Execution is Everything!Best Practice #4 POI State of the Industry
Both manufacturers and retailers spend an exorbitant amount of time planning and negotiating through the deals process. Yet, at the end of the day, execution is everything. When retailer aligned promotions are not executed as planned at the store level, both teams fail to gain the expected results.
POI research reflects that companies continue to struggle with compliance and in-store execution. 61% (+9) of respondents are in agreement that their companies are struggling to have retailer aligned promotions executed at store level). 30% (+9) disagree and note they are able to execute well.Dislocations between what is planned and executed has been a long-term issue in the CPG industry. The time is now to close the execution gap. When respondents were asked how their company monitors in-flight execution, enabling planners to stay on top of performance and make mid-cycle adjustments, only 10% of responding companies had automated in-flight capabilities. Monitoring in-flight promotions is a critical execution gap for both the manufacturers and retailers. 46% of companies use a manual communication process to try to close the in-flight monitoring process, but this takes a lot of time away from more strategic work and selling time. Many manufacturers have provided retailers with execution incentives to drive compliance, but today’s industry challenges are enough to focus teams on this critical low hanging fruit. Most concerning is that 57% of respondent teams note that they do not execute any in-flight monitoring Retail execution of aligned promotions is improving, yet needs to be accelerated.
Imagine: Your field organization activated on the most efficient route and call plan. Each sales representative has a Perfect Store mindset and a RetX tool guides the sales rep pre-during-post call. Every step is optimized to maximize store impact and profits.
Overall satisfaction with the ability to execute at store level decreased 11% from the prior year. The “somewhat agree” respondents were fairly flat year-over-year, but the largest reduction is seen in the “agree” category. The group decreased from 38% agreeing in 2019 to 19% in 2020. In addition, 88% (-2.5) of POI survey respondents say they have challenges moving capabilities from transactional to analytical. Many Retail Execution solutions being used today do not enable field-based users to make required decisions. Only 21% (-7) agree/strongly agree that they have the tools they need to make appropriate decisions at store level.
If your company is looking to advance RetX capabilities please refer to the POI 2019 RetX Vendor Panorama, http://bit.ly/POI_RetX_Panorama2019, to dive deeper on the topic and understand vendor capabilities.
Our 2019 survey showed that about 68% of respondents do not have “sell more” capabilities, so they give a significant competitive advantage to those who attain them. Begin investigating how you can enhance prioritized selling. While the datarepresents some improvement inspecific categories, the overall retailexecution landscape is a “perfectstorm” given how aggressive e-commerce players like Amazon andAlibaba have become. The ability toexecute at retail has never been morecritical, regardless of your route tomarket. The rewards are huge forthose companies who get it right.
POI Retail Recommendations: Continue to prioritize capabilities that will help users be more effective, i.e. to “sell more.” These capabilities include retail activity optimization (RAO), image recognition, guided selling, social selling, gamification, voice recognition, and in-flight analytics. Take Bring Your Own Device (BYOD) in Retail Execution seriously, not just as user preference, but also as a standard if you intend to be active in emerging markets. Test, script, and test some more to ensure that prospective solutions can meet your off-line requirements for in-flight analytics and complex pricing /promoting.
The only way to know is to test pilot the functionality yourself. Recognize that a single solution is not likely going to meet your global needs. There is just too much disparity in price, suitability to local requirements, and availability of support. It is typical to have 3-5 solutions for truly global companies. Consider how advanced retail execution capabilities like image recognition, gamification, retail activity optimization, embedded social capabilities, and guided selling can be added to your sales tool-kit to provide line of sight to in-store opportunities and execution at the store level. Intellectual Property of POI, all rights reserved. Read the full best practice #4 segment here
Interested in learning more details on success creating and improving Trade Management and Optimization skills?Join us for the Day-2 Deep Dive workshops at #POIChicago2020.
