New York City: The Evolution of Consumer and Retail Marketing
In a bustling world driven by consumer choices and emerging technologies, the consumer-packaged-goods (CPG) and retail industries stand at a crossroads. With challenges like slowing population growth and fragmented consumer attention, businesses are now putting on their creative thinking caps to find new growth opportunities. According to a recent report by a leading consulting firm, companies are urged to undertake an ambitious dual agenda focusing on enhancing their portfolio management while boosting performance.
The Pressure is On
As we move into 2024, chief marketing officers (CMOs) and growth leaders are facing rising expectations. They are now tasked with building robust brands while also ensuring that marketing spending is both efficient and effective. The report underscores a fundamental shift in how CMOs need to operate, urging them to find and unlock promising growth opportunities. They are now responsible for crafting immersive brand experiences, linking purpose to business outcomes, and leveraging fresh technologies like generative AI.
To dive deeper into this issue, experts surveyed over 100 C-level executives from consumer and retail companies throughout Europe and North America. The findings shed light on how growth agendas are being shaped in the current environment. It turns out that while marketing leaders have a clear understanding of which capabilities drive growth, there are critical gaps within many companies when addressing future requirements.
Facing Challenges Head-On
CMOs are no longer just focused on brand and creative strategies; their role now extends into realms traditionally considered outside of marketing, such as innovation and e-commerce. This evolution calls for a more holistic approach to their marketing operating models. Today, achieving growth involves establishing a robust organizational structure, clear processes, and an enhanced capability framework that aligns with a grand vision.
Moreover, as many organizations realize, traditional verticals can create silos that stifle collaboration and inhibit effectiveness. By fostering a culture of shared goals and accountability, marketing leaders can ensure that all parts of a marketing strategy work together smoothly, thus fostering growth.
The New Framework for Success
To navigate this changing landscape, CMOs are encouraged to connect their teams effectively, build a flexible governance structure, and ensure that all expertise works towards shared growth drivers. A notable approach revealed in the report is pulling up strategic priorities, such as generative AI, rather than allowing them to remain in isolated teams.
Currently, only about one in four marketing leaders believe their organization excels at centralized decision-making. This raises the question: How do organizations ensure they are maximizing the use of their resources? The answer lies in creating centers of excellence that share capabilities across various branches while maintaining a focus on local market needs.
Transformative Examples
PepsiCoโs transformation serves as a powerful example of how innovative leadership drives success. The company has restructured its marketing model to unify various functions, like legal and research, under one umbrella. This cohesive strategy not only eliminates siloed thinking but also enhances accountability towards delivering growth. As Mustafa Shamseldin, the chief marketing officer of PepsiCoโs International Foods Division explains, success is now measured in margin improvement and overall revenue growth rather than just traditional campaign performances.
Similarly, Campari, a 164-year-old beverage company, showcases how embracing technology and immersive experiences can yield impressive results. Beyond their notable partnerships at film festivals, they have significantly boosted their digital marketing efforts. By leveraging AI tools, Campari can monitor their brands and make swift decisions, enabling them to launch a ready-to-drink cocktail line much faster than their traditional processes allowed. This responsiveness has resulted in a 3.8% growth, standing out even in a challenging market.
Charting the Path Ahead
As we progress in 2024, itโs compelling to consider the vast opportunities for marketing leaders to reshape their organizations for growth. By embracing agility, investing in talent, and forming partnerships that create win-win situations, the landscape of marketing can certainly evolve. The journey ahead may feel daunting, but with sturdy frameworks and an eye on consumer needs, the future of consumer and retail marketing looks brighter than ever.
