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Marginal Gains: The FMCG Advantage
The fast-moving bit of FMCG, means there is always a temptation to chase the next big thing—a viral campaign, a blockbuster NPD launch, or a dramatic rebrand. But what if the real secret to sustainable growth lies not in seismic shifts, but in the steady accumulation of small, smart improvements? Welcome to the world of marginal gains.
What Are Marginal Gains?
The concept of marginal gains is simple: focus on making small, incremental improvements—just 1% better—in every aspect of your business. Over time, these tiny enhancements compound, delivering a significant competitive advantage. The idea, popularised by British Cycling’s Dave Brailsford, has transformed not just elite sport, but also the way leading FMCG brands approach growth and innovation.
Why Marginal Gains Matter in FMCG
FMCG is a category defined by fierce competition, tight margins, and ever-evolving consumer expectations. In this environment, the marginal gains mindset offers several advantages:
- Reduced Risk: Small changes are easier to test, measure, and refine, minimising the risk of costly missteps.
- Compound Impact: Improvements in packaging, distribution, marketing, and customer experience add up, often delivering outsized results over time.
- Agility: Brands that continuously iterate can respond faster to trends and consumer feedback, outpacing slower, less adaptable competitors.
Where to Find Your 1% Improvements
Marginal gains can be found everywhere in the FMCG value chain. Here are some practical areas to target:
- Product Development: Optimise recipes, reduce waste, or improve shelf life by small margins.
- Packaging: Make packs easier to open, more sustainable, or more distinctive on shelf.
- Distribution: Streamline logistics, reduce out-of-stocks, or improve forecasting accuracy.
- Marketing: Test and refine messaging, creative, and media mix for incremental uplift.
- Customer Experience: Enhance service touchpoints, from faster response times to more helpful FAQs
Real-World Impact: Case in Point
Our works with Jason’s Sourdough has adopted a marginal gains approach. We identified the core brand ideas over five years ago: An Everyday Obsession. We have not really deviated from that and it is this consistent incremental approach to communications that has seen brand penetration soar by 318%. While a great product and strong distribution were key, the disciplined pursuit of small, data-driven improvements in marketing made a measurable difference,
a 19% efficiency gain in quality checks—proof that even back-end tweaks can drive front-end results.
How to Embed Marginal Gains in Your FMCG Strategy
- Break Down the Process: Map every step in your product, marketing, and supply chain.
- Identify Quick Wins: Look for areas where a small tweak could yield a measurable benefit.
- Test, Learn, Repeat: Use data to validate each change, then build on what works.
- Engage the Team: Make marginal gains a shared mindset, not just a management mantra.
- Celebrate Progress: Recognise and reward improvements, however small—they all add up.
The Compound Effect
A 1% improvement each day doesn’t sound like much, but over a year, it can lead to a 37% improvement overall. In a sector where every advantage counts, marginal gains aren’t just a philosophy—they’re a practical, proven route to growth.
In FMCG, the brands that win are rarely those that wait for lightning to strike. They’re the ones that sweat the small stuff, every day, everywhere. Marginal gains: it’s time to make them your competitive edge.
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