Blog articles about Consumer Packaged Goods
Why do people choose one product or service over another? What needs or objectives are tapped into when you consider buying or recommending one brand over another?
Whether your brand targets consumers or professionals, understanding how decision behavior works and systematically applying its principles can help you build more effective strategies to drive customer acquisition, brand loyalty and continued growth.
We recommend you tap into “habitual” behavior to reinforce positive habits or break the ones that don’t benefit your brand and analyze “deliberate” behavior to assess how, where and when your brand can intervene.
Here we explain how decision-making works and the behavioral steps that are involved in making choices. Read on to learn how leveraging these insights to reinforce or disrupt habits can help your brand grow.
The COVID-19 crisis and the Corona crash are shaking the context for consumer decision behavior. As a result, the context for net revenue management (NRM) has also been disturbed for consumer goods companies.
Companies must adapt revenue strategies to the new situation, at the same time as consumers are adapting to “the new normal.” To be successful, you need to anticipate and influence consumer decisions in a changing environment. This holds true in times of normalcy, but especially during the recession to come.
Although the COVID-19 crisis is not yet over, learnings from previous crises and knowledge of consumer behavioral frameworks mean we can map out consequences for net revenue management strategies.
So, what should you consider in planning your next moves?
Consumer behavior is usually embedded in daily habits; sometimes consumers make more deliberate decisions. COVID-19 triggered a dramatic change in the context of consumer decision making: Many daily habits have come to an abrupt halt; more decisions are now deliberate.
Your company is probably feeling the immediate impact of these behavioral shifts and you may be charged with adapting short-term marketing strategies accordingly.
COVID-19 has radically changed the context in which we make decisions, disrupting many habits. No one can predict if the behavioral shifts will last or what the recovery period will look like.
Online shopping and media consumption will undoubtedly continue to grow (as it was pre-COVID-19) … but to what degree? Will brand-loyal consumers who switched brands due to limited stock eventually return?
FMCG revenue professionals are challenged with creating a win-win-win situation: Provide consumers with the right product at the right price, create value with retail customers in challenging times, all while delivering top and bottom line growth. And all of this while working within legal limits in countries that prohibit resale price maintenance.
Leading consumer goods companies are increasingly adopting a net revenue management (NRM) approach to tackle this challenge. By applying a structured approach to analytics and encouraging open-mindedness, companies like Unilever are maximizing their net revenue and profits.
Exploring a virtual shelf approach to launching a premium brand
In 2018, Nestlé signed a $7.2 billion deal to market, sell and distribute Starbucks’ packaged products outside of the company’s cafes, providing Starbucks at home. With high brand recognition, Starbucks would clearly make an impact at the coffee shelf. However, one of Nestlé’s European insights team saw an opportunity to rethink the crowded grocery store shelf to drive even more growth – for Nestlé and its customers.
Albert van Meeteren, Nestlé’s Head of Consumer and Shopper Insights and Analytics, wanted to see how they could best launch Starbucks in a “new and innovative” way in Dutch supermarkets by focusing on in-store execution.
Exploring a data-fusion approach for holistic pricing decisions
Whether you’re introducing a new SKU or reacting to a market change, managing your pricing strategy can often feel like a complicated balancing act. You know solid revenue decisions should be grounded in sound data, but that input often comes from a variety of sources and stakeholders.
Launching a premium product means convincing consumers to trade up, without driving them to the competition.
This is the exact challenge faced by the Global Insights Manager at a best-selling charcoal brand as she prepared to launch two new premium products.
The brand offers various charcoal products and sauces which have been synonymous with American BBQs for decades. As consumer grilling tastes have evolved, the brand recognized there were unmet needs among the most enthusiastic grilling aficionados.
The result was the development of new premium products. However, this innovation posed its own set of marketing challenges. The original product remained popular; the brand couldn’t risk putting claims on the premium packaging that would negatively impact its baseline product.
From a single corn flake to a global presence, Kellogg’s has been fueling better days for more than a century. Today, the food-manufacturing giant markets 24 brands, in 180 countries. The sheer size of Kellogg’s, coupled with today’s changing insights environment, created a daunting challenge for the company’s global insights team last year.
How could they decrease turnaround times for claims research, standardize approaches for comparability of results, while extracting better insights and decreasing costs all at the same time?
What you missed from Quirks Brooklyn ‘BYOB (Build your online brand)’ session
“How many of you have purchased alcohol online? What about groceries?” This is how Lisa Caro, Director of Insights & Analytics for Emerging Opportunities, Constellation Brands, kicked off her remarks to a room full of insights professionals at The Quirk’s Event in Brooklyn. The responses to those two questions reflect the challenges and opportunities that alcohol brands face in eCommerce.