POI Pulse March 7, 2016

POI Pulse March 7, 2016 PUBLISHED BY PROMOTION OPTIMIZATION INSTITUTE

Trends & Developments

What Tim Cook Can Learn From Starbucks & WFM
Source: (Fortune March 6, 2016)

For Starbucks, big bets around expansion, global flag planting, investment ahead of everyone else in electronic loyalty cards, new day parts and the core business have delivered beyond anyone’s expectations. Whole Foods’ above-average profits are derived from high-margin prepared food, very pricey health supplements, higher sales per square foot and net higher prices on fresh produce, fish, and meats. Learn more

Coke, Heineken, P&G Share Marketing Secrets
Source: (Marketing Week March, 2016)

The secret to P&G’s success? According to Roisin Donnelly, brand director for P&G in Northern Europe, it remains having a deep understanding of the customer. “Our industry is being disrupted by new models of marketing and selling, new retailers, and a consumer empowered new technology and a new age of transparency. Learn more

The POI Spring Summit agenda will include eCommerce, Revenue Management Strategies, and once again be advanced. Register now to attend, as the POI April 2015 Summit was sold out… Register today!

Teams taking advantage of early registration include:

Goya Foods, Biscotti Bros., Maple Leaf Foods, Jack Links, Johnsonville Sausage, Bob Evans, Reynolds, Nestle, Natrol, Organic Valley, McKee Foods, Smithfield Foods, Wells Enterprises, DPSG, Constellation Brands, American Licorice, Walgreen’s, Schreiber Foods, McCain Foods, Bimbo Bakeries, Mrs. T’s, General Mills, Energizer, Bellisio Foods, Young’s Markets, Unilever, Procter & Gamble, Morton Salt, Prestige Brands, PepsiCo, JM Smucker, Mars, EJ Gallo, MillerCoors, Shopko, Edgewell, Wrigley, Ahold USA, Mondelez, Mars, PepsiCo, Starbucks, Pinnacle Foods,Coca-Cola, Food Lion, Kimberly Clark, Johnson & Johnson, Perfetti Van Melle, Kraft Heinz, Hormel, Clorox, Tyson, Kellogg’s, 7-Eleven, JM Smucker, Church & Dwight, Busch Bros.,Topco, Keurig Green Mountain, Jarden, Musco Family Olive, Windsor Foods, Ainsworth Pet Nutrition, Del Monte, Hy-Vee Stores, Red Bull, Rich Products, Vitamin Shoppe, Campbell Soup, and many others. For your invitation, reach us today at mkantor@p-o-i.org

Food Lion’s “Make Every Basket Count” Promotion
Source: (Grocery HQ March 4, 2016)

To participate, customers must: Purchase five participating items using their MVP card by March 22; receive a code at the register; visitwww.foodlion.com/makeabasket to enter that code; and play the interactive basketball game to enter for a chance to win free groceries and earn meals to be donated. Learn more

POI Global Summit is Set for Brussels, Belgium

Source: (POI 10-11, May 2016)

View the preliminary agenda for POI Brussels. Building on the success of the inaugural POI Global Summit in Geneva, CH on 12-13, May 2015 leading global companies like Henkel and Coca-Cola are advancing their understanding, and associated benefits of Joint Business Planning, Retail Execution and the components of successful promotion collaboration. register now!

M&M’s Celebrates 75 Years with Innovation
Source: (USA Today March 3, 2016)

“That’s the beauty of this brand,” says Tracey Massey, president of Mars North America, which owns the M&M’s brand. “You can really innovate all over the place.” And that kind of flexibility may be what helps M&M’s stay on top at a time when many shoppers are cutting back on sugary treats. Learn more

Enroll Today and Become Certified as a Collaborative Marketer w/ POI at Saint Joseph’s University
Source: (POI-Next Orientation is June 16-17, 2016)

During this 16-week self directed program, expert faculty expose participants to the key management levers that drive organizational success. The program begins by exploring how organizations develop and implement strategy. Then, core functional areas of business are explored – from sales to marketing, to supply chain and inance -teaching candidates a solid understanding of each function and how it contributes to trading partner collaboration success. Learn more and enroll today

Not All Millennials Are the Same
Source: (Food Bus. News 3-2-16)

