Essential Tips for CPG Manufacturers From Category Management Experts


There’s a rapid change in consumer behavior in today’s competitive retail market, which is often challenging for CPG manufacturers. Category management offers a primary platform for CPG manufacturers to interact with retailers. This helps businesses understand consumer trends better.

Moreover, category management provides the process framework, metrics, and language for communicating tactical and strategic recommendations to the retailer. This guide will walk you through useful tips for category management in the CPG business.

Focus on Continuous Improvement

Some CPG brands repeat the same account planning year after year as they think it’s safer. According to experts, this approach hinders advancement and real collaboration because it doesn’t welcome the latest ideas. Creating an environment based on continuous improvement is crucial to iterating, testing, and learning from the stakeholders’ decisions.

Quantify Your Account Plan

Quantifying the worth of your account plan will help your CPG brand win over the retail partners and management team. Without a road map, most stakeholders are intimidated by the idea of changing their account plans.

To convince retail partners and management teams, consider quantifying and demonstrating your plan’s value, including optimization points. Selling your plan to brand and product management teams and other stakeholders is easier if you show the ROI against your tool.

Focus on Your Strengths

According to studies, 46% of CPG manufacturers invest in promotions, pricing, and assortment. However, most don’t know the tools, data, or technology they’ll invest in. This uncertainty is common in an industry where businesses cyclically invest in tools and data. According to category management experts, CPG manufacturers must focus only on key areas (promotions, pricing, and assortment) and re-invest in them yearly to remain consistent.

Understanding Consumer Trends

When determining your target audience, CPG manufacturers and retailers must focus on changing consumer behaviors. That’s because evolving consumer demands now require agility more than before. Habitual buying, variety-seeking, dissonance-reducing buying, and complex are the four types of consumer behavior.

Each type is determined by the kind of product shoppers need, their level of interest, and differences between CPG brands.

CPG consultant

By using the CPG Brand and Sales Management Services, your CPG brand can improve category management. Our Natural CPG consultants at emerge can help you gain a competitive edge in the industry. Schedule a consultation with us to learn more today!

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