Data Remains Foundational!
Data Management: As companies have greater amounts of data, it is critical that an organization prioritize data management and assign an owner/team for this critical management component. POI’s recommendation is to establish an enterprise data and analytics owner that is responsible for: data management, enterprise analytics and reporting, executive dashboards, and generating the critical “Enterprise” outputs for the common denominators noted above. This Holistic Enterprise approach will drive transparency, consistent process, and accuracy across the organization, while enabling the functional business unit work below.
With the Holistic Enterprise approach, cross-organizational work will be done utilizing consistent foundational data. Best in class Consumer Goods Companies experience the positive impact to their company’s Integrated Business Planning monthly consensus meeting as all teams involved are using “one version of the truth” and the same underlying “common denominator data” as they built their forecast, not to mention the downstream benefits and cost savings achieved by having an accurate forecast. Can you imagine the positive impact to your company by having this in place? Data is foundational. Yet, companies are struggling to access, cleanse, harmonize, and hub the data. Purchase power of the Millennials is surpassing that of the Boomers and they are digitally engaged. To offer our consumer personalized offers in the new paradigm, data is critical.
Clean data enables revenue growth management practices, customer level P&L’s, post event analytics, TPO, AI, Holistic Enterprise reporting, and executive dashboards. POI continues to see a strong correlation between companies that are satisfied with their promotions and their ability to bring external data into the process. While trends are improving, nearly 82% of the companies continue to have data challenges with foundational data, and the need is to advance the types and breadth of data shared to include services. Retailers and manufacturers must make data acquisition and sharing a top priority in 2020/21 and beyond. While many TPx offerings include data management, many do not. This is a key differentiator in vendor support and the quality of promotional outcomes. In the 2020 TPx Vendor Panorama we have a new section dedicated to reporting on each vendor’s data management support during and post TPx implementation projects.
Baselines: Baselines are developed and utilized by many functions across the organization as noted above and are foundational to advanced analytics and optimized planning. As a Holistic Enterprise planning common denominator, it is important that baselines are accurate. Organizational projections and forecasting efficiency can be gained by unifying the baseline effort. You will see that automated baselines are possible today with many of the TPx vendor platforms. In the 2020 TPx Vendor Panorama a new section dedicated to reporting on each vendor’s Select TPx Capabilities including baselines has been added to note the exact process and modeling used to determine historical baselines and project future baselines. Learn more
Interested in learning more, and how to effectively, and efficiently approach improvement with these efforts, including Holistic Enterprise Planning and Execution? Write Michael Kantor, CEO and Founder, Promotion Optimization Institute, LLC at mkantor@p-o-i.com
Industry News
| Campbell’s Clouse on Category GrowthSource: (Mktg Daily October 7, 2020) Campbell president and CEO Mark Clouse said, “We expect this will provide a far more attractive, better-for-you option and a much stronger competitive position to capture category growth and younger consumers,” The campaign is running on Instagram, online video and Hulu, where it will sponsor ad-free viewing and “surround and find consumers who have viewed Mindy Kaling content.” Learn more Promotion Optimization Institute Releases POI 2020 TPx Vendor Panorama, and Names Best-in-Class Across Capabilities“Even in the face of COVID-19 and the consumer products industry paradigm shift that is taking place, Trade Promotion and Revenue Growth Management is more relevant today than ever before,” said Pam Brown, Chief Commercial Officer of the POI. “COVID has dramatically accelerated the move to eCommerce and the majority of CPG companies are struggling with online trade promotion. While much work needs to be done, many POI members and the vendors are rising to the challenge”. Learn more Ferrero NA CEO: Lessons Learned in Moving from CMO to CEOSource: (Forbes October 6, 2020) Paul Chibe, CEO of Ferrero North America, said, “I think the largest opportunity for marketers is to focus on building the connection of their brands with consumers. To focus on developing the emotional capital. It may be tougher in some categories, but the younger consumer has a different relationship with brands than the older consumers have. A digital native is much more used to going online and shopping and their loyalty to brand is much less. Their loyalty might be to the platform they are buying from and less to the brand.” Learn more Register here to Access the POI Global Virtual Summit on-demand sessions and resources On-Demand Anytime! |
