Large consumption in the last half century has been one of the fastest growing industries, driven by the macroeconomic context and innovation. In the last decade this trend has stagnated and especially in the last year with the arrival of COVID the industry is in disruption. All sectors have been strongly impacted: some such as fashion, luxury and beauty to a greater extent, while others such as food and home care of less drastic way.
The engines of this transformation are the change in consumer buying patterns, especially in the new generations, the increase in price sensitivity and spending control (Discovering the new consumer), the latter as a direct effect of the evolution of the pandemic. All accompanied by the transformation of the channels, with the explosion of e-marketplaces and the growth of discounters that pressure the large distribution chains - historical allies of the large consumer companies.
In this context, at The Cocktail we believe that now as never before, the strategic imperatives of FMCG companies must be to connect with the consumer, maintain relevance for distributors and continue to continuously improve operating costs. These imperatives translate into: effectively.
- Producing and managing information to make it actionable, both in terms of consumer data and production and sales.
- Detect trends and incorporate the consumer's vision in all business decisions: adjustments to the product portfolio, channels sales, personalized marketing...
- Reinvent the marketing strategy, focusing on digital, working the brand, the content proposed throughout the consumer journey and the communication of the mission / purpose of the company.
- Developing an effective sustainability strategy and social initiatives, not only from CSR but from the operations and product axis itself.
- Develop capabilities Direct To Consumer, from commercial partnerships with distributors or third parties, to the opening of flagship stores, pop-ups or other direct sales channels...
- Seek and promote joint growth opportunities with distributors such as data-sharing, partnerships, creation of marketplaces...
All done in an agile and fast way. And to achieve this, the necessary levers are the construction of solid digital capabilities and the incorporation of technology throughout the value chain, in addition to the redesign of the organizational structure, company culture and the incorporation of agile ways of working.
The digital transformation - it was a necessary trip before - now a priority urgent for consumer goods companies and we believe entails clear opportunities for them:
- Incorporate technologies capture and analyze data and develop internal capabilities that allow deep analysis of consumer behavior and making smart business decisions based on data (Big Data, CDP Customer Data Platform, advanced analytics, ...)
- Redefine the strategy of categories, products and channels, and their specific initiatives including Direct To Consumer... starting from the understanding of the consumer and their pain points.
- Incorporate technologies in the supply chain (AI, Big Data) to make the route-to-market more efficient, develop predictive demand models, optimize flows / efficiency and guarantee a better customer experience
- Develop and implement sophisticated personalized marketing strategies with a focus on customer digital annals, which allow to optimize investment and generated impact.
- Accelerate impact through a cultural change based on continuous learning, flexibility and collaboration: identify the necessary talent and skills, redesign the organization and train existing employees with the appropriate skills to implement advanced technologies.
At The Cocktail we have the key capabilities to accompany companies on their path of transformation focused on the consumer from strategy, operation, technology, data, product and people.