We at POI wish you all a Happy New Year! We wish you every success (work, family, health) in 2019! See you in Chicago, Rotterdam, New Jersey, Toronto, and Dallas!!
POI Pulse Guest Column
The Role of Digital in CPG 2019: Areas for Reflection by Sri Rajagopalan – Always – the ideas, thoughts and words below are mine and reflect my viewpoints, not those of my employers or anyone else.
As the year comes to an end, it is genuinely a time to reflect on what has passed by, what we learned, and how best to apply this to the upcoming year that beckons us. First, before everything else, make sure to relax, recharge, enjoy time with your loved ones, and come back ready for 2019!
Much has been said of eCommerce and digital in our CPG world, and we’re all still in the middle of understanding, determining and landing scaled successes that both please and make us feel like we have command of this subject. Sales results often don’t look like what we anticipated, and innovation launches no longer seem like a blueprint can be followed. I’m not really telling you what you don’t know, but perhaps put into a simple article here, it helps – so, what to focus on in 2019? Let’s get to it.
Artificial intelligence: a much loved but misunderstood word. 2019 is the time to truly learn the impact this is having socially on consumers. Listening devices, the change in privacy anchored by opt in, the ability to vocally interact with technology, and experimentation across the board means it will become more real next year. Learn the basics, apply it to your products, and focus on the famous Alexa device as your opportunity. This simple yet bold article helps decompose the tech buzz around AI for CPG[1].
BOLD 2019 PREDICTION: AI continues to evolve but doesn’t really land impact at scale (yet).
The role of retail in your eCommerce / digital strategy: continues to evolve every single day. The questions come up routinely – where to focus? Omni, Omni, Omni – omnichannel has truly arrived and virtually every retailer of scale is adapting for it. If you’re not talking to, developing a strat plan, and not leading the way with your retail customer – you are genuinely missing the point. Take time to understand concierge shopping services – Instacart, Postmates and Shipt.
BOLD 2019 PREDICITION: massive attention shift towards omnichannel retail.
The role of Direct to consumer (D2C): if you are part of a large, scaled CPG universe, let’s admit it, this feels like a must have, we are still learning it, and we haven’t been able to figure out how to truly adopt it. Does the consumer truly want it directly, what value are we providing, can we create an aura of surprise and delight, does CRM truly anchor with you, and the value of data – these are on your mind and you’ve been trying…
BOLD 2019 PREDICTION: it gets real! M&A becomes the true, tested, tried way to play this out at scale, other ways are finally understood as learning experiments, and played out for those reasons only.
1P vs 3P (where to sell): lately the word ‘CRAP’ has been in the news every day. You’re in this space you know what it means. This phenomenon started in several categories in January and will dominate 2019. Everyone should make a fair profit and this action is only to be expected. Your future as a 1P on pureplay will henceforth be welcome only with direct investments.
BOLD 2019 PREDICTION: the industry embraces 3P as its primary vehicle on pureplays. Yikes (this means you’re learning the art of being a retailer).
Areas impacted by digital reach: this is the year cross functional teams truly embrace and deliver support for this space. This means packaging, relevant SKU rationalization, artwork, innovation launch mechanisms, SEO anchored content, SEM paid search strategies all become the ‘NORM’.
BOLD 2019 PREDICTION: the launch of eCommerce specific SKU’s at scale across the industry for omnichannel rollout and scale.
The role of marketing mix: WOW! Have we seen changes in the mix model or what over the last 5 years? Wait, have you adapted and made the necessary adjustments, or is the well know mass channel data (easy to measure) your primary vehicle for developing your mix? Is your equity building platform inclusive of retail outlets and a well-diversified SEM mix? Think about this – audience attention span is diverse and if you’re not including these platforms in your mix up front – you’re not driving scaled equity in 2018 but merely driving it in easily measurable channels (50 % of reach approx..). Let’s reach the consumer where they are.
BOLD 2019 PREDICTION: MMX models become inclusive of SEM and paid media on retail platforms as a norm. (PS- the keyword here is retail platforms) PS – invest in media on Alibaba and don’t use the ROI excuse (this is the year Alibaba’s reach becomes global – are you ready for it? Yes, it will also reach Europe and US in 2019).
Your personal digital journey: by now, you are nodding your head in acknowledgement of the above, or I’ve provided you some good end of year humor, perhaps you will call out my bias for being an industry change agent. Whatever it may turn out to be, in 2019, you don’t have a choice as a CPG leader. You must lead by example. No more depending on individual heroes to lead the path for you. You are empowered and owe this to the industry. So, read up, ask questions, and lead this revolution from the front.
BOLD 2019 PREDICITION: YOU will author, create, co-create content, speak or motivate others in the digital revolution in 2019!
Join us in Chicago at the POI Spring Annual Summit, where Sri will Keynote on meaningful advancements for growth!
Again, Happy New Year!
