Just released – POI suggests the following strategies for improving your trade promotions:
Seek to enable all of your trade promotion related processes with technology
We see a large number of activities that are done in spreadsheets instead of through a system. You are not alone in this regard. Our survey shows that 91% of respondents augment TPx functionality with spreadsheets. We recommend that you evaluate all of your processes when choosing a TPx solution. Adding spreadsheets to compensate for inadequacies in your system of choice only adds cycle time, complexity, the possibility of “multiple versions of the truth,” and increases the chance for errors.
Prioritize functionality above delivery method.
The lines between SaaS, managed services, hosted private cloud, and public cloud are blurrier than ever. We believe that having the right functionality to deliver insights and build more effective promotions is much more important than how a technology is delivered. Furthermore, as POI watches trends in the industry, there is a significant movement towards the cloud.
Select capabilities that will help users to be more effective and efficient
. Otherwise, why spend the money? 92% of survey respondents said that the “entire process of creating a promotional plan, from budgeting to planning to execution to settlement to post event analytics, takes a burdensome amount of time.” Therefore, the user experience should trump all other considerations, including low price points and promises of easy integration.
Ask for best practices from your vendor.
The POI 2018 Survey found a wide disparity between expectations for best practices and what was actually delivered. Many vendors can help to assess current gaps in your processes, enable best practice discussions, and facilitate gap closure efforts. This is a differentiator amongst the vendors and critical to improving your promotional execution. Also, find out the background of those who are expected to deliver them to ensure that they are indeed subject matter experts. Then, document precisely the sort of best practices you are looking for and make this part of the scope of work.
Don’t underestimate the need for change management. Whethermoving from spreadsheets to a server-based system or implementing optimization capabilities, getting people to embrace change is vital.
Market Overview
This is a critical time in the marketplace because many ongoing issues like effectively managing trade promotions still persist. Additionally, there are changes in market dynamics with blurring channels and ecosystems. We note some of the following trends, which merit focus from CG manufacturers:
More solution options exist than ever before. In this report, we have evaluated a total of 23 vendor solutions. We continue to see more “localized” solutions that focus on specific geographies such as Europe or North America. We have not seen any consolidation
among vendors in the last year, which is largely a good thing for users of these solutions because of the tendency to force adoption due to unsettling of technologies or merging of platforms.
Deeper analytics, better user experience, and capabilities for optimizing promotions through predictive models are key differentiators that are highly sought after. We consistently see this in case studies of success.
Post event analysis is often overlooked or an afterthought when considering the entire trade promotion cycle. However, we have seen this addressed more recently as either something requiring a specialty tool or as having higher weight in the selection process. Because most CG companies are only able to evaluate the top 2-3 promotions at their key 5 vendors, you have an opportunity to gain a competitive advantage by evaluating a greater number of your promotions. Learn more, access the complete report, including achievements for POI Best-in-Class!
POI Summits: Multiple times a year POI brings together manufacturers, retailers and vendor leaders to work through the dynamic CPG opportunities & challenges together. Sharing between the manufacturers and retailers is exceptional. You just can’t take this journey alone. Join the CPG thought leadership movement:
Gaining Competitive Advantage with Exceptional Retail Execution, September 26-28, 2018 in Morristown, NJ. Learn Sales Effectiveness Strategies & Revenue Management
Collaborative Marketing Driven by Data Analytics, November 7-9, 2018 in Dallas, TX. Topics: Trade Promotion efficiency and effectiveness, ROI, Trade Optimization, Revenue Gross Management (RGM), eCommerce, Advanced Analytics including AI and much more.
What are you doing to proactively and agilely prepare your organization to lead and win? Come join us…
Industry News
Hershey’s 2019 Digital Growth Strategies Source: (Baking Biz August 30, 2018)
Data (Doug Straton, chief digital officer/Hershey) presented showed that with ship-to-home digital platforms, such as Amazon or Staples, the average basket size is 3.5 times greater than physical retail. With delivery and pick-up models, the average basket size is 1.2 times greater; on-demand 1 times greater; and direct-to-consumer the average basket size is 5.5 times greater than the average basket filled in store. Learn more
POI 2018 TPx Panorama Released – Announces Best in Class! Source: (Crossroads – NBC News 8-27-2018)
“Consumer buying behavior and the market landscape have dramatically changed in the last few years, which is further fueling a necessary but profound paradigm shift in the CPG ecosystem that calls for manufacturers and retailers to understand not only the consumer but pricing, trade deals, and digital marketing offers in today’s retail marketplace,” said Pam Brown, Chief Commercial Officer of the POI. “What we have found and reported in this year’s report is that vendors have upped their game and are offering predictive analytics, AI, machine learning, in-flight promotion tracking and other leading-edge capabilities that will help drive efficiency and trade.” Learn more, and access the report here
Frito Lay’s Alexa Skill Targets Back to School Source: (Media Post August 24, 2018)
Frito-Lay is also encouraging parents (and teens) to visit the promotion’s site, provide their birth dates, emails and other information to register, and post of their bag-with-note to qualify for entry into a sweepstakes offering a $1,000 weekly prize for nine weeks, looking to get people to use its new Snackable Notes skill on Amazon’s Alexa. Learn more
POI Retail Execution Summit in NY/NJSeptember 26/28 See the updated agenda, and join Wakefern, Energizer, Edgewell, Dannon, Nestle, Campbell, Pfizer, Unilever, Conagra,Colgate, L’Oreal, DPSG, Mars, Kind Snacks, New Belgium, Kellogg’s, J&J, Mondelez, Kimberly Clark, DSM Brands, Giant Eagle, Red Bull, Pinnacle Foods, Starbucks, Walgreen’s, Crayola, Clif Bar, Cargill, Hormel, Del Monte, PepsiCo,Church & Dwight, Colgate-Palmolive, Coca-Cola, Constellation Brands, RXBAR, Ajinomoto Windsor Foods, Rich Products, Sprout Foods, Meijer, Deoleo Bertolli, Nature’s Bounty, Blue Buffalo, Bellisio Foods, Sprout Organic, Atkins, Hallmark, and more!
