Tag: CPG

How CPG Leaders Stay Ahead When Consumers Innovate Faster Than Brands

Posted on by Denyse Drummond-Dunn

Executive Summary

Consumers are accelerating past traditional brand innovation, turning TikTok hacks and viral trends into tangible product shifts in the real world.

A McKinsey study shows that 75% of Gen Z believe brands are “out of sync.” Simultaneously, the TikTok #dupe phenomenon has attracted over 6 billion views (Vogue Business). Brands that move fast and embrace consumer creativity—rather than only analyse it—are gaining market traction and heightened relevance.

In this post, we explore cases like e.l.f. Beauty’s billion-dollar pivot, L’Oréal Pakistan’s viral activation, and food industry hacks gone mainstream. We then outline what CPG leaders must do now; focusing on speed, cross-functional influence, and strategic visibility, to thrive in this new consumer-led innovation landscape.

If you prefer to listen rather than read:

C3Centricity podcast

A New Era: When Consumers Set the Innovation Agenda

Consumers today aren’t just buying products, they’re creating new ones! They’re building recipes, mash-ups, and hacks, then broadcasting them to millions. This isn’t a trend; it’s an innovation model.

Fueling Consumer Momentum

Seventy-five percent of Gen Z report that they rely on user-generated tips and tweaks to solve product frustrations (McKinsey). TikTok’s #dupe has over 6 billion views, with users replicating premium items at home, creating a grassroots movement that brands can’t ignore (Vogue Business).

Why This Matters for CPG

Brand innovation cycles typically take months, or even years. Consumer creativity operates in days. If your organisation isn’t tuned into this frequency, you risk falling behind, both in market relevance and career visibility.

So ask yourself:

  • What consumer hack is trending right now with your product?

  • How fast could you push a pilot response?

  • Who within your teams can align quickly on R&D, marketing, and supply chain?

Case Studies: Consumer-First Innovation in Action

e.l.f. Beauty: Mastering the Dupe Game

Instead of fighting dupe culture, e.l.f. Beauty embraced it by launching affordable alternatives to prestige products. Their strategy generated viral buzz, boosted consumer trust, and drove annual revenues past $1 billion (according to e.l.f. 2023 Annual Report).

Why it worked:

  • They treated consumers as partners, capturing feedback early.

  • They responded with speed, and products moved from insight to shelf in weeks, not months.

  • They celebrated co-created content, reinforcing community trust.

So ask yourself:

  • Could your brand turn a competitor’s product hack into an official version?

  • If speed is the difference between relevance and irrelevance, how quickly can your cross-functional teams decide and act?

L’Oréal Pakistan: Creator-First Launches

In Pakistan, L’Oréal distributed “TikTok Made Me Buy It” boxes to 200 influencers, resulting in 161 million impressions, 4.5 million clicks, and a record-breaking sell-out (TikTok Ads Case Study). Rather than engineering a complex launch, they leveraged social energy directly, aligning product, media, and packaging in real-time.

Why it succeeded:

  • Bypassed typical go-to-market delays.

  • Offered content that engaged both creators and consumers.

  • Cemented brand positioning with rapid action.

So ask yourself: 

  • If your team could launch a limited-run product directly via influencers, would your systems allow it?

  • Who needs to be in the

… Click to continue reading

How Smart CPG Leaders Are Mastering AI Consumer Intelligence to Drive Growth

Posted on by Denyse Drummond-Dunn

EXECUTIVE SUMMARY: Consumer relevance begins with superior listening. The evidence shows that success belongs to those who can hear consumer needs before consumers fully voice them, precisely the capability that separates market leaders from market followers in every category.

If you would rather listen than read:

Consumer behavior now shifts faster than quarterly reports can capture it, leaving CPG executives facing an uncomfortable truth.

Traditional market research methods are failing to keep pace with the speed of consumer evolution. Recent Bain surveys reveal a striking disparity: 84% of executives in other non-tech industries count generative AI among their top five priorities, while only 37% of CPG executives share this conviction.

This hesitation emerges at a critical moment when the primary challenges for 2025 include increased competition for shoppers, decreased consumer spending, and intensified pressure from retailers.

The companies that are listening smarter through AI aren’t just gaining operational efficiencies — they’re rebuilding the fundamental connection between brand and consumer that drives sustainable relevance.

Having been a beta tester for ChatGPT and now working daily with AI-powered solutions across my consulting practice, I’ve witnessed firsthand the evolution from experimental novelty to essential consumer intelligence capability.

