Resist the Margin Squeeze

Consumer products firms face a difficult growth market and intense pricing pressures that are squeezing their margins tighter than ever. In this environment, Capgemini helps companies improve growth, profitability and shareholder value.

Our Experience Supporting Margin Growth

We helped leading Spanish milk producer CAPSA address the combined effects of volatile production prices and shrinking retail margins.

Searching for new growth opportunities, CAPSA’s top management made the strategic decision to diversify the company’s sales channels, reinforcing its presence in the out-of-home consumption (foodservice) market.

Capgemini helped CAPSA design the related business plan, and supported the launch and development of a new foodservice business unit.

Four Strategies to Help You Thrive in Challenging Times

1. Extend Existing Operating Models beyond Accepted Paradigms

Seeking quick improvements and making business operations more efficient is no longer enough. We work with you to review the fundamentals of your operating models and challenge the status quo.

2. Collaborate with Large Retailers to Protect Margins

The current economic context demands enhanced collaboration to reduce costs and improve the on-shelf rate of sale.

3. Seek High-Growth, White-Space Emerging Markets

Capgemini collaborates with you to develop comprehensive assessment frameworks to ensure that market potential is weighed against the chances for success and the risk involved.

4. Prioritize and Focus Innovation on Key Consumer Groups

Capgemini helps you implement a consumer and customer segmentation frame, consider renovation vs. innovation and use less costly and more collaborative methods of innovation.

A Simple Plan of Attack

Capgemini helps you resist the margin squeeze by targeting the primary factors for margin growth:

  • Volume, price/mix
  • Operating costs
  • Cost of goods sold
  • Marketing expenses

Our approach focuses on collaboration and innovation, enabling you to achieve significant savings today and lay the groundwork for future growth.