Bartek (Bart) Burkacki’s Post

Is upselling (cost-of-living-stressed) consumers with premium innovations the optimal way to grow for #CPG players? At a time all #FMCG companies are doubling down on organic growth, most are accelerating their innovations machine, often with premium priced innovations. That could end up being a large resources misallocation (dilution of scarce shelf space, marketing investments, supply chain & organizational resources) & a major strategic misstep for many At a time the largest threat is decline in purchasing power, more premium priced innovations will just not cut it The painful truth is that too many FMCG marketing organizations do not own the 4Ps and are solely focused on ‘global innovations/ marketing campaigns’. Then the organizational bias/ 'default setting' is to try to solve all brands’ problems with those two levers (global product innovations & media) In the current context, those could be deadly mistakes We continue to be amazed by the little resources that get into: i) Generally, understanding rigorously Consumers, esp. their barriers/ drivers/ triggers/ 4Ps preferences ii) Specifically understanding what: - The Heavy Consumers have in common/ try to recruit more of them - Are the addressable lapse/ non-users’ barriers iii) Leveraging strategic segmentation to identify under-served segments & craft ownable strategies to address them iv) Rethinking how to recruit/ retain Consumers with innovative marketing/ point of market entry strategies Etc… Marketing leaders need to have a holistic view on what are the levers across all the 4Ps that will drive the most disruptive return There will be no sustainable (volume) growth outperformance in many FMCG organizations without strenghtening the Marketing Function & giving them formally full 4Ps ownership. That goes against the last decade Doxa but it is essential 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗼𝘂𝗿 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗼𝗻 𝗵𝗼𝘄 𝘁𝗼 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝗰 (𝘃𝗼𝗹𝘂𝗺𝗲) 𝗴𝗿𝗼𝘄𝘁𝗵 & 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝘃𝗮𝗹𝘂𝗲, 𝗿𝗲𝗮𝗱 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: FMCG CEOs: Managing Finally For Sustainable (Volume) Growth Or How To Stop Shrinking To Glory - From ZBB to ZBG® (Zero-Based-Growth) https://lnkd.in/eG62xkNE To receive the corresponding deck, pl. leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #strategy Frederic Fernandez & Associates

Too many innovations and not enough innovation. 📌 Constant new lines, product variations and diversification, particularly during difficult financial times for consumers feels crazy to me. There's too much risk for the consumer. Better to get them to buy more/repeat purchase of what they know and love - focus on best sellers and improve brand/product loyalty.

Are premium innovations all the #CPG players have to offer to (cost-of-living-stressed) consumers? At a time all #FMCG companies are doubling down on organic growth, most are accelerating their innovations machine, often with premium priced innovations. That could end up being a large resources misallocation (dilution of scarce shelf space, marketing investments, supply chain & organizational resources) & a major strategic misstep for many At a time the largest threat is de-consumption, more premium priced innovations will just not cut it The painful truth is that too many FMCG marketing organizations do not own the 4Ps and are solely focused on ‘global innovations/ marketing campaigns’. Then the organizational bias/ 'default setting' is to try to solve all brands’ problems with those two levers (global product innovations & media) In the current context, those could be deadly mistakes We continue to be amazed by the little resources that get into: i)  Generally, understanding rigorously Consumers, esp. their barriers/ drivers/ triggers/ 4Ps preferences ii) Specifically understanding what: - The Heavy Consumers have in common/ try to recruit more of them - Are the addressable lapse/ non-users’ barriers iii) Leveraging strategic segmentation to identify under-served segments & craft ownable strategies to address them iv) Rethinking how to recruit/ retain Consumers with innovative marketing/ point of market entry strategies Etc… Marketing leaders need to have a holistic view on what are the levers across all the 4Ps that will drive the most disruptive return There will be no sustainable (volume) growth outperformance in many FMCG organizations without strenghtening the Marketing Function & giving them formally full 4Ps ownership. That goes against the last decade Doxa but it is essential 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗼𝘂𝗿 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗼𝗻 𝗵𝗼𝘄 𝘁𝗼 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝗰 (𝘃𝗼𝗹𝘂𝗺𝗲) 𝗴𝗿𝗼𝘄𝘁𝗵 & 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝘃𝗮𝗹𝘂𝗲, 𝗿𝗲𝗮𝗱 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: FMCG CEOs: Managing Finally For Sustainable (Volume) Growth Or How To Stop Shrinking To Glory - From ZBB to ZBG® (Zero-Based-Growth) https://lnkd.in/eG62xkNE To receive the corresponding deck, pl. leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #strategy Frederic Fernandez & Associates

