POI Pulse August 25, 2014 PUBLISHED BY PROMOTION OPTIMIZATION INSTITUTE Visit www.P-O-I.org
Trends & Developments
Walmart to Expand Price First Nationwide
Walmart plans to launch its opening price point private label, Price First, nationwide in late third quarter. The Price First line has focused primarily on consumables, as peanut butter, baking mixes and condiments are among the items being offered on the first tier of a good, better, best marketing strategy. Learn more
Four Reasons Price Elasticity Has Snapped
Source: (Strategy+Business Aug 20, 2014)
If you know the ratio between x and y for a given product, you can calculate an optimal price. Unfortunately, that concept is useless in the real world of business-especially for marketing strategies. There are four reasons that the concept of price elasticity is obsolete…Learn more
Join 250+ of Your Peers at POI Summit in Dallas!
Your next opportunity to learn, network, and advance at the POI Fall Summit is November 2-4 in Dallas, TX. The agenda will once again be advanced (view the updated agenda here), and make your plans now to attend, as the POI April 2014 Summit was sold out!
More than 250 CPG and Retailers will join us —
Teams Taking advantage of early registration include:
Wells Enterprises, Kraft Foods, Pfizer, Coca-Cola, Alcon, Starbucks, Pinnacle Foods, Nestle, Stubbs BBQ, Johnson & Johnson, Utz Quality Foods, Kraft, ACH Foods, Pictsweet, Hormel, Clorox, Tyson, Lowes Foods, Unilever, Turkey Hill, Post Foods, 3M, Kellogg’s, PepsiCo, Philips Consumer, Dannon, 7-Eleven, JM Smucker, Church & Dwight, Busch Bros., Topco, Keurig Green Mountain, Continental Mills, P&G, AAFES, Ventura Foods, Michael Angelos, Hillshire Brands, Campbell Soup, Kroger, Jarden, Tree Top, Hormel, Musco Family Olive, ConAgra, Windsor Foods, Ainsworth Pet Nutrition, Del Monte, Rich Products, Whole Foods Markets, Mckee Foods, Bi Lo Holdings, and many others. By now you should have received your invitation. If not, reach me today at email@example.com
Aggressive Discounting Stifling Growth
Source: Food Bus News Aug 19, 2014)
“We are seeing more price competition than before,” said Bob Gamgort, chief executive officer of Pinnacle Foods, during an Aug. 13 earnings call. “I think our expectation, our planning assumption, is that we are going to continue to see more of the same going forward, both on an everyday basis as well as at the holidays.” Learn more
Uber’s Important Innovation is Pricing Methodology
Source: (MIT Tech Review August, 2014)
Uber’s algorithm is the company’s greatest asset and most significant innovation, allowing it to find the price that will attract drivers-whom, as independent contractors, it can’t order onto the road-without alienating customers.
The strategy works. In a recent blog post, the venture capitalist Bill Gurley, who’s an Uber board member, said that when Uber first tested dynamic pricing in Boston in 2012, it was able to “increase on-the-road supply of drivers by 70 to 80 percent.” Learn more
Candidates Gain Collaboration Skills w/ POI SJU
Source: (POI CCM at SJU December 3-4, 2014)
If you plan to contribute more effectively, lead a customer team, or retail marketing team, you need to know all sides of the desk, and the CCM educational curriculum is the proven experience to ensure you’re skills are current. Enroll today!
Trading partners are coming to POI at SJU to learn the skills necessary, and be certified to collaborate effectively… The next orientation begins December 3-4. Learn more, and enroll today!
