Consumer Packaged Goods

Consumer products companies face the largest growth opportunity in their history. They also face some of their biggest challenges, for which their history has not prepared them well.

Given current economic realities, these organizations continue to struggle to gain share of the consumer’s wallet while providing value to the consumer. Those that find recipes for success in both high-growth and developed markets will be the winners. However, most developed markets are characterized by depressed consumer spending, volatile input costs, brutal retail competition, squeezed margins and tougher regulation. In addition, the digitization of media and channels is requiring organizations to reconsider go-to-market models.

Winning in these challenged conditions requires strong category and brand propositions, effective integration of the marketing mix through the line, differentiated execution at the point of purchase and rigorous cost control. More and more consumer products companies are focusing on the larger growth opportunity represented by the creation of two billion new middle class consumers in the high-growth markets of Asia and Latin America over the next two decades. In particular, they are focused on understanding and responding to consumer needs with products they want at prices they can afford.  

Alvarez & Marsal (A&M) brings unprecedented experience working with consumer packaged goods companies of all sizes. Our professionals have advised and managed some of the largest organizations in the world. Our experience spans a broad range of food and beverage, health and beauty, apparel and private label organizations. We see key imperatives for consumer products businesses building on the most fundamental questions of right to win, where to play and how to win.

  • What operating model should be deployed?
  • What does sustainability mean and how do we inculcate it across brands, operations, shoppers and consumers?
  • How is the digital channel disrupting these operating models; and,
  • In operations, how does one ensure the big dollars spent in trade expenditure is efficient?
  • Are companies using the retailers POS data (so called Big Data) effectively to improve trade promotions, to optimize the physical supply chain and to maximize product availability?

Such requirements depend heavily on resources--particular great people, and also on key enablers such as IT. In the midst of this complexity, there is a growing regulatory burden affecting both the way business is conducted, the manufacturing of products and how they are sold.

Our services to the Consumer Packaged Goods industry include:

  • Cost Reduction
    A&M designs immediate and long-term functional improvements and measurement in critical functional areas.
  • Cost of Goods Optimization
    A&M brings proprietary models and spend analytics to optimze specific cost of goods categories.
  • Strategy Development 
    A&M provides implementable growth-based solutions and models.
  • Innovation Assistance
    A&M assists organizations in the development of workable new product extension and development capabilities.
  • Retailer Integration and Measurement 
    A&M provides retailer measurement and integration, developing cost-focused innovation solutions and relationship building efforts.
  • Strategic Assistance 
    A&M provides critical assistance in merger integration, divesture, carve-out and restructuring situations. We also study and implement environmental impact, measurement and capital investment strategies.