Mats Hallstensson – Gordios Development

Gordios Development works with business development in the FMCG and retail sectors, employing a well-established model that addresses the dual facets of a product/service necessary for achieving profitable growth. This approach focuses on optimising both the business product and the consumer-facing offer – the critical “Moment of Truth” where purchasing decisions are made. Any disparity in these components can considerably diminish the prospects for commercial success.

This interview with Mats Hallstensson, CEO and owner of Gordios Development, delves into the challenges and triumphs of navigating today’s fast-paced market landscape. Key themes include the complex interplay between consumer-centric marketing strategies, the challenges of balancing promotions with brand identity, and the imperative of innovation and adaptation.

Market landscape and changing consumer behaviours

In the rapidly evolving landscape of today’s market, businesses face a myriad of challenges that test their resilience and adaptability. Mats sheds light on these hurdles, ranging from inflationary pressures and fierce competition to the complexities of engaging with consumers across a fragmented media landscape. “One of the most daunting tasks for businesses today is navigating the unpredictable nature of market trends and making strategic decisions that ensure not just survival but prosperity.”, he says.

A central topic is also the recognition of changing consumer behaviours, a phenomenon that businesses must adapt to.  As consumer responses to promotions evolve, influenced by factors such as inflation and price sensitivity, companies are compelled to re-evaluate their engagement strategies. The shifts in consumption patterns, underscored by a more discerning and value-seeking customer base, highlight the critical need for businesses to remain attuned to their audience’s preferences and expectations. “Consumer behaviours are completely different now, meaning you have to manage your value. There is less consumption and in a different way,” Mats emphasises.

The role of price and value in consumer decision-making processes cannot be overstated. Mats highlights the strategic importance of pricing promotions and the fine balance that must be struck between enticing customers with competitive prices and safeguarding profit margins. “This balance is crucial in fostering long-term customer loyalty,” he says, “Especially in a market where consumers are increasingly vigilant about getting the best value for their money.”

“Consumer behaviours are completely different now, meaning you have to manage your value. There is less consumption and in a different way.”

Moreover, the landscape of digital marketing and the influence of social media influencers have undergone significant transformation, offering new avenues for businesses to connect with their audience. The engagement of influencers, particularly among younger demographics, plays an important role in shaping consumer preferences and driving sales. This digital evolution presents both opportunities and challenges for businesses striving to capitalise on the vast potential of online platforms to reach a broader, more engaged audience.

Challenges of Balancing Promotions with Brand Identity

To be successful with promotions, Mats underscores the importance of a strong promotion strategy aligned with the brand identity. “Crucial for a strong promotion strategy is that you should understand your consumers,” Mats says.

“Often, companies only look at what they did previously and hope it will work again next year.” Mats raises a concern about this approach, as volume supply has gone down while costs for promotional activities have gone up. Therefore, keeping the same budget for promotional activities as the year before is not recommended. “Instead, one could speculate on what consumption patterns develop in different sociodemographic settings, like household size, and age of the target group,” he exemplifies.

Moreover, it’s crucial for brands to prioritise their brand identity when devising promotional campaigns. While promotions are often aimed at driving short-term sales, Mats suggests considering the value they offer to consumers. For instance, he advocates for promotions that provide increased volume without compromising the perceived price point, essentially adding value through quantity. This approach also applies to multi-price offers, where various positive parameters across the value chain, from operations to consumer value, are addressed. By adopting this strategy, brands can meet immediate sales targets through promotions while simultaneously fostering long-term brand loyalty and customer relationships.

“Many companies today make it quite simple as they look at history, but if you do the same, you end up approximately where it was before.”

Innovation and Adaptation in a Dynamic Market

Finally, Mats highlights the need for continuous innovation in product offerings and marketing tactics to stay relevant and competitive, along with the necessity of being flexible and responsive to market feedback and evolving trends. “Customers’ engagement in price issues is so much greater today than it has been before,” he says. Therefore, innovation is crucial for growth and staying competitive. This involves not just new product development but also how products are marketed and sold, including leveraging digital platforms and influencer marketing to reach target audiences.

“Modern marketing channels offer unprecedented opportunities to showcase products in innovative ways, allowing for creative storytelling and personalised experiences that resonate with consumers.” Influencer marketing, in particular, taps into the trust and affinity influencers have with their followers, providing a credible and compelling way to introduce new products and features to a receptive audience.

Equally important to innovation is the ability of a business to adapt and be flexible in the face of changing market conditions and consumer expectations. The dynamic nature of today’s market requires companies to be agile, and ready to pivot their strategies in response to feedback and trends. This adaptability also extends to the execution of promotions, where innovation plays a key role in capturing the attention and interest of consumers. “Customised promotions, timely offers, and interactive campaigns are just a few examples of how businesses can stay relevant and appealing to their audience.” Mats concludes.

“Customised promotions, timely offers, and interactive campaigns are just a few examples of how businesses can stay relevant and appealing to their audience.”