Pernod Ricard Invests in Creative, Disruptive ideas Source: (Marketing Week August 30, 2018)
The company is also investing more in Amazon as it sees it both as a media and an ecommerce platform – Pernod Ricard is the second biggest drinks seller on the site. “The biggest area of satisfaction across the board is not specific to delivering the numbers it’s that we’re starting to see the consumer-centric strategy that we put in place three years come to life and deliver” Said CEO Alexandre Ricard. Learn more
POI Fall Annual Summit, Dallas, TX “Collaborative Marketing Driven By Data Analytics“,
November 7-9, 2018
Join us for a Celebration, POI’s 10th Year Anniversary, with 300+ CPG and Retailer peers! Attendees include: Colgate-Palmolive Maple Leaf Foods, Nestle, Starbucks, Church & Dwight, Kellogg, Tree House Foods, Pharmavite, Duracell, Energizer, Keurig, Dr. Pepper, 7-Eleven, Tillamook, Constellation Brands, Bimbo Bakeries, PepsiCo, Bush Brothers, Sargento, Rich Products, Bellisio Foods, Massimo Zanetti, DPSG, Deoleo Bertolli, Musco Family Olive, Daisy Brand, AAFES, Johnsonville, Kimberly Clark, Ajinomoto Windsor, Walgreen’s, Blue Buffalo, Pinnacle Foods, California Olive Ranch, Del Monte Foods, Mondelez, ConAgra, Palmero Villa, Novartis, J&J, Red Bull, Hormel, Clif Bar, Crayola, Cargill, Brown Forman, Campbell Soup,Abbott Nutrition and more!
Dollar Stores Skimping on eCommerce Source: (Bloomberg August 31, 2018)
Dollar General’s forecast implies that margins “will be worse than previously anticipated” and revenue guidance may be aggressive. At Dollar Tree, namesake comparable sales “were fine, but not better than expected,” and its Family Dollar brand sales continue to disappoint. Both brands saw profitability erode. Learn more
CPG Executives on the Future of Brands Source: (Smart Brief August 29, 2018)
“Millennials, the next-generation consumers, are actually more brand loyal than their parents,” said Jim Dinkins, president of Coca-Cola North America. The challenge, however, is that Americans’ attention spans are shorter as more channels are available to them, and brands have to work harder to capture their time.. Learn more
Unilever to Reach China with JD.com Source: (The Drum August 27, 2018)
The deal will see Unilever brands such as Lipton, Vaseline, Clear, Lux and OMO use JD.com’s logistics network to distribute goods between warehouses and brick and mortar retail stores. Learn more
Scholarship opportunities available!
“I truly enjoy meeting as a group and learning from the professors and colleagues at the POI Certified Collaborative Marketer program at Saint Joseph’s University.
Thanks for putting this certification program together, it’s fantastic!” said Veronica Escalante, Customer Development Manager, Sprout Foods, Inc Learn more
100-Year-Old Brands Tackling Innovation Source: (Mktg Interactive August 28, 2018)
For innovation to be effective, both marketing and technology have to work hand in hand, said Gaurav Gupta, marketing director, Kimberly Clark Thailand . Marketing brings understanding of the consumer as well as the consumer experience – and how to delight customers. Meanwhile, technology players bring a deeper understanding of the platforms and how to leverage it. Learn more
Webinars:
Visit POI for more webinars and past events:
If you missed this live webinar,
The POI Names Pam Brown as Chief Commercial Officer! Source: (Promotion Optimization Institute July, 2016)
With new CCO Pam Brown, POI builds on its leadership adding industry expertise in eCommerce, analytics, and consumer goods. Additionally, POI Advisory Board Adds New Members: Lisa Malleus, Head of ecommerce Digital Solutions at Mondelēz International, and Lisa Henriksen, most recently serving as Senior Vice President of Marketing and Customer Engagement at Meijer. Learn more
Coca-Cola Bets on Costa Coffee Chain Source: (NYTimes August 31, 2019)
The deal puts Coke squarely into a red-hot battle in the coffee world, one that until now had been dominated by two food giants. One is Nestlé, which owns Nescafé and the high-end Blue Bottle chain. The other is JAB, the acquisitive European conglomerate. Learn more
Kroger Grows Delivery Footprint by 50% Source: (FoodDive August 31, 2018)
The “Amazon effect” seems to be accelerating in the grocery space, as Kroger’s aggressive delivery expansion will cover a lot of ground. Shoppers at more than 1,600 Kroger stores will soon be able to summon their groceries to their house in about two hours. The expansion takes Kroger’s delivery service from 45 markets to 120 metropolitan markets. Learn more
Amazon Is Successful Because Of These Two Things Source: (Forbes August 27, 2018)
Amazon is focused like a laser on customers. Instead of starting with an idea for a product and trying to convince executives that customers will “love the idea,” Amazon works from the perspective of the customer to come up with ideas that will legitimately generate value. Learn more
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