• Skip to main content
  • Skip to header right navigation
  • Skip to after header navigation
  • Skip to site footer
Promotion Optimization Institute

Promotion Optimization Institute

Optimizing sales, marketing, and merchandising strategies.

  • Events
    • Events
    • Webinars
    • Testimonials
    • Become a Sponsor
  • Advisory
    • Advisory
    • Manufacturer Advisory Services
    • Solution Provider Services
  • Collaborative Marketing Certification
    • Collaborative Marketing Certification
    • Edu Advisory Board
  • Membership
  • About
  • Sponsors
  • Industry News
    • Industry News
    • Press Releases
  • POI Manufacturer Member Portal
  • Contact Us
Home » Industry News » POI Pulse January 27, 2020

POI Pulse January 27, 2020

The POI 2020 State of the Industry Report Released!
 
“POI research reflects that CPG leadership can no longer use historical practicesto grow a profitable business due toindustry paradigm shifts. Retailer and manufacturer operating models were not built to handle today’s industry complexity,” saidPam Brown, Chief Commercial Officer, POI. “New digital savvy brands are typically less matrixed, more agile, and many are taking share from larger retailers and manufacturers. As a result, new strategy needs to be created and executed in order to compete in today’s omni-channel retail environment. This report was written to serve as a guide to support CPG manufacturer’s transformation in 2020.”
Additional Key Findings and Recommendations:
  1. Syndicated data is critical for manufacturers. Ninety-seven percent of companies reported that syndicated data is their largest data source with 90% reporting that POS data is the most often utilized. In addition, 21% reported they are using direct-to-consumer (DTC) while the use of sell in data while still high at 64% has dropped 12 points compared to 2018.
  2. Data quality issues continue to plague manufacturers. Sixty-seven percent of companies reported having data quality issues with external sources and data anomalies that, when left unfixed, can lead to inaccurate analysis results.
  3. Revenue Growth Management (RGM) is growing in popularity. 75 percent of companies surveyed have initiated RGM with 46% advancing practices, diving deeper optimized promotion, pricing, and pack growth analysis; 35% adding tools or analytical capabilities to support new RGM processes; and 28% adding RGM personnel.
  4. Trade Promotion, Planning and Optimization (TPx) solutions bring transformative results to CPG manufacturers. According to respondents, TPx helped eliminate poor performance (56%), led to process improvements (52%), and provided greater visibility to the business and opportunities/risks (50%).
  5. Retail execution of aligned promotions is improving, yet needs to be accelerated. POI research reflects that companies continue to struggle with compliance and in-store execution. Sixty-one percent of respondents reported that their companies are struggling to have retailer aligned promotions executed at store level. Seventy-nine percent that they don’t have the tools needed to make appropriate decisions at store level.
  6. CPG manufacturers have substantial digital needs that need to be addresses. Fifty-four percent of respondents noted that developing a digital practice starts with gaining necessary digital budgets. Twenty-seven percent reported a need for a dedicated digital team, and 30% reflect a need for dedicated analysts. In addition, 57% said that in order to understand the potential, impact, and ROI of digital enablement the team needs digital ROI evaluation capabilities (55%).
  7. Artificial Intelligence (AI) allows CPGs and retailers to gather customer insights in an automated fashion and predict next actions based on previous patterns or images. Twenty-three percent of respondents note that their organizations are working to enable AI capabilities in the TPx promotion cycle while 15% of the respondents are already working to incorporate AI capabilities to impact retail execution.

“POI’s manufacturer and retailer members continue to express their renewed sense of urgency when innovating and continuously improving. From the critical content and insights to the feedback from POI members, this is by far the greatest, and most applicable report published by POI,” said Michael Kantor, CEO and Founder, POI.

The 2020 POI State of the Industry Report is available today for download at
https://poinstitute.com/about/poi-publications/ 
Write Mike Kantor at mkantor@p-o-i.org for a copy of the complete Promotion Optimization Institute State of the Industry Report – Transformation 2020. Understand the 7 Best Practices of Highly Effective CPG Organizations & what steps they are taking to move to the Next Generation of Holistic Enterprise Planning. 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.
Manufacturer and Retailer Members and Attendees may access the POI Summit presentations here 
 https://poinstitute.com/about/resources/ 
Registration is open: April 1-3 for the POI Spring Annual Summit– Downtown Marriott, Chicago,  View more here 
Have a sensational week!
Reach us with any needs, questions, or requests to further engage with POI at:
PamBrown@P-O-I.org    
MKantor@P-O-I.org 

Industry News

The POI 2020 State of the Industry Report: Transformation 2020

Source: (P-O-I January 24, 2020)

“New digital savvy brands are typically less matrixed, more agile, and many are taking share from larger retailers and manufacturers. As a result, new strategy needs to be created and executed in order to compete in today’s omni-channel retail environment. This report was written to serve as a guide to support CPG manufacturer’s transformation in 2020.” Learn more and access the report here
PepsiCo Mexico Capitalizing on Digital Tools
Source: (Strategy Biz January 2020)
Roberto Martínez, CEO of PepsiCo Foods Mexico, is acutely aware that the way people buy snacks and packaged foods is changing rapidly, due to digital transformation in the retail industry. He said, “Technologies change, but human beings love stories… We have to be able to communicate with the consumer through those stories. Learn more
Network and Learn with 450+ CPG/Retail Peers, April 1-3, 2020 at the POI Spring Summit!   Reserve your spot now!!
Already registered: General Mills, 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, 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! 

