Tuesday, 21 June 2016

Some lessons from Latin America’s leading consumer-goods companies

The Latin American economy has seen better days. Over the past few years, Latin American countries have experienced slowdowns in both GDP and private-consumption growth, a rise in inflation rates, and devaluations in currency. In this difficult environment, consumer-packaged-goods (CPG) manufacturers must make careful choices and deliberately weigh trade-offs.

How are the region’s leading CPG companies managing their customers and channels? Our survey of 35 companies offers some best practices. We examine what “winners” do differently from their peers—winners being companies that achieved higher sales growth than the categories they play in while also outperforming peers on one or more customer- or channel-management metrics. 

The survey results show that by applying best practices, companies can grow sales by more than seven percentage points ahead of others, while reducing selling expenses as a percent of net sales (Exhibit 1). This difference in performance between winners and others is bigger than in any other market we studied except China, where the gap is 17 percentage points.1

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