Tag Archives: trade marketing

CPG Industry View of What’s Ahead for 2010

4 Jan

My friends over at CPGMatters published a roundup perspective of what’s important for industry trade and marketing strategists in the new year.  They were also kind enough to quote me several times, alongside folks from McKinsey, PWC, Adesso and Synectics Group.

Not surprisingly, the list of themes is fairly consistent with many of the issues I have written about over the past few quarters.  Some of the highlights include: pricing as a strategic lever, planning price and promotion strategies together, co-opetition with private label and maintaining a total category view when selling to retailers.

All in all, an on-target story that frames up some pretty important industry issues for 2010.  You can access the full story here.

What’s Next in Trade Effectiveness?

14 Oct

Trade promotion best practices are fairly well established across the fast moving consumer goods industry.  But looking forward over the next 1 to 3 year horizon, two “next generation” themes stand out:

1. Aligning “top-down” strategic trade planning with “bottom-up” account planning processes on a single technology platform

2. Weaving in the shopper insights dimension to what has traditionally been a brand/category focused planning framework

We are already seeing signs of both development themes taking hold among some of the larger CPG manufacturers.  Better technology made more broadly available through SaaS frameworks are fast-tracking theme #1.  And many retailers who have come to recognize the importance of more localized, shopper-centric trade planning are helping to drive theme #2 among the vendor community through richer data-sharing policies.

Note: I recently completed this thought-leadership eBook for DemandTec, my employer, to help articulate what’s on the horizon in the trade promotion space.   Hope you enjoy thumbing through it, and I look forward to any thoughts you care to share on the concepts.  Since the document has some small text, it is best viewed in full-screen mode.

TPMA San Francisco Event Update

20 Jul

Day 1 of the TPMA San Francisco event just wrapped up at the Stanford Court hotel.  Lots of focused, practical dialog around trade promotion optimization, collaborative analytics, funds optimization and the role of shopper insights.  While attendance is on the lighter side, this conferences offers a set of rich discussions among industry peers.

Day 2 kicks off tomorrow at 8:30 AM, when Todd Bortel from Cannondale Associates and I will deliver our presentation titled “Trade Promotion Planning & Analysis: A Game that Needs Changing”.  We hope to see you there.

Optimizing the Trade Plan with Applied Science

13 Jun

Note: I produced this product demo overview for DemandTec, my employer, to help show off some cool capabilities for the Trade Planning & Optimization software service.  The movie runs ~2.5 minutes and has a pretty cool audio overlay…so turn those speakers up!

Consumer products manufacturers are under pressure to drive more volume — and profitable volume — without increasing the trade promotion budget.  Problem is, most trade promotions don’t deliver economic value for the manufacturer nor do they drive an increase in category performance for the retailer.  Selling in a bad plan like this to the retail trade is tough at best.

What to do?

Isolate plans that drive profitable volume for you, the manufacturer, and also hit key category performance objectives for your retail customer.  Sounds easy, but doing this requires a quantified understanding of category behavior — including every item in the category — so that you can simulate events before they occur and isolate the good ones from the bad ones.  Predictive software from DemandTec and others do just this, and help customer-facing sales teams develop win-win trade promotion events and entire category plans.

Some of the biggest CPG companies are using capabilities like this today, paving the way for a step change in how the industry goes to market.

Trade Promotion Excellence from a Retailer’s Perspective

7 May

On May 21 at 11 AM Pacific, John Carlson from Cannondale Associates and I will appear together on a webinar on trade promotion effectiveness.   You can click here to register for this event.  John’s insights are based on a set of one-on-one interviews that Cannondale conducted with category management and merchandising executives from large grocery retailers.  These interviews focused on which manufacturers set the bar for trade promotion management, and what specifically the manufacturers were doing to distinguish themselves.

Cannondale was kind enough to invite me to provide DemandTec’s perspective on what this means for the CPG manufacturer community.  I’ll plan to tee up some pretty tactical recommendations to help put into action Cannondale’s observations.  As I started to sketch out my talking points, I ran a quick analysis to track share price performance of the short list of recognized manufacturers.  Interestingly enough, every member of the group outpaced the S&P 500 in a trailing 2 year comparison.  It would  be unfair to attribute this performance to just effective trade promotion practices, but clearly there is a common thread with how this group of leaders manages their respective businesses.


The webinar will be hosted and facilitated by our friends at Consumer Goods Technology (click here to register).  Hope to see you there!


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