The companies I advise that have embraced sophisticated AI-enabled listening are consistently outperforming those still relying on conventional research methods to understand their rapidly changing consumers.

The Relevance Crisis: When Consumer Insights Lag Behind Consumer Reality

The data reveals a sobering disconnect between CPG brands and their consumers. Only 7% of US online shoppers are members of a CPG brand’s loyalty program, compared to the vast majority enrolled in retailer programs. This gap signals more than a marketing challenge—it represents a fundamental breakdown in consumer understanding and connection.

Consider the stark reality facing today’s CPG leaders: consumers have definitively rejected the price-increase playbook that sustained growth through 2023.

As Bain & Company’s research demonstrates, consumers are now switching to private-label brands, waiting for promotions, or simply buying less when faced with price hikes that offer no additional value.

Conventional consumer research, with its quarterly cycles and retrospective analysis, cannot capture these sentiment shifts quickly enough to inform real-time strategy adjustments.

Meanwhile, consumer behavior complexity has reached unprecedented levels. McKinsey’s analysis shows notable disparities between income segments, with older, high-income consumers driving discretionary spending while price-sensitive segments increasingly scrutinize every purchase decision.

The traditional demographic and psychographic segmentation models that guided CPG strategy for decades now feel woefully inadequate.

The AI Listening Revolution: From Data Collection to Consumer Understanding

The most sophisticated CPG companies are discovering that AI’s true power lies not in automating existing research processes, but in fundamentally reimagining how brands listen to and understand consumers.

Procter & Gamble’s groundbreaking collaboration with Harvard Business School provides compelling evidence of this transformation.

In their comprehensive study involving 776 employees across commercial and R&D functions, P&G found that teams leveraging AI-powered consumer insight generation worked 12% faster than traditional research teams.

More significantly, these AI-augmented teams developed more balanced solutions that better reflected diverse consumer needs, regardless

… Click to continue reading

How Mid-Sized Companies Outsmart Giants: Learning from Tech and CPG Success Stories

Posted on by Denyse Drummond-Dunn

We often assume that industry giants, with their massive budgets and extensive resources, hold all the cards.

However, some of the most remarkable success stories of the past decade prove that mid-sized companies can outsmart these giants.

Having spent years in global leadership roles at Fortune 500 companies, I’ve witnessed firsthand how mid-sized companies can successfully challenge and even overtake industry leaders.

Let’s examine several compelling examples from both technology and consumer packaged goods (CPG) sectors to understand the winning strategies that make this possible.

If you would rather listen than read:

 

The Technology Sector: Speed and Innovation as Weapons

Stripe: Simplifying the Complex
When Patrick and John Collison founded Stripe in 2010, the payment processing industry was dominated by established players like PayPal and traditional banks.

Rather than trying to match their vast resources, Stripe focused on solving a specific pain point: making it incredibly easy for developers to implement payment processing.

As co-founder John Collison noted,

We’re building tools that help ambitious companies scale faster. Our success is tied to their success.

This philosophy drove their key strategies:
– Focused on developer experience when larger competitors were prioritizing enterprise sales
– Created an API that could be implemented in minutes rather than weeks
– Maintained agile product development, launching new features in weeks instead of months
– Built a developer-friendly documentation system that became industry standard

Their results were remarkable:
– Reached $95 billion valuation by 2021
– Processed $640 billion in payments in 2021 (up 60% from 2020)
– Serves 90% of enterprise companies that started since 2011
– Maintains a 98% customer satisfaction rate
– Achieved this with a team 1/10th the size of traditional payment processors and a customer base including Amazon, Google, and Microsoft.

 

Zoom: Winning Through Simplicity
Before the pandemic, Zoom was competing against tech giants Microsoft, Cisco, and Google in video conferencing. Instead of trying to match their feature sets, Zoom focused obsessively on doing one thing exceptionally well.

Their winning approach:
– Prioritized call quality and reliability over feature abundance
– Created an interface so simple that even non-tech-savvy users could master it
– Built their product based on direct user feedback rather than competitor analysis
– Maintained focus on core functionality while competitors tried to be all things to all users

The results were staggering: from 10 million daily meeting participants in 2019 to 300 million in 2020, maintaining significant market share even after the pandemic peak.

 

Shopify: Democratizing E-commerce
While Amazon was building the world’s largest retail infrastructure, Shopify took a different approach to e-commerce. Instead of competing directly, they empowered small and medium-sized businesses to compete in the digital space.

