Chapter 1: Overview of Product Management in CPG

The role of a product manager in the consumer packaged goods (CPG) sector can be likened to that of a mini-CEO, albeit without direct authority.

A friend recently reached out to me, seeking insights for a product marketing position in the contact lens industry. She had numerous queries, which were entirely valid, as there's a wealth of information available for product managers in the tech sector. However, information on CPG roles, often termed fast-moving consumer goods (FMCG), is significantly scarcer, despite the industry's long-standing existence.

This disparity might be attributed to the reduced visibility of CPG marketers compared to their tech counterparts. Nonetheless, inspired by this conversation, I felt compelled to share my experiences as a product manager in CPG.

I bring nearly a decade of experience from two beauty companies, and my insights come not only from personal experience but also from discussions with peers in similar roles across various industries. While the specifics may vary by sector and company, the overarching process remains relatively consistent.

Marketing in tech functions differently, and I won't delve into that area as it's outside my expertise. However, if you're curious about those differences, there's a noteworthy article on Forbes titled "The 4 Types Of Marketing Roles In Tech."

Job Responsibility #1: Own the Strategy and Drive the Business

A distinct feature of the marketing role in CPG is the ownership you have over your brand’s business strategy. You are accountable for the brand’s profit and loss (P&L) and overall strategy, needing to manage revenue and expenses, especially concerning new product development, asset creation, and promotional efforts.

According to Kimberly A. Whitler in her piece, "Survey Reveals The Companies That Develop The Best C-Level Marketing Leaders," leading CPG firms place marketers in strategic positions. The top 15 companies prioritize marketers, training them to be accountable for comprehensive business outcomes rather than merely operating as cost centers.

From product inception to market launch, you steer the process. In contrast to tech marketing, which often centers on promotional strategies, CPG marketing demands deeper involvement in product differentiation due to intense competition.

Job Responsibility #2: Develop the Strategic Product Roadmap and Pricing

How do you drive the business? It starts with thorough market analysis—understanding macro trends, competitive landscapes, consumer behaviors, and business partnerships is crucial. Your initial task is to gain a comprehensive understanding of these elements.

Next, you'll define a winning strategy. Expect a lot of trial and error, particularly when innovating. You'll continually study, plan, execute, review, and refine your approach.

Your responsibilities extend to pricing decisions as well. While extensive writing exists on pricing psychology, collaboration with a consumer insights team is vital for analyzing market trends and conducting necessary research—both quantitative and qualitative.

Job Responsibility #3: Collaborate with Product Development Teams

In CPG, marketers oversee the complete journey from product concept to market release. Once you’ve defined a product concept, the actual creation follows, involving various teams.

Packaging designers play a critical role, ensuring both functionality and aesthetics. Extensive consumer testing typically precedes product launches, although failures do occur, as seen in the beverage sector.

The procurement team is essential for negotiating favorable input prices, while R&D provides the technical expertise for product development. A dedicated project manager can facilitate this process, ensuring timelines are met and obstacles are minimized.

Job Responsibility #4: Lead Campaign Development

As a product marketer, you’ll spearhead campaign development. If budget permits, an advertising agency may assist in managing the project and coordinating the creative team.

While you won’t directly oversee creative assets, you will establish objectives, core messaging, target audiences, and desired actions. Defining the brand's tone and providing creative references are essential to avoid misaligned expectations.

In the past, campaigns relied heavily on traditional media. Today, digital advertising, social media, and influencer partnerships are integral components of the promotional mix. While expertise in every channel is unnecessary, a solid understanding is essential for effective communication with specialists.

Job Responsibility #5: Cross-Functional Leadership and Execution

The title of your position may vary (e.g., Marketing Manager, Product Manager, Brand Manager), but the core responsibility remains: leading cross-functional teams to deliver consumer products.

Your expertise lies in understanding the consumer and market dynamics, translating those insights into actionable strategies for various teams. You serve as a bridge between the consumer and the organization, guiding diverse teams—consumer insights, designers, technologists, digital marketers, and sales professionals—to create meaningful products.

DC Palter describes marketing as a translation layer between external customers and internal product development. This concept applies universally across industries, highlighting the importance of collaboration.

Job Responsibility #6: Measure Outcomes and Iterate

Measurement is crucial for success. Modern marketing principles emphasize that if something isn’t measurable, it cannot be managed. Even abstract notions like brand equity can be quantified by establishing clear definitions and tracking relevant attributes.

In my early marketing career, we struggled with measurement, often due to budget constraints. Without it, concepts like brand equity lack substance, making it easy for stakeholders to dismiss them.

To avoid being a "cotton candy marketer," prioritize measurement. Believe in the capacity to quantify brand equity—it's entirely feasible.

Conclusion: The Mini-CEO Challenge

In summary, the role of a product manager is complex and demanding. You must embody various roles and navigate relationships with numerous stakeholders, requiring leadership, inspiration, negotiation, and communication skills.

A successful product manager cannot shirk responsibilities. By definition, your role encompasses the entire business. Ultimately, you are a mini-CEO, albeit without direct authority. High-level communication, analytical acumen, multitasking, prioritization, and management capabilities are crucial for success.

While some may dismiss marketing as simple, mastering it is no small feat. The landscape shifts with societal changes, evolving consumer preferences, and technological advances, challenging you to adapt continually.

Successful product managers embody curiosity, resilience, empathy, intellect, flexibility, and agility—qualities that are essential in navigating this dynamic role.

This video titled "Production & Operations Management: Consumer Packaged Goods (CPG) Industry" offers insights into the intricacies of managing production and operations within the CPG sector.

In this video, "Consumer Packaged Goods (CPG) Industry Overview - Products & Services," viewers can gain a broader understanding of the products and services that define the CPG landscape.