Sincerely,
Michael, Pam, and the entire POI Team
Reach us with any needs, questions, or requests to further engage with POI at:
PamBrown@P-O-I.org
MKantor@P-O-I.org
Reach us with any needs, questions, or requests to further engage with POI at:
PamBrown@P-O-I.org
MKantor@P-O-I.org
Mondelez’ Impressive Growth Efforts
Source: (Zachs December 27, 2018)
Moreover, to strengthen presence across digital media, Mondelez has formed global strategic partnerships with Facebook (FB – Free Report), Google and Amazon (AMZN – Free Report in the United States. Further, the company is strengthening presence in high-growth channels like e-commerce, discounters, convenience stores and traditional trade. The company expects that e-commerce, its fastest growing platform, can generate $1 billion in annual revenues by 2020. Learn more
Coca – Cola Invests in Data-Driven Iris Nova
Source: (FoodBiz News December 27, 2018)
“As our company’s futurist group, we are investing in thought-pioneers like Zak and companies like Iris Nova that can help us tap into consumer trends to bring even more products to market faster through new technology and innovation like c-commerce,” Coca-Cola said. Learn more
SAVE THE DATE! June 12-13 2019
The 2018 Spring Summit was sold out!
New Sessions, Advance Your Trade, Category, and RGM Related to Amazon and Other eCommerce Retailers. View Updated Agenda & Reserve your spot now with over 327 CPG/Retail Peers, Chicago, April 3-5, 2019
Attendees already registered include: Ocean Spray, Tilamook, American Tire Distributors, Hain, Keurig Dr. Pepper, Dole Foods, General Mills, BJ’s Wholesale Kimberly Clark, PepsiCo, Hometown Foods, Red Bull, Nestle, P&G, Constellation Brands, Ferraro, J&J, Unilever, Mars, Kraft Heinz, Musco Family Olive, Kellogg, Abbott Nutrition, Bayer, Palermo Villa, Casey’s General Store, RX BAR, Ajinomoto Windsor, Land O’ Lakes, Church & Dwight, Spectrum Brands, Tyson Foods, Kellogg, Campbell’s, Herr’s, Eagle Foods, Mondelez, Ateeco/Mrs. T’s Pierogies, Pinnacle Foods, ConAgra, Walgreens, Blue Buffalo, Ainsworth Pet Nutrition, Colgate-Palmolive, Bimbo Bakeries, JM Smucker, Coca-Cola, Wells Dairy,Furlani’s Food and many others. Register here
POI Members should request their complimentary passes now! Reach jhampto@p-o-i.org
Cadbury Takes Personalized Marketing to Next Level
Source: (Forbes December 28, 2018)
Cadbury achieved a 65% Click Through Rate with recipients, not to mention a 33% conversion rate for viewers who filled in a subsequent promotion form. The same year, Cadbury forged a similar consumer-brand connection with a Flavor Matcher campaign targeting Australian customers. Learn more
U.S. Holiday Shopping Season Best in Six Years
Source: (Reuters December 26, 2018)
Online sales posted strong gains, rising 19.1 percent, according to the Spending Pulse retail report, published by Mastercard’s analytics arm…”This season was our best yet,” Jeff Wilke, Amazon’s CEO Worldwide Consumer, said on Wednesday.
More Webinars available here
New eComm Restrictions in India Impede AZN and WMT
Source (Tech Crunch December 27, 2018)
The three main takeaways from the new policy, which will go live on February 1, are a ban on exclusive sales, the outlawing of retailers selling products on platforms they count as investors and restrictions on discounts and cash back…Those first two clauses are pretty clear and will have a significant impact on Amazon – which has pumped some $5 billion into India – and Walmart, which forked out $16 billion to buy India-based Flipkart. Learn more
How CPG Companies Benefit Due to GST, eCommerce Source: (Business Today December 26, 2018)
FMCG companies in 2018 also embraced technology intervention in distribution as well as e-commerce as a distribution channel in a big way. Beverage-maker, Parle Agro, for instance, was able to double its revenue by being able to understand which store in a particular locality sold a particular SKU of its brands Frooty and Appy more and accordingly supplied only that SKU. Learn more
The Death of ‘Click and Collect’ Food Shopping
Source: (Globe and Mail December 26, 2018)
Loblaw Co. Ltd., Canada’s largest food retailer, recently launched its in-house PC Insiders program, which offers free delivery to its customers for a fixed fee. This initiative is modelled on Amazon’s Prime program and is clearly in response to the online giant’s incursion into the grocery business. The brilliance of the Prime model is based on how it can build loyalty and allow the retailers to cover delivery costs. Learn more
The presentations from the
recently concluded POI Fall
Annual Summit in Dallas, TX
Presentations from the Recently Concluded POI Retail Execution Summit are available to POI Members
POI 2018 TPx Panorama Released – Announces Best in Class!
Source: (POI Pam Brown 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. Learn more, and access the report here
Quantitative Intuitive Decision Making
Source: (Columbia Bus. School 12-26)
Source: (Columbia Bus. School 12-26)
What sets apart better leaders is the ability to see the same data as others (and everyone sees lots of similar data these days) but make some different conclusions and derive different insights from it.
The key to doing so is to learn to quickly and effectively synthesize, rather than merely summarize, the information presented. We believe and show that this does not require you to be able to solve logarithms or square roots in your head, but rather develop the ability and confidence to ask the right questions, spot patterns, and process that information in parallel with your understanding of the wider business situation. Learn more
Weetabix Taps Into Personalisation
Source: (Marketing Week 12-27-18)
Source: (Marketing Week 12-27-18)
Weetabix is working more closely with retailers as part of a new campaign that aims bring to life its ‘Have you had your Weetabix?’ strapline and encourage consumers to personalise their breakfast in the face of declining sales.
The ‘Any-Which-Way-A-Bix’ campaign, which kicks off on 1 January, will form part of the brand’s planned £10m media spend in 2019. Learn more
The presentations from the recently concluded POI Fall Annual Summit in Dallas, TX are available to POI Members here
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