POI Pulse February 29, 2016

POI Pulse February 22, 2016 PUBLISHED BY PROMOTION OPTIMIZATION INSTITUTE

Trends & Developments

Hain is Winning with Millennials
Source: (Food Bus News 2/23)

“Millennials account for 32% of Hain’s total sales today, as opposed to accounting for only 25% in the total broader food category,” Mr. Carroll said. “Millennials account for 31% of Hain shopping visits, as opposed to 20% for the total food category. And last but not least, a millennial’s average basket spend is about $100 for Hain as opposed to $56 for the broader food category. Learn more

Woolworth Makes Changes After Price War
Source: (Int’l Supermarket News 2-26-16)

Australian supermarket chain Woolworths has announced a loss of $1bn due to the price war. The supermarket giant along with Coles, form a near duopoly of Australian supermarkets, together accounting for about 80% of the Australian market. Learn more

The POI Spring Summit agenda will include eCommerce, Revenue Management Strategies, and once again be advanced. Register now to attend, as the POI April 2015 Summit was sold out! More than 300 CPG Manufacturers and Retailers will join us in Chicago–

Teams taking advantage of early registration include:

Maple Leaf Foods, Jack Links, Johnsonville Sausage, Bob Evans, Reynolds, Nestle, Natrol, Organic Valley, McKee Foods, Smithfield Foods, Wells Enterprises, DPSG, Constellation Brands, American Licorice, Walgreen’s, Schreiber Foods, McCain Foods, Bimbo Bakeries, Mrs. T’s, General Mills, Energizer, Bellisio Foods, Young’s Markets, Unilever, Procter & Gamble, Morton Salt, Prestige Brands, PepsiCo, JM Smucker, Mars, EJ Gallo, MillerCoors, Shopko, Edgewell, Wrigley, Ahold USA, Mondelez, Mars, PepsiCo, Starbucks, Pinnacle Foods,Coca-Cola, Food Lion, Kimberly Clark, Johnson & Johnson, Perfetti Van Melle, Kraft Heinz, Hormel, Clorox, Tyson, Kellogg’s, 7-Eleven, JM Smucker, Church & Dwight, Busch Bros.,Topco, Keurig Green Mountain, Jarden, Musco Family Olive, Windsor Foods, Ainsworth Pet Nutrition, Del Monte, Hy-Vee Stores, Red Bull, Rich Products, Vitamin Shoppe, Campbell Soup, and many others. For your invitation, reach me today at mkantor@p-o-i.org

Walmart Tells Suppliers – Expect ‘Healthy Tensions’
Source: (The Wire February 25, 2016)Steve Bratspies, chief merchandising officer for Walmart U.S., said at the meetings that the retailer expects “healthy tensions” with its partners as it seeks to improve supply chain capabilities, double down on the everyday low prices (EDLP) strategy while also delivering convenience and customization. “Topline growth is key focus for this year. … We will ask each vendor to support Walmart and our EDLP philosophy,” he said during the meeting with suppliers. “We have work to do – we will reclaim EDLP,.” (Talk Business received a transcript from that meeting, which is the basis for this report.) Learn more

POI Global Summit is Set for Brussels, Belgium

Source: (POI 10-11, May 2016)

View the preliminary agenda for POI Brussels. Building on the success of the inaugural POI Global Summit in Geneva, CH on 12-13, May 2015 leading global companies like Henkel and Coca-Cola are advancing their understanding, and associated benefits of Joint Business Planning, Retail Execution and the components of successful promotion collaboration. register now!