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
Clorox Builds Non-Intrusive MarketingSource: (Adweek February 25, 2020) Magnus Jonsson, global VP of brand engagement and U.S. VP of cleaning at The Clorox Company said, “[Millennials] have grown up in an era where they have been able to fundamentally reject advertising,” Jonsson said. “So in our approach to driving relevance with this consumer, we needed to have an approach where we were less obvious, less blatant in our advertising, and find a way to connect with them.” Learn more
Network and Learn with 470+ CPG/Retail Peers at thePOI 2019 Spring Summit, April 1-3, 2020 in Chicago
Going ahead as plannedAlready registered: Perrigo, Coca-Cola, KIND Snacks, Apex Global,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, 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, in concert with the POI Spring Summit: Kantar Digital Symposium, April 1, 2020 2- 6 PM CDT, JW Marriott Chicago
Better, faster, smarter decisions: Thriving as a digital-first organization: In the current digital age, adopting a digital-first approach is a must. Industry trailblazers empower themselves to identify opportunities and make data-driven decisions to align the business, bridge the gaps, and achieve profitable growth.In this workshop, we will explore how technology is being used along with processes and people to enable digital transformation, and how the major players that have adopted digital solutions are achieving commercial excellence in the Consumer Goods space. We will also highlight the role of analytics to deliver contextualized insights to address key business challenges, and connect the dots to make timely and smarter business decisions.Revenue, Sales, Business Applications and IT focused CPG Executives engaged in category, assortment and trade promotion management, interested in identifying better and new ways to speed up and improve the effectiveness of the commercial decision making processesMore Information & Register Here
Walmart Combining its Store, Online Buying TeamsSource: (CNBC February 25, 2020) “Today we are making changes that put the customer at the center of how we buy and sell merchandise” company spokesman Kevin Gardner said. Walmart has seen a surge of e-commerce growth, fueled by its online grocery business. It reported online sales growth of 35% during the fourth quarter and 37% for the year. Learn moreMondelez’s Growth Strategy Continues with Give & Go Source: (Yahoo Finance February 26, 2020) The inclusion of the above-mentioned products (Give & Go offers brownies, cupcakes, pastries and muffins as well as owns well-known brands like two-bite and Create-A-Treat) and brands is likely to strengthen Mondelez’s portfolio, which already includes global and local brands – Oreo, Cadbury, Milka and belVita along with Tate’s and Perfect Snacks. Moreover, Give & Go’s fast-growing in-store bakery channel is likely to help Mondelez further expand its snacking business.Learn moreRegister Today for the POI European Annual Summit in Berlin, 18-20, May Going ahead as planned
Join executives already registered from: Nestlé UK, 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!
Carrefour Sees 2019 Core Profits RiseSource: (Reuters February 27, 2020) Carrefour is in the midst of a five-year plan to cut costs and jobs as well as boost e-commerce investment to lift profits and sales, as it seeks like many peers to tackle competition from major online rivals such as Amazon. Learn more
Mars Creates Internal Incubator for Brand LaunchesSource: (Mktg Week February 2020) Over the past two years, Launchpad has led to 46 pilot schemes with startup companies around the world. Ten of the pilots have led to scalable outcomes. The findings of every Launchpad project are shared throughout the company and are available for staff to study online. More than 1,500 Mars staff have been involved in the Launchpad process to-date and 250 startup partners have been sourced. Learn more
Join us for the POI 2nd Annual Canadian Summit, June 10-11, 2020 in Toronto!
Already registered for POI Toronto: Mondelez,, Unilever, Simply Good Foods, Sofina Foods, Ferrero, PepsiCo, RGH, Nestle, Conagra, Maple Leaf Foods, Upfield, Smucker Foods of Canada, 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!
Bacardi CMO on Experiments with Voice Commerce Source: (The Drum February 26, 2020) The drinks giant has been on a massive digital transformation drive as it looks to push more sales through e-commerce channels and has been experimenting with voice commerce along the way. John Burke, global CMO of Bacardi/president of Bacardi Global Brands said, “For us, there are more pressing areas we see than voice. You need to be in play with these emerging trends and experimenting, but still remember the business you’re running and making solid plans on the areas you focus on.” Learn moreStarbucks and Nestle Benefiting from their “Coffee Alliance”Source: (Motley Fool February 25, 2020) Nestle improved the $2 billion in annual revenue it acquired from Starbucks via the alliance by 15% last year. This rapid growth benefits both parties, as Starbucks is poised to reap long-term licensing revenue from the relationship. The Starbucks brand and Nestle’s global distribution reach are formidable complementary advantages. As Starbuck’s channel development president, John Culver. Culver noted, there remains “lots of white space for the Starbucks brand outside of North America.”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 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.
Amazon’s First Full-Sized, Cashierless Go Grocery StoreSource: (Motley Fool February 26, 2020)
This latest move comes as Amazon continues its battle against traditional retail, while gradually getting a foot in the door of the $678 billion U.S. grocery industry. The e-commerce giant is more likely intent on collecting as much data as possible about individual users’ shopping habits, because, as Amazon has shown time and time again, data is power. Learn more
Target Poised to be a Top E-Commerce Player in 2020
Source: (Retail Dive February 25, 2020)
Target’s e-commerce business will expand by 24% to $8.3 billion this year, eMarketer estimates, giving it 1.2% market share in 2020, according to an emailed press release
In the release, eMarkerter noted that Target’s investments in its digital operations have been “paying off,” with Target’s estimated digital sales in 2020 projected to more than double those in 2017. Learn more