Consumer Packaged Goods

We scout global growth opportunities and develop strategies to help consumer goods companies meet the challenges of emerging markets.

Over the course of the next decade, the global face of the consumer industry will change dramatically. Emerging markets will continue to see spectacular growth, both in regard to new shoppers and to per capita spending. We work with consumer packaged goods companies to develop emerging market priorities and strategies, helping them capture their share of this unfolding opportunity.

Our teams develop fact-based strategies for clients entering new markets, often drawing upon proprietary tools and data. Once companies have figured out where to play, we apply emerging market strategy development to help them define the business models, value propositions, and capabilities they need to win locally.

We help CPG companies across all elements of the marketing mix to create tangible value for consumers based on actionable insights into consumer needs.

In more than 350 marketing and sales studies conducted over the past five years, we have helped clients make sense of the data they possess, derive meaningful insights, and develop marketing strategies that create tangible value for consumers as well as sustainable sales growth.

We help clients develop specific marketing approaches to drive value in their respective regions, brand portfolios, product categories, and competitive environments. Depending on the challenge, our support may include the following:

• Branding

We consider brands our clients’ biggest assets and help them develop relevant and distinctive brand strategies. We help CPG companies build and sustain strong brands to create lasting bonds with consumers, customers, employees, and investors, driving higher sales and more stable profits.

• Digital excellence

We help clients understand the mindset and the behavior of today’s digital natives and carefully weigh potential changes to the marketing mix. We have the experience and the tools to help CPG companies attain online marketing excellence, make the most of social media platforms, and actively manage digital ROI.

• Consumer insights

We help clients apply needs-based research and segmentation techniques that get to the real drivers of consumer behavior and help identify the most promising target groups. Our experts work with client data to move from data mining to actionable insights.

• Capability building

Our marketing consultants draw upon a range of tools and training programs to help CPG companies bring out the best in their in-house marketing teams. We apply diagnostic tools for assessing marketing capability and conduct hands-on workshops. We work with our clients to design marketing organizations and processes that support business objectives.

We help increase margins through operational excellence without compromising customer or consumer satisfaction.

We cover all critical aspects of operations in the consumer goods industry, including operations strategy, supply chain management, manufacturing strategy, lean operations, procurement, and design to value. Services include cross-functional margin management as well as functional deep dives. We serve both regional and global clients, and we integrate our efforts with their overall corporate strategies.

In response to consumer demand and competitive pressure, packaged goods companies call on their operations functions to “do more with less.” At the same time, operations need to stay agile to be able to support innovation and manage complexity. We help our clients achieve these goals in six core areas:

• Operations strategy

In our strategic work, we encourage clients to take an end-to-end view and make operations more than just a cost center. We work with leading consumer goods players to define long-term operations transformation journeys, and we help them build strategic capabilities that lead to commercial growth.

• End-to-end supply chain

We help clients optimize the flow of goods from manufacturing to retailers through segmentation, better planning, the application of lean principles, and increased collaboration with retailers. These efforts typically result in higher service levels, leaner inventories, and lower costs.

• Manufacturing and sourcing strategy

Our manufacturing experts work with consumer goods companies to build manufacturing networks that are flexible, responsive, innovative, and resilient. We empower clients to hedge and arbitrage the volatility of costs, material, demand, and exchange rates.

• End-to-end operational excellence

We apply lean principles within and beyond manufacturing, supporting our clients’ efforts to transform their operating system, management infrastructure, and capabilities. Lean transformations typically result in lower costs, higher flexibility, and more efficient back-office functions.

• Next-generation procurement

To offset the effects of commoditization, we support our clients with broad category strategies that take a total cost of ownership perspective to sourcing. Our services include risk management, lean sourcing, and value chain optimization in collaboration with suppliers.

• Design-to-value

Our design-to-value approach integrates consumer needs, competitive intelligence, and supplier insights. Working across functions, we prepare our clients for the ever-increasing cost pressure they encounter, especially in emerging markets.

