POI Pulse: January 12, 2015

In-store Pickup, is Tough to Do Well – Research
Source: (Internet Retailer Jan 6, 2015)

More than half, 53%, of the more than 3,000 online U.S. adults surveyed say they expect notification in two hours or less that orders are ready for pickup. 70% say they use buy online, pickup in-store services, mostly to avoid shipping costs. Learn more

Yogurt’s New Power Play – Men
Source: (Food Bus News Jan 6, 15)

The Dannon Co. is one of several companies marketing to male consumers in a traditionally female-focused category. The White Plains, N.Y.-based company has launched Oikos Triple Zero, a line of yogurts with 15 grams of protein and no added sugar, artificial flavors or fat. Packaged in dark blue cups with bold lettering, the product is a far cry from Dannon’s decidedly feminine Light & Fit franchise. Learn more
Achieve Greater Promotional ROI in 2015!

You’ve just received your promotion code to register for the POI Spring Summit “Collaborative Marketing to Execute at the Rate of Change” Summit – Predicting promotional outcomes in-Store, online, and everywhere!” 

Teams who have registered include:

White Wave, Mars, Carl Buddig, Pfizer, Pinnacle Foods, CVS Health, Topco, Organic Valley, Morton Salt, Danone, Energizer, Red Bull, MillerCoors, Keurig Green Mountain, Norseland, Walgreen’s, JM Smucker. DPSG, Windsor Foods, Bush Brothers, Coca-Cola, Kellogg’s, Johnson & Johnson, JBSS, Musco Olives, Unilever, Del Monte, Popcorn Indiana, Post Foods, Starbucks, Giant Eagle, Hormel Foods, PepsiCo, Ainsworth Pet, Grupo Bimbo, Dean Foods, 7-Eleven, and many more. April 12-14, 2015 — Learn more
Business Intel, & Profits On Tap 2015 IT Budgets
Source: (Baseline Mag January 7, 2015)

Rather than viewing the decrease in the rate of growth of spending as a reason to eliminate projects, IT leaders can use that information to implement sound talent managemew34rnt strategies in areas that are truly benefiting the business, and they can allocate resources to solidify those objectives.” More than 500 CIOs, IT directors, hiring managers and other tech leaders in the US and Canada took part in the research. Learn more

Family Dollar Wrestles with Pricing Strategy/Mix
Source: (Bloomberg January 8, 2015)

While a possible buyout looms, the company has been transitioning its sales strategy from periodic promotions to an everyday low price approach. It’s also getting more of its revenue from food and tobacco, categories that carry lower profit margins. Learn more

Candidates Gained Collaboration Skills w/ POI SJU Source: (Next Orientation is June 10-11, 2015)

The program began by exploring how organizations develop and implement a collaborative culture and strategy. Next, core functional areas of business were explored -from forecasting, trade marketing, to merchandising, pricing, supply chain and predictive analytics- providing candidates a solid understanding of each function and how it contributes to internal alignment, and trading partner collaboration success.
CCM graduates and candidates included sales, marketing and merchandising executives from Walgreens, Norseland, Inc., Pinnacle Foods, 7-Eleven, ESM Ferolie, Hormel, Delhaize America, Keurig Green Mountain, Wakefern, Campbell Soup, and Continental Mills, and others. Learn more

Weis Markets Unveils Price Freezes
Source: (Source PG Jan 9, 2015)

Weis’ current Price Freeze program includes name brand and private brand products in grocery, frozen, dairy, meat, health, beauty care and general merchandise. Customers can identify Price Freeze items through store signage and shelf tags for participating items, as well as in weekly circulars. Learn more

Gain the Full Benefits of Membership at POI Now
 Join/Renew as a member of POI this month, and receive a complimentary pass to the POI Spring Summit, April 12-14, 2015. Reach Mike Kantor, CEO and Founder at POI for more information, or to present, attend, or sponsor at POI Summits at mkantor@p-o-i.org

As we enter the New Year in the Retail industry, it is evident that what was Old is New – Just Enabled Better by Technology. Certainly hard work and a passion for food, customer service, and quality will always be in vogue, and are persistently the foundations for success. Now let’s think back 50 years ago, and consider what other points of difference were popular then, and now, just enabled and more importantly measured for effectiveness by technology solutions (the current examples come to mind quickly, and are woven throughout the POI Initiatives):

Home Delivery; Localization; 24-Hour Stores; Personalization; Responsiveness as a competitive weapon; Profitability and Growth as Top Goals

In order to better understand how the trade marketing and merchandising industry is maturing across Trade Promotion Management (TPM), Trade Promotion Optimization (TPO), and Collaborative Promotion Optimization (CPO), the POI and Gartner surveyed sales, marketing and merchandising executives at leading Tier 1 and Tier 2 companies in the fast-moving consumer goods (FMCG) industry.

The results of the survey demonstrate how trading partners are executing with collaborative promotion optimization. For example here are the top 9 findings:

1. More than 30% of companies are sharing key performance indicators with their trading partners.
2. Two thirds of companies have created Trade Planning centers of Excellence.
3. Only 12% of companies feel their analytical capabilities are consistently on par with trading partners.
4. Only 26% of companies have developed operational and financial scorecards across functions.
5. 41% of companies are routinely implementing planning and execution capabilities in order to collaborate, yet less than 5% utilize tools to their fullest potential.
6. One third of companies now have their trade strategy aligned and connected from the field to headquarters and out to trading partners.
7. 51% of consumer products companies can plan and execute promotions with moderate success where they are focused on a broader team approach with respect to culture, personnel with fully aligned plans.
8. Over 70% report that Brand and Account level teams are utilizing scorecards and metrics to identify and continuously improve how marketing activities and investments should be aligned to deliver volume, share, and financial targets.
9. Less than 5% of companies that have invested in optimization and predictive capabilities tools, are utilizing them to their fullest potential.

Beyond the numbers, these are the companies making strides with programs, trading partners, and results. You’ll meet, hear from, and advance with them this year at POI events in North America, and Geneva, Switzerland. Be sure to register early for these events, as space is limited. join us in April in Chicago, or Geneva, Switzerland in May – Registration is open!

Reach me at mkantor@p-o-i.org to express how you’d like to participate at POI this year! 

Have a sensational week and a Happy, Healthy, and Successful New Year! 

Michael Kantor
CEO & Founder
Promotion Optimization Institute, LLC
mkantor@p-o-i.org   

www.POInstitute.com