| Ocean Spray Goes Viral with TikTok CreatorSource: (IB Times October 7, 2020)The TikTok video garnered over 6 million views and sparked the “Dreams” Challenge on the social media platform, which also gained the attention of Fleetwood Mac co-founder and drummer, Mick Fleetwood. Fleetwood created his own “Dreams” TikTok video emulating Apodaca skateboarding, drinking cranberry juice to “Dreams.”Learn more How Kimberly-Clark Navigates a Digital EcosystemSource: (Mktg Dive October 6, 2020) “It’s such a pivotal time for CPGs right now. CPGs are starting to double [down] on the importance of owning the consumer relationship,” Josh Blacksmith, senior director of global consumer relationships and engagement at Kimberly-Clark, said during a livestreamed conference session with Salesforce on Monday. “If we were to leave this, in perpetuity, in the hands of our retail partners, they’re sort of focused on the next transaction.” Lean more The POI State of the Industry – 2020-2021 Annual TPx and Retail Execution Bench-marking Survey –Please participate hereThe Promotion Optimization Institute (POI) is conducting the annual industry survey to help you and your company improve Enterprise planning, promotion effectiveness, retail execution, and understand your business successes and challenges. Here is the “ask:” If you are in a position to provide a solid perspective on your company’s TPx and Retail Execution capabilities, then please take 15 minutes to complete the confidential survey, which is broken down into two distinct processes: Holistic Enterprise Planning (Including eCommerce, digital, TPM, TPO, RGM etc.) & Retail Execution. If you are a solutions/services provider, please do not take the survey. Please instead, ask your clients to complete the survey via the following link: https://www.surveymonkey.com/r/POIsurvey2020 |
| If you missed this RGM webinar, POI members can access the recording here |
| PepsiCo’s DTC Sales Nearly Double in Q3Source: (pyments October 1, 2020) Those gains came in the wake of the May launch of PepsiCo’s Snacks.com and PantryShop.com direct-to-consumer (D2C) sites. Both aim to capitalize on the trend of consumers increasingly turning to eCommerce to meet their food-and-beverage needs during the health crisis. PepsiCo is using the sites to promote its Pepsi, Frito-Lay, Gatorade, Quaker Oats and other popular brands. Learn more Del Monte Fresh Launches E-Commerce SiteSource: (Winsight October 6, 2020) Mauro De Andrade, Fresh Del Monte senior manager, e-commerce, said in a release. “We know that 2020 has been a difficult year for many and look forward to being able to make our consumers’ lives a little easier with this convenient new shopping and delivery option and hope to bring smiles to their faces as they enjoy a glass of our delicious and immunity-boosting lemonade.”. Learn more Constellation Brands Leverages E-Commerce BusinessSource: (Yahoo News October 4, 2020) Continuing a theme from last quarter, Constellation Brands has leveraged its e-commerce business in an effort to offset the drop off of on-premise consumption. The company’s online business is seeing between three and four times pre-Covid-19 volumes. This should be a major source of revenue even when restaurants and bars begin to operate on a more typical basis as consumers grow comfortable purchasing alcohol online. Learn more Mondelez CFO Frees Up Funds as Snack Maker Turns Advertising Back OnSource: (WSJ October 6, 2020) Sales in North America rose 17.3% in the second quarter from a year earlier to $2.02 billion. Chief Financial Officer Luca Zaramella said, “We want to retain them, “referring to new customers attracted in the second quarter, adding, “We want to invest more in our communication to consumers….Some funds originally allocated for travel, consulting and real estate will be shifted toward marketing. Learn more POI & DELOITTE WHITEPAPER: RESHAPING COMMERCIAL PRIORITIES A global pandemic, social justice advocacy, the ubiquitous rise of digital commerce, advanced last-mile fulfillment technologies, and sensitivities toward environmental and social purpose with brands—these topics are all changing how consumers think and interact with CPGs manufacturers. This ever-changing business landscape means CPGs must reevaluate their trade promotion funding, communication, and spending strategies, and align their systems road map to fit new priorities and marketplace opportunities. Access the complimentary Whitepaper |
POI Pulse Weekly Newsletter October 5, 2020
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