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How a Leading CPG Overcame D2C Challenges With Transformative Thinking
Direct-to-consumer can be new territory for CPG firms. See how one leading brand is bringing its new business model to life.
Breaking into D2C is hard – and our client, a global CPG leader, needed a big idea that also made financial sense to the business.
Publicis Sapient quickly got to work, designing and testing new business models to find a solution that would bridge technology and supply chain gaps and bring their D2C vision to life.
Our client wanted to create stronger relationships with consumers that would lead to higher sales, greater brand affinity and better insights through data.
D2C offered a path forward, but they were entering into new territory dominated by retail players. This meant a transformative change for the company that created new value for consumers, while not jeopardizing the brand’s existing relationships.
Publicis Sapient built and tested prototypes for new business models to bring our client’s D2C future to life. We iteratively refined concepts through user testing and financial modeling to ensure new models delivered both consumer and business value. With this as our “North Star,” we developed the technology and data requirements to turn concept into reality.
We then built a detailed business case to gain approval for the new venture with the company’s executive committee, which included a full D2C operating model, a data-driven marketing plan and KPIs for the development of a new D2C organization.
We rallied the organization to get excited about D2C, but also helped them understand the challenges of building direct consumer relationships, and what it takes to establish a framework built for success.
Our work aligned the CEO and other stakeholders around a central vision of the future and how to get there. Our prototypes bridged the gap from concept to execution and accelerated the path to launch.
The opportunities we identified and roadmap we developed has put our client on track to deliver $250 million in D2C revenue and $60 million in operating profit over four years.
Direct to Consumer (D2C) is a type of business model that bypasses traditional middlemen to create frictionless shopping experiences and unlock new revenue and profit streams.
Consumer Products companies can create a revenue stream that allows for more freedom and control over first-party data, which opens new opportunities.
How CPGs can ensure they develop the right strategy to capture the most value from their D2C investment.