The study, titled “GenerationWhy,” breaks down millennials into four categories: traditionalist (37%), bon vivant (23%), purist (19%) and balance seeker (16%). Traditionalists, which is the largest category of the four, is the least likely to look at nutrition labels regularly. Consumers in this category are more concerned about how food tastes and what it costs than trying new things.Learn more

New for you at the POI Spring Summit in April – In order to create additional interest, engagement, and excitement in various processes, and applications of business analytics, POI is holding a poster session that includes those CPG and Retailer attendees interested in creating greater visibility around some of their more interesting and innovative projects, or applications. Learn more by contacting Mike Kantor at mkantor@p-o-i.org

View the Full Lineup of POI 5 Leading Events for 2016
Please take a look at what is next on the full POI Summit schedule on our upcoming events page. Save the dates, and advise your cross-functional team members.

Kroger Used 84.51˚ for Assortment at Main & Vine
Source: (Food Bus. News March 4, 2016)

“Needless to say, there’s a lot going on at Kroger,” Chairman and CEO Rodney McMullen said. “We are creating a seamless experience for our customers, whether experimenting with new formats, driving digital engagement or launching new corporate brand products.

We believe that combining Kroger’s culture of innovation with our culture of opportunity will continue to support our growth.” Learn more

POI Perspective

Action item for Manufacturers’ and Retailers – register today for the upcoming POI Summit in Chicago! We’re finalizing the next great agenda now with leaders from Mondelez, PepsiCo, J&J who are focused on the future, and others. Follow the links, and register here.

Excerpt from the 2016 POI Report: The State of TPx and Retail Execution for Global Consumer Goods and Retail
Dale Hagemeyer, Partner, POI

Many manufacturers are not sufficiently focused on the future.

This may seem like a bold assertion but we see several places where blind spots in thinking may be occurring. For example, many manufacturers have been backed into a corner by Wal-Mart. Promotional dollars are all poured into the shelf price and there is limited control over the tactics. This is not new news. Read the full POI TPx and Retail Execution report for detailed responses.

Perhaps the question about Wal-Mart has not been quantified or stated this way in some other surveys, but the forward-looking concern should now be focused on Amazon. This highly disruptive player is making a serious play for the center store, pondering the fresh food sector, and wants to use drones to deliver products directly to consumers. Even if Amazon only achieves a modicum of success in the grocery category, it is already cutting into categories like health and beauty after dominating books, music, and videos. As it bypasses retailers and takes major price concessions from manufacturers, Amazon becomes a major threat for several reasons:

Amazon has proven to be highly predatory already. Look no further than booksellers for examples.
As Amazon predates retailers, they will in turn seek greater concessions from manufacturers in the form of trade spend in order to stay in business. Trade spend will shoot up another 5 percentage points over 5-10 years.
Amazon doesn’t share data. In this regard, it is the epitome of anti-collaborative.
It doesn’t allow any of its suppliers to undercut its pricing. Therefore, your efforts at ecommerce get crushed except for sheer informational purposes about your products with no ability to sell them.
There is neither a shopper nor promotional strategy at Amazon. It is all about price and convenience. Neither of these are necessarily bad, but gone is the ability to be part of the community for a worthwhile project such as disaster relief or building a scoreboard at the local sports venue.
The combination of the market power of Wal-Mart and Amazon drives down margins and reduces potential for co-innovation with retailers. Being in survival mode is not pretty and does not improve the shopping experience.

Nevertheless, nearly 40% of respondents have no concerns about doing business with Amazon. Only 25% have figured out that Amazon can adversely impact their brands.

To receive the complete report, and analysis including charts and recommendations, contact Michael Kantor at mkantor@p-o-i.org

If you did not receive yourinvitation to attend POI Chicago, or POI Brussels, please reach me at mkantor@p-o-i.org for your invitation.

Have a sensational Week!

Sincerely,

Michael Kantor

CEO & Founder
Promotion Optimization Institute, LLC
mkantor@p-o-i.org

www.POInstitute.com

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Starbucks
Pricing Manager – CPG

This position contributes to Starbucks success by developing Channel Development’s business strategies involving base and promotional pricing and trade funds management to deliver profitable volume, revenue and share growth for the company. This position is responsible for participating in the development, delivery and execution of headquarters standards, policies and architecture that are aligned to corporate and brand strategies. Learn more

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