POI Pulse September 8, 2020

Your Checklist for a Changing CPG Industry – How to Reset and Re-plan for the Balance of 2020:Greater details, and action items to execute these priorities are in the full POI 202 TPx Vendor Panorama Report. Reach Joanie Hampton-Malin to learn how to access the full report at jhampto@P-O-I.org   

•  Evaluate 2008 recession impacts by brand (PL impact) and determine potential scenarios for fall 2020. 
• Review history and how each brand responds during a recession. What actions need to be taken now to proactively stabilize and grow the business. Brand loyalty will be challenged during and post the crisis. Review foot traffic and basket rings to evaluate when consumers are back in brick & mortar. Look at price, pack size and brand channel shifts to ecommerce and discount stores.
• Develop multiple potential promotion and pricing scenarios for fall 2020.  Run scenarios on how your organization should reset trade by brand for fall 2020.
•  Evaluate pricing, every day & promoted, promotion timing & duration, value proposition and brand equity. Again, have multiple planned scenarios so teams can be proactive in crisis with retail partners. 
• Complete customer segmentation analysis to drive simplified product mix to support distribution strategy.
• Deploy advanced analytics and optimization if not already in place to support promotion, pricing and go-to-market strategy development. Analytics need to be aligned to the latest enterprise strategies. 
• •Ensure an omni-channel approach includes ecommerce strategy in all plans. In April 2020 Forbes noted there’s been a 129% year-over-year growth in U.S. & Canadian e-commerce orders and an impressive 146% growth in all online retail orders. Holiday plans and advanced customer pick-up and delivery strategies will be rolling out earlier to capture sales. Amazon has also delayed Prime Day to October. It was noted in July that Walmart is launching its own membership program that closely resembles Amazon Prime. ($98 yr.) The same report notes that Walmart has already been experimenting with speedy delivery, including one-day options in Phoenix, Las Vegas and parts of California. The time is now if you haven’t developed your ecommerce strategy. The holidays will be more competitive than ever as retailers seek to capture shopper dollars. This will put margin pressure on all industry parties.
• Partner with retailers on assortment and shelving strategies for essential and non-essential items.
• Develop ready-to-eat meals for home delivery in partnership with Retailers as a substitute for consumer meal occasion swaps from restaurant occasions. (i.e. Retail catering where your products are incorporated into the meal experience)
• Identify profitable growth areas and set an action plan to surgically execute the strategy. 
• Develop digital engagement capabilities across the organization; not just marketing.Consumers are adopting new behaviors out of necessity, especially digital ones. 
• Product content data and reviews for consumer purchase research is critical, as well as the “experience” factor. 
• Manage through operating challenges: margins, operating costs and working capital.
• Formulate social distancing plans, as teams re-engage on the work front.
• Evolve Production lines & distribution channels will continue to improve social distancing and health measures.
• Continue to fast track essential items and learn from early 2020 Covid-19 to plan for a potential virus resurgence.
• Develop a DTC strategy and execution plan which will ensure your consumers can procure your products when they need them.
• Evaluate the holistic enterprise for cost efficiency, as the global environment & organizational dynamics have changed. 
• Many organization (governmental, health, Manufacturers) are turning to AI to manage tracking and severity of potential future outbreak areas. They are using AI to also to identify potential supply chain disruptions and at-risk employees to proactively build intervention plans. 
• Due to Covid data implications and seismic shifts in economy and behavior, teams need to evaluate model drift and re-calibrate the models.
• IT teams need to re-evaluate IT project portfolios and technology spending. (Focusing on: digital, analytics visibility, optimized planning, forecasts and supply chain.

Join POI as a member (see detailed values here https://bit.ly/POImembershipValues) to have access to the full report. POI has a fall membership drive and special offer (Over $5K value) Reach out to Joanie Hampton-Malin jhampto@p-o-i.org for more information and to register your organization. Individual and team memberships are available. Reach us with any needs, questions, or requests to further engage with POI at: PamBrown@P-O-I.org   MKantor@P-O-I.org