POI's annual State of the Industry report found that automating Holistic Enterprise Planning, establishing a revenue growth management practice, and increasing visibility and analytics to support omnichannel strategy are critical to efficient growth.
NEW YORK, Feb. 5, 2024 /PRNewswire-PRWeb/ -- The Promotion Optimization Institute (POI), the leading resource for holistic enterprise planning, trade marketing, revenue growth management, and retail merchandising executives, released today the ninth annual POI 2024 State of the Industry Report. POI's annual report found that 88% of CPG manufacturers are struggling to manage their enterprise trade spend.
In the report, POI notes that it is essential to have trade management capabilities that can evaluate opportunities, appropriate a balanced enterprise funding allocation, and evaluate execution results. Enabling trade management capabilities and processes is critical as spending blurs and expands across internal departments and industry channels.
"POI research demonstrates that companies must integrate efficiency and automation into growth strategies to enhance profitability, outpace competition, and withstand global and economic changes," said Pam Brown, author of the POI State of the Industry report and Chief Commercial Officer, POI. "This essential report is a leadership playbook that delivers peer-set benchmarking and a roadmap to thrive in the future, build internal and external resilience, and enable organizations to withstand unpredictable change and gain efficient growth."
The annual POI 2024 State of the Industry Report focuses on the intersection of the people, processes, and technologies required to be a suitable collaboration partner in promoting and distributing consumer products. This report utilizes the data and insights from the recent POI 2023 Enterprise Planning, Revenue Growth Management, and Retail Execution Surveys and represents survey responses from over 130 leading consumer goods manufacturers.
Critical POI State of the Industry Report Findings:
- Eighty percent of CPG manufacturers state their headquarters support teams don't have the necessary capabilities to support pricing, trade allocations, and go-to-market strategies.
- When asked about the quality of the organizational data, 44% of responders noted that proper data cleansing, harmonizing, and staging are holding them back from delivering trade promotion optimization and analytics. To move the needle on revenue growth management effectiveness, 60% of companies said they needed to improve data ownership and management.
- Enterprise Planning, Optimization, and revenue management (EPx) solutions bring transformative results to CPG manufacturers. This is important as 68% of respondents agree that their companies face difficulties in executing promotions as planned. End-to-end enterprise planning maximizes cross-functional insights to deliver strategic objectives and efficiencies to enable Joint Customer Business Planning.
- Respondents also cited the need for increased focus on Integrated Business Planning to improve coordination of the expected demand and supply forecast. According to respondents, 48% increased net sales, 32% eliminated poor-performing promotions, and 28% had improved forecasting, process improvements, and greater visibility of the business & opportunities/risks.
- Sixty-one percent of companies are held back from exceptional retail execution because data and insights are not fully leveraged.
- Thirty-six percent of respondents noted that developing a digital practice starts with gaining the necessary digital budgets. Twenty-eight percent reported a need for a dedicated digital team, and 48% reflected a need for dedicated analysts. In addition, 52% said that to understand the potential, impact, and ROI of digital enablement, the team needs digital ROI evaluation capabilities.
- While artificial intelligence and machine learning capabilities (Including ChatGPT) are currently used in the CPG industry, 80% of the survey respondents don't understand and/or see their organization utilizing these capabilities in the next two years.
The 2024 POI State of the Industry Report can assist CPG industry leaders in developing a comprehensive enterprise planning strategy. This includes trade promotion management, trade and pricing optimization, revenue growth management, digital transformation, omnichannel visibility & analytics, and retail execution excellence. By implementing these practices and recommendations, businesses can better meet the needs of retailers and adapt to ongoing changes in consumer behavior. The report is available today for download here.
About the Promotion Optimization Institute:
POI brings together manufacturers, retailers, solution providers, analysts, academics, and other industry leaders with the specific objective of collaboratively improving enterprise planning, trade management, RGM, pricing, advanced analytics & optimization, retail execution, digital transformation, omnichannel strategy, data management, Ecommerce, and the distribution of consumer goods. Members of POI share cross-functional best practices in both structured and informal settings. Additionally, members benefit through our industry alliances, the Certified Collaborative Marketer (CCM)™ program, share groups, and industry-leading summits around the globe. POI aims to instill a financial and metrics-based discipline not typically found in other trade groups. The goal of our innovative approach is collaborative, holistic enterprise planning. The focus is on the consumer/shopper through sales, marketing, and merchandising strategies. Our POI executive advisory boards keep us apprised of industry needs and help us provide desired outcomes for members, sponsors, and academia.
For more information, visit www.poinstitute.com or contact: Michael Kantor Founder & CEO Promotion Optimization Institute (POI), 914-319-7309, mkantor(at)p-o-i(dot)org; Pam Brown, Partner & CCO Promotion Optimization Institute (POI), 707-332-0450, pambrown(at)p-o-i(dot)org.
Media Contact
Michael Kantor, POI, 1 914-319-7309, [email protected], https://poinstitute.com/
SOURCE POI
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