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As discussed in part 1 of this three‑part series, the Consumer Goods industry is at a clear inflection point. Years of inflation‑driven pricing power have masked deeper structural challenges, but that buffer is now largely gone. Volumes remain under pressure, private labels continue to gain share, and the traditional commercial levers, like pricing, promotions and incremental sales optimisation, no longer deliver the same returns.
Most organisations recognise this reality. However, we see that their playbook is still operational rather than fundamental. Commercial teams double down on optimising price architectures, promotional mechanics or sales effectiveness, hoping that sharper execution will unlock growth. What is becoming increasingly clear, however, is that the core issue is not execution.
As long as commercial strategy is built from the inside out, starting from existing portfolios, brands or customer agreements, it will struggle to capture where value is actually being created.
A consumer‑centric growth approach fundamentally reframes that starting point. Rather than asking how to sell more of what already exists, it begins by understanding where value sits from a consumer and shopper perspective, and then translates that understanding, step by step, into concrete commercial choices.
This is the shift we introduced in part 1 and visualised in the overview below. It makes explicit how moving from a market-back to a consumer-back logic does not only redefine where growth comes from, but also how organizations translate that insight into actionable choices, operating models and capabilities.
This article outlines how that logic works in practice. It reflects a pragmatic way of working that helps companies move beyond short term commercial fixes and build structurally stronger growth models.
Every growth strategy claims to be “consumer‑focused”. In practice, we find that this often remains superficial and rarely guides actual decisions.
Traditional segmentations, which are based on demographics, attitudinal clusters, or high-level behavior, provide useful context, yet we believe they fall short in one crucial respect: they do not clearly identify where value creation actually occurs.
Therefore, we don’t start by asking who consumers are, but rather why and when they use a particular category and what value they seek in it. This results in a more effective approach which starts from consumer needs, usage occasions, and value perceptions. The power of this approach lies in the fact that we do not define these segments merely descriptively, but in economic terms.
Each segment is explicitly sized and linked to its value potential. This forces organizations to make choices they often avoid: which segments are truly valuable and which are structurally less attractive.
For us, growth stops being an abstract idea here and becomes an explicit choice.
Identifying and prioritising segments is necessary, but not enough. What we often see go wrong is that organizations rush through this process instead of delving deeper. Many strategies move too quickly from segmentation to action. We believe that this is precisely where the difference is made.
A consumer‑centric growth model deliberately slows this step down. It focuses on understanding what actually drives choice within each priority segment.
These value drivers can differ significantly across segments: price sensitivity, convenience, quality cues, health considerations, or category affinity, to name just a few. The problem is not that organisations are unaware of these drivers, but that they fail to organise or prioritise them.
We systematically translate these drivers into concrete consumer solutions: specific needs, moments, and use cases that are commercially relevant.
This is where, in our view, explicit choices are, and must be, made about where to play and where not, something that often remains implicit in traditional models.
In our experience, many strategies stop at the consumer insights and do not sufficiently address the realities of the path to purchase.
Consumers shop across channels, retailers, and for specific shopping missions. This means that value is never uniform, but depends on the commercial context. Their choices are shaped by assortment breadth, price perception, in‑store execution and retailer positioning. As a result, value does not materialise uniformly across the market.
Our consumer‑centric approach therefore explicitly links segments to the shopping missions and channels and retail environments in which they are fulfilled, each with its own dynamics, constraints and opportunities.
This is the point where consumer understanding becomes commercially actionable. Growth can no longer be approached generically. It requires aligning the right segments with the right channels and retail partners.
Once priority channels and retailers are identified, the question shifts from strategy to execution: how well do retailers actually deliver on what shoppers value?
What we often see is that retailers are still being evaluated based on generic KPIs that say little about actual value creation. Instead of evaluating customers through those generic KPIs, the consumer‑centric model assesses retailer performance against the value drivers that truly matter for priority segments.
This provides a much more actionable view on performance on where the shopping experience is suboptimal, and more importantly why. This allows us to build differentiating customer plans that allow to build true retailer partnerships and accelerate consumer & shopper centric growth.
The final step brings all previous elements together. Segmentation, value drivers, channel dynamics and retailer performance are no longer isolated insights, but interconnected inputs into a single decision framework.
By combining these elements with household and point‑of‑sale data, organisations can quantify growth opportunities, test scenarios and prioritise actions. Decision‑making shifts from intuition and historical precedent to explicit value creation logic.
The impact is profound. Resources are allocated where they matter most. Trade‑offs become transparent. And commercial focus aligns with actual growth potential.
The strength of this approach does not lie in any individual step, but in how they connect. Commercial excellence stops being a collection of disconnected initiatives, as we co-create a focused growth strategy and coherent impactful implementation across the organisation.
For Consumer Goods companies today, the real challenge is not generating more research. As what we've seen is that there's rarely a lack of research, but rather a lack of an integrated & actionable insights.
Our consumer‑centric growth approach provides these essential insights and data, and systematically links consumer and shopper understanding to commercial decisions. It enables growth that is structured, prioritised and repeatable. In a market where growth is increasingly scarce, that capability is no longer optional. It is becoming the defining difference between those who lead, and those who follow.
However, insight alone is not enough. The real differentiator lies in how this logic is translated into an end-to-end way of working across the organisation. In part three of this series, we will build on this by showing how companies can move from insight to execution: from defining a clear category vision to structurally embedding it into commercial planning and customer operations, as illustrated in the figure below.
At Chronion, we don’t treat models as an end point, but as a way to structure better decisions. We combine deep consumer insight with explicit and often difficult commercial choices, always with one goal in mind: to deliver sustainable & profitable growth.
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