September 2021

Mohammad Anas Wahaj | 26 sep 2021

Consumer packaged goods (CPG) marketers are looking to boost above-average growth in the COVID-19 pandemic era. The challenges are real and according to McKinsey's latest research 78% of CEOs are now banking on marketing leaders to drive growth. The research study looked at how 860 global executives are prioritizing investments and capabilities that help accelerate growth. The study finds that three elements - creativity, analytics, and purpose - that constitute a 'growth triple play' that provides at least two times the growth of peers who don't invest in all three in tandem. Another McKinsey research based on interviews of CPG marketing and growth executives seeking answers about the new reality found that - to attain extraordinary growth requires more sophisticated, predictive, and customized marketing strategies. New approaches and tools are the need of the times. Even though some basics like broad reach, powerful, resonant storytelling, and creativity are critical, but marketers have to utilize data and analytics at scale to crack the code that enables more targeted and engaging interactions to shape consumer behavior. 2/3rd of CPG companies say they have put data-driven marketing at the top of their agenda [Consumer Analyst Group of New York (CAGNY) 2021 Virtual Conference]. Large number of CPG companies are still not able to fulfil the promise for delivering impact at scale from data-driven marketing. Accoring to another McKinsey research, truly sustainable, marketing-led growth has to be granular, focused, and scaled across the entire marketing organization, delivering the right message to the right consumer, at the right moment, at the right place - all the time. To thrive in this new ara of CPG marketing, companies have to - build a continuously updating, AI-powered consumer-intelligence engine that ingests enough signals and data points to not only identify demand but to predict it; use advanced analytics and marketing technology to recommend high-value actions; learnings from hundreds of tests per week need to feed back into this engine, helping drive rapid decision making and informing adjustments to brand plans, spend allocation, tent-pole campaigns, and always-on activation. This new marketing model will require new kind of talent, new organizational capabilities and midsets and adoption of new technologies. CPGs that would succeed and utilize next-level AI (Artifical Intelligence) consumer-intelligence need to have five essential ingredients to unlock data-driven marketing impact at scale - (1) Opportunity/Demand Identification: A 360-degree view of consumers and pockets of growth, supported by predictive and prescriptive insights. (2) Rapid Activation: Delivering the right message at the right time in moments that matter - and measuring the impact. (3) Martech/Data Enablement: Activating a fit-for-purpose data and tech-enabling customer-centric strategy. (4) Agile Operating Model: The new ways of working needed for an agile, modern, marketing organization. (5) Capacity-building: The talent, culture, and infrastructure required to scale impact. Read on...

McKinsey: The new marketing model for growth: How CPGs can crack the code
Authors: Tiffany Chen, Michele Choi, Jeff Jacobs, Brian Henstorf, Ed See

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