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How CPGs Can Win in the New Age of the Digital Consumer

  1. How CPGs can win in the new age of the digital consumer Creating the E2E Consumer & Customer Experience
  2. A lot changed in 2020 to this… and then to this. We went from this…
  3. It’s time for bold new steps CPGs have embraced digital capabilities, but only to a limited extent. It is often done on a small scale, lacks speed and is restricted to discrete areas of the business. To thrive, a fundamental rethink is required on: • Where to focus • How to enact holistic digital transformation • How to redesign a more responsive end-to-end operating model
  4. CPGs must radically re-think their relationships with both consumers and customers. And they must forego old ways of operating.
  5. 1. Brands aren’t currently bridging the relationship gap. And unlike their digital native rivals, they haven’t yet established a two-way conversation with their consumers. Traditional consumer engagement models are obsolete Challenges facing CPGs
  6. This puts at risk the stability of sales that physical shelves have provided historically, but the riches of data across competitors and channels provides an opportunity to unlock category growth for data driven brands. Digital shelves are up for grabs Challenges facing CPGs 2.
  7. 3. New retail models are providing new services to both shoppers and suppliers. CPGs need to reassess how they engage with customers and redesign their route-to-market and channel strategies to seize new growth opportunities. Retail models are being completely reinvented Challenges facing CPGs
  8. CPGs are stuck in siloes (in both functions and channels). They need the courage to replace legacy models to survive. Old legacy models are stunting growth Challenges facing CPGs 4.
  9. How can CPGs get started? Collaboration alone with retailers, consumers and third-party partners is not enough. CPGs will need to completely rethink how they meet consumer needs, reshape how they work with retailers, and reorient their organizations.
  10. Create a unified brand strategy that establishes a two-way dialogue with your consumers 1.
  11. French company, C’est qui le patron (which translates to “who is the boss”), is designed by its consumers. Their community provides feedback on ingredients, production methods, the quality they want, and the price. Source: “How millions of French shoppers are rejecting cut-price capitalism”, Jon Henley, The Guardian, December, 2019, Verishop has launched a “Shop Party” feature, allowing users to shop online while video chatting with friends. Users can browse products while video chatting, look at each others’ carts, and share feedback and advice. The intent is to create a truly social online shopping experience that brings the fun of shopping with friends into digital channels. Consumer designed products Creating a more social consumer journey
  12. Take a systematic approach to grow your digital consumer market share 2. 61% of consumers were motivated by the pandemic to discover new ways to shop
  13. BrewDog’s solution to the coronavirus lockdown was to create online bar platforms for every one of its 48 UK bars, as well as for its locations in the US, Germany and Australia. The online bars hosted interactive events including beer tastings with the founders, virtual pub quizzes, live music and comedy and merchandise giveaways. Participants could order products from their local BrewDog bar for delivery or click-and-collect. Source: Evening Standard article; BrewDog website Bringing beer lovers “together” online
  14. Rethink your routes to market and customer engagement 3.
  15. A global foods business wanted to reconfigure their route to market (RTM) in the away from home and independent channels. How we helped We used advanced growth analytics to identify white space opportunities and reviewed their current route to market capabilities and operations. • Built a digitally-led, integrated RTM strategy including data-driven partnerships • Optimized B2B with order transfer capabilities • Used a data-led approach to field operations and customer value generation The result A 12% increase in revenue while reducing cost-to-serve by more than 20%. CPG companies that are further along in digitally transforming their sales organizations report top quartile growth Level of embedding Leaders Others Digital route to market Customer & Partner Channel Engagement 27% 32% 26% Customer Targeting & omni-channel servicing 22% 9% Growth through digital, integrated RTM Source: Transform Sales to Grow in Consumer Goods, Accenture, 2020 18%
  16. Switch to a holistic operating model 4. 94% of executives say their operating model puts their organization’s growth and performance at risk due to its inability to keep pace with market disruption
  17. A US-based packaged foods company faced declining core category growth and needed a new approach to growth. With Accenture’s help, the team assessed operations across brands, products, route-to-market, marketing, supply chain, manufacturing and support functions. Accenture developed a roadmap to strengthen the core business while exploring adjacent growth in under-developed consumption occasions, product categories, channels and geographies. And the plan identified operational efficiencies and how to build essential new capabilities. Enabling growth with a new operating model 1. Liquid—Porous structures allow access to people, processes, systems and assets. 2. Joined up—Across functions and capabilities through process and ways of working. 3. Living—Flexible self-organized teams prioritize outcomes. 4. Human—Processes and tools are designed around people. 5. Digitally enhanced—With deep digital skills, humans have “superpowers” from machines/AI. Holistic operations are:
  18. Contact us: Martin Adkins Managing Director, Accenture Interactive Nevine El-Warraky Managing Director, Accenture Interactive Jeriad Zoghby Managing Director, Accenture Interactive Learn more: Visit Disclaimer: This document refers to marks owned by third parties. All such third-party marks are the property of their respective owners. No sponsorship, endorsement or approval of this content by the owners of such marks is intended, expressed or implied. This content is provided for general information purposes and is not intended to be used in place of consultation with our professional advisors. Copyright © 2021 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture. About Accenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services —all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 537,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at