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Future of FMCG

June 30, 2021 By Thomas Grint

Future of FMCG is Carat’s response to the challenges that have been disrupting consumer goods for the last decade. Emerging competitors, new distribution channels, slowing growth, and changing consumer attitudes have forced brands to question the old truths of FMCG marketing.

Carat’s thought leadership series provides answers to the most pressing questions facing the category, from consumer understanding to growth, data, and organizational frameworks.  Based on our work with the world’s leading advertisers, we are mapping out a path towards an exciting and dynamic new model for big FMCG brands. Our position is that scale and innovation should be natural partners.

Download our reports today to find out how your brand can gain a competitive advantage through marketing and media.

Report 8: Click here to download Becoming an Always-On Portfolio Manager

Report 7: Click here to download Double Disruption

Report 6: Click here to download Brand Purpose

Report 5: Click here to download From Lead Agency to Chief Orchestrator

Report 4: Click here to download Overcoming Lockhome Syndrome

Report 3: Click here to download From Monologue to Moments, Targeting Needs to Stay Relevant

Report 2: Click here to download How to Grow Brands Beyond Byron Sharp's How Brands Grow 

Report 1: Click here to download From Eyeballs to Experiences 

Amidst slowing growth, budget setting and measurement have become high priority topics for FMCGs. However, not all consumer goods brands leverage their ROI data when setting and optimising budgets and maximising effectiveness across their portfolios. Even fewer brands do so across geographies. Carat’s Global Client Lead Felix Bullinger reviews the challenges of fact based budget setting and portfolio investment optimisation. In this article he introduces a seven step model to overcome these challenges by becoming an always-on portfolio manager. Download the report here.

A rising tide of regulations is challenging FMCG advertisers. Data privacy has become an issue worldwide, and the demise of third-party cookies forces digital marketing to reinvent itself. At the same time, increasing restrictions in advertising for products that are high in fat, sugar and salt are limiting how brands can communicate. Joe Molony, Carat’s Managing Partner of Communications Planning, considers the implications for FMCG brands and provides advice for navigating the regulatory double disruption. Download the report here.

Businesses with a strong sense of purpose grow faster, but what does purpose mean to media? Carat USA Head of Strategy James Allen argues we should think about media investment as a behaviour, not just a marketing activity. In the same way brand strategy dictates the tone of communication, media strategy should dictate the behaviour of communication. That means deliberately investing with partners who represent the change we want to see in the world. Download the report to find out how.

One of the biggest challenges for FMCG brands is coordinating the multitude of agencies and internal departments working on their portfolio. A siloed lead agency approach is no longer enough to allow a growing number of stakeholders to focus on shared objectives whilst executing on the brands in their specialist fields. FMCG brands need a new model facilitating collaboration with a unified agenda. They need a chief orchestrator. Download the report here.

Exploring the rise of Lockhome Syndrome and its impact on consumer behaviour in the FMCG category. A high number of people staying at home has led to increased sales for consumer goods, new commercial business models and a shift in media habits.  Whether it be the rise of on-demand grocery deliveries, or the emergence of new competitors as brands like Pret and Hawksmoor produce retail products, Carat’s Head of Media Futures Dan Calladine explores how brands should respond to the consumer behaviour shifts which will challenge CPG marketing way beyond the COVID crisis. Download the report here.

Timing is everything – but how to match your products with the right moments in people’s lives? As well as segmenting by audience, leading FMCG brands are becoming more sophisticated in segmenting by need-states and moments. This has significant implications for creative and media and will become ever more vital as the world moves away from cookies. In this report, Carat’s strategy partner Peter John Waine outlines how CPG brands can stay relevant by better addressing customers' need-states at the right time. Download the report here.

Byron Sharp’s 2010 best-seller ‘How Brands Grow’ has been a hugely impactful publication in the marketing industry. Firmly rooted in the traditional advertising model, it has probably had more influence on FMCG than any other category. The second article in Carat’s Future of FMCG series explores the relevancy of Sharp’s Laws of Growth a decade after they were written. Download the report here.

In recent years, the FMCG category has been experiencing a slowing of growth. In the first report of Carat’s Future of FMCG series 'From Eyeballs To Experiences', Global Chief Strategy Officer Sean Healy sets out the case for FMCG brands to unlock the growth driving power of media by embracing a new consumer experience led model. Download the report here.