The Promotion Optimization Institute (POI), the leading resource for trade marketing and merchandising executives, today released the POI 2019 Annual State of the Industry – TPx and Retail Execution Report
Author – Pam Brown, Chief Commercial Officer, POI
POI is shifting the report from relaying tactical implementation tips to strategic leadership focal points. This report will streamline critical leadership headlines on critical 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.
POI seeks to serve its members by identifying strategic leadership focal points and streamlining critical leadership headlines on hot issues and emerging trends, while incorporating the 2019 benchmarking survey results. We look at both the successes and challenges in the promotion and distribution of consumer products, and then analyze them at global events and through written research, share groups, webinars, and advisory services. The focus areas of this survey were selected based on the summation of our beliefs about where the challenges exist today and a desire to socialize the topics and recommendations with industry leadership.
Thought Provoking Game Changers:
(We go deeper on the game changers in each respective section in the report)
– With the shifting CPG landscape there will be no new normal. The good news is that our world is innovating fast. We use new technological advances every day to make life easier. This leads us to have to take a continuous improvement approach to practices, technology, and skills at work and in our personal lives. Innovation means constant activation.
– Many retailers and manufacturers are continuing to organizationally structure themselves based on old paradigms. Our number one focus is the consumer, yet roles, processes, and systems are still internally focused, not optimal, and in many cases broken. Organizations need to step back and create a “Holistic Enterprise,” de-siloed
approach.
– Data is foundational. Yet, companies are struggling to receive, cleanse, harmonize, and hub the data. Purchase power of the Millennials is surpassing that of the Boomers and they are digitally engaged. To offer our consumer personalized offers in the new paradigm, data is critical. Clean data enables revenue growth management practices,
customer level P&L’s, post event analytics, TPO, AI, holistic enterprise reporting, and executive dashboards.
Build a joint business case around data sharing. You have to ask for data. Partnering and innovating together will be how we continue to keep brick and mortar retailers strong through the change. There is a fragmentation of basket and trips due to new purchase behavior, and our retailers and manufacturers need to partner to creatively re-build lost
revenue. “Intelligence” and “whys” come from analytics and analytics from data. Again, data is foundational to this partnership and realizing mutual profitable growth.
– The lack of linkage between digital and traditional promotion is substantial. Integration of consumer and loyalty shopper data is helping to see who our target consumer is and cater store layouts, offers, promotions, etc. based on these preferences. Ensure your company is on a journey to ‘full integration,’ which will benefit you as the manufacturer and what you can share with your retail partners.
– The lack of connectivity between Trade Promotion Systems and Retail Execution Systems is severely impacting execution and revenue gains. Execution is everything, and the inability to pass promotion tactic changes to the field and monitor in-flight activity is costing manufacturers and retailers millions of dollars.
– Manufacturer concerns about the ability to drive profitable business with Amazon continues to increase dramatically year-over-year. The eCommerce journey is best not done alone. Our recommendation is that you network to understand and replicate what is working and also how to overcome obstacles with your peer-set.
– Interested in emerging markets and/or user adoption of retail execution solutions? If so, then investigate Bring Your Own Device (BYOD) seriously, not just as user preference, but as a standard.
– Artificial Intelligence (AI) is all around us. AI is here today, and it’s not bleeding edge. AI can analyze large amounts of data quickly. AI analysis detects patterns, opportunities, and issues, evaluates options, and generates recommendations. How are you building AI into your strategy? This is a strategic question that every retailer, manufacturer, technology vendor, and consultant partner should be asking.
“Since our inception, POI has been passionately committed to developing and continuously improving educational and research excellence as we strive to ensure our research links to our members’ initiatives for profitable growth, collaboration with industry leaders and the subject matter experts that make and execute business decisions, and delivers strong outputs and advancement activities,” said Michael Kantor, CEO and Founder, POI. “The 2019 POI Annual “State of the Industry” report takes these principles to a new level, and we believe will serve our members and constituents in building their business case for change.” Access the report here
Reach Joanie at Jhampto@p-o-i.org for your complimentary pass.
Industry News
The POI 2019 State of the Industry Report – Game Changers
Source: (Promotion Optimization Institute, Feb 25, 2019)
POI just released the POI 2019 Annual State of the Industry – TPx and Retail Execution Report by Author – Pam Brown, Chief Commercial Officer, POI. POI is shifting the report from relaying tactical implementation tips to strategic leadership focal points. This report will streamline critical leadership headlines on critical issues and emerging trends (AI, RGM, eCommerce), while incorporating the 2019 benchmarking survey results. Access the report here
now with over 340 CPG/Retailer Peers, Chicago, April 3-5, 2019
The workshops are almost at capacity and the 2018 Spring Summit was sold out!
New Sessions & Workshops on RGM, Retail Execution, Data & Analytics! Advance Your Trade, Category, and RGM Related to Amazon and Other eCommerce and Omnichannel Retailers.
