Getting routes to market right: Designing profitable go-to-market models in consumer goods

Executive summary

The routes to market that consumer packaged goods (CPG) companies use to sell and service their trade accounts determine their sales volume, their ability to deliver the proper levels of customer service in a cost-effective manner, and their success at securing scarce retail shelf space for their products. Nevertheless, few CPG companies have a comprehensive conceptual platform for optimizing their routes to market.

Such a platform must enable companies to design go-to-market (GTM) models that are characterized by four qualities: They have a strong customer focus. They are aligned with the company’s strategic goals and value offerings, and supported by its operational capabilities. They balance customer needs, revenue growth, and cost-to-serve. And finally, they are flexible enough to be adapted in response to changing strategic goals and competitive threats.

This report describes a proven platform for creating such models. It enables managers to identify and analyze the key activities and tasks required to best serve their customer segments. It also provides a means for choosing among and testing a variety of design alternatives in the quest for the most effective and efficient routes to market.