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Consumer and

Breakthrough

Brand positioning

shopper

innovation

definition

Exhibit 5 Opportunities for Global Coordination Across the Value Chain: Key Drivers

insights

For global brands

Similar

development

Messaging

Consumer

Advertising

Key Drivers

Similar Products

Consumer Insights

  • Platform/ breakthrough innovation

  • Product development

  • Processing technology

  • Raw material procurement

Demand Characteristics

strategy, marketing platform

  • Digital media strategy and platform

Product Development

Activities to Be Coordinated

Marketing

Manufacturing and Procurement

Logistics

  • Regional supply

chain services

Customer Management

Significant Global Customers (Retailers)

  • Product development for retailer-specific SKUs

  • In-store marketing

  • Supply chain

services

  • Logistics

  • Customer relationship management

  • Corporate pricing/contract management

  • Category advisory

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

9

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