Their strategic choices:
– Created a platform that leveraged existing resources rather than building expensive infrastructure
– Focused on making enterprise-level capabilities accessible to smaller businesses
– Built an ecosystem of developers and partners to extend platform capabilities
– Maintained focus on merchant success rather than direct consumer relationships

Today, Shopify powers over 2 million … Click to continue reading

How Influencer Marketing is Redefining Consumer Engagement and Market Success

Posted on by Denyse Drummond-Dunn

The consumer packaged goods (CPG) industry is undergoing another profound transformation, driven by the rise of brands expanding their influencer marketing.

These ventures, spearheaded by social media personalities, redefine how products are launched, marketed, and consumed.

By leveraging authenticity, pre-built audiences, and direct engagement, influencers are disrupting traditional brands and creating entirely new market dynamics.

If you prefer to listen rather than read:

The Power of Influencer-Led Brands

Influencers have built careers on relatability, trust, and engagement with their audiences. This unique connection translates seamlessly into the consumer marketplace.

When Logan Paul and KSI launched Prime Hydration in 2022, their built-in fan base helped propel the brand to $1.2 billion in sales within just one year. This staggering success highlights how influencers can skip the slow burn of traditional brand-building and go straight to market dominance.

Similarly, Emma Chamberlain’s Chamberlain Coffee leverages her personal brand as a coffee enthusiast. By aligning her product with her authentic interests, she not only attracts her YouTube followers but also a wider audience of coffee lovers. The brand recently secured $7 million in funding to expand its reach, showing that authenticity paired with strategic growth can be a winning formula.

Another standout example is MrBeast’s Feastables. Known for his elaborate and charitable YouTube stunts, MrBeast created a snack brand that mirrors his fun and engaging online persona. Within a few months of launch, Feastables generated $10 million in sales. MrBeast’s willingness to involve his audience in the brand’s journey, such as soliciting feedback on packaging and flavors, has solidified the brand’s appeal.

Even in the personal care space, influencer-led brands are making waves. Jake Paul’s W body care brand raised $11 million in Series A funding in mid-2024, signaling that influencer-led ventures are not limited to snacks and beverages. W’s young, male audience is drawn not just to the product but to the personality behind it, showcasing how effective these ventures can be at capturing niche markets.

 

Authenticity as a Key Differentiator

Authenticity is the cornerstone of influencer-led brands.

Consumers increasingly seek transparency and connection, valuing brands that reflect their own values.

For example, MrBeast’s Feastables infuses the influencer’s playful yet philanthropic ethos. Feastables earned $10 million in chocolate bar sales within its first few months by resonating deeply with MrBeast’s audience.

Established CPG brands can learn from this. Dove’s Real Beauty campaign is a standout example of how a traditional brand can also build authenticity. By shifting the focus from products to shared values, Dove has sustained consumer trust for over a decade, demonstrating that even large brands can adapt this influencer-driven strategy.

Another great example is Nike. By consistently aligning its campaigns with cultural and societal values, Nike has managed to remain relevant across generations. Its collaboration with Colin Kaepernick, despite being polarizing, resulted in a 31% spike in online sales and reinforced its position as a brand that stands for something bigger than its products.

The rise of influencer-led brands also highlights the importance of storytelling. Consumers are drawn … Click to continue reading

Top 10 Challenges of Mid-Sized CPG Companies: Insights, Statistics and Real-World Solutions

Posted on by Denyse Drummond-Dunn

Executives and business owners of mid-sized CPG companies face a unique set of challenges that differ from those of startups or larger enterprises.

These challenges stem from the need to balance growth, operations, and innovation while competing with both larger firms and more agile startups.

Here are the top ten challenges mid-sized consumer goods companies face, real-world examples of businesses that have successfully overcome these obstacles, and expanded solutions explaining how to implement these strategies in your own organisation.

If you prefer to listen rather than read, click below.

 

Executive Summary

For those of you who tend to skim-read and only look at the bottom of an article to read the conclusions, here’s one better, an Executive Summary!

All companies struggle at times and mid-sized businesses have their own specific problems to solve without the resources of the larger organisations. The examples in this article show it is not only possible but sometimes in just a year or two. Check out the issue you’re struggling with and jump to the example for a quick solution.

