Consumer products

We help companies strengthen their brand proposition in a world of slow growth, price pressure, and shifting retail channels.

Building capabilities for future success

As technology rapidly changes every sector, and small brands have increasing power, PwC’s Strategy& supports many of the world’s leading consumer products companies to overcome challenges and achieve real growth.

We bring an in-depth understanding of industry dynamics, extensive experience along the entire value chain, and broad functional capabilities.

We work with clients around the world on strategy through execution, product and service innovation, manufacturing and supply chain optimization, performance improvement programs, and M&A transformation.

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Building capabilities for future success

2017 Consumer Packaged Goods Trends

2017 Consumer Packaged Goods Trends

Each year, Strategy& looks at the major trends shaping different industries to help you navigate the challenges and seize opportunities.

Shifts in consumers’ budgets and shopping habits are fundamentally changing the market for consumer packaged goods.

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How we can help you

Capabilities-driven strategy

While companies today must understand where the consumer products market is heading, real growth comes from focusing on specific capabilities—the people, processes, tools, and structures that help differentiate one organization from another. Capabilities such as translating consumer insights into new products and services, converting online activity to sales, and managing retail execution are among key considerations for consumer products companies today. At Strategy&, we help leaders clarify their strategic priorities and the distinct capabilities that will help them to win in the consumer market.

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Fit for Growth

Consumer products companies are struggling to expand revenue and profitability in low-growth markets with fragmenting consumer demand, shifting channels, and evolving technologies. But industry financial performance reflects limited success, with overall revenue growth declining and eroding operating margins. At Strategy&, we leverage our Fit for Growth* approach to help companies develop the capabilities they need to drive growth, while reducing and eliminating unnecessary costs across the enterprise. Our Fit for Growth transformations deliver results across five critical dimensions that drive performance:

  • Ensuring strategic alignment
  • Investing to support distinctive capabilities for growth
  • Transforming cost structure
  • Aligning the organization and operating model
  • Enabling change and cultural evolution

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Revenue management

Superior revenue management is essential for consumer products companies to boost profits and prepare for long-term growth. Driving sustainable improvements requires an integrated approach to pricing strategy, customer management, and trade promotion optimization. At Strategy&, our deep expertise in revenue management is supported by a market-tested framework, advanced analytic approaches, and a sophisticated set of tools that enables fact-based decision-making.

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Digital strategy and services

Today’s ongoing digital transformation means much more than taking advantage of the latest technology, social media platform, or mobile app. At Strategy&, we help consumer products manufacturers use digital strategy to drive innovation and collaborate with retail trading partners, as well as to build deeper relationships directly with consumers and employees. Digital services and analytics also play key roles in capturing major cost reductions to help fund investments in differentiated capabilities.

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Operations strategy

Consumer products companies face challenges from increasing competition, growing complexity, evolving retail channels, and extended supply networks. At Strategy&, we help clients deliver profitable growth in relatively low-growth environments by enabling rapid innovation and design-to-value product development, while managing differentiated product flows across lean supply networks in response to fragmenting demand.

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M&A transformation

At Strategy&, we help clients transform their business through deals that realize strategic goals, capture value, and deliver growth. In consumer products, we work with companies to take advantage of new opportunities in the rapidly evolving consumer landscape—from globalization to consolidation to the rise of new, high growth brands.

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Insights

Case studies

Differentiated capabilities system drives growth

Differentiated capabilities system drives growth

A large company began to see declining performance from some of its most profitable brands. Strategy& was engaged to develop a growth strategy based on a differentiated capability system, considering the largest opportunities across multiple businesses. We focused on how the client could add value to consumers, the critical few capabilities they had today and those capabilities that they must invest in to gain a right to win. This combined market-back and capability-forward approach enabled the company to develop a clear strategy focused on the its greatest strengths and how its distinct capabilities could work together to provide a competitive advantage. The new strategy provided clear growth guardrails to prioritize investments and focus the organization. As a result of our work, the company saw solid growth with increased operating profit and net sales.

Multinational company dramatically cuts costs

Multinational company dramatically cuts costs

A multibillion-dollar consumer goods company, active in several business areas across multiple geographies, was experiencing limited revenue growth, declining market shares, and increasing margin pressure. Strategy& helped develop an ambitious business improvement and cost reduction program. We set up a comprehensive two-pronged transformation strategy involving (1) a radical cost-savings program based on a new, less complex, capabilities-driven operating model, and (2) the reinvestment of a significant part of the savings into major growth drivers, such as growth markets, customer centricity, and innovation. As a result of our holistic work, the company is on track to deliver structural cost reductions in line with the objectives of the project. The client now also has solid cost-management capabilities and a productivity and cost-consciousness mind-set. Cost performance indicators have been institutionalized, and cost management tools and processes are being used throughout the organization.

U.S. beverage maker develops loyalty program to drive revenue

U.S. beverage maker develops loyalty program to drive revenue

A U.S. beverage maker wanted to enhance its customer experience strategy and develop a more personalized loyalty program. Strategy& created journey maps, assessed opportunities to transform its digital organization, and evaluated more than 25 loyalty program elements. As a result of our work, the client is now delivering a seamless experience across all channels, its customers’ mobile purchases increased by 22 percent, and its membership and loyalty are estimated to be up double digits over the next five years.

U.S. beverage manufacturer redefines category leadership

U.S. beverage manufacturer redefines category leadership

A large U.S. player in the alcoholic beverage space wanted to leverage its full portfolio across beer, wine, and spirits to enhance customer collaboration with on- and off-premise accounts. Strategy& helped develop and prioritize a broad set of innovation concepts, as well as identify key changes to the organization and operating model that would unlock disruptive opportunities. As a result of our work, the client is now pursuing a multi-release roadmap with targeted benefits to increase top line growth by several points per year over five years.

Delivering profitable growth with tailored product platforms

Operations strategy

A consumer products client was integrating acquired product lines that added substantial complexity with significant overlap across price points and features. Strategy& helped to redesign the product portfolio and establish standard product platforms with differentiation to meet distinct value criteria. The product platforms enabled consolidated operations and efficiency improvements that reduced the cost of goods sold by almost 20%, while delivering sales growth two points above the category average.

Transformative merger and divestiture redefines industry structure

Transformative merger and divestiture redefines industry structure

Strategy& assisted with the strategic assessment, pre-close planning, and post-close execution of one of the largest consumer goods deals in history, helping the client plan a simultaneous acquisition and asset sale involving two other companies. This included the establishment of complex contract manufacturing relationships, preparation for critical Day 1 transitions of field-sales execution and information management, and alignment of strategic priorities behind two brands. Our work positioned the client as number two in the industry and ensured the stand-up of a third-party competitor that was essential to clear antitrust.

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