As we move into ‘the next normal’, there is still significant uncertainty about the future, as economies begin recovering at different rates. In consumer goods, Revenue Growth Management is an essential lever companies can use to help navigate these shifting market dynamics, and strategies involving price, promotions and mix can help businesses adapt to these changes and leverage them to their advantage.
However, it’s important to bear in mind that there’s no one-size fits all approach. External challenges impact each business differently, with different brands, countries, and markets. Ultimately, each business will have different consumers from the next. So, don’t attempt to do it all, focus on what you can control, and prioritise areas where you have robust consumer data or areas you feel confident in. Then, you can begin thinking carefully about the right toolkit and levers to act on.
Consider shopper frequency
As restrictions limit movement with many staying at home, the shift to the weekly shop has become a prevalent trend since the first lockdown. As manufacturers, it’s crucial to adapt to this and create the right pack structure that serves the needs of the consumer.
Adapt to online
Some consumers have taken their weekly shop online, a trend which continues to grow. Again, getting the right pack formats and structures is crucial to catering to the online shop. Brands must also tailor their offering to meet the needs of differing retail models such as discounters and Amazon Fresh, which are also growing in popularity.
Understand consumer occasions
As lifestyles adapt, consumer occasions change, and so do the roles certain products play – it’s crucial to maximize these opportunities where possible, whether they stick in the long term or not. With more mouths to feed at lunchtime, brands with a suitable range can leverage this to their advantage. Similarly, categories can take advantage of consumers looking to reward themselves, for example premium alcohol or sweet treats. The result is a polarizing effect – find your product niche to avoid falling into the ‘no man’s land’ category.
Consider your value proposition
The impact of the pandemic on lower income households means that competitive pricing, EDLP and conveying value are all strategies brand should be looking to deploy if they occupy this space. Despite this, value can actually be defined as the benefit that shoppers and consumers derive from a product, their willingness to pay. So, consider what your consumers seek, how their lifestyles have changed and what things they value and don’t value about your products.
Over the last year the revenue management space has focused on reactive strategies for the short term, adapting to the challenges presented by the pandemic. However, it’s important for companies to get the right balance and consider the long term too. How are you setting yourself up for future success, with retailers and with the brands you work on?
