FOR IMMEDIATE RELEASE
Leading CPG Companies Doing More with Less in Challenging Economy, GMA-McKinsey Survey Finds
Contact:
Scott Openshaw, Director, Communications, 202-295-3957
Brian Kennedy, Director, Communications, 202-639-5994
September 23, 2008
ST. PETERSBURG, FLA – Top performers in the consumer packaged goods (CPG) industry achieved 3.6 percent sales growth over and above category average while decreasing their sales costs as a percent of sales by 6.1 percent over two years, according to the 2008 Customer and Channel Management Survey: Doing More with Less: Winning Sales Strategies to Navigate a Challenging Market (CCM survey), released today by the Grocery Manufacturers Association (GMA) and McKinsey & Company. The survey, which has been conducted since 1978, links companies’ self-reported practices with financial performance and in-market results to identify winning practices across the industry
“This comprehensive report serves as a valuable tool that helps CPG makers identify gaps and opportunities in their customer and channel management practices, as well as gain insight into important industry trends,” said Brian Lynch, GMA director of sales and sales promotion. “What’s interesting about this year’s results is that top performers varied widely in terms of size, distribution models, go-to-market models and their brands’ market position, suggesting that there are valuable lessons for every type of company in the sector.”
The 2008 survey focused on four elements of customer and channel management: sales coverage and execution, pricing, trade promotion and shopper marketing and identified three performance tiers in each area- the “best of the best,” “winners,” and “others.” Detailed quantitative benchmarks on coverage and service models for top retailers such as Wal-Mart, Target, Kroger, Costco, Walgreens, CVS and 7-11 were also incorporated this year.
“The key theme that emerged from the CCM data is that companies can reduce costs and still grow, despite the challenging economic and retail climate,” continued Lynch. “For example, by carefully prioritizing and holding retailers accountable, top performers in the trade promotion category reduced trade investments but grew sales. Under the sales umbrella, we found that winning manufacturers build fewer but stronger account teams to service key customers.”
Released at the GMA Merchandising, Sales and Marketing Conference in St. Petersburg, Fla., the study is based on survey responses from more than 450 executives representing 45 large and mid-cap manufacturing companies from across the food, beverage, personal care and home care categories and point-of-sale data provided by Information Resources Inc. A complete copy of the report is available online at www.gmaonline.org/publications/index.cfm.
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Based in Washington, D.C., the Grocery Manufacturers Association is the voice of more than 300 leading food, beverage and consumer product companies that sustain and enhance the quality of life for hundreds of millions of people in the United States and around the globe. Founded in 1908, GMA is an active, vocal advocate for its member companies and a trusted source of information about the industry and the products consumers rely on and enjoy every day. The association and its member companies are committed to meeting the needs of consumers through product innovation, responsible business practices and effective public policy solutions developed through a genuine partnership with policymakers and other stakeholders. In keeping with its founding principles, GMA helps its members produce safe products through a strong and ongoing commitment to scientific research, testing and evaluation and to providing consumers with the products, tools and information they need to achieve a healthy diet and an active lifestyle. The food, beverage and consumer packaged goods industry in the United States generates sales of $2.1 trillion annually, employs 14 million workers and contributes $1 trillion in added value to the economy every year.
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