Journal of
Corporate
Renewal
April
2016
a keen eye on competition. Ensure
sustainability and profitability
by managing distribution costs
and returns. Bundle pricing
and quantity discounts are
very effective. The freight
policy is a key differentiator.
• Shopper Marketing: Make
the offering simple. Eliminate
conversion obstacles. Link ads to
a specific product offering, just as
one would an in-store program.
Capture, study, and implement
data findings to adjust on the fly.
• Feedback: Use consumer and site
feedback to ensure engagement
and build loyalty. Build a process
to re-engage consumers who talk
to the company or about its brand.
Reward consumers for taking time
to recount their experiences.
To build successful digital platforms,
U.S. retailers plan to invest $15 billion
in e-commerce over the next three
years, according to IRI. E-commerce
is a viable platform for launching
new brands and growing existing
Michael J. Musso is a managing director
with Conway MacKenzie, Inc. He is a senior
operations, turnaround, and restructuring
executive with 30 years of experience in leading
and rebuilding underperforming companies as
CEO, financial advisor, and chief restructuring
officer (CRO). Musso has a blue chip consumer
products foundation, having served in various
leadership roles of increasing scope at Procter
& Gamble, Pepsi Cola, and Frito-Lay.
ones. It must be part of a diversified
distribution platform, which is critical
to both growth and survival. CPG
brands will have to contribute to this
investment in a very big way while not
underfunding traditional platforms.
This investment will certainly apply
margin pressure on brands already
compressed by a lack of inflation over
the past five years. Smaller brands
will struggle to find places to grow
roots with the decline of physical
retail space. Innovation, already costly
and with a very high failure rate, will
be critical as consumers demand
more product segmentation.
With the changing landscape for both
retail and CPG brands, it is inevitable
that there will be fallout. For many
retailers, the ship may already have
sailed, but for CPG brands, survival
may rest in consolidation. Scale is an
important factor in surviving the new
landscape and 2+ 2, with synergies and
leverage, can often yield 5. Whatever
the strategy, focus and speed are of
utmost importance to success. Seat
belts are required for the ride ahead. J
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