• Consumer and
• Brand positioning
Exhibit 5 Opportunities for Global Coordination Across the Value Chain: Key Drivers
• For global brands
Platform/ breakthrough innovation
Raw material procurement
strategy, marketing platform
Digital media strategy and platform
Activities to Be Coordinated
Manufacturing and Procurement
Significant Global Customers (Retailers)
Product development for retailer-specific SKUs
Customer relationship management
Corporate pricing/contract management
Source: Booz & Company
Seeking the Best Fit
One large CPG company had a number of factors to consider in determining the best approach to managing a particular category. It was successful and well established as a player in this category in developed markets, but had virtually no footprint in emerging markets. Customer preferences, occasions of use, and types of products differed significantly from country to country—which would suggest at first glance that rollout of existing products to emerging markets had limited potential and that there were few benefits to be gained from global category management.
However, the company saw significant potential for growth in emerging markets. Accordingly, it opted for a strategy that made the most of its strong innovation capabilities and was able to introduce a game-changing product that would appeal to consumers across markets.
Even though the definition of the category itself was initially different between markets, the company chose to drive innovation centrally for the category. In doing so, it developed a product that changed consumer habits and preferences—which enabled the company to create a profitable category in emerging markets where it had not previously existed.
Booz & Company