The POI 2019 TPx and Retail Execution Report
The State of TPx and Retail Execution for Global Consumer Goods and Retail
Introduction
As with our previous survey(s), the 2019 Promotion Optimization Institute (POI) TPx and Retail Execution Benchmarking Survey focused on the intersection of the people, processes, and technologies required to be a suitable collaboration partner in the promotion and distribution of consumer products. Yet, over the last 5+years the CPG industry has been experiencing an extraordinary shift that changes the way consumers shop and how business is executed. As a result, POI has added new questions and data points into the survey.
In previous years, we would denote where consumer goods manufacturers were succeeding and struggling and offer tips on how to be successful. In many of the foundational areas this information didn’t change much over time, and the excellent detail resulted in a very long read. As a result, the content and format of the POI State of the Industry Report is changing.
POI is shifting the report from relaying tactical implementation tips to strategic leadership focal points. This report will streamline critical leadership headlines on hot issues and emerging trends, while incorporating the 2019 benchmarking survey results. We continue to incorporate longitudinal data, which looks at how the benchmarking changes over time.
The foundational tips on how to implement best in class business process & solutions will be found in a new set of “Best Practice Tips” documents located on the POI Website.
When I was in manufacturing leadership, I didn’t have time for long reads, and when I needed help, I needed it at my fingertips quickly. My goal has been to create a new condensed state of the industry report that is simple to read, relevant and actionable.
If you are investigating new solutions and want to know what’s possible in the TPx & RetX space, you can review capabilities and vendor offerings in the POI TPx and Retail Execution Vendor Panoramas at http://poinstitute.com/
Also, please don’t hesitate to reach out and connect on strategic or tactical aspects, for which you need support. Having led sales teams; sales operations and strategy; BI Analytics and IT projects across the global enterprise, I have a unique background and can help steer you in the right direction. At POI, we have a network of partners and can connect you with additional expertise as needed.
Early Insights:
The annual POI Industry report is based on over 100 company respondents and will help you benchmark your company’s Trade Planning and Retail execution capabilities and roadmap against your peer set. Below are a few key headlines that will entice you to read the full report when released later in February (contact jhampto@P-O-I.org to reserve your copy of the report:
1) 82% of respondents are having challenges managing and reporting modern trade. Many of today’s systems have the ability to manage all types of trade and predict and shape promotion demand, resulting in lower inventory costs and increased revenue. One way you can research vendor capabilities is to visit the POI site and review the 2018 Vendor Panorama. POI reviewed 23 different TPX technology vendors and their capabilities. This POI resource will help you determine which vendors to incorporate into your upcoming RFI’s based on your company’s business needs and requirements.
2) Almost 46% of respondents are advancing their company practices and diving deeper into optimized promotion, pricing and pack growth analysis, and 27% of the companies will add tools and or analytical capabilities to specifically support new Revenue Growth Management (RGM) processes.
3) 73% of manufacturers have challenges with retailers freely sharing key data (POS, Daily, Shopper etc.). With the CPG ecosystem changing and Omni-channel shopping accelerating, it’s time for retailers and manufacturers to partner and develop new data strategies to win together.
4) Low Hanging Fruit: When respondents were asked if their company’s TPx solution is integrated to their retail execution solution, over 65% of companies don’t connect these systems. To shed light on the importance of this connection, if you change a first ship date or merchandising activity in TPx, in 65% of the companies, the promotion changes will not automatically get pushed to the retail execution solution or teams. Execution is everything. This should be a top priority for Sales and IT organizations that lack this TPx/RetailX connection.
5) Worth repeating here – Breaking misperceptions: The majority of respondents felt it was over 2 years before Artificial Intelligence (AI) would impact CPG planning. The reality is that AI is already represented well with a few of the vendors in the POI TPx Vendor Panorama. AI advances a company’s “prescriptive planning” ability by using data to propose promotions, timeframes, discounts, pricing etc. for the teams to evaluate. Deductions management efficiency can also be driven with AI. CPG AI planning capabilities are here today.
Reach Joanie at Jhampto@p-o-i.org for your complimentary pass.
Members of the POI Transformational Leadership Council include: J&J, VP, Campbell’s VP, Ateeco/Mrs. T’s COO, Smithfield, CIO, VP JM Smucker, and more. Reach Pam Brown at PamBrown@P-O-I.orgor Michael Kantor at Mkantor@p-o-i.org to discuss additional details, and the specific agenda for this group.
Reach us with any needs, questions, or requests to further engage with POI at:
PamBrown@P-O-I.org
MKantor@P-O-I.org
PamBrown@P-O-I.org
MKantor@P-O-I.org
Industry News
Unilever Taps Technology with Snack Brand Graze
Source: (Net Imperative February 6, 2019)
Nitin Paranjpe, the president of Unilever’s food and refreshment arm, said: “Graze is the leading healthy snacking brand in the UK. A truly multichannel brand, Graze offers personalisation, convenience and great nutrition, brilliantly meeting the needs of millennial consumers. Learn more
Hershey’s Multiyear ERP Transformation
Source: (CIO Dive February 4, 2019)
The launch is proving to be “a key enabler to our broader digital transformation efforts,” CEO Michele Buck said. In May, the company turned to Accenture to implement SAP S/4HANA to help streamline manufacturing and supply chain processes while providing real-time customer analytics. The partnership with SAP has allowed Hershey to make faster decisions based on analytics. Learn more
View Updated Agenda with NEW DEEP DIVE WORKSHOPS and Reserve your spot now with over 340 CPG/Retailer Peers, Chicago, April 3-5, 2019
New Sessions & Workshops on RGM, Retail Execution, Data & Analytics! Advance Your Trade, Category, and RGM Related to Amazon and Other eCommerce and Omnichannel Retailers.
