The Promotion Optimization Institute’s 2018 TPx Vendor Panorama
Dale Hagemeyer, POI, and Pam Brown, Chief Commercial Officer, POI
The Promotion Optimization Institute (POI) continues to focus on improving the trade promotion process in all of its aspects. It continues to be an industry challenge, and from 2017 our annual POI Survey data showed an uptick in the satisfaction in the ability to manage trade promotions. This is significant after it had continuously declined during the previous two years. We attribute this to a continued focus and taking a pragmatic approach to the enabling the processes that includes not only the underlying technology but also securing support services and best practices where appropriate. Trade Promotion (or TPx so that it is inclusive of trade promotion management, trade promotion optimization, trade promotion effectiveness, trade promotion analytics, and acronyms yet to be created) is still highly relevant because brick and mortar experiences are still highly relevant. No doubt they are seeing pressure from eCommerce formats such as Amazon, but they will remain highly relevant into the future.
Therefore, this document is designed to highlight the technology and related service options that can help to improve promotional outcomes. In short, it is a guide to help consumer goods (CG) manufacturers as they seek to acquire, upgrade, or geographically expand their TPx capabilities.
Market requirements have accelerated over the last 5 years, as revenue management, eCommerce, AI, machine learning, plus data access and quality are driving the business case for improved capabilities with teams, and trading partners. Additionally, we note some signs of imminent change, including the following market trends:
– 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 unsetting 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. Many of the vendors have moved to Microsoft BI which has enabled better graphics, dashboards and reporting. We are also seeing increased capabilities from many of the vendors to manage customer level P&L’s.
– Post event analysis is often overlooked or an afterthought when considering the entire trade promotion cycle. However, we have seen this addressed more and 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 retailers, you have an opportunity to engage them in the insights area by going deeper into your promotions. Multiple vendors have emerged this year that incorporate post event analytics (ROI/PEA) right into the planning process – whether in the optimization process or TPM planning process. Incorporation of post event analysis when sales teams are planning will drive efficiency in promotion effectiveness and returns.
The complete compendium will be available in 2 weeks.
Manufacturers and Retailers may receive an advanced copy, by requesting from POI at Jhampto@p-o-i.org
The new POI board members will be at the upcoming POI 2018 Retail Execution Summit, September 26-28, 2018 in Morristown, New Jersey and The Collaborative Marketing Summit, November 7-9, 2018 in Dallas, Texas
Nestle US Strategy Chief on Growth Source: (Just -Food August 2, 2018)
For Rui Barbas, the chief strategy officer for Nestlé’s US division, the way consumer demand and habits have developed meant the company had to adapt. “The whole business environment around us is changing very, very fast. As the consumer is evolving around us … we have made a strategic evolution of our portfolio.” Learn more
P&G CEO: We Will Be the Disruptors in Our Industry Source: (Marketing Week July 31, 2018)
CEO David Taylor pointed to ecommerce as a particular area of growth, saying he is “pleased” with the progress of the business especially in the US, China and Europe. Across the business, online sales are growing by 30% annually and now make up 7% of global sales, or $4.5bn in revenues. Learn more
POI Retail Execution Summit in NY/NJSeptember 26/28 Join Wakefern, 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, 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, and more!
Kroger Launches ‘Ship’ Groceries Direct-to-Customers Source: (Cinncinnatti.com August 1, 2018)
“Kroger Ship is our next step in creating a seamless experience that allows our customers to shop when and how they want,” said Yael Cosset, Kroger’s chief digital officer. Learn more
CPG Execs: How Brands Use eCommerce for DTC Source: (Food Dive July 30, 2018)
As the model continues to expand, brands and grocers are searching for innovative methods to reach consumers through data, technology, and content. Learn more
POI Fall Annual Summit, Dallas, TX “Collaborative Marketing Driven By Data Analytics”, November 7-9, 2018
Celebrate POI’s 10th Year Anniversary with 300+ CPG and Retailer peers! Attendees include: Duracell, Energizer, Keurig, Dr. Pepper, 7-Eleven, 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, Del Monte, Novartis, J&J, Red Bull, Hormel, and more!
Estée Lauder: Customer Engagement to Drive Innovation Source: (Marketing Week August 2, 2018)
“Consumers don’t shop in channels they just shop. We need to make sure that whether it’s at 2pm on her laptop or 3pm walking into Selfridges, she is having an experience that is tailored to her and that that feels consistent. So if she sees a conversation on social media this can naturally flow in a conversation at point of sale,” Leslie Crowther, VP Consumer Engagement & Retail says. 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
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
Walmart Testing VR and Conversational Commerce Source: (DigiDay August 3, 2018)
As Amazon, Alibaba and other eCommerce platforms grow their reach among online shoppers, large retailers are testing how technology can help build a more digitally connected experience for customers – whether they’re in the store or at home. For Walmart’s Store No. 8, its startup incubator that was launched last year, conversational commerce and VR are two areas of focus. Learn more
Visit POI for more webinars and past events:
Top Challenges Faced by CPG Companies in Trade Revenue Management Today. If you missed this live webinar, register and access recording here:
Turning Field Insights into Action to Drive Business Outcomes
If you missed this live webinar, access the on-demand recording here
Starbucks is Jumping on the Cryptocurrency Bandwagon Source: (CNBC August 3, 2018)
The Seattle-based coffee giant is working with Microsoft and a leading global exchange on a new digital platform that will allow consumers to use bitcoin and other cryptocurrencies at Starbucks. Learn more
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