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 firstname.lastname@example.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
|General Mills’ Exec: Being a Force for GoodSource: (Forbes September 1, 2020)|
Brad Hiranaga, General Mills’ Chief Brand Officer, said “Marketing establishes the heartbeat and the soul of their organization. It’s that critical to the company’s culture. So marketers must create a learning culture and get teams excited and inspired – whether that’s driving the business, innovating for the future, or doing good for the community. And once there’s conviction and trust that doing good is good for business, you can see the virtuous cycle of power and pride it creates.” Learn more
Promotion Optimization Institute Releases POI 2020 TPx Vendor Panorama, and Names Best-in-Class Across Capabilities“Even in the face of COVID-19 and the consumer products industry paradigm shift that is taking place, Trade Promotion and Revenue Growth Management is more relevant today than ever before,” said Pam Brown, Chief Commercial Officer of the POI. “COVID has dramatically accelerated the move to eCommerce and the majority of CPG companies are struggling with online trade promotion. While much work needs to be done, many POI members and the vendors are rising to the challenge”. Learn moreRegister here to join us for this Complementary webinarDigital Transformation at Clif Bar – Focusing on Success and Growth!
|Unilever, Target Partner for Voice-Powered AdsSource: (Mktg Dive August 31, 2020)|
Unilever and Target’s coupon offer in Peacock’s voice-powered ad format is an early sign of how consumer packaged goods companies and retailers are testing promising new technologies that make TV more interactive for viewers and marketers alike. By letting viewers respond with a verbal command to receive a coupon, the companies can make the process of directly responding to a call to action easier for consumers while possibly lifting response rates. Learn more
Coca-Cola Co. Restructuring BusinessSource: (Food Biz News August 28, 2020)
“We have been on a multi-year journey to transform our organization,” said chairman and chief executive officer James Quincey. “The changes in our operating model will shift our marketing to drive more growth and put execution closer to customers and consumers while prioritizing a portfolio of strong brands and a disciplined innovation framework. As we implement these changes, we’re continuing to evolve our organization, which will include significant changes in the structure of our workforce.” Learn more
Register Today for the POI Global Virtual Summit: Attend Live sessions on September 22, 2020 and/or Access On-Demand anytime!
|Speakers include: Meijer, PepsiCo, Salesforce, Mars, Jack Link’s, Visualfabriq, BJ’s Wholesale Club, Accenture, Fleet Farm, Treasury Wine Estates, LEGO, Exceedra, Mrs. T’s Pierogis, method products, Deloitte, Hyer, Philip Morris International, Church & Dwight, and many more. Already registered include: All POI Members and CPG Companies registered for Chicago and Dallas: Nestle, P&G, Schreiber Foods, General Mills, PepsiCo, Unilever, Kimberly-Clark, Dart Container, Pernod Ricard, Bic, Carlsberg, McKee Foods, Campbell’s Soup, Colgate, GSK Palmolive, Conagra, Scotts Miracle-Gro Comapny, Grupo Bimbo, Deloleo, Duracell, Keurig Dr Pepper, Kimberly Clark, Nestle Coffee Partners, Hostess Brands, Hormel, Johnsonville, Mars, Kraft Heinz, Kellogg, Mondelez, Simply Good Foods , Perrigo, Coca-Cola, KIND Snacks, Apex Global, Mattel, Perfetti Van Melle, Mrs. T’s Pierogies, Iris Nova, Hershey, Henkel, JDE, Reynolds Consumer Products, Kao, Barilla, Land O’ Lakes, SC Johnson, Morton Salt, Eagle Foods, Walgreen’s, Dollar General, Interstate Batteries, Rich Products, Talking Rain, Ocean Spray, Riverside Naturals, AAFES, Palermo’s Pizza, Gortons, Clorox, Bel Brands, JM Smucker, Church & Dwight, Hometown Foods, Constellation Brands, J&J, Musco Family Olive, American Tire Distributors, Richardson International, and more. |
Chobani Gamifies Instagram Story in Multichannel PushSource: (Food Dive September 2, 2020)
Chobani’s multichannel campaign for its lactose-free Chobani Complete brand extension aims to reach a younger audience of health-conscious consumers who are heavy users of social media and streaming platforms. By running ads on Spotify and sponsoring a playlist, Chobani can reach the growing audiences for on-demand audio content. Twenty-six percent of Spotify’s 299 million monthly active users are in North America, or 78 million people, and about 38 million of those listen to its ad-supported version. Learn more
Nestlé Relaunching Cheerios Campaigns in BrazilSource: (The Drum September 1, 2020)
Frank Pflaumer, head of marketing and communications at Nestlé Brazil. Said, “Many of our brands tripled their sales on e-commerce, some selling four times what they used to do, before we paid a lot of attention to our e-commerce efforts. So we have done a lot of work there. We were not totally prepared for everything that we are doing now, so we really had to work overnight to adapt ourselves to this process. But in terms of brands connecting to consumers, it’s been very different,” he says. Pflaumer says he hopes that lessons learned around establishing consumer connections will continue to be implemented in the future. Learn more
Join us Complementary for this webinar: Digital Transformation: A Conversation with Clif Bar
|Hershey: Reinventing the Front EndSource: (Retail Dive September 1, 2020)|
David Nolen, Hershey’s VP of Category Management and Shopper Insights, notes that it’s a difficult balancing act. “In our longtime effort to help retailers nationwide, we’ve developed a comprehensive understanding of the front end and total store, as well as a deep knowledge of how people shop across channels. That holistic understanding has enabled us to put together queuing recommendations that balance functional and emotional principles to ensure the positive checkout experience shoppers demand.” Learn more
Can Walmart’s New Membership Service Compete with Amazon Prime?Source: (Forbes September 1, 2020) Walmart does not seem interested in competing with Amazon’s media offerings at this time. Instead, its focus is on grocery sales, which have exceeded Amazon during the coronavirus pandemic. A survey found that Walmart had 30% of online grocery sales while Amazon had 27.1%. Learn more
P&G Finds New Ways to Plug Products Amid PandemicSource: (Reuters September 2, 2020)
P&G in July struck agreements with several existing restaurant partners – including Dunkin’ Brands’ (DNKN.O) donut shops and Denny’s (DENN.O) coffee shops – to tout their use of Dawn and Spic and Span counter scrubs. It’s a “halo effect,” Paul Edmondson, the head of P&G Professional North America, said of the promotion’s marketing advantage. “It’s the same consumer that’s shopping in stores that’s eating out at one of the restaurants.” Learn more