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Legal  No)ce:  All  images,  product  names,  logos  and  brands  are  property,  trademarks™  or  registered®  trademarks  of  their  respec)ve  
holders.  Use  of  them  is  solely  for  educa)onal  purposes  and  does  not  imply  any  affilia)on  with  or  endorsement  by  them.    
  
  
  
Example  Tac+cs:  
-­‐  Educa(onal  Content  
-­‐  Customer  Reviews  
-­‐  Consulta(on  (ex.  
Expert  Chat,  Product  
Selector  Tool)  
-­‐  Customer  Service  
  
  
  
Example  Brands:  
  
  
  
  
  
Expertise
eRETAIL VALUE EQUATION =
THE D2C DILEMMA
6S IDEA FILTER
SOLVE:  Does  it  solve  an  actual  
consumer  problem?    
1  
STATUS  QUO:  Will  it  be  different    
and  beEer  than  status  quo?  
2  
STRATEGIC:  Is  it  strategic  to    
our  business/brand(s)?  
3  
SUCCESS:  How  will  we  measure  
success?  What  does  that  look  like?  
4  
SCALABLE:  Is  what  we’re  doing  
scalable  across  our  business?  
5  
SUSTAINABLE:  Will  this  be  
sustainable  aMer  the  ini(al  launch?  
6  
  
  
  
Example  Tac+cs:  
-­‐  Exclusive  Brands  
-­‐  Exclusive  Products  
-­‐  Exclusive  Packs  
-­‐  Customiza(on  
  
  
  
  
  
Example  Brands:  
  
  
  
  
  
Solutions   
  
  
Example  Tac+cs:  
-­‐  Expedited  Delivery  
-­‐  Same-­‐Day  Delivery  
-­‐  Immediate  Delivery  
-­‐  Subscrip(on  
-­‐  Order  Ease/Op(ons  
-­‐  Other  (ex.  3D  
Prin(ng,  Streaming)  
  
  
Example  Brands:  
  
  
  
  
  
Convenience   
  
  
Example  Tac+cs:  
-­‐  Special  Pricing  (ex.  
Bulk,  Contract,  
Membership)  
-­‐  GiM  with  Purchase  
-­‐  Deal  of  Day  
-­‐  Free  Shipping  
-­‐  Charitable  
Dona(ons  
  
Example  Brands:  
  
  
  
  
  
Price   
  
  
Example  Tac+cs:  
-­‐  Customer  Service  
-­‐  Rewards  or  Loyalty  
Programs  
-­‐  Social  Community  
or    Membership  
-­‐  Technology/Tools  
-­‐  Discovery  
-­‐  Product  Guarantee  
  
Example  Brands:  
  
  
  
  
  
X-Factor
As commercial offense and defense in today’s marketplace, many CPG brands are asking, “Should we launch our own
direct-to-consumer (D2C) eCommerce model?” And like all great marketing questions, the answer is “It depends.”
Follow these initial 4 steps to determine whether D2C is right for your brand at this time:
1.  Choose a target customer(s). NOTE: This may not be your brand’s traditional consumer (ex. B2B).
2.  Use the eRetail Value Equation (below) to ideate and differentiate your proposition concept(s) for your target customer(s) vs. other retailers in your
category. NOTE: A “me too” proposition will not succeed without significant, disproportionate investment and resources, and even then, without
winning with at least one of the five factors of differentiation below and competitive performance in the others, success is not likely.
3.  Use the 6S Idea Filter (right) to vet your proposition concepts for short and long-term fit and success.
4.  Confirm whether your organization is prepared and committed financially, legally, logistically and commercially to assume the role of the retailer
and all the potential benefits and liabilities such responsibility will pose.

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The D2C Dilemma for CPG Brands

  • 1. Legal  No)ce:  All  images,  product  names,  logos  and  brands  are  property,  trademarks™  or  registered®  trademarks  of  their  respec)ve   holders.  Use  of  them  is  solely  for  educa)onal  purposes  and  does  not  imply  any  affilia)on  with  or  endorsement  by  them.           Example  Tac+cs:   -­‐  Educa(onal  Content   -­‐  Customer  Reviews   -­‐  Consulta(on  (ex.   Expert  Chat,  Product   Selector  Tool)   -­‐  Customer  Service         Example  Brands:             Expertise eRETAIL VALUE EQUATION = THE D2C DILEMMA 6S IDEA FILTER SOLVE:  Does  it  solve  an  actual   consumer  problem?     1   STATUS  QUO:  Will  it  be  different     and  beEer  than  status  quo?   2   STRATEGIC:  Is  it  strategic  to     our  business/brand(s)?   3   SUCCESS:  How  will  we  measure   success?  What  does  that  look  like?   4   SCALABLE:  Is  what  we’re  doing   scalable  across  our  business?   5   SUSTAINABLE:  Will  this  be   sustainable  aMer  the  ini(al  launch?   6         Example  Tac+cs:   -­‐  Exclusive  Brands   -­‐  Exclusive  Products   -­‐  Exclusive  Packs   -­‐  Customiza(on             Example  Brands:             Solutions       Example  Tac+cs:   -­‐  Expedited  Delivery   -­‐  Same-­‐Day  Delivery   -­‐  Immediate  Delivery   -­‐  Subscrip(on   -­‐  Order  Ease/Op(ons   -­‐  Other  (ex.  3D   Prin(ng,  Streaming)       Example  Brands:             Convenience       Example  Tac+cs:   -­‐  Special  Pricing  (ex.   Bulk,  Contract,   Membership)   -­‐  GiM  with  Purchase   -­‐  Deal  of  Day   -­‐  Free  Shipping   -­‐  Charitable   Dona(ons     Example  Brands:             Price       Example  Tac+cs:   -­‐  Customer  Service   -­‐  Rewards  or  Loyalty   Programs   -­‐  Social  Community   or    Membership   -­‐  Technology/Tools   -­‐  Discovery   -­‐  Product  Guarantee     Example  Brands:             X-Factor As commercial offense and defense in today’s marketplace, many CPG brands are asking, “Should we launch our own direct-to-consumer (D2C) eCommerce model?” And like all great marketing questions, the answer is “It depends.” Follow these initial 4 steps to determine whether D2C is right for your brand at this time: 1.  Choose a target customer(s). NOTE: This may not be your brand’s traditional consumer (ex. B2B). 2.  Use the eRetail Value Equation (below) to ideate and differentiate your proposition concept(s) for your target customer(s) vs. other retailers in your category. NOTE: A “me too” proposition will not succeed without significant, disproportionate investment and resources, and even then, without winning with at least one of the five factors of differentiation below and competitive performance in the others, success is not likely. 3.  Use the 6S Idea Filter (right) to vet your proposition concepts for short and long-term fit and success. 4.  Confirm whether your organization is prepared and committed financially, legally, logistically and commercially to assume the role of the retailer and all the potential benefits and liabilities such responsibility will pose.