Consumers continue to use digital commerce to purchase a range of products while demanding more transparency in their interaction with companies. Cost pressures, limited shelf space in major supermarkets and the threat from new business models will challenge many local consumer product companies.
We recognise that changing consumer demands are challenging the strategies of many firms in the consumer goods industry. Our approach is based on helping our clients understand the competitive landscape they face and proposing tailor-made, contextual strategies.
Consumer goods firms risk falling into a position of competitive disadvantage without an understanding of how consumer preferences are changing, and how this impacts their competitive position in the market. We help clients understand which market segments and categories are attractive, how to build capabilities that develop competitive advantage, and assist them with strategic planning and implementation in the long-term.
Operating Model Design
Firms are faced with decisions related to their manufacturing, product development and portfolio management components of their operating model. We help clients develop the organisational structure, processes, technology and culture across these components that will help create competitive advantage. Important in this process is the level of investment capital and research required, as well as the expected returns from this investment.
Improving performance starts with understanding the fundamental drivers of value in the organisation. We assist clients in understanding the drivers of revenue, cost and capital, and how their strategic and tactical decisions will impact their long-term performance. Our approach brings together the initiatives for improvement into a comprehensive program of work with detailed implementation plans.
M&A enables consumer goods firms to either consolidate or expand into new markets or acquire firms that can fill gaps in capabilities. We assist clients in structuring integration programs, clearly define the program scope and targets, and adopt the appropriate integration methodology and planning approach. We can also assist during the transaction phase and take on the role of a clean team to help with critical pre-merger planning.
Consumer product companies face a challenging and dynamic marketplace. Consumers are more empowered through digital channels and social media and can change and adapt their preferences and requirements at a rapid pace. On the supply side local manufacturers are faced with competition from imports and must improve efficiencies and product innovation to remain competitive.
The overall consumer goods market is currently characterised by the following: