The competition among retailers and between brands and private label manufacturers is intensifying. Fast moving consumer goods (FMCG) producers, such as Mars and Coca-Cola, are using technical innovation and aspirational marketing to extract premium margins. Retailers, on the other hand, are able to deploy consumer insight to develop private label offerings to compete with the FMCG brands. Retailers are taking on the brands at the top end of the market, such as the Tesco ‘Finest’ range, and by offering better value at the ‘basics’ level.

The competition is putting FMCG margins under increasing threat. Both they and their retail counterparts are looking for lower cost sources of supply to ensure quality and value. Those that have succeeded such as Tesco and Wal-Mart are building ever stronger market shares.

How We Help Our Clients

• On the sales side, Booz & Company can help clients to develop a close understanding of customer demand and behaviour across channels, prices and other key segments. The data can help clients to communicate particular selling points to clearly targeted discrete markets
• On the supply side, Booz & Company can help clients to establish more cost-effective supply chain networks and to work with producers to reduce costs, improve quality and enhance flexibility.