WYKOFF, N.J., Sept. 20, 2021 /PRNewswire-PRWeb/ -- The Promotion Optimization Institute (POI), the leading resource for marketing and merchandising executives, today released its 2021 POI Enterprise Planning (EPx) Vendor Panorama, finding that 86% of consumer-packaged goods (CPG) companies surveyed reported that they are struggling with modern trade and how to gain spending efficiency. The 2021 POI Enterprise Planning (EPx) Vendor Panorama also found the majority of vendors have advanced Revenue Growth Management (RGM) capabilities. With 49% of manufacturers advancing RGM practices and further optimizing promotion, pricing, assortment and strategy, these enabling capabilities are in high demand.
As a result, the POI panorama report has expanded its vendor capabilities review to include end-to-end enterprise planning including revenue growth management, headquarter capabilities, pricing, Sales and Operations (S&OP)/Integrated Business Planning (IBP), food service and data management, in addition to the historical TPx content covering TPM, TPO and post- event ROI capabilities.
"The COVID-19 pandemic dramatically accelerated the move to Ecommerce, and nearly two years after the onset of the pandemic, most CPG companies continue to struggle with trade promotion, channel shifts and commodity price increases," said Pam Brown, Chief Commercial Officer of the POI and author of the report. "Manufacturers and retailers need enabling capabilities that can help their teams process data, gain insights, adjust promotions and pricing and quickly take action. With the CPG paradigm shift taking place, Trade Promotion and Revenue Growth Management are more relevant today than ever before."
The POI analyzed 18 leading vendors across 16 functