The RGM planning diligence and profit focus has transformed episodic, once a year planning into an ongoing and dynamic planning practice deeply rooted in advanced analytics.
RGM governs at the center of the organization, working closely with functions such as brand management, finance, and sales to develop and implement strategies. The ultimate goal is transforming the siloed functions into an ongoing streamlined effort of balance across the Enterprise.
If your company is looking to build or advance RGM capabilities, join us at the Global POI Summits https://poinstitute.com/events/ to connect and dive deeper on the topic.
Proper allocation, planning, and monitoring of trade spend is critical. CPG companies spend between 11% and 27+% of revenues on Trade Promotions, which is often the second largest expense on the P&L, after cost of goods sold. When POI survey respondents were asked what percentage of their company’s annual revenue they spend on trade promotions, 22% (-4) spend between 11-15% and 49% (-11) spend less than 20%. In addition, 51% (+12) of respondent companies are spending upwards of 20% with 9% (-5) spending over 27% in trade. RGM teams work with Sales teams to optimize pricing and promotions at an account level to maximize ROI. 27% (-3) of respondents noted that RGM teams are owners of the post event ROI analysis. Centralized HQ team ownership of 29% grew by 17%, and Sales ownership is currently 20% (+3).
RGM Teams Help to Shift the Focus & Drive Efficiency:
– Achieving more efficient volume through trade
– Reducing administrative burden and maximizing cross-functional work & insights
– Providing account teams with capabilities & practices to sell smarter
KPI’s to Measure Promotion Success:
POI State of the Industry survey respondents noted the most common KPI’s to measure promotion success are: ROI- incremental profit, incremental volume, incremental revenue, incremental gross dollar sales, and dollar profit per incremental case. With the criticality of trade effectiveness, one can understand why more companies are investing in Revenue Management organizations.
73% (+5) of POI survey respondents noted the amount of time that the entire process of creating a promotional plan from budgeting to execution to settlement is highly burdensome for the organization. RGM contributions to reduce planning burden is highly welcome amongst commercial teams. Learn more and access the full Best Practice #2 Issue here
Interested in learning more details on success creating and improving Revenue Management skills?
Arrive at the POI Chicago Summit on Wednesday at 2pm for the pre-conference workshop: Getting past the AI hype. Practical and impactful use cases of AI and Machine Learning to immediately enhance your Revenue Growth Management Capabilities and Outcomes.
There is a lot of dialogue about AI and how it is the panacea for all solutions nowadays. But AI is not just a checkmark to be set. There are many ways in which AI can be used, from the very basic uses with no real impact on your ROI to advanced machine learning that can significantly enhance your business case.
In this interactive workshop we want to clear the smoke, debunk some of the AI myths and give you a realistic roadmap of how to apply AI to your commercial capabilities as you want to look past the hype and are focused on tangible results across TPx, Pricing, RGM, Shopper, and CatMan. Reach Joanie Hampton at jhampto@p-o-i.org to reserve your seat at the workshop (and the Summit).
POI Advisory supports the manufacturer & retailer front-end project development, so organizations can move to faster decision making and execution to deliver the organization’s strategic priorities Projects: Strategy Development, Transformation Planning, RFP Development & Execution, Systems & Process Project Planning, Organizational Structure, Change Management, Efficiency & Effectiveness, Strategy & Roadmaps, Communication & Socialization Plans
Learn from Kellogg’s, Perfetti Van Melle, Henkel, Nestlé, Pepsico, The Drug Store and other leaders how to thrive via commercial excellence and advanced analytics in an Omnichannel world! http://bit.ly/POIChicago2020Summit
Also, request your complimentary pass to the POI Summit of your choice (Chicago, Berlin, or Toronto – see agendas here) the first of which begins April 1st in Chicago, IL – Centering Commercial Capabilities to Deliver Sales & Revenue Growth, Drive Customer Engagement & Optimize the Customer Experience” April 1-3, 2020 at the JW Marriott Chicago.
Have a sensational week!
Reach us with any needs, questions, or requests to further engage with POI at:
Industry News
PepsiCo Benefits from ‘Faster, Stronger and Better’ Plan
Source: (Food Biz News February 13, 2020)
Ramon L. Laguarta, chairman and CEO, said “We will continue to invest back into the business to evolve our portfolio and transform our value chain; build next-generation capabilities, particularly leveraging technology to enhance our insights, speed and precision; grow our talent and simplify our organization to be more consumer and customer-centric; invest in our brands, both large and emerging; and reduce our cost structure to free up resources to fund our investments. Learn more
The POI 2019 Spring Summit was sold out!
Network and Learn with 470+ CPG/Retail Peers, April 1-3, 2020 at the POI Spring Summit in Chicago!
Already registered: Ferrera USA, Henkel, Mattel, Perfetti Van Melle, Mrs. T’s Pierogies, Iris Nova, Hershey, Melitta, Henkel, Reynolds Consumer Products, General Mills, Kao, Barilla, Land O’ Lakes, SC Johnson, Morton Salt, Eagle Foods, Nestle, PepsiCo, Unilever, Walgreen’s, Mondelez, Dollar General, Coca-Cola, Mrs.T’s Pierogies, P&G, InnovAsian Cuisine, Taylors at Harrogate, Kind Snacks, RJ Reynolds, Dole Foods, Hostess Brands, Hormel, Kellogg, Pfizer, Ferrero USA, Casey’s General Stores, Tillamook, Schreiber Foods, Sargento, Interstate Batteries, Rich Products, Talking Rain, Ocean Spray, Riverside Naturals, AAFES, Johnsonville, Palermo’s Pizza, Gortons, Clorox, Bel Brands, JM Smucker, Kimberly-Clark Campbell’s Soup, Church & Dwight, Mondelez, Colgate Palmolive, Hometown Foods, Constellation Brands, J&J, Mars, Kraft Heinz, Musco Family Olive, American Tire Distributors, Richardson International, and more. Register here
Additional Opportunity at the POI Chicago Summit:
Join the POI Revenue Management Share Group for Manufacturers – Sharing Information & Best Practices.
Next meeting: POI Chicago Summit. Facilitated by POI 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!
Hain Celestial Benefits from Simplification Efforts
Source: (Baking Biz February 10, 2020)
The Hain Celestial Group, Inc. is making progress in its plan to become a smaller, more profitable business. Mark L. Schiller, president and chief executive officer, said “On reinvigorating top line, we filled the innovation pipeline with ideas that solve consumer problems and will expand their categories.” Learn more
Coca Cola Investing in Technology for Growth
Source: (Yahoo Finance February 10, 2020)
In addition, Coca-Cola is using an increasing amount of data to make key decisions that could strengthen its competitive position and enable it to become more flexible to changing consumer tastes. This allowed it to add an incremental 100,000 transactions per week for one of its largest customers in Europe in the fiscal 2019 fourth quarter. Its further use of data could lead to it becoming more efficient and productive in upcoming quarters. Learn more
Join executives already registered from: Nomad Foods, Beiersdorf, LEGO, SCJ, Clorox, PepsiCo, Mondelez, Bonduelle, Upfield, WN Pharmaceuticals, Essity, Friesland Campina, J & J, Premier Foods, Danone, P&G, Unilever, Orkla, Kimberly Clark, Nestle, Hovis, Camelot, Perfetti Van Melle, MolsonCoors, JM Smucker, Campbell Soup, Blue Buffalo, Hormel, Dr. Oetker, L’Oreal, Pladis, Beiersdorf, Arla Foods, Finlandia Cheese, Kellogg, Diageo, Delta Cafes, Heineken, Mars, Coca-Cola, AB Inbev, Wells Enterprises, Pernod Ricard, Red Bull, Henkel, SAB Miller, Carlsberg, Campari,and many more!
Dirty Lemon is Partnering with Walmart
Source: (Glossy February 12, 200)
Dirty Lemon is best known for its “conversational commerce” retail approach within beauty, wellness and beverage circles. The move into Walmart is unsurprising given that Iris Nova founder and CEO Zak Normandin is laser-focused on growing the company profitably. “There are a lot of new entrants in the market, and that coincides with the general clutter in the advertising space. Businesses are pulling for customer attention and that makes it challenging for digital-only brands to grow,” said Normandin. Learn more
Kind Snacks Expands to Lure Indulgent Consumers
Source: (Forbes February 10, 2020)
Kind Snacks’ founder, Daniel Lubetzky said in a statement that the way how Kind enters new categories will remain unchanged – “with an eye to creatively elevate people’s overall experience. Learn more
Registration is Open for the POI 2nd Annual Canadian Summit, June 10-11, 2020 in Toronto!
Already registered for POI Toronto: Sofina Foods, PepsiCo, RGH, Bonduelle, Nestle, Conagra, Maple Leaf Foods, Upfield, Smucker Foods of Canada, Unilever,Kraft Heinz, Kimberly Clark, Ocean Spray, Arterra Wines, Clorox, From the Hearth, WN Pharmaceuticals, Edgewell, Parmalot, Coca Cola, Pfizer Consumer Healthcare, J & J, Danone, and many more!
Nestle Executive’s Growth Ambitions
Source: (Reuters February 13, 2020)
Like rivals such as Unilever, Nescafe coffee and KitKat maker Nestle has been working hard to streamline its diverse portfolio in line with changing consumer tastes and growing demand for healthier and more environmentally friendly produce and packaging. Learn more
Amazon Web Services, Prime Membership Increasing
Source: (Retail Dive February 11, 2020)
That helps the company maintain a strong financial position, and investors are less likely to freak out – even when Amazon adds more than $10 billion to its annual shipping costs and signals that it expects them to keep climbing up. Amazon did both of those things in 2019, a year when it ratcheted up shipping speed for many Prime orders. As shipping speed climbs, so has Amazon’s Prime member base. And its revenue ballooned as well, with North American sales rising 20.8% year over year in 2019. Learn more
Advance your Skills and Career as a Certified Collaborative Marketer!
Collaboration and Optimization – 90% Online!
One scholarship remains for the
Next Orientation Class – June 17-18, 2020
“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!” -Veronica Escalante, Customer Development Manager, Sprout Foods, Inc.
Ahold Delhaize- E-commerce Helps Strong Fiscal-Year Finish
Source: (Supermarket News February 12, 2020)
Ahold Delhaize Chairman and CEO Frans Muller said, “This reflects the confidence we have in our omnichannel strategy, which is underpinned by having leading brands with No. 1 or 2 share, and providing convenient options to our consumers – whether that is in-store with frictionless checkout and the same-day click-and-collect offering, or through same-day or next-day home delivery. Learn more
Leave a Reply