Changing consumer and shopper behavior. Consumers are becoming more demanding in their behavior and needs, especially in light of global economic uncertainty. They also are becoming more fragmented, seeking products and services that meet their lifestyles and situations. Winning companies will be those that identify the underlying consumer and shopper needs and behaviors and category insights that can help them successfully launch differentiated, value-added products.

Growth is no longer in the old back yard. Clearly, emerging markets will be a critical part of a consumer product company's long-term global strategy. But emerging markets can be hard to crack. Among the challenges: local market infrastructures are more complex and the majority of consumers are highly price sensitive. Also, consumer products companies must learn how to integrate emerging market product strategies with their global strategies.

Retail consolidation is transforming the landscape. Consolidation is forcing companies to be more sophisticated in their collaboration with retailers, while raising the hurdle for keeping products on the shelf. At the same time, increased competition from private labels is forcing companies to be more innovative and justify their price premiums. But retail consolidation also creates opportunities for developing strategic partnerships and localization strategies that transform results.

In this changing environment, companies must learn what it takes to build winning brands. The path to winning brands starts with understanding consumer and shopper needs and behaviors. And it requires converting such insights into effective platforms for innovation and go-to-market strategies. In addition, companies must improve performance by reducing costs, making their supply chain, marketing and trade dollars work more effectively.

Bain's experience in Consumer Products consulting

Bain is working with consumer products companies around the world to:

• Accelerate or rejuvenate brand growth by formulating differentiated and consumer-led strategies in both developed and emerging markets
• Build innovation pipelines and processes that generate new products with higher potential and lower risks of failure
• Determine how to optimize the allocation of resources within a product portfolio
• Use Net Promoter Scores to boost consumer insight
• Increase the return on investment from trade spending, as well as strengthen channel partnerships and boost salesforce effectiveness.
• Make strategic mergers, acquisitions, or divestitures to optimize product portfolios and provide cost and operating synergies
• Implement cost-saving strategies such as Manufacturing footprint optimization or in-plant Lean Six Sigma programs
• Perform full-scale transformations

Bain has helped to increase profits and build value for leading consumer product companies worldwide. We've worked with 36 of the top 50 global consumer products companies and completed more than 2,000 projects in consumer products over the past ten years. We cover a wide spectrum of top management issues and work across a full range of sectors. Our clients include companies in the food, beverages, apparel, household products, luxury goods, beauty aids, personal care, toys and office products sectors.

We apply experience, proprietary tools and rigorous fact-based analysis to help our clients become winners. For example, our proven approach to brand strategy includes our High Road/Low Road framework, in which strategy is based on a brand's category positioning - premium or value - and its relative market share. Our Consumer-Led Growth approach helps companies address loyalty issues and make the most of consumer insights. The goal is to design a compelling offering for specific consumer segments, elevate the product experience, and deliver on the proposition. Through Localization we help companies improve regional market share by addressing consumer needs according to such factors as wealth and ethnicity.

To find out more about our work in this industry, please contact Bain's Consumer Products practice.