Is premiumization of (cost-of-living-stressed) consumers with incremental innovations the best way to grow for #CPG players? As all #FMCG companies are doubling down on organic growth, most are accelerating their innovations machine, often with premium priced innovations. That could end up being a large resources misallocation (dilution of scarce shelf space, marketing investments, supply chain & organizational resources) & a major strategic misstep for many At a time the largest threat is de-consumption, more premium priced innovations will just not cut it The painful truth is that too many FMCG marketing organizations do not own the 4Ps and are solely focused on ‘global innovations/ marketing campaigns’. Then the organizational bias/ 'default setting' is to try to solve all brands’ problems with those two levers (global product innovations & media) In the current context, those could be deadly mistakes We continue to be amazed by the little resources that get into: i) Generally, understanding rigorously Consumers, esp. their barriers/ drivers/ triggers/ 4Ps preferences ii) Specifically understanding what: - The Heavy Consumers have in common/ try to recruit more of them - Are the addressable lapse/ non-users’ barriers iii) Leveraging strategic segmentation to identify under-served segments & craft ownable strategies to address them iv) Rethinking how to recruit/ retain Consumers with innovative marketing/ point of market entry strategies Etc… Marketing leaders need to have a holistic view on what are the levers across all the 4Ps that will drive the most disruptive return There will be no sustainable (volume) growth outperformance in many FMCG organizations without strenghtening the Marketing Function & giving them formally full 4Ps ownership. That goes against the last decade Doxa but it is essential 𝗧𝗼 𝗸𝗻𝗼𝘄 𝗺𝗼𝗿𝗲 𝗮𝗯𝗼𝘂𝘁 𝗼𝘂𝗿 𝗽𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲 𝗼𝗻 𝗵𝗼𝘄 𝘁𝗼 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝗰 (𝘃𝗼𝗹𝘂𝗺𝗲) 𝗴𝗿𝗼𝘄𝘁𝗵 & 𝗰𝗿𝗲𝗮𝘁𝗲 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝘃𝗮𝗹𝘂𝗲, 𝗿𝗲𝗮𝗱 𝗼𝘂𝗿 𝗹𝗮𝘀𝘁 𝗽𝘂𝗯𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻: FMCG CEOs: Managing Finally For Sustainable (Volume) Growth Or How To Stop Shrinking To Glory - From ZBB to ZBG® (Zero-Based-Growth) https://lnkd.in/eG62xkNE To receive the corresponding deck, pl. leave your name in comment To get all our insights, follow us/ subscribe to our CEOs newsletter: https://lnkd.in/eR8vDpvE #strategy Frederic Fernandez & Associates

Even Though D2C is cool and flashy as it looks since the Shark Tank season but Even Today India Prefers to buy offline that's the reason why Dmart and Other supermarket Are successful business today In India. even D2C brands which have premium Target audience at cream layer should not neglect offline distribution. Maybe that's the reason many Sharks have offline stores too eg Lenskart ; Sugar cosmetics ; Cardekho etc. What are your thoughts?

