Only 12% of Chief Commercial Officers invest ahead-of-returns in three specific sales, marketing and innovation strategies that deliver above-average profitable growth
In-depth benchmarking research of medium and large Firms in the consumer goods sector shows that only 12% of companies invest in the three areas that drive above-average growth:
Innovation – incremental or “blue-ocean” innovation (not just cost reduction or “value engineering”)
eCommerce, whether it be B2B, Business-to-Consumer, or selling through the websites of large established on and off-line retailers
The 100,000+ outlets that can interrupt or attract the shopper’s attention in more effective ways than can be done in large stores with thousands of products.
Companies that invested consistently and experimented/tested in these three areas were shown in this research to be experiencing above-average growth. Some companies had profitability issues in the short term, but were managing to attract new consumers, create new usage occasions, and activate promotions better, which led to Year Two profit and growth.
Chief Commercial Officers that directed innovation departments to spend less on reducing the cost of the product and more on ways to improve the product’s quality and performance incrementally, also showed above average growth.
Sales Directors that activated effectively in high-potential smaller outlets allowed them to build brands by looking more holistically at the opportunity in cafés, takeaways, the more successful of the small corner-store formats, experiential channels, venues, and entertainment precincts.
“This research shows that investing ahead of returns is not a quick fix – unlike the cost cutting of the past nine years, but it does ensure that 6.6% growth in the mature, ultra-competitive consumer goods industry is a Year Two reality for CCOs that demand good business cases and take their stakeholders on a growth journey.” – David Myles, B4P
B4P researches, measures and quantifies sales, marketing and innovation structure, headcount, costs, investment, productivity and processes to help clients improve performance. Working in 20 markets around the world, B4P reveals and shares best practice regularly and confidentially