archetype strategy for consumer packaged goods companies

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Archetypes: Winning in a Geographically Diverse and Digital World Sander van ‘t Noordende Consumer Goods Forum Summit 2014

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Sander van ‘t Noordende, Group Chief Executive – Accenture, recently presented at the Consumer Goods Forum, Paris. A market archetypes approach enables CPG companies to balance global best practices with a tailored approach to local markets – being super global / super local in order to drive profitable growth. For more information view us on http://www.accenture.com/ConsumerGoods

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Page 1: Archetype Strategy for Consumer Packaged Goods companies

Archetypes:

Winning in a Geographically

Diverse and Digital World Sander van ‘t Noordende

Consumer Goods Forum Summit 2014

Page 2: Archetype Strategy for Consumer Packaged Goods companies

Main challenge is to truly connect with the consumer

Source: Euromonitor International, Mintel, Nielsen, Accenture Research

Serve new consumers

Either through direct engagement, complex indirect channels or digital and physical retail channels

Need to do all with a high degree of efficiency and global scale

2 Copyright © 2014 Accenture All rights reserved.

Page 3: Archetype Strategy for Consumer Packaged Goods companies

3

CPG companies need to evolve their operating model

Copyright © 2014 Accenture All rights reserved.

Enable a Super Global / Super Local approach, and eventually help you move

to a Consumer Centric Network

Business & Operating Model

Scale

Reach

Profit

Leverage

Autonomous

Market of One

Local Regional Global Super Global/

Super Local

Consumer Centric

Network

Increase

Profitability Double Size

of Business

Improve Margins

Through Cost

Reduction

Page 4: Archetype Strategy for Consumer Packaged Goods companies

4

Archetypes can play an important role

Copyright © 2014 Accenture All rights reserved.

Archetype ahr-ki-tahyp – noun

A pattern or model from which all

other things of the same kind are

copied or on which they are based.

Page 5: Archetype Strategy for Consumer Packaged Goods companies

5

Markets have different commercial characteristics

Copyright © 2014 Accenture All rights reserved.

Market Customers Route to Market

Economic Distribution Digital Channel Sales Orders Sales Calls

Margin

Share

Growth

Fragmented Retail

Organised HORECA

Direct

Indirect

Telesales

Key Accounts

Distributors

Basic

Progressive

Advanced

Fragmented HORECA

Organised Retail

Sales Force

Web Distributors

Sales Force

Distributors

3rd Party

Telesales

3rd Party

Page 6: Archetype Strategy for Consumer Packaged Goods companies

Organized

6

Archetypes are clusters of markets with similar characteristics

Copyright © 2014 Accenture All rights reserved.

Fragmented emerging Developing

A Fit-for-purpose and agile way to increase efficiency, accuracy and speed in execution.

Page 7: Archetype Strategy for Consumer Packaged Goods companies

7

Archetypes can be used as an organizational construct

Copyright © 2014 Accenture All rights reserved.

Developing

Market archetypes can be at country or city level – Mega cities can be an archetype per se

Fragmented Organized

Super Digital

City

Page 8: Archetype Strategy for Consumer Packaged Goods companies

8

The consumer is changing

Copyright © 2014 Accenture All rights reserved.

79% of prospective buyers would get frustrated when companies do not deliver

what they promise

89% of consumers use at least one online channel to

learn about products & services

87% will buy the same amount and 51% more from

the companies in at least one industry they currently

do business with

64% of switchers due to poor service are driven by price

66% of consumers have switched due to poor service

82% could have been prevented from switching if the company

had done something

32% are very satisfied with their providers, yet

only 23% feel loyal

59% of consumers believe online channels

offer convenience and speed

Discover

Consider

Purchase

Use

Expectation Reality

Promise Delivery

Evaluate

For more 2013 Global Consumer Pulse Research findings see external microsite

Page 9: Archetype Strategy for Consumer Packaged Goods companies

Over 50

9

Consumer archetypes are found around the world

Copyright © 2014 Accenture All rights reserved.

Super-premium Health-conscious

Tailor products and offers to consumer archetypes to increase engagement, relevance and loyalty.

Page 10: Archetype Strategy for Consumer Packaged Goods companies

10

The consumer experience needs to be personal and seamless

Copyright © 2014 Accenture All rights reserved.

Design consumer experience journeys by consumer archetype (aka “Persona”) to tailor messages

and interactions and deliver seamless omnichannel experiences.

Marketing

R&D

Media system

& consumer

engagement

Page 11: Archetype Strategy for Consumer Packaged Goods companies

Social

11

Digital is critical

Copyright © 2014 Accenture All rights reserved.

B2C – B2B2C

Direct to

Consumer and

eCommerce

B2B

Channel

Visibility and

Integration

B2T

Vending, Home

and Horeca

Equipments

Omnichannel

capabilities

Technical

Capabilities

Cloud

Analytics

Mobile

Collaboration Internet of

Things

Page 12: Archetype Strategy for Consumer Packaged Goods companies

12

Where from here?

Copyright © 2014 Accenture All rights reserved.

Use digital to enable

change at speed through

fit-for-purpose capabilities

Organize R&D, marketing

and media by consumer

archetypes

Focus sales & distribution

capabilities on market

archetypes

Embark on an

archetypes strategy