We help consumer packaged goods companies optimize organizational performance to support the execution of their strategic and operational agendas.

Following several decades of successful global expansion, many consumer packaged goods (CPG) companies now find themselves managing a wide array of products, brands, categories, and channels. Many of them also serve diverse customer segments in multiple countries worldwide. As a result, their organizational structures tend to be more complex than those of companies in other industries. This also means that organizational excellence is an important source of competitive advantages for CPG companies.

We help CPG executives address key organizational issues, including organization design, transformational change and capability building, human capital, merger management, and organizational insights.

• Organization design

We help clients make fundamental decisions about the design of their organizations, including enterprise-level structure, functional structure, management processes and decision rights, and roles and responsibilities.

• Human capital

We work with clients to unleash the true potential of their people. We offer guidance on talent strategy development, excellence in talent management, and the establishment of a talent culture. We also engage with clients on workforce strategy and planning.

• Merger management

We support clients who are considering a merger or an acquisition on preliminary planning, post-transaction integration, and capability building. We offer guidance on the definition of integration aspirations, the development of an adequate integration approach, and the alignment of organizations and cultures. We also help clients with integration execution and help them build capabilities for future transactions.

We help clients achieve sustainable performance gains by optimizing corporate strategy, category strategies, and financial productivity.

In the past, margin management in the consumer goods industry was tantamount to capturing raw material price declines and introducing ever more profitable products. But increasing competitive intensity, price pressure, and hybrid consumption have put an end to this era. To create sustainable value in today’s environment, consumer goods companies need disciplined strategic planning and focused execution, mid-term as well as long-term. We support leading players in their efforts to gain sustainable supremacy.

Our teams support clients in their efforts to create value now and in the future. Specifically, we work with consumer goods companies to define, review, and optimize strategies at all organizational levels, from the corporate center to individual business units and specific categories. Our global team also provides independent, strategic advice on finance and value creation. We work with clients on topics such as valuation, transaction support, capital markets, treasury, financial analysis and modeling, and strengthening the finance function.

Depending on the challenge, solutions may include the following:

• Corporate strategy/growth

Top-line growth is a key driver of total return to shareholders. We help clients identify and analyze their key drivers of growth relative to competitors. We engage with them on the outlook for future growth in light of their current portfolio, and we help them determine strategic actions to improve their growth trajectory. We also help clients understand and reap the benefits of scale.

• Category strategy

We help manufacturers determine the optimal category strategy for their portfolio. Guiding questions include: What categories are most attractive? What are the category dynamics in these categories? How can further growth in developed categories be achieved?

• Corporate finance

We help clients analyze and understand their performance in capital markets, and we work with them to devise a course of actions to improve their returns in capital markets. We also support our clients at all stages along the continuum of a transaction. Additionally, we help companies optimize the performance of their finance function.

• Industry trends

We help clients understand the complex dynamics in the global consumer and retail environment. Our analyses typically cover macroeconomical development, trends in consumer behavior and demand, and customer dynamics. 

• Risk management

Consumer companies are operating in an environment that is characterized by volatile commodity cost, changes in consumer confidence, and many other dynamic factors. We help clients decide how to operate in this environment and hedge the risk of future challenges.

Drawing on the experience of our business technology consultants, we bring world-class technological expertise to consumer goods clients.

We work with retailers to identify and implement effective and robust solutions. Our work often covers topics such as:

• Enterprise resource planning (ERP)

We help consumer goods companies manage the challenges associated with ERP and the implementation and transformation of related systems.

• Technology in supply chain

In cooperation with our Operations Practice, we help consumer goods companies select and implement the optimal supply chain solutions for their business needs.

• Innovation in technology

We scout the market for new trends and innovations in retail technology, and we provide criteria to help retailers prioritize their investments.

• Technology enablement

Focusing on the intersection of business and technology, we help our clients leverage IT and e-enablement to drive operational transformation, especially in marketing and sales as well as in operations. We constantly update our skills and our expert networks to help clients stay at the cutting edge of technology.