One of the key insights I teach in our Crew Strategy School is the importance of a “focused regional strategy”. You would be surprised at how many brands and companies get this wrong. 75% of Food & Beverage brands in the US are in the Emerging and Growth stage. This means they have less than $10M in topline revenue and are typically spending $500K or less in marketing. At this stage, there is not a lot of room for error. A brand has to gain Household Penetration (consumers have to buy it at least once) and demonstrate velocity on shelf (more consumers are buying and repeating their purchase). Proving the business case and ensuring strong margins by region is the best avenue to do this. Here’s some other key benefits of a Focused Regional Strategy. 🏪 Enables Retailer Focus for Sales, Brokers and Distributor Partners. Every region has specific retailers and distribution partners. Proving results, working out logistics, and maintaining focus enables better execution. This executional learning will be key as you prepare to expand. 🚚 Proximity to Production to reduce Freight. Staying focused in a region reduces freight costs that can help your margin in the early stages of growth.   💡 Provides Access to Actionable Data. For example, NielsenIQ will have specific regional POS data for categories that is less expensive and more detailed for your situation enabling better decision making. 👫 Helps provide Consumer Concentration and more efficient marketing spend. Regional strategies enables you to have a “local” benefit early on, it focuses dollars enabling more frequency of communication and better connection with consumers that builds on itself. 💰 Ability to build a positive sales story that can be used to expand to new regions. If you can’t win in your backyard, you’re not going to win anywhere else. Build a strong business case of growth and profitability and then use that case study and approach when you expand into new regions. 💸 Reduces risk and financial exposure to the organization. It’s easy to spend money quickly trying to chase growth but it’s foolish. In the early stages of a brand you are going to learn, tweak, and change activities often as you figure out what works for your audience and category. Smaller spends, that are smarter, provide the organization with less risk and helps cash flow. I hope this helps as you grow and execute. If you have other helpful tips and approaches, please share them or if you need help in your marketing - talk to us. We’re better together. #CPGmarketing #marketing #strategy Crew Marketing Partners

How are we solving real problems of Sales & growth? To find out connect with us... ProReach Sales Academy Sunil S Devdhar #Sales #Growth #Expansion #opportunties #Channels #Distribution #Sellingsmart #ProReach

"The big players in the FMCG industry are not effectively utilizing digital strategies, which is why they are performing poorly," Shivakumar pointed out. Furthermore, they are all engaged in modest, gradual actions, he continued. "And they believe they are performing exceptionally." How can a marketer maintain relevance? Shivakumar stated that the digital medium is unquestionably the most appropriate course of action. There is indisputable certainty regarding that. Additionally, they must rapidly acquire knowledge. They are also required to expeditiously eliminate and expunge their previous experiences. Sivakumar believes the FMCG industry, or consumer packaged products sector, must comprehend new business models and market entry methods. In the past, FMCG marketers' biggest edge was distribution muscle. Except in rural areas, FMCG companies do not benefit from a large distribution network. "That lesson must be promptly discarded," he said. "I believe that penetration has been completed and finalized in the majority of market segments." Individuals should prioritize the action of consuming. "As added, "How can I effectively stimulate consumption?" is a question that each marketer must consider. This writeup is based on the article published at https://lnkd.in/d6UsAfM (The big boys of FMCG are sleeping at the controls: Shiv Shivakumar)

