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