POI Pulse – February 27, 2017 - Promotion Optimization Institute

View the Updated Agenda for the POI Spring Summit
April 5-7 2017 Chicago,IL!

Trends & Developments

Nestle USA Hails Frozen Foods Turnaround

Source: (Food BizNews Feb. 24, 2017)

The moves have been successful, Jeff Hamilton, President, Nestle Food Division, Nestle USA said. After years of double-digit sales declines, the brand is growing again in high single digits.

The sales improvement underscores the continued relevance of frozen foods, Mr. Hamilton said, noting that frozen foods are well suited to benefit from numerous fundamental consumer trends. Learn more

Many Retailers are Losing Money Chasing Amazon

Source: (CNBC February 23, 2017)

As they invest billions of dollars to close the gap with Amazon, the overwhelming majority of traditional retailers still hasn’t figured out how to profitably fill orders that incorporate both the web and the store. Learn more

View the New Sessions of the World-class
POI agenda, and register with over 300 of your CPG and Retailer Peers at the POI Spring Summit in Chicago at the Downtown Marriott.
Teams already registered include:

Unified Grocers, Inc., Mrs. T’s Pierogies, K-VA-T Food
Stores,Lactalis,Brookshire,Grocers,Nutiva,Reckitt Benckiser, Barilla, Keurig Green Mountain, Flowers Foods, Reynolds Brands, AB InBev, Dole Foods, Tyson Foods, Duracell, Farmer John, Heineken, General Mills, Smithfield, Nestle, Rx Bar, Perfetti van Melle, McCormick, Pharmavite, Deoleo, Mars, L’Oreal, Beam Suntory, JBSS, Hershey’s, Hy-Vee Stores, Bic Consumer, Johnsonville Sausage, DPSG, Morton Salt, Newell Brands, Clorox, Organic Valley, Califia Farms, Schreiber Foods, Windsor Farms, SC Johnson, Bayer, Goya Foods, Kroger, Colgate Palmolive, Mondelez, Kraft-Heinz, Starbucks, Wells Enterprises, ConAgra, Dean Foods, Mondelez, Walgreen’s, JM Smucker, Del
Monte, Church & Dwight, Kellogg, Rich Products, Red Bull, Bimbo Bakeries, MillerCoors, Topco, Constellation Brands, Coca-Cola, Johnson & Johnson, Shopko, Energizer, Musco Family Olive Co., Windsor Foods,
Hormel, PepsiCo, Kimberly-Clark, Edgewell, Eagle Family Foods, Ainsworth Pet, Pinnacle Foods, Unilever, Meijer, Fernandez Markets, Ventura Foods, and more. The POI 2016 Spring Summit was sold out, please register early, as we’d love to see you advance with us!

CAGNY Ad Spending Will Rise — or Maybe it Won’t

Source: (Ad Age February 23, 2017)

P&G’s Mr. Moeller noted that category growth appeared
to broadly slow in January, but that P&G is committed to stick with its spending plans. Colgate Chairman-CEO Ian Cook said that after two years of pulling back on ad spending in favor of trade promotion or to compensate for negative currency effects, the company is committed to increasing 2017 spending regardless of what happens with currency. Unilever has hiked marketing spending as a share of sales fairly steadily over the recent years, Mr. Pitkethly said, but it’s not
committing to continue that as it expands operating margin. Learn more

Land O’Lakes Prioritizes Performance of
Trade Promotion Analysis
Source: (T-Pro Solutions February 23, 2017)

With the integration of T-Pro into its current Trade Promotion System and processes, Land O’Lakes will experience the improved process efficiencies and data visualization of Real-Time Post-Event Analysis
measuring quantifiable ROI and KPIs. Furthermore, Land O’Lakes will be able to have one customer planning and intelligence center with accurate baselines and predictive analytics. Learn more

Access the Recording from the February
23, 2017 POI and EY Webinar with CPG Panelists advancing their capabilities. At the end of this session, you’ll better understand how to use price and promotion to create ‘win-wins’ for the
manufacturer, retailer and ultimately, shoppers.

Registration is Open for the 3rd Annual
POI European Summit in Amsterdam 9-11, May

Join Carlsberg, Kraft Heinz, Groupe Bel, Bacardi, Perfetti Van Melle, Dr. Oetker, Kellogg’s, Unilever, Diageo, Mondelez, Coca-Cola, Pladis, Ferrero, Beiersdorf, ABInbev, Ferrero, Energizer, Henkel, Heineken, United Biscuits, Edgewell, P&G, Mars, Albert Heijn, and others to learn and engage around critical in-store and eCommerce success cases, including:

Delivering on Perfect Store Objectives – Optimizing Store Shelf Management and Promotional Compliance;

The Look, Feel, and Results of a Successful Trade
Promotion Optimization (TPO) Deployment in Europe;

How Integrated Business Planning Delivers Growth and
Basket Volume;

Strategic Pricing to Achieve Mutual Growth; and more. Manufacturers and Retailers can register here

POI Chicago – Pre-conference Workshop Insight Driven

Promotion April 5, 3-5:30pm

Whether it is the new genre of digital promotions or the
traditional trade promotions, it takes insights to truly make them work. During this facilitated Pre-conference Session we will look at how the traditional and digital promotion landscape is evolving, which insights need to be injected into the process, and share fresh thinking
about what it might look like in 18 months. Contact Dale Hagemeyer for more information at dhagemeyer@p-o-i.org or as a Manufacturer or Retailer contact Susan McHenry at POI to reserve your place at this session as space is limited at susan@hrginc.net

