how cpg buzz impacts today's trade promotion strategies

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How CPG Buzz Impacts Today’s Trade Promotion Strategies

Meet Today’s Presenters

Rob Whynot Senior Project Manager

Michael Cross Product Marketing Manager

CPG Industry Changing Faster Than Ever

Today’s Front Page Headlines

•  Politics

•  Economy

•  Marketing

•  Lifestyle

•  Business

•  Technology

POLITICS

POLITICS:

Outcome of Presidential Election to Impact Holiday Sales

Sobeys Progresses Toward Carbon, Waste-Diversion Goals

Kroger Strikes Balance In Sustainability Efforts

New USDA Rules Establish Strong Organic Standards

New York Health Board Approves Ban On Large Sodas

Implications

•  U.S. Post-Election Spending Spree Very Possible

•  Governments Creating Policies that Impact Package, Labels, Price

•  Future Sustainability Legislation Could Add Significant Costs

•  Retailers will Continue to Pressure Manufacturers to Carry the Burden of Additional Costs

•  Manufacturers will Rely Heavily on Trade Spend Analysis to Guide them in Deciding When and How to Off-Set Costs

ECONOMY

ECONOMY:

Consumer Spending Is Flat After Adjusting For Inflation

Rising Gas Prices Could Mean Painful 2013

Consumer Confidence Index Improving

Retailer Outlook Improves Slightly

US Housing Recovery To Shape Consumer Spending

Implications

•  Mixed Message From Indicators

•  Consumers will Not Give Up ‘Frugal’ Shopping Practices Quickly

•  Expect Consumers to Allocate Spend Across All Categories

•  Aggressive Food & Beverage Promotion Activity during ‘Recovery’ Period Could Pay Off for Manufacturers

•  Manufacturers Need Ability to React to Market Events and Retailer Requests Quickly

MARKETING

MARKETING

Turkey Time! Loyalty Card Programs Gear Up

Retailers Extend Fuel Savings Programs

Unilever Digital Deal Spans Shopping Trips, Retailers

Walmart Offers Price Comparison By Email

Whole Foods Market Raises $20,000 to Help Schools

Retailers Partner for Pink Ribbon Produce

Implications

•  Loyalty Programs Continue to Impact Purchase Decisions

•  Shoppers Do More Research in Advance, Still Make Many Final Decisions in Store

•  Commitment to the Community a Significant Factor in Where Consumer Shops and What they Buy

•  Shopper Marketing Research More Important Than Ever

•  Alignment of Consumer Marketing and Trade Marketing is Critical

CPG FUNNIES

LIFESTYLE

LIFESTYLE

Changing Demographics Trouble for Brands & Grocers

Survey: Consumers Value Quality Over Low Price

Consumer Reports: Private Label Shines in Taste Tests

Most Adults Would Buy Organics If They Were Cheaper

Wal-Mart Associates to Lead Healthy Store Tours

Quick-Trip Shoppers Willing To Pay More At Front-End

Implications:

•  Multiple Generations With Significant Influence

•  Brands and Retailers Must Be Able to Compete in Cyber-Environment

•  Natural & Organic, Sustainability Shaping Future Purchase Behavior

•  Convenience Remains a Way to Add Value

BUSINESS

BUSINESS (TPM Related)

Retailers Provide Individual Pricing Based On Habits

Many Retailers Ending Double Coupons

Sam’s Club Boosts Sales With Joint Business Planning

Food Lifts Family Dollar Q4 Results

Trade Promotion Management: Haves and the Have-Nots

Implications

•  Manufacturers See Double Coupons as Diminishing Brand Value

•  Manufactures Gaining More Direct Control Over Final Price

•  Consumers Getting More Comfortable with ‘Loyalty Card’ Game

•  Impact of Individual Pricing Needs Tracked and Analyzed

TECHNOLOGY

TECHNOLOGY

Consumers and Business Become More Mobile

Big Data Meets TPM

SaaS Technology Becoming TPM Tool Of Choice

Implications

•  Smart Phone Applications Having Significant Impact on Shopping Practices and Buying Decisions

•  Retailers Looking to Technology to Improve the Consumer’s Shopping Experience

•  Manufacturers Upgrading Technology to Improve Visibility and Effectiveness of Trade Spend

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Final Thoughts

•  Consumer Research and Shopper Marketing is Extremely Critical at this Point

•  Need to Focus on Role of Smart Phones and Tablets

•  Companies Who Excel at Scenario Planning and Execution Will Capture Sales and Share

o  Responses to Rising Costs

•  Visibility, Analytics and Insights Will Determine Trade Promotion Management Winners and Losers

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