New Era for CPG and Retail Industries: Challenges and Opportunities
In the bustling heart of San Francisco, experts in the consumer-packaged-goods (CPG) and retail industries are calling for a major shift in strategy. It’s no secret that the last decade has thrown some curveballs our way—the growth in population has slowed, and consumer attention has become increasingly scattered. This has led companies to rethink their strategies and embrace a dual agenda aimed at growth and business performance.
A Call for Change
According to a recent article by analysts at a leading global consulting firm, companies now have to balance portfolio management with enhancing operational capabilities to keep up with market demands. The role of those at the helm of marketing—Chief Marketing Officers (CMOs) and growth leaders—has never been more crucial. They’re not just tasked with managing brands but are also responsible for delivering growth while being the watchful stewards of marketing resources.
This ambitious new agenda comes with high expectations. CMOs find themselves identifying growth opportunities, driving innovative campaigns, linking purpose with business results, and making the best use of cutting-edge technologies, all while ensuring their marketing budgets yield significant returns. Talk about a tall order!
What Does the Data Say?
To better understand how CMOs are adjusting to these shifting landscapes, a recent survey of over 100 C-level executives from various consumer and retail companies across North America and Europe was conducted. It turns out that while marketing leaders know what drives growth, there are major gaps in the necessary skills and strategies needed to deliver on these objectives.
Many executives reported feeling that their organizations lacked the maturity to tackle pressing growth challenges effectively. Surprising, isn’t it? This disconnect can hinder the execution of vital capabilities, especially those associated with areas like new business development and data-driven marketing performance.
Finding a Fit-for-Future Formula
So, what’s the solution? Experts argue that CMOs must create a robust marketing operating model that connects various aspects of the organization’s strategy. This model needs to incorporate clear processes, strong organizational frameworks, and, importantly, a unified direction. It’s all about being holistic in approach—linking team responsibilities and goals together!
CMOs are now taking charge of various responsibilities—from traditional marketing functions like brand management to digital avenues like social media marketing and AI innovation. This multifaceted role is essential nowadays as the job demand has expanded exponentially.
Challenges Faced and Overcoming Them
Among the complex challenges faced, one of the most significant is breaking down the silos that often exist within organizations. Many marketers understand the importance of collaboration, but according to survey results, only 37 percent have developed effective methods for working together across various functions.
This is where the need for a new kind of governance comes into play. An organization that fosters agility can respond to evolving consumer demands more swiftly. Marketers can create a culture of flexibility and encourage team members to think outside of their usual roles to drive success.
Investing in Capabilities
Creating dynamic partnerships also tops the list of priorities for marketing leaders. It’s increasingly clear that while building internal capabilities is crucial, it’s also vital to engage with external partners. This dual approach can enhance skill sets while maximizing efficiency and effectiveness in delivering marketing-led growth.
For instance, companies like Campari, with their long-standing tradition and focus on innovative marketing strategies, have used partnerships to infuse new life into their campaigns. From sponsoring global film festivals to incorporating immersive technology, they are tapping into various channels to engage consumers while reflecting current market trends.
Moreover, investing in exciting areas like generative AI is becoming a game-changer for many organizations. While many CMOs are embracing the numerous advantages of AI, there still lies a gap between recognizing its importance and implementing effective strategies. A balanced approach, leveraging existing capabilities and exploring new technologies, will be key.
The Road Ahead
As the landscape of marketing continues to evolve, the expectation for growth in the consumer and retail sectors could create a realm of opportunities for CMOs and their teams. By focusing on rebuilding their operating models for agility, fostering collaboration, and embracing emerging technologies, marketing leaders can navigate these waters successfully.
What we’re witnessing is a seismic shift toward a more interconnected approach to marketing—a strategy that not only prioritizes growth but also forms genuine connections with consumers. As we step into this new era, one thing is certain: it’s going to be an exciting journey ahead.
