POI Pulse – March 27, 2017 - Promotion Optimization Institute

The host hotel is Sold Out! If you need a hotel room please contact Susan McHenry at Susan@HRGinc.net
for options

Trends & Developments

Cornell: “Future Target Store – A Hyper Local,

Shoppable DC”

Source: (Minneapolis Star Tribune March 25, 2017)

“In this new era of retail, stores need to be
multidimensional showrooms – they have to be destinations for services, and more and more we’re positioning ours to function as guest-facing hubs in a smart network,” he said. “Think of a Target store
of the future as being a hyper local, shoppable distribution center.” Learn more

Conagra Brands Transitioning to Expansion
Source: (FoodBizNews March 24, 2017)

“You have previously heard me discuss the importance
of our portfolio management principles and how they continue to guide our actions,” Sean Connolly said “Specifically, we have moved from a focus on volume at any cost to a focus on value creation, from a reliance on trade driven push tools to a reliance on stronger brands
and, in turn, consumer pull.” Learn more

The 3rd Annual POI European Summit in Amsterdam 9-11, May View the Updated agenda!

Join Nestle, Danone, Kimberly-Clark, PepsiCo,
RB, ültje, P&G, Barilla, Pernod Ricard, Friesland
Campina, Molson Coors, SCA, Hovis, Delta-Cafe’s, Arla Foods,Sanitarium Foods, LEGO, Arla Foods, Groupe Auchan, Carlsberg, Mars,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, Energizer 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 follow the links
and register here

View the new POI Website – www.POInstitute.com

Retailers Uninterested In Price Match Game – Study

Source: (Paymentweek March 24, 2017)

The biggest problem is that retailers want to be
competitive-42 percent said as much in a recent study-but only 29 percent would match a lower price found via mobile. Only four percent of retailers would actually beat a mobile price. Learn more

Starbucks – ‘Conversational Commerce’ as the Future
Source: (Marketing Week March 23, 2017)

Starbucks says its heavy focus on technology is enabling it to embrace conversational commerce “very rapidly”,allowing consumers to order coffee at home or in their car using smart devices such as Amazon Echo. Learn more

View the Complete World-class POI agenda, and register to join your CPG and Retailer Peers at the POI Spring Summit in Chicago at the Downtown Marriott. Teams already registered include:

Nissan-USA, Jack Links, Whirlpool, Nestle Purina,
Mapleleaf Foods, Parmalat, Campbell’s, Herr Foods, Sysco Corp, Snyder’s-Lance, Schwan’s, Sargento Foods, 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! The Final
agenda is here http://bit.ly/2mUTECA

Personalized Offers: The Cure for Tired, Ineffective
Promotions – Report Source: (RetailWire March 23, 2017)

Personalization is being broadly acknowledged as a leading strategy in the evolution of trade promotion with its promise of a “unique offer to a unique person at a specific point in time,” and yet many marketers are unsure how to begin. Learn more

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

Coca-Cola – Marketing is More Than Just ‘Big Budgets’
Source: (Marketing Week March 23,2017)

“We used every piece of the marketing mix and had
great ROI. Coca-Cola Zero Sugar is now the fastest growing cola brand in Great Britain. We wanted consumers to understand the message that it looks and tastes the same as regular Coke but without the sugar – and that message is coming through,” she explained. Learn more

Walmart, Grocery, Target Top Personal Care Market Share – Study
Source: (Drug Store News March 23, 2017)

Nearly a quarter of the personal care market belongs to
drug and dollar stores, though, with 24.7% market share going to Walgreens, CVS and dollar stores combined. And these three spaces see many heavy deal buyers, which TABS attributes to more deals offered through their loyalty programs and circulars than at Walmart, where heavy deal buyers trend away from.

Rewards programs are slightly more popular (32%) than
circulars, which 30% of shoppers said they used. And among heavy deal buyers, 16% buy organic products, compared with the 80% of total respondents who purchase organic products. Learn more

POI Perspective

The State of the Industry – 2017 Annual POI TPx and Retail Execution Benchmarking Survey

Introduction

The Promotion Optimization Institute (POI) benchmarking survey for 2017 continues to focus on the intersection of people, processes, and technologies required to be a
suitable collaboration partner in the promotion and distribution of consumer products. The POI Vendor Panoramas for both TPx and Retail Execution take a deeper dive into capabilities and vendor
offerings so here we focus exclusively on where consumer goods
manufacturers are succeeding and struggling. We also incorporate longitudinal data, which looks at how the benchmarking changes over
time.

Summary

The POI survey probes various dimensions within two separate but related capabilities: trade promotion
management, particularly, how manufacturers sell at the headquarters level of retailers, and, retail execution, which focuses on selling and
executing programs at the individual store level. At a high level, the survey found that:

– Satisfaction around the ability to manage trade

promotions and to execute at retail has declined and now stands at 14% and 19%, respectively.

– Retailers, as evaluated by manufacturers, have declined in key collaborative measures: data quality, data access
and store access.

– Retail execution capabilities
show the most dramatic improvement of any areas we survey as CG companies put more emphasis on the “sell-more” functionalities and being able to do more off-line.

– Change management is still a huge challenge both for existing users and when bringing new ones on board.
As many as 91% of users point to struggles in this area.

– There is solid progress in
becoming more analytical and having tools to do so, despite change management

headwinds.

We fully acknowledge that CG companies typically keep their technologies for many years so it is difficult to capture much year-over-year improvement. Nevertheless, we do see some
very telling shifts as well as real challenges that persist and will continue to point to results and trends, both favorable and
unfavorable.

Rationale Behind the Survey

POI seeks to serve its members by identifying both the successes and challenges in the promotion and
distribution of consumer products, and then analyzing them at events, 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 get them out in the open so we can address them.

Section 1: Looking back

In the 2015-2016 POI State of TPx and Retail Execution survey analysis we highlighted 8 key implications based on the findings. We also gave recommendations. It would be useful for you to familiarize yourself with those findings, as we will now take a look at how they have changed during the last year, but will not evaluate the underlying implications in detail.

The results show a mix of both
improvement as well as declines. The following chart shows the Key Implication from last year and then how it has changed for better
(favorably to collaboration and improved results) or for worse. We also provide some rationale in the form of a preliminary “upshot” with the understanding that trends often take multiple years and we
have some limitations around getting all the same people in all the same companies to respond year over year. For a copy of the complete report, write mkantor@p-o-i.org

Results, implications, plus what manufacturers and retailers are doing to succeed to drive mutual growth
will be covered at next week’s POI Spring Summit…See you in Chicago!

View the complete April agenda:

http://bit.ly/2mUTECA

Have a sensational week!

Michael Kantor, CEO and Founder

Promotion Optimization Institute, LLC

mkantor@p-o-i.org

View the New POI Website and library of
resources here:

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

View the Complete Agenda! Last Year 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