Are you tired of feeling like you're flying blind into each new year? We partnered with our friends at Ampla to bring together CPG experts from across the industry to help you make 2024 your best year yet. Check out the webinar in it's entirety above or find the key takeaways below!
As you gear up for 2024, strategic planning becomes crucial for navigating the evolving landscape. Here are our top tips from our panel of experts.
1. Embrace a Balanced Approach to Growth and Profitability
In 2024, CPG brands should aim for a harmony between scaling up and maintaining profitability. This balance is crucial for long-term sustainability.
Securing Financial Backing: For brands not yet profitable, identifying and securing reliable financing sources is vital.
Margin Improvement for Profitable Brands: Profitable brands should focus on strategies to enhance margins, such as cost optimization and value-added product offerings.
2. Refine Your Promotional Strategies
The holiday season trends suggest a need for smarter promotional tactics. Brands should consider:
Selective Discounting: Rather than deep, blanket discounts, targeted promotions can yield better returns without significantly eroding margins.
Long-Term Customer Engagement: Instead of short-term sales spikes, focus on promotions that build lasting customer relationships.
The consumer market is dynamic, and CPG brands must stay ahead of the curve. Predictions for 2024 include:
Shift in Consumer Preferences: Be prepared for a potential shift from health-centric products to ones offering indulgence, influenced by changing consumer moods and preferences.
Technological Advancements in Couponing: Innovative couponing strategies, such as digital and mobile-friendly options, could become more prevalent.
7. Price Sensitivity and Experimentation
Given recent trends, brands might experiment with pricing strategies to test consumer price sensitivity.
Analyzing Price Elasticity: Conduct studies to understand how price changes affect demand and tailor pricing strategies accordingly.
Avoiding Price Cliffs: Be cautious of raising prices to a point where consumer demand might plummet.
8. Prepare for Execution of Plans
Finally, having a plan is just the beginning. The real challenge lies in execution.
Regular Performance Reviews: Continuously review and adjust strategies based on real-time market feedback and performance data.
Flexibility and Agility: Be prepared to pivot strategies quickly in response to market changes or unforeseen challenges.
As 2024 approaches, CPG brands face a landscape filled with both challenges and opportunities. By focusing on a balanced approach to growth, refining promotional strategies, optimizing for retail dynamics, managing trade promotions judiciously, anticipating consumer trends, being mindful of pricing strategies, and preparing for effective execution, CPG brands can set themselves up for a successful year. The key is to stay adaptable, data-driven, and customer-focused.