borne out by further observation and analysis. Here are a few things that winners do and how CPG brokers can help their own clients do them.

 They Find Areas Where They Can Grow

The best CPG brands find their strengths and play to them. How do they do this? They get as much data as they possibly can from retailers. This includes:

• Sales by consumer segments and demographic groups

• Data on coupon redemptions and loyalty card usage

• Sales in different channels (major retailers, regional stores, etc.)

Once they have this data, successful brands use it to find and take advantage of potential growth areas. Many times, this will involve integrating or aligning the efforts of their sales and marketing teams.

The best CPG sales and marketing agencies can supply their clients with comprehensive, actionable data and analyses. This would include:

• Opportunities, threats and overall health of product categories

• Information on competitor activity (item assortment, promotions, etc.)

• Effectiveness of in-store features, displays and other promotions

• Recommendations on assortments, including flavors and sizes

• Tracking of product distribution and recommendations for improvement

• Sales forecasting

• Details on new categories, processes and other industry trends

 They Cultivate and Nurture Retailer Relationships

The 2016 McKinsey survey also found that the most successful CPG brands actively collaborate with retailers. 40% of the “winners” have at least three “top-to-top” meetings with category-management leads and CEO each year.

An established, respected CPG marketing agency will have strategic partnerships with major retailers. It can use those connections to help brands form and maintain strong, mutually beneficial relationships.

 They Take an Omnichannel Approach

Last but not least, winning CPG companies invest in omnichannel retail. This means selling online through sites like Amazon, Kroger.com and Walmart.com as well as their own e-commerce websites.

A first-rate food or CPG broker will have resources that enable clients to take this omnichannel approach. Not only that, they can even assist with developing supply chain solutions, which a majority of CPG executives interviewed by McKinsey in 2017 cited as the biggest problem.

Impact Group provides CPG clients in the United States with a comprehensive suite of sales and marketing services. The company has a proud history of helping brands of all sizes reach unprecedented levels of growth.

 About Impact Group

Impact Group offers customized, highly effective CPG marketing solutions to clients across the US. The company has teams devoted to fresh and natural food broker services as well as emerging brands.

For additional information, visit Impactgrp.com

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