The unique annual event is underpinned by understanding the accelerating market requirements for outsource provision, and how the Ceuta International Alliance is meeting the challenges and demands of the disruptive retail and consumer market place.
Bringing together key industry opinion leaders, global advisory groups, leading manufacturers and product innovators and Ceuta’s global network partners, the two-day event explores growth opportunities in the health and beauty sectors. With Day Two dedicated to new product development sessions and networking, Day One featured a prestigious line up of key industry speakers exploring the opportunities for our businesses to continue to grow.
Here we outline some of the key insights that business leaders shared at the 2018 event.
Keith Garrity, Director of International Business Development, set the agenda by outlining the context of the conference and the talks:
“Understanding the accelerating market requirements for outsource provision. The Ceuta Alliance is meeting the challenges and demands of the disruptive retail and consumer market place. “
Outsource provision is becoming an increasingly key element in business strategies
The Ceuta Alliance is seeing a significant uptake in brand fostering from global organisations.
What is driving this?
- Businesses entering new markets but do not want bricks and mortar or headcount.
- Multinational companies – with multiple brand portfolios or legacy brands who want to get into new white space markets.
- Launch innovation or newly acquired key brands from home markets, but their overseas local market companies do not have the resource to activate.
- Internal competitor brands.
- Private equity or other businesses that invest in brands but have no market infrastructure or route to market.
- Loss of critical mass within a market
- The need to manage local market distributors and brands.
The Ceuta model constantly delivers flexibility, cost effective solutions, positive outcomes and we offer the skills to match the brief and the expectations that have been agreed.
Research has revealed the key factors and criteria on how a company decides who and why they select a long term outsource partner. They want to see:
- Strong leadership.
- A strategic vision and plan.
- A financially robust business.
- Good IP within their sector.
- Proven and sustainable track record and positive strategic outcomes.
Outsource provision is continually evolving
- Outsourcing is not always about cost reduction but it is allowing companies to have expertise, additional IP, added value services, flexibility and targeted KPIs leading for outsource providers to take ownership leading to enhanced positive outcomes.
- Outsource provision can assist companies in a back drop of a dynamic and disruptive global market place which is developing and changing at speed, delivering many financial challenging implications.
- Ceuta’s business and our consumers are experiencing rapid change. eCommerce is undeniably increasing role in our commercial and “purchasing” lives.
- This leaves brand owners, from start-ups to multinationals, constantly challenged with the question: “What is the right path to growth?”
- From optimising a brand portfolio to breaking into new markets or trade channels, from managing and developing brands, to turning a great product idea into a successful commercial launch, The Ceuta Alliance believes that outsource provision should bring speed, agility and cost efficiency to the management of our clients’ brands. We apply the same focus and expertise to each and every brand we represent.
Portfolio Management and Value Creation
Vincenzo di Nicola, Managing Director, Baird
- M&A (mergers and acquisitions) activity in consumer health remains strong as sector fundamentals are very attractive.
- Who is driving this M&A activity?
- Market share of the top ten players has been stable over the last five years.
- What is driving the interest of financial sponsors?
- Strong and resilient sector growth
- Significant consolidation opportunities
- Diversification away from government funding risk
- Clear exit pathways
- New entrants from adjacent FMCG industries are expanding into the consumer health arena:
- Weakening growth in their core market – access to solid and resilient growth of the Consumer Health sector.
- Complementary segment with some overlaps in channels and supply chain
- Re-rating of equity story, ie, growth profile, barriers to entry, regulatory hurdles
- Access to brands / fast growing consumer groups & innovation are the key drivers of M&A.
- Current M&A activity in the consumer health sector will drive increased outsourcing, driven by:
- Brand fostering is the solution – Outsourcing marketing services are poised for continued strong growth in the future.
Brexit, Trump and populism – An investment guide
William Hobbs, Head of Investment Strategy, Barclays Investment Solutions
This presentation explored why the world economy may not be as structurally broken as some would have us believe, why Brexit doesn’t have to be a disaster and why our children are unlikely to be worse off than us.
Here are his conclusions:
- Long run growth outweighs recessions.
- Corporate profits are closely linked to output.
- Recession triggers vary:
- Lead indicators tell us not to expect a recession yet.
- MSCI World (international equity index, which tracks stocks from 23 developed countries) returns forfeited by staying out of market.
Boosting profits with the feel-good price
Kai-Markus Mueller, The Neuromarketing Labs
- Classic techniques to understand consumer perception often fail because people cannot verbalise what they feel.
- In pricing research, consumers additionally give tactical answers because they want to buy cheap.
- However, subconscious measurement techniques from psychology and neuroscience provide a promising opportunity to tackle this dilemma. NeuroPricing® measures unbiased willingness-to-pay by capturing price perception using implicit methods.
- Starbucks used to underprice their coffee: The best price-product fit is at € 2.40 (At the time of testing Starbucks sold the respective coffee for € 1.80):
- NeuroPricing® combines client briefing, screening and recruiting, and reaction time analysis – and has generated some unexpected results.
Switch: A Growth Driver
Michelle Riddalls, Director of Regulatory Affairs, Pfizer
- The Rx-to-OTC Switch (the transfer of proven prescription drugs to non-prescription) increased consumer access to safe and effective medicines for self-treatment of symptoms.
- Switch success factors:
Life’s Better. Connected
Guy Hepplewhite, Communications Strategy Director, 1HQ
- Don’t just provide; connect to enable.
- We don’t just buy products, we buy: meanings, feelings, stories, and relationships:
- The value of emotional connectedness:
- Collaboration, self-initiative, innovation, attentive customer service
- Higher degrees of engagement, gratification, greater loyalty
- More meaningful physical connectedness
- Smart is getting smarter, faster.
- Big data; real-time value.
- Increased efficiency without increased infrastructure.
- Tomorrow’s cities will be driven by connected data.
- The line between human and technological device is blurring as smart technology puts people in greater control of their health, wellbeing and beauty needs.
- The cost of global healthcare isn’t sustainable.
- Connecting brands, products and lifestyles – connection first, fitness second.
- A ‘newconomy’ of collaboration: Retailers and brands are, and will continue, to form business partnerships that support better shopper experiences, by combining services that can leverage strengths to deliver added value and fulfil more of their shoppers’ and consumers’ needs.
- Larger service ecosystems.
- Creating new opportunities; accessing new routes to market.
- Leverage power of portfolio (or individual brands) to deliver compelling, future-facing partnerships that create service ecosystems with real value.
- Develop partnerships that help deliver deepest possible understanding of consumers and how they really live their lives.
If you found these insights useful, click here to read part 2…