how cpg buzz impacts today's trade promotion strategies
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http://www.tradeinsight.com/whats-new/cpg-online-learning-events/366-how-cpg-buzz-impacts-todays-trade-promotion-strategies Genuine stories ripped from the headlines of popular industry news publications demonstrate the best way to adjust trade spend practices, reassess strategies or navigate the fluctuating marketplace.TRANSCRIPT
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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
Next Up In The “CPG Online Learning Series”
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