What is innovation in CPG?
Incremental innovation is the most common form of innovation in the CPG industry. It utilizes an existing product and increases value to the customer by adding new features within an existing market. Though it is extremely common, incremental innovation is important in today’s shortened-attention-span economy.
What are three major trends happening in the CPG industry?
3 Major Trends and Challenges in Consumer Goods and Retail
- Digital Ubiquity: Anytime/Anywhere Engagement Across Mobile, Desktop and the IoT.
- Fragmented and Costly Supply Chains.
- Increased Price and Value Sensitivity.
What are new and innovative ways for CPG companies to gather consumer?
What Are New And Innovative Ways For CPG Companies To Gather Consumer Data?
- Partnered loyalty schemes with affiliates (e.g Partnership with UberEats)
- Offline retail sensors to track consumer location/proximity.
- Wearable devices to understand biometric data and activity of consumers.
What is CPG AI?
The CPG industry and its companies are using AI to predict the range of products on-shelf, their optimal price points, and sales of new products entering the market. In addition, AI-driven Demand Forecasting informs manufacturing and shipping levels required to fulfill customer demand – by store, date, and SKU.
Why innovation is important in CPG?
CPG companies can significantly boost the performance of innovation by managing it more strategically, including measuring it more effectively. Understanding the true, incremental, impact of innovation is fundamental to developing a pipeline that delivers on the strategic objectives of the company.
Why is innovation so important for consumer goods companies?
Efficient, profitable innovation is critical to the ability of consumer packaged goods companies to achieve high performance. On average, top-quartile performers generate 20 percent more revenue from new product introductions than companies in the bottom quartile.
What is one current industry trends in consumer products industry?
Digital Branding: Digital technology will have a deep impact on brand communication. Consumers are more reliant than ever on referrals: 70 per cent looks to user reviews to inform their purchase decisions. Moreover, digital marketing is no longer just about one-way communications to consumers. 6.
How is the CPG industry changing?
CPG sales soared 21% YOY in second quarter 2020, and Consumer Brands estimates that economic activity will not return to pre-pandemic levels until late 2021 – employment levels will not recover until well into 2022 or even 2023.
How do you innovate FMCG?
Designing a Marketing Strategy for Innovative FMCG Products
- Identify unmet customer needs.
- Understand the drivers of perceptions and behaviour.
- Identify use cases, benefits, and implications.
- Design your entire customer experience ecosystem.
- Build a go-to-market strategy.
How do you innovate in the next normal?
Applying Innovation in The New Normal
- Start with a problem, not a technology. All too often, inspired by a flashy emerging technology, entrepreneurs and corporates alike create propositions which struggle to solve customer needs.
- Cultivate teams of T-shaped innovators.
- Don’t let discipline stifle creativity.
What are 2 primary segments of consumer products industry?
What are the Key Segments in Consumer Products Industry?
- Food and beverages : It comprises of manufacturers who produce, regulate, manage and distribute food and beverages.
- Household : It comprises of manufacturers who produce products used at homes.