Consumer packaged goods companies have long histories of growth through new product introductions and expansion to new channels and geographies. These successes have been built upon in-depth knowledge of the consumer, and improved channel and supply management. However, despite their efforts, many companies are facing flat sales and declining profits as consumers shift purchasing behavior to be more value-focused and increase sales of private label products. Consumer packaged goods companies are challenged to grow in new economic times.
Future growth will require a strategic shift to increase focus on innovation with respect to products and delivery. Effective innovation goes beyond “new ideas” and often stalls when companies don’t address the complete picture by developing new organizational structures, business models, capabilities and incentives. Organizations that have historically been risk averse must become comfortable with betting on breakthrough products and with failure. Scientific and technical resources needed to develop new products may not exist within the organization, and culture shifts may be required to enable open innovation or acquisition. Finally, KPIs and incentives need to be adjusted to achieve innovation.
Keystone has worked with consumer packaged goods and food-related companies to develop actionable corporate and product development strategies. We conduct marketing analytics to identify innovation opportunities and apply cutting-edge management theory to achieve alignment throughout the organization. In addition, we have defined portfolio management solutions, improved innovation processes, and developed performance management systems.