Consumer goods companies will need a hybrid portfolio for growth—a mix of large and small purpose-filled brands with different consumer bases. They can help speed their journey by keeping a few things in mind:
- Standardize agility. An organization can only handle so much complexity, so companies need to strip out the complexity that doesn’t contribute to their desired outcomes—namely, growth. Standardizing the back of the house allows for a set of flexible rules that can put some processes on autopilot.
- Think small. Micro-trends and local differences are something small brands celebrate. Low-distribution, hyper-local brands can still be high-velocity. They don’t need to sell everywhere; they need to sell well in their target markets. AI and analytics are a significant piece of figuring out what works in different local markets.
- Get closer. Startups are fundamentally more intimate to the customer than large multinationals. Cultivate that closeness with real-time insight and feedback loops that provide qualitative feedback as well as quantitative.
Rethinking the business model is the first step toward success. But simply trying to mimic small brands won’t work. Large consumer goods companies need to find the raison d’être for each brand in their portfolio—and it should shine through in everything they do, from product to promotion.