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Operations and Sales: Significant Pandemic Challenges for Brand Owners in Latin America

Based on the recent survey among nearly 450 Mundo PMMI readers, this article looks at two measures companies are considering implementing: changes in packaging features and properties, and using remote diagnostics.

Photo Covid 19 Latin America Shutterstock

The results of our survey pointed out clearly that operations and sales are the areas posing the most challenges to companies that manufacture consumer packaged goods in the midst of the current COVID-19 pandemic.

In operations, one of the biggest challenges for companies is managing cost structure: “Keeping manufacturing costs competitive is a priority for us: it is the only way to stay on our clients’ vendors list,” according to the director of a participating company.

Graph 1 Post # 3

This threat of losing competitiveness, faced by manufacturers of consumer packaged goods in the Latin American region, is reflected in the purchasing capacity decline of their end customers, a serious detrimental factor for sales. "Maintaining the company’s level of sales will involve a tough battle with the competition," predicts a food producer, who in any event sees innovation and development as a way to mitigate the consequences of the current market distortions. "Achieving and surpassing first quarter sales through marketing strategies for the digital commercial channels could compensate for the lack of buyers in physical stores, complemented by the offer of extreme biosecurity by the time face-to-face purchases return.”

Biosafety guarantees

Building trust and security with consumers seems to be the strategy many companies are following to keep operations and sales dynamic, and thus biosafety is preponderant among the challenges they experience today. The current trend is toward the "transition from a state of control to a culture of hygiene, safety and disinfection," says one survey participant. A coincident assessment collected from the survey’s responses indicates an urgent need to promptly obtain safety certifications that will prepare them for the economic reopening. "Looking for reliable partners and innocuous processes will be the new great challenge for the industry," said a businessman in the processing sector. Two of the measures that companies are applying are aimed at making security an ally for their plans during and after the pandemic.

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