Only Half of Execs Can Measure Social’s ROI
Source: (EMarketer August 21, 2014)
Have corporate marketers figured out social media measurement? Based on April 2014 polling by Useful Social Media, not really.
ewer than 34% of respondents said they were, a percentage that had changed little over the past four years. Corporations were measuring fewer metrics this year than previously. Learn more
We at POI continue to get inquiries throughout the summer from manufacturers and retailers on promotion effectiveness. Many a conversation begins with the great experience from the successful POI TPO Challenge at the recent POI Summit this past April. The summit’s last day was devoted to a unique exercise designed by POI with Gartner. Five different solutions providers Accenture, Nielsen,SAP, T-Pro Analytics, andTABS Group were given historical sales data from actual retailers and CPG companies, which they used to predict and optimize promotional outcomes. The five were given wide latitude in interpreting the data, determining its relevance and deciding what kinds of promotions were indicated. The data were masked as to the identity of the retailers and products, but otherwise, they comprised sales information at every level, down to individual stores.
“Each of the participating solutions providers will have a different and unique approach,” said Michael Kantor, POI’s founder and CEO, in introducing the presentations.
Differences in the approach included which product categories to pay the most attention to, how to account for “outlier” numbers, how to develop algorithms and verify them with the data available, how to settle on a baseline price and how to determine price elasticity. Each presenter, however, worked with the same data set and was tasked with recommending the best approach to trade promotion optimization.
Formulating and scheduling trade promotions for maximum impact is one of the toughest challenges in retailing. Many grocers leave this partly or wholly up to their CPG suppliers as part of continuous category management, but this presents its own challenges, for both sides. Read the full article on the POI TPO Challenge here.The upcoming POI Fall Summit will demonstrate lessons learned, and present innovative ways that CPG Manufacturers are meeting these challenges head on. From local to global, and Hi Lo to EDLP, the POI November Summit will once again raise the bar on the utilization and profit from improving processes, skills, and leveraging advanced analytics to drive greater ROI in a tough environment. If you received your invitation, but lost your promotion code reach me firstname.lastname@example.org. We are trending now towards capacity in Dallas (as we did in Chicago),so please register now to attend with your team!
Have an outstanding week, and Labor Day Holiday!
POI Pulse is read by over 3000 Retail Merchandising and CPG Marketing Executives.
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If you have a relevant opportunity, list it in POI Pulse, reach us at email@example.com
Reporting to the Vice President, Client effectiveness, the Client effectiveness Manager will act as the primary client liaison to manage the relationships with the existing client base. The ideal candidate will have experience in account management and sales and have a proven track record for successfully attaining revenue objectives. In addition, significant experience within the North American CPG industry is a requirement. Learn more
Schwans Consumer Brands
Director Digital Marketing Director, Digital Marketing
The Director, Digital Marketing is responsible for developing the vision, strategies, goals and objectives that when executed will accelerate Schwan’s capabilities in digital marketing and dramatically enhance consumer engagement with our brands. Learn more
Trade Marketing Manager
The Company is the US importer / sales & marketing agent for an international food company (speciality cheese). The Company has a strong position as an importer of speciality cheese in the US, which makes them an attractive partner for other cheese manufacturers who are looking for stronger positioning for their brands in the US (they represent several international dairy/cheese companies). The Company has regional sales offices from coast to coast in the US as well as in Canada, with the corporate office in Darien, CT.
Learn More, contact:
Keurig Green Mountain
The Trade Marketing Manager for the Away From Home Channel (Foodservice, Office Coffee Service, Hospitality, and Convenience Stores) serves as the conduit between Trade Marketing and Field Sales in providing guidance and training on effective management of trade spend within budgets and ensuring compliance in the Trade Promotion Management (TPM) system. The Trade Marketing Associate regularly collaborates with Finance on the trade spend accrual and Sales Planning to develop guidelines for effective promotional programs and helps to develop and deliver the messages to the sales team.
UTZ Quality Foods
Manager of Strategic Pricing and Promotional Effectiveness
We are currently recruiting for a Manager of Strategic Pricing & Promotional Effectiveness. The primary purpose of this position is to be responsible for strategic pricing, promotional effectiveness, and profitability at UTZ and its brands through pricing actions and promotional optimization. Learn more