More Graduates – POI
Certification Class at SJU
Source: (POI Certified Collaborative Marketer)

Leading Companies are investing in their people for
growth. This Class included candidates from Mondelez, K-VA-T, Nestle, Sysco, Fernandez Markets, Keurig Green Mountain, Topco, Hormel, Ventura Foods, Constellation Brands, and others. Your next chance
to becoming a Certified Collaborative Marketer (CCM)
begins June 14-15, or December 13-14, 2017 at Saint Joseph’s University in Philadelphia, PA. Achieving the CCM allows you to think differently, and gain essential skills sought after by your company, and other successful CPG/Retail executive team leaders. Learn more and enroll today

Retailers are Building Themselves into Trouble
Source: (Supermarket News Feb. 24, 2017)

That retail grocery is “overstored” these days is a such a common perception it goes virtually without debate, but how over-stored are we really?According to one recent study, the answer is a quite a bit. And it’s bound to get worse. Barclays Capital analyzed the top 50
TV markets in the U.S. and found that 38 of them would see food retail square footage growth outpace population growth between 2015 and 2018. Learn more

POI Perspective

Re-Engineering Trade Promotions from a Cost of Doing Business to an Investment in Profitable Growth

Both manufacturers and retailers agree that many promotions are ineffective. This has gone on for decades and spending on promotions has increased over time to a current industry average about 25% of revenues. Also, product availability, whether in
support of a promotion or just on the shelf, has continually
deteriorated over time. We will look more deeply into the value of Integrated Causal Data in the next section, but first there are some factors that make it compelling, independent of the actual insights that it delivers, specifically:

1. It can be nearly real time. The frequency with which scan, weather, ERP, and some other data sets are updated is often a matter of seconds. This isn’t to say that we can
course-correct every few seconds, but that there is a constant source of fresh data available. In many cases, it isn’t utilized at all. In others, it is only utilized episodically, perhaps after it has become
stale. The key is to have the data available as often as it is required – and for it to be fully utilized.

2. It can be delivered to the place where the insight is needed or the action is to be taken. In the context of
better managing trade promotions, this means the account manager can
easily understand past, current, and future promotions from within the TPM system. No sorting through printouts or logging into a separate system. For a field sales person, it means being able to know what is happening at a store on today’s route as of just a few minutes ago, in order to more effectively plan which stores to visit and what to do while there. It also means having store-level data that can turn
insight into action during the actual store visit while the opportunity still exists. These are just a few examples. The key is where and how the information is delivered. Thus, real time and right location work together to be very powerful.

3. It has to cover as much of the market as possible. This means all stores as opposed to samples. It also means all channels and interactions, including cannibalization across channels, stores, and products. Otherwise, it is possible that inaccuracies drive the wrong impressions of outcomes, such as ROI, or
the wrong actions are undertaken. One of the big gaps with respect to coverage is driven by differences in what is provided by syndicated
data and “direct” POS data that is provided by a retailer.
Because there is confusion about this aspect of market coverage, we provide the following chart to highlight the distinctions:

These distinctions are pretty compelling in how they do or do not combine to provide a complete view of the market with the competitor, inventory, and latency. And, as cost is a
factor, it may impede the number of categories that can be purchased. Now that we have established how Integrated Causal Data can drive insight at the right places and right times, we go further in outlining the value proposition as it relates to the common business processes
related to actively managing trade promotions. We do so by posing the following question in our latest thought leadership paper: Where Are the Key “Value Areas” From Harnessing Robust, Integrated
Causal Data in the Trade Promotion Process? Request a copy

Request your copy of this thought leadership paper including the 8 Value Areas to succeed regardless of where you are in your journey at mkantor@p-o-i.org

or visit https://poinstitute.com/about/poi-publications/

Have a sensational week!

Michael Kantor, CEO and Founder

Promotion Optimization Institute, LLC

mkantor@p-o-i.org

www.POInstitute.com

Sponsors of this week’s issue of POI Pulse

To advertise, reach us at: mkantor@p-o-i.org or call 914-319-7309

Last Year’s Spring Summit was Sold Out – Reserve Your Spot Now!

Career
Opportunities

If you have a relevant opportunity, list
it in POI Pulse, reach us at info@p-o-i.org

Ajinomoto Windsor

Director of Trade Management

The Director of Trade Management will lead the sales planning and trade
promotion management activities within the sales organization. In this
position, the Director of Trade Management will facilitate profitable
sales growth by ensuring trade promotions return maximum ROI. The
position is located in the corporate offices in Ontario,California. Learn more

FedEx Careers
Revenue Management & Pricing Analyst

The Revenue Management and Pricing Analyst is expected to execute
strategic plans, influence change and foster accountability to ensure the
revenue and pricing goals of FedEx Custom Critical (FCC) are
accomplished. The analyst provides meaningful analyses which guide
the organization in maintaining and improving its competitive position in
the marketplace while enhancing profitability and creates actionable
reports to measure initiatives. Learn more

Church & Dwight

Manager, Pricing Analytics

The successful candidate will support the development of a best practice approach to
maximizing profit/sales across the Church & Dwight portfolio through price analyses and recommendations that will achieve identified objectives by Brand. The Manager, Pricing Analytics will work internally across C&D functional groups to support the development of
a sustainable model for Pricing Excellence. Learn more