We see many opportunities to improve the promotion and distribution of consumer products, both on a relative basis as well as by looking at changes year over year,” said Dale Hagemeyer, partner and board member of the POI.
Chicago, Illinois (PRWEB) April 05, 2017
The Promotion Optimization Institute (POI), the leading resource for trade marketing and merchandising executives, today released the POI 2017 TPx and Retail Execution Report at the POI Spring Summit being held in Chicago and attended by 300 consumer goods and retail executives. The annual report provides a detailed analysis on the intersection of the people, processes and technologies required in order to be a suitable collaboration partner in the promotion and distribution of consumer products.
The POI 2017 TPx and Retail Execution Report utilizes the data and insights from the POI 2016-2017 POI TPx and Retail Execution survey by identifying where consumer goods manufacturers are succeeding and struggling in the promotion and distribution of consumer products. The POI’s survey analyzes 1) trade promotion management --particularly, how manufacturers sell at the headquarters level of retailers—and 2) retail execution --which focuses on selling and executing programs at the individual store level.
“We see many opportunities to improve the promotion and distribution of consumer products, both on a relative basis as well as by looking at changes year over year,” said Dale Hagemeyer, partner and board member of the POI. “We hope that consumer goods companies will take stock in the fact that many of their struggles are shared by both peers and competitors. But ultimately, we sincerely hope that identifying these opportunities and steadily working against them as part of strategic and tactical planning will yield ever-improving benefits.”
- Satisfaction around the ability to manage trade promotions and to execute at retail has declined from last year’s survey and now stands at 14 percent and 19 percent, respectively.
- Retailers, as evaluated by manufacturers, have declined in key collaborative measures: data quality, data access, and store access.
- Retail execution capabilities show the most dramatic improvement of any areas surveyed as consumer goods companies put more emphasis on the “sell-more” functionalities and being able to do more off-line.
- Change management is still a huge challenge, both for existing users and when bringing new ones on board.
- There is solid progress in becoming more analytical and having the tools to do so, despite change management headwinds.
In preparing the POI 2017 TPx and Retail Execution Report, POI also reviewed eight key implications based on the findings of the POI 2015-2016 TPx and Retail Execution survey. POI found a mix of improvements as well as declines:
1. Manufacturer and retailer collaboration is strained. Eighty-six percent surveyed reported having data issues and 90 percent reported having compliance issues.
2. There is still too much focus on software and solutions, not enough on best practices. Sixty-seven percent reported that they did not receive best practices during TPx implementation and 36 percent reported they only somewhat received best practices during retail execution deployment.
3. User organizations select wrong tools for the job. Fifty-one percent said that off-line capabilities are insufficient in their retail execution solution. Sixty-three percent do not have the option to bring their own device in retail execution.
4. Change management issues abound for solution users. Ninety-one percent have challenges training and supporting new TPx users and 78 percent report have difficulties getting TPx users to trust what they see in the system.
5. Shortfall in analytical capabilities (both on the people and tool aspects). Ninety-two percent have challenges moving capabilities from transaction to analytical and 60 percent do not have post-event analytics.
6. User experience (UX) not meeting expectations according to 93 percent surveyed.
7. Integration issues are still a big problem with 90 percent saying they have issues.
8. Lack of future focus among consumer good companies. Sixty-one percent have challenges selling to Walmart and 68 percent are concerned with doing business with Amazon.
About the Promotion Optimization Institute
POI brings together manufacturers, retailers, solution providers, analysts, academics and other industry leaders. Members of the POI share cross-functional best practices in both structured and informal settings. Additionally, members benefit through our industry alliances, the Certified Collaborative Marketer (CCM)™ curriculum and certification, global industry leadership events, and the Promotional Collaborative Capability Matrix (PCCM). POI aims to instill a financial and metrics-based discipline not typically found with other trade groups.
The goal of our innovative approach is collaborative promotion optimization. The focus is on the customer/shopper through sales, marketing, and merchandising strategies. POI is based in Wyckoff, New Jersey. To learn more about the POI, including how to participate in research, how to register to attend or sponsor events, and how to engage with leaders on the CCM, visit http://www.poinstitute.com/ or email Mkantor (at) poinstitute (dot) com.
The Certified Collaborative Marketer (CCM) ™ is a trademark belonging to the Promotion Optimization Institute. All other trademarks are the property of their registered owners.