Consumer preferences are changing and e-commerce is growing, lowering the barrier to entry for new players. As a result, CPGs are striving to maintain market share and drive sales. However, the industry sales growth rate for 2017 indicates that these efforts are not driving sufficient growth. While many CPGs are responding by increasing mergers and acquisitions activity—one recent example being Hershey’s acquisition of Skinny Pop owner Amplify—executives need to look beyond M&A and think critically about which new ideas will enable them to not just survive, but thrive in the long term.
New ideas are being announced at a frenzied pace, and while executives may be tempted to broadly implement each innovation, be it a new product, ad campaign, or go-to-market strategy, new initiatives are often costly and risky.