Who else will you see at the POI Spring Summit? Attendees already registered include: Dean Foods, 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, Earth Friendly Products, Corby Spirit and Wine, Nestle Skin Health, Organic Valley, Reynolds Consumer Products, Philip Morris Int’l, Oregon Ice Cream, Ocean Spray, Schreiber Foods, Dunkin’ Brands and many others.Register here POI Members should request their complimentary passes now! Reach jhampto@p-o-i.org
General Mills’ Customer First Strategy
Source: (Food Biz February 20, 2019)
Jonathan J. Nudi, president of North America Retail said, “This (Consumer First design) mindset favors speed over perfection, pitching business teams to be the fastest to the first dollar by launching products in the market and getting consumer feedback much earlier in the development cycle along multiple opportunities for iteration and improvement before a full-scale roll-out… Learn more
Amid Amazon, Retailers Experiment with Dynamic Pricing
Source: (DigiDay February 21, 2019)
The driving force: Keeping prices consistent across all channels means a retailer could fall behind e-commerce competitors, which can adeptly target prospective customers through pricing based on their intent and behavior. Retailers are experimenting with dynamic pricing based on a range of objectives: acquisition, retention, and winning business away from competitors.
Join us for this complimentary webinar – Best Practices to Optimize ROI on Your Data, Analytics, and RGM Investment –
March 6th @ 11 am EST POI members Register Here
More Webinars available to POI Members here
Additional Opportunity, in concert with the POI Spring Summit: 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 @ POI Spring Summit
Hershey CEO: Moving Beyond Candy
Source: (Food Dive February 21, 2019)
Snacking has evolved into one of the fastest-growing segments in the food space, with sales of more than $89 billion annually….Hershey has seamlessly broadened its reach in the category by parlaying its existing knowledge in research and development, consumer insight and the supply chain it already had in confections. Learn more
Danone on Track to Reach Objectives
Source: (Food Bev February 19, 2019)
“Our company is becoming more agile every day,” said Emmanuel Faber, chairman and CEO. “And we adapt to the ever-changing world around us, as exemplified by the impressive acceleration of our innovation rate, supplying a quarter of our total sales in 2018 from only 16% two years ago, and our 40% growth in e-commerce last year. 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, Nestle and many more. Register here
Mondelez International: Accelerated Growth on Tap
Source: (Mktg Week February 20, 2019)
One such innovation hub is SnackFuture, which is focused on opportunities in wellbeing, the premium market and digital platforms. It brings together teams from brand marketing, consumer insights, research and development, innovation and corporate development to identify areas of growth for the snacks business. Learn more
Kellogg’s Tests VR for Developing Merchandising Strategy
Source: (Computer Weekly February 19, 2019)
Because the technology operates on a mobile platform, it allows for a wider range of locations for merchandising research, and is based on behavior in a store environment rather than traditional survey-based product market research which usually takes place online or in customers’ homes. Learn more
POI Canadian Summit – June 12-13, 2019 View the Preliminary Agenda and Register Today!
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
Walmart Gains on Digital, Experience Initiatives
Source: (MediaPost February 20, 2019)
Walmart says the gains are broad-based, with customers responding to pricing strategies, omnichannel options and improved private brands… Comparable-store sales jumped 4.2% in the U.S. And when viewed on a two-year stacked basis, that gain is 6.8%, which the company says is the highest in the last nine years. Ecommerce sales grew by 21% while operating income rose 36%, to $6.1 billion. Learn more
P & G’s Tide Targets Millennial and Gen Z Consumers
Source: (Ad Age February 19, 2019)
Tide Cleaners marketing will be a largely local, guerilla affair leaning heavily on direct mail, e-mail, digital, posters or showing up with drop lockers in grocery stores and other places to get the word out. The focus is on “performance marketing,” Raman, vice president of P&G North American Fabric Care, says since this gets Tide much deeper into a direct-to-consumer business. Learn more
Six Ways AI Can Impact Retail Forecasting: Hype Vs. Reality
Source: (Forbes February 21, 2019)
Retail forecast error is high, and anything that reduces it not only drives value on its own, but increased value in other levers too, like inventory levels, inventory turns, and margin. 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
POI Members Learn more, and access the report here
CAGNY 2019: Late wake-up call on growth for CPGs
Source: (LinkedIn KFebruary 22, 2019)
Source: (LinkedIn KFebruary 22, 2019)
As a couple of CEOs put it, this is an industry that requires clear strategic direction, strong purpose, persistent investment behind brands to help them blossom and strong convictions. As one CEO put it “you cannot diet yourself to greatness”. While this is by far the biggest priority for all companies, several major packaged foods companies seem to have a particularly acute problem to solve and appear to underestimate what it would take to turn it around. Learn more
What will PepsiCo look like in 2025?
By Rachel Arthur
PepsiCo boasts 22 billion-dollar brands, with its portfolio including flagship drinks Pepsi, Gatorade and Tropicana. But what’s next? Having taken over the reins as CEO from Indra Nooyi in October, Ramon Laguarta sets out his strategic vision of what the company will look like in 2025. Learn more
Leave a Reply