The 2018 Spring Summit was sold out!
Attendees already registered include: Beam-Suntory, BJ’s Wholesale, Maple Leaf Foods, Hunter Douglas, American Pet Nutrition, Oregon Ice Cream, Nestle, L’Oreal, Phillip Morris International, Brown Forman, Pernod Ricard, Kimberly-Clark, Morton Salt, Welch’s, Cargill, Ocean Spray, Campari, Tilamook, American Tire Distributors, Hain Celestial, Keurig Dr. Pepper, The Scott’s Miracle-Gro Company, 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, Massimo Zanetti Beverages USA, Barilla, Morton Salt, Mill Fleet Farm, MillerCoors, Smithfield Foods, Johnsonville, Ecos Brands, SC Johnson, InnovAsian Cuisine, Erath Friendly Products, Corby Spirit and Wine, Nestle Skin Health, Organic Valley, Reynolds Consumer Products, Philip Morris Int’l, and many others.Register here
POI Members should request their complimentary passes now! Reach jhampto@p-o-i.org
Join POI Revenue Management Share Group for Manufacturers – Sharing Information & Best Practices; Facilitated by the Promotion Optimization Institute and CMS Consulting (Ken Sullivan). Provides members with a forum to discuss and share best practices, industry trends, emerging challenges and capabilities, as well as other relevant topics of interest to senior executives. Topics Include: Revenue management analytics, EDLP vs High/Low, Channel strategy, Pack strategy, Product mix, Promotion Optimization, Sourcing and procurement, Value incentive curves, Execution and sell-in considerations, Strategic and tactical roadmaps, Cross-functional collaboration, Team structure and roles and more! Next meeting: April 2019 More Information & Join Here
Barcardi Influencer Campaign to Reach Millennials
Source: (Mktg Dive February 5, 2019)
The experiential, influencer-focused campaign should appeal to millennials, who enjoy opportunities to engage with brands in unique ways … Last year’s event generated about 1,000 social media posts, according to MediaPost. The events will likely help Bacardi grow its social media fan base and build brand loyalty with consumers… Learn more
250+ Will Achieve Growth at POI European Summit
Delegates already registered include: Danone, JDE, P&G, JAB, Unilever, Jumbo, Orkla, Campari, Asahi, Hovis, Danone, Perfetti Van Melle, SCJ, MolsonCoors, Lactalis, Dr. Oetker, Orangina, L’Oreal, JAB, SCJ, Danone, JDE, Pladis, Beiersdorf, Arla Foods, Finlandia Cheese, Kellogg, Perfetti Van Melle, PepsiCo, Diageo, Ferarra, Delta Cafes, Heineken, Essity, Mars, Unilever, Coca-Cola, Dr. Oetker, Fererro, Mondelez, J&J, FrieslandCampina, SCA, AB Inbev, Wells Enterprises, Pernod Ricard, Lavazza, Kimberly Clark, Red Bull, Henkel, LEGO, General Mills, Hovis, SAB Miller, Lactalis, Carlsberg, Campari, and many more. Register here
If you missed this live POI webinar, the recording is available on demand to POI Members 
More Webinars available to POI Members here
P & G’s Start-Up Approach with Digital Tools
Source: (Mktg Week February 5, 2019)
Interestingly, and no doubt a sign of where things are heading, Pritchard, CEO, says P&G is doing much more of its work virtually and using new digital tools to “innovate how we innovate”. “Not only does this drive speed and productivity, it drives better innovation by simulating many more scenarios than can be tested physically,” he says. Learn more
Walmart, Whole Foods Ramp up Delivery Offerings
Source: (Yahoo Finance February 7, 2019)
There’s still significant upside for the perishable foods industry, particularly for retailers blurring the lines between online and offline sales. Walmart, for instance, which already works with DoorDash, Postmates and Deliv for online grocery delivery, could own 17% of all online grocery sales by 2025, up from 11% in 2017, Deutsche Bank analyst Paul Trussell estimates. Learn more
The presentations from the recently concluded POI Fall
Annual Summit in Dallas, TX are available to POI Members here
Summit are available to POI Members
Join attendees already registered for POI Canadian Summit: Maple Leaf Foods, Philip Morris Int’l, Church & Dwight, J & J, Dare Foods, Smucker Foods, Fiera Foods, Materne, PepsiCo, Ricola, Tree of Life, Bimbo , Kimberly Clark, Edgewell, Dr. Oetker, Agropur, High Liner Foods, Campbell’s and more. Register Here
Rob May, Director, Edgewell – “The 2018 POI Fall Annual Summit was the best summit yet. Great content, high energy, collaborative and educational. I will be sending others to future POI Summits so they can benefit as much as I have. Good combination of research/ theoretical and experience/practical.”
Estee Lauder’s CIO Creates Technology Hub
Source: (Forbes February 4, 2019)
Michael Smith, CIO said “There have been quite a few changes from a process standpoint. The biggest change has been around moving from a complete waterfall approach to a much more agile one… you do not just flip a switch and go… At the end of the day, our prime motivation is around how fast we can bring value to our business. The consumer expectations change rapidly, and we need to be able to respond to that. Learn more
Merisant Launches on Amazon’s “Our Brands”
Source: (DigiDay February 7, 2019)
Marisant North America president Brian Huff said that working with Amazon, which gave feedback on product positioning, packaging and branding but nothing else, pushed the company to work fast and more agile than it had to before, helping the company adapt techniques better suited for e-commerce than physical wholesale. Learn more
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
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