Heineken CMO’s Biggest Challenge is Innovation
Source: (Digiday February 23, 2016)

Heineken has long kept tabs on what it calls its “innovation rate,” the percentage of sales that come from new products. Today, the innovation rate is at 9 percent. Recent innovations include Radler, a beer and lemonade mix and the “pop-up city lounge” testing in multiple cities that the brand thinks will be the next concepts in bar design. Learn more

Enroll Today and Become Certified as a Collaborative Marketer w/ POI at Saint Joseph’s University
Source: (POI-Next Orientation is June 16-17, 2016)During this 16-week self directed program, expert faculty expose participants to the key management levers that drive organizational success. The program begins by exploring how organizations develop and implement strategy. Then, core functional areas of business are explored – from sales to marketing, to supply chain and inance -teaching candidates a solid understanding of each function and how it contributes to trading partner collaboration success. Learn more and enroll today

Sprouts CEO on Strategic Priorities for Growth
Source: (Retailing Today February 26, 2016)

This momentum enables us to focus on our strategic priorities, including product and category innovation, in and out-of-store customer experience and developing team members who can lead our new stores as we continue to grow.” Learn more

New for you at the POI Spring Summit in April – In order to create additional interest, engagement, and excitement in various processes, and applications of business analytics, POI is holding a poster session that includes those CPG and Retailer attendees interested in creating greater visibility around some of their more interesting and innovative projects, or applications. Learn more by contacting Mike Kantor at mkantor@p-o-i.org

View the Full Lineup of POI 5 Leading Events for 2016
Please take a look at what is next on the full POI Summit schedule on our upcoming events page. Save the dates, and advise your cross-functional team members.

POI Perspective

A day like today only happens once every 4 years! Do something extraordinary for your career, and company (as a Manufacturer or Retailer) take a moment, and enroll to become a Certified Collaborative Marketer (CCM), or register for the upcoming POI Summit in Chicago, or Brussels now! Follow the links, and register here.

Excerpt from the 2016 POI Report: The State of TPx and Retail Execution for Global Consumer Goods and Retail
Dale Hagemeyer, Partner, POI

Implication 7: Integration issues persist.

By this we are referring to issues integrating from the back office to the front office, as well

as across various field solutions. We do not distinguish between solutions that are supposed to integrate out of the box and those that have to be interfaced. The issue with integration is that the lack thereof impacts the ability to do analysis because data has to be downloaded or otherwise combined manually into some analytical environment. It can also impact the user experience by requiring a user to toggle back and forth between solutions that have varying elements of look, feel, and navigation.

In the TPx area we found that integration of solutions required to do promotions is a challenge.

This may mean that respondents are using separate solutions in combination for marketing

mix modeling, trade promotion management, promotion optimization, and post-event

analytics. There may be others depending on the approach taken.

One major component of the lack of integration involves ERP solutions. Being able to do

post-event analysis, clear deductions, and manage accruals is predicated upon ERP to TPx

integration. Survey respondents said that it is an important factor in selecting TPx solutions,

but what actually happens is not consistent with expectations for all the reasons outlined

above and perhaps some others.

There appears to be a greater level of integration in retail execution with only 20% disagreeing as compared to 8% in TPx. Some of the challenge may come from multinational companies that require a combination of merchandising, direct store delivery, distributor management, and van sales to manage their sales function across diverse geographies. Nevertheless, this is yet another example of the opportunities for better integration.

Next week look for implication 8. Focusing on the future: For example, many manufacturers have been backed into a corner by Wal-Mart. Promotional dollars are all poured into the shelf price and there is limited control
over the tactics. This is not new news. Respondents weighed in on Amazon as well. As it bypasses retailers and takes
major price concessions from manufacturers, Amazon becomes a major
threat for several reasons…

To receive the complete report, and analysis including charts and recommendations, contact Michael Kantor at mkantor@p-o-i.org

If you did not receive your invitation to attend POI Chicago, or POI Brussels, please reach me at mkantor@p-o-i.org for your invitation.

Have a sensational Week!

Sincerely,

Michael Kantor

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

www.POInstitute.com

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Starbucks
Pricing Manager – CPG

This position contributes to Starbucks success by developing Channel Development’s business strategies involving base and promotional pricing and trade funds management to deliver profitable volume, revenue and share growth for the company. This position is responsible for participating in the development, delivery and execution of headquarters standards, policies and architecture that are aligned to corporate and brand strategies. Learn more

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