Consumer demand for a brand (brand value) is the cornerstone of CPG’s negotiation leverage with retailers and ultimately their price and value proposition. That it is getting increasingly difficult to create the kind of connections with consumers that drive brand value is a very significant challenge for the industry.
Something more along the order of structural re-alignment of the brand and retail relationship is going to be needed to fix this consumer mis-connection. Optimized positioning and marketing communications aren’t going to be sufficient.
The days of the parent to child relationship between a brand and a consumer are over – consumers have grown up, they know more and have more choices…time for the relationship to evolve more peer to peer. That won’t happen without significantly more trust and partnership with retailers.