  1. Prose: Improved employee retention by 20% over 2 years.
  2. Chobani: Achieved double-digit revenue growth annually over 5 years.
  3. RXBAR: Improved cash flow by 15% in 18 months.
  4. KIND Snacks: Grew DTC sales by 25% in 3 years.
  5. Beyond Meat: Became a leading player in the plant-based market over 5 years.
  6. Gatorade: Increased consumer engagement and repeat purchases over 2 years.
  7. Seventh Generation: Avoided fines and strengthened market position in 3 years.
  8. Clif Bar: Successfully transitioned key executives over 5 years.
  9. Mondelez International: Reduced waste by 15% in 3 years.
  10. Nestlé: Pivoted towards health and wellness trends over 5 years.

Mid-sized CPG companies face a unique set of challenges as they navigate the complexities of growth, supply chain management, consumer trends, and competition from larger and smaller brands.

Here are the top ten challenges faced by CPG companies, supported by statistics and real-world examples, along with actionable solutions tailored to this industry.

 

1. Talent Acquisition and Retention in CPG

Attracting and retaining talent is particularly challenging in the CPG industry due to high turnover in manufacturing, distribution, and sales roles, coupled with increased competition for digital talent needed for e-commerce and data-driven marketing.

A 2023 report by Deloitte found that 66% of CPG executives identify talent acquisition and retention as a key business challenge. Additionally, the turnover rate for manufacturing jobs in the U.S. stood at 29% in 2022, further exacerbating the issue.

The solution to this particular challenge is to build a strong employer brand and invest in workforce development.

To attract and retain the right talent, mid-sized CPG companies need to focus on building their employer brand while investing in continuous training programs. Here’s how:

  1. Develop Your Employer Brand:
    • Promote your company’s purpose and values, particularly around sustainability and innovation, to attract younger talent interested in making
… Click to continue reading

10 Key Questions CPG Leaders Should Ask About Customer-First Strategies for Expanded Loyalty

Posted on by Denyse Drummond-Dunn

CPG leaders (Consumer Goods Companies) understand that delivering exceptional consumer experiences is crucial for distinguishing their brands.

A customer-first strategy has emerged as a pivotal approach to business success in every industry, prioritizing customers’ needs, preferences, satisfaction and delight across all facets of an organisation.

This strategy is particularly vital for CPG companies given the direct impact on consumer choices and brand loyalty. It encompasses a comprehensive understanding of consumer behaviour and leverages advanced technologies like AI and data analytics to create personalized and seamless experiences from product development to point of sale and beyond.

For CEOs and business owners in the CPG sector, implementing a customer-first approach enhances customer loyalty and retention and drives profitability and long-term success in a rapidly evolving market.

Here are the ten most important questions that CPG leaders should ask when adopting a consumer-first strategy and culture in their organization.

If you prefer to listen rather than read: 

1. What Does a Consumer-first Strategy Entail in the CPG Industry?

A customer-first strategy in CPG involves prioritizing consumer needs and experiences across all business operations, from product development to marketing and customer service. This approach requires CPG businesses to:

– Integrate consumer feedback into their product innovation processes
– Develop products that meet and ideally surpass consumer expectations for quality, convenience, and sustainability
– Provide exceptional consumer service across all touchpoints, including retail partners and e-commerce platforms

Companies like Honeywell and Medline Industries emphasize transparency and honesty, even when delivering uncomfortable truths, to build trust with their customers​ (Zendesk)​​ (Graph Digital).

According to a study by Zendesk, 90% of companies collect customer feedback, but only 10% act on it, and just 5% communicate back to their customers about the changes they made based on their feedback. This highlights a significant gap that customer-first strategies aim to fill by fostering transparency and building trust.

Procter & Gamble’s (P&G) “Consumer is Boss” philosophy exemplifies a customer-first strategy. P&G regularly conducts in-home visits and observational research to understand consumer needs deeply. This led to innovations like Tide Pods, which addressed the consumer desire for convenient, pre-measured laundry detergent.

According to a study by IRI and Boston Consulting Group, CPG companies that excel in consumer-centric practices grow their revenue 2.5 times faster than industry peers.

 

2. How Can We Understand Our CPG Customers Better?

Understanding CPG consumers requires leveraging data analytics and AI technologies to gain insights into their behaviours, preferences, and needs. This is particularly crucial in an industry where consumer trends can shift rapidly.

– Use advanced analytics to interpret point-of-sale data, social media sentiment, and e-commerce behaviours
– Implement AI-driven personalisation in marketing and product recommendations
– Conduct regular consumer panels and focus groups to gather qualitative insights

A McKinsey report found that companies using data-driven personalisation see 5-8 times the return on their investment (ROI) and can lift sales by 10% or more.

In addition, 71% of consumers today expect … Click to continue reading

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