We have a few spots available. More Information & Join Here
Register Today for the POI European Summit in Berlin, 18-20, May

Join executives already registered from: 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, SCJ, 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, LEGO, SAB Miller, Carlsberg, Campari,and many more!
Unilever and Kellogg’s Partner with Asda on UK Refill Store Trial
Source: (Inside FMCG January 20, 2020)
Shoppers are invited to bring their own containers to stock up on products such own brand coffee, rice and pasta at designated refill stations. The grocery has partnered with FMCG giants Unilever and Kellogg’s to create refill points for cereals such as Rice Krispies and Coco Pops and PG Tips tea.  Learn more
Registration is Open for the POI 2nd Annual Canadian Summit, June 10-11, 2020 in Toronto!
Already registered for POI Toronto: Bonduelle, Nestle, Conagra, Maple Leaf Foods, Upfield, Smucker Foods of Canada, Unilever,Kraft Heinz, PepsiCo, 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!
Kraft Heinz’s CIO Taps Data to Boost Market Share

Source: (CIO January 23, 2020)

(CEO) Patricio is changing Kraft Heinz’s cost optimization model, steering it through “tough times,” said Corrado Azzarita, Global CIO. With data analytics,”you can see where processes stop, you can see points of failure, you can see dependencies, you can help optimize the business. This is what people normally do with technologies like machine learning,” Learn more

Marc Pritchard Evaluates Next 10 years of P&G brand
Source: (The Drum January 21, 2020)
“Looking back on that, it was very clear that was too early because the technology really wasn’t there at that point,” says P&G chief brand officer Marc Pritchard. “But at least the vision was there, and it gave us a North star to where we’re now at, which is reinventing brand-building from the mass marketing of the past to one-to-one brand building on a mass scale using data and digital technology.” Learn more
Budweiser Canada Partners with Uber 
Source: (Mobile Mktr January 21, 2020)Budweiser Canada’s campaign follows Anheuser-Busch’s rollout of a social media push in the U.S. to mark the 20th anniversary of the Whassup?” campaign. The beermaker last month urged mobile users to post videos of themselves saying the catchphrase. Learn more

Advance your Skills and Career as a Certified Collaborative Marketer! 

Collaboration and Optimization – 90% Online!
One scholarship remains!
Next Orientation Class – June 17-18, 2020
More Information & Enroll here
 “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.
Coca-Cola to Ramp up Investment in France
Source: (Food Biz News January 22, 2020)
CCEP, which is Coca-Cola’s main bottling partner in France, has invested €350 million in France since 2013. Additional funds will be used to adapt the company’s production tool to changing consumer expectations and to accelerate its transition to a circular economy and to change its packaging, Coca-Cola said. Learn more
 
Hershey Rethinking Category Management
Source: (Retail Dive January 21, 2020)
David Nolen, Hershey’s VP of category management explains, “Optimizing growth by recognizing and capitalizing on new opportunities requires something greater than traditional category management. It requires a total commerce management partnership – a partnership capable of generating data and uncovering shopper insights that reach beyond the category and help to grow profitable sales”.  Learn more
How Amazon and Walmart Ate Blue Apron’s Lunch
Source: (Motley Fool January 20, 2020)
Last year saw a surge in online grocery shopping, as Walmart and Amazon expanded their efforts in the space. The percentage of consumers reporting buying groceries online surged from 48% in 2018 to 66% in 2019, according to a TABS Analytics survey. And those numbers ought to keep growing in 2020, as both Walmart and Amazon push to make home grocery delivery cheaper and easier for consumers than going to their local supermarket or subscribing to a meal kit service. Learn more
Previous Post:POI Pulse December 16, 2019
Next Post:POI Pulse February 17, 2020

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Quick Links

Events
Webinars
Testimonials
Sponsors
Become a Sponsor

General

About POI
CCM Certification
Industry News
Contact
POI Pulse Newsletter

Membership

POI Portal
Team Membership

POI Membership

  • On-Demand Access to Summit Presentations
  • Summit Attendance
  • POI Portal
  • Much more!
Join Now

Copyright © 2025 · Promotion Optimization Institute · All Rights Reserved · Heritage Marketing Group