Uncertainty has been the common theme in 2020 across most global industries. CPG brands haven’t been the exception. Economic insecurity has led to price sensitivity, Supply Chain operations have been compromised because of local and regional lockdowns, and consumers are shopping online more than ever before.
Forbes stated, “companies are forever walking the line between giving teams complete control and visibility over spend and allowing employees to move quickly without friction to help the business grow”. But today, moving quickly is a non-negotiable trait. It’s also important to note that operations aren’t centralized anymore. The days where full teams were located in the same office and all working the same hours are long gone.
CPG brand managers and executives are looking for innovative and creative ways to renew growth and boost profitability. Procurement departments across CPG companies are facing new challenges and opportunities. For many brands, it’s time to reassess the way they do business. Systems will have to accommodate flexibility and speed on a larger scale if they’re going to survive through a pandemic. The time to transform procurement is today.
The need to increase supply chain sustainability and mitigate supplier risk in the wake of COVID-19 has demanded CPG brands to be resilient and accommodate uncertainty into their equation. Marcos Eloi, Kraft Heinz Chief Procurement Officer, stated, “We identified an urgent need to elevate our procurement capabilities to address unexplored opportunities, enhancing our sourcing results while strengthening our relationships with key suppliers”.
Because of the COVID outbreak, companies like Kraft Heinz, General Mills, Mondelez, and Campbell Soup Co, have seen many of their products demand spike due to populations mostly staying indoors and cooking more. While surging demand is considered a “happy problem,” brands are worried their image and reputation might suffer if they can’t keep up with demand and consistent communications and customer service.
Evaluating existing partnerships will be critical. Prioritizing your brand’s needs and being honest about it will lead your company to choose the best suppliers that accommodate your needs and deliver under the circumstances you actually need them to.
Why some brands fail, don’t be one of them.
Being inauthentic will cost you e-v-e-r-y-t-h-i-n-g! Consumers are demanding genuine and meaningful content. Don’t try to jump on every trend out there. If it doesn’t align with your true values and practices, it will soon show.
When a brand lacks a competitive differentiation or, even worst, fails to communicate its actual competitive attributes, things can start going south. Refrain from telling mediocre brand stories and don’t you dare break your brand’s promise, even if it might cost you a little more right now, trust me it will benefit you in the long term. Losing touch with your customer will not do you any favors.
Invest in solidifying your brand communication strategy. Your social posts providing from different platforms should look like they belong to the same family. Having a chaotic brand architecture will confuse your employees and customers.
Agencies and CPGs, where does their relationship stand?
Agencies of record (AOR) don’t have that much room to play & plan nowadays. Brands need to count on flexibility, but most of all, speed. Implementation and design adaptation agencies must be faster than ever to comply with emerging challenges. Branding must be agile and responsive, and executives and brand managers must act with precision.
Planning in Omnichannel terms will allow the Adaptation of global and regional campaigns to be more organic and maintain consistency on all brand’s touchpoints. Communications must live among all platforms and be integrated into the brands’ databases to measure consumer engagement and campaign effectiveness. These practices will also have to be translated into packaging design, POS, social media channels, and products on e-comm platforms. Ideally, they should share the same brand identity,
This sounds easier than it actually is; speed to market is a matter of executing and being live with marketing campaigns across various challenges simultaneously. Launching new products is a matter of fast track action.
CPG companies are bringing back their In house Agencies, but these measures have their limitations. While companies can maintain lower costs in the short term, it tends to not be sustainable in the long term. Creatives can quickly become biased while always working on the same accounts.
Speed in Content Generation
At 121, we adapted fast to a global shift in how we do things, as we are well known for delivering first-class design for Packaging, POS, and Web Solutions. Social and e-comm platforms demand for content surged in a matter of weeks. Having the right partner to execute on short notice is hard to come by.
Creativity shouldn’t sacrifice speed. We have armies of Wowrrior designers and video specialists ready to deliver first-class content. CGI, Video Production, IG Filters, Motion graphics always ready when you need them.
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Last Edited on May 25, 2018