100% increased their marketing spend in Q3. But alone it will not cut it In H1, 71% of the world largest listed FMCG companies that reported Advertising & Promotion (A&P) increased it vs YAG In Q3, this number was 100% Only way to accelerate drastically & sustainably (volume) growth is to follow a holistic & systematic approach to: => Turnaround starting with rigorous portfolio management & operating model adaptation: https://lnkd.in/ePej9HF3 => Repeatable growth model (Zero-Based-Growth@): https://lnkd.in/eeFKK4fa => Differentiated strategic approach to highest share of growth areas requiring strategic adaptation: Ecommerce (https://lnkd.in/e5QFJb4F) & Emerging Markets (https://lnkd.in/ePPdanup) => High ROI M&A: https://lnkd.in/ewQN8udK There is no shortcut to greatness In the current context, we predict that an increasing number of FMCG companies will increase A&P and not see much impact on their net revenue crashing their EPS & defaulting to aggressive cost-cutting, ie. to 'shrinking to glory' Exciting & decisive times More on the below 𝐅𝐌𝐂𝐆 𝐂𝐄𝐎𝐬: 𝐐𝟑 𝐑𝐞𝐬𝐮𝐥𝐭𝐬 𝐈𝐧 𝐑𝐞𝐯𝐢𝐞𝐰 - 𝐀 𝐇𝐢𝐬𝐭𝐨𝐫𝐢𝐜 𝐖𝐚𝐯𝐞 𝐎𝐟 𝐓𝐨𝐩-𝐋𝐢𝐧𝐞 𝐌𝐢𝐬𝐬𝐞𝐬 𝐃𝐫𝐢𝐯𝐞𝐧 𝐁𝐲 𝐓𝐡𝐞 𝐄𝐧𝐝 𝐎𝐟 𝐓𝐡𝐫𝐞𝐞 𝐒𝐮𝐩𝐞𝐫-𝐂𝐲𝐜𝐥𝐞𝐬 - 𝟐𝟎 𝐊𝐞𝐲 𝐌𝐞𝐬𝐬𝐚𝐠𝐞𝐬 𝐈𝐧 𝟐𝟎 𝐂𝐡𝐚𝐫𝐭𝐬 https://lnkd.in/e8nF7XFG 𝗧𝗼 𝗴𝗲𝘁 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀, 𝗳𝗼𝗹𝗹𝗼𝘄 𝘂𝘀 & 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝗼𝘂𝗿 𝗙𝗠𝗖𝗚 𝗖𝗘𝗢 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿: https://lnkd.in/ea4gy65y 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: FF&A solves the most complex strategic problems of the world largest FMCG companies across Corporate Strategy, Organic Growth, Digital RTM (Ecommerce, DTC, EB2B) and M&A. 14 out of the world 20 largest FMCG companies are repeat Clients (more on FF&A website: https://lnkd.in/dc6jY4Qp) #fmcg #cpg The Coca-Cola Company PepsiCo Procter & Gamble Unilever The HEINEKEN Company Danone Carlsberg Group AB InBev Henkel Reckitt Haleon Opella Bayer | Consumer Health Kenvue Mars Ferrero Mondelēz International Lindt & Sprüngli JDE Peet's General Mills Kimberly-Clark Essity Diageo Pernod Ricard Campari Group L'Oréal The Estée Lauder Companies Inc. Coty Beiersdorf Coca-Cola HBC Coca-Cola Europacific Partners Campbell's FrieslandCampina Kellanova Church & Dwight Co., Inc. Colgate-Palmolive Nestlé Edgewell Personal Care

𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐒𝐚𝐥𝐞𝐬: 𝟏.𝟓 𝐂𝐫 𝐏𝐞𝐫 𝐌𝐨𝐧𝐭𝐡 𝐓𝐚𝐫𝐠𝐞𝐭 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞: 𝟏.𝟓 𝐂𝐫 (𝐭𝐨 𝐫𝐞𝐚𝐜𝐡 𝟑 𝐂𝐫) 𝐏𝐞𝐫 𝐌𝐨𝐧𝐭𝐡 𝐂𝐫𝐚𝐜𝐤 𝐭𝐡𝐞 𝐒𝐧𝐚𝐜𝐤𝐢𝐧𝐠 𝐂𝐨𝐝𝐞: 𝐑𝐞𝐚𝐜𝐡 𝐘𝐨𝐮𝐫 𝐓𝐚𝐫𝐠𝐞𝐭 𝐌𝐚𝐫𝐤𝐞𝐭 & 𝐒𝐤𝐲𝐫𝐨𝐜𝐤𝐞𝐭 𝐘𝐨𝐮𝐫 𝐒𝐚𝐥𝐞𝐬.. Challenges: Market Saturation: The FMCG snacking market is competitive. Increasing market share requires strategic differentiation. Price Sensitivity: Consumers are often price-sensitive, so significant price hikes might backfire. Distribution Network: Expanding reach requires strengthening distribution channels or exploring new ones. Marketing & Promotions: Effective marketing campaigns are crucial to create brand awareness and generate demand. Strategies (based on the saving example): Product Innovation: Develop new, unique snack options that cater to evolving consumer preferences (healthier, organic, etc.). Cost Optimization: Analyze production and distribution costs to identify areas for efficiency gains without compromising quality. Targeted Marketing: Identify and target specific consumer segments with focused marketing campaigns. Leverage digital marketing for wider reach. Distribution Channel Expansion: Explore new distribution channels like online marketplaces or convenience stores to reach a wider audience. Strategic Promotions: Implement strategic promotions (discounts, bundled offers) to incentivize purchase and drive sales volume. Timeframe: The timeframe to achieve a 100% sales increase depends on various factors like the effectiveness of implemented strategies and market response. A realistic timeline could be 12-24 months, but significant improvements might be seen sooner. #fmcg #marketingstrategy #salesgrowth #innovation #cpg