Rebounding from the Covid19

In this unprecedented time of a global pandemic many consumer goods companies are fighting for survival. In contrast, many food manufacturers who make shelf stable food will be reporting record results as consumers stock up and stay at home. What will the future hold? No one can say for sure. However, based on my own experience with economic crises of the past, we should expect a recovery. But there will be winners and losers. The winners will be those companies who can balance the need for value propositions while still investing in product innovation.

While we have never been through something of the magnitude of the Covid19 crisis, I have worked through the economic meltdowns in various parts of the world over the last three decades. For example, when I was responsible for R&D for PepsiCo’s Food business, I was on the front line during the Argentina meltdown of 2001. There were literally fires in the street, massive unemployment and an economy that shrank by a fifth. I was in Brazil when the Real crashed in 1999 following the Asian financial crisis in 1997. The economic hardships were very real. Nevertheless, we were able to offer value on the one hand while still finding ways to innovate.

For example, to create value we adjusted our price pack architecture to match available “money in the pocket.” To innovate, we offered new and more authentic tasting flavors. That gave stressed consumers a little break to enjoy their favorite snacks.  As a result, as economies in countries like Brazil and Argentina and others recovered, we were able to pick up significant market share from competitors who let quality slip in the name of cost savings and who lost relevance with little support or innovation. In some cases, we gained double digit market share that paid great dividends in the following years.

CJB and Associates can help companies with smart cost savings programs with a Design to Consumer Value approach that focuses on what consumers are willing to pay for and thereby optimizing value for them. The aftermath of Covid19 will likely change what consumers are willing to pay for and an agile consumer goods company will respond accordingly and quickly. We offer a one or two day facilitation using proven methodology that produces tangible and actionable results as the outcome.