By Brad Hanna
EVP, Business Strategy Director
As most businesses are reopen and America crosses an uneasy threshold, consumers are moving from anxiety and worry to boredom and anxiousness—many are eager to get back to a new normal. Still, some will wait for a vaccine before fully entering the world outside their homes: the latest research from McKinsey suggests 61% of consumers will remain isolated when restrictions are lifted. This means consumers will be in a state of flux as the country navigates its way to reopen.
CPG clients should already be preparing for the Recover phase. We see a few key implications for CPG brands as they work with foodservice and retail grocery customers:
Restaurants will have to follow strict precautionary measures in their dining rooms and kitchens for the foreseeable future.
Restaurants will be the new American startup – reinventing business like never before
CPG brands will need to address key issues concerning consumers, operators and their own manufacturing.
Implication: Brands need to address food safety, supply and provide a lower cost alternative to improve operator margin. Think about products that reduce handling in preparation. Focus on products that bring higher value and margin to operators. Re-evaluate your selling story for relevancy in the right products and messaging.
Recessionary behaviors are beginning to take hold:
Source: IRI Survey 4/10-4/12 among National Consumer Panel representing Total US Primary Grocery Shoppers
During COVID-19, retailers have experienced huge shifts in shopping patterns, including growth categories such as packaged foods, frozen foods and dairy.
Implication: Manufacturers will need to defend their shelf space as retailers reallocate for high-demand, higher-margin opportunities.
As we enter recovery, brands should focus on Purpose and Practicality. If you are in a growing category, double down on your purpose to build strong brand connections and loyalty. Brands that have been slower to respond should continue to focus on being helpful and delivering a better value as recessionary patterns emerge. CPG brands must also build in flexibility and be ready to shift as consumer mindsets and patterns evolve.
CPG brands must also build in flexibility and be ready to shift as consumer mindsets and patterns evolve.
Jun 16, 2020
Consumer Products, COVID-19, Modern Consmuer, Purpose, Retail
Please submit your email to download content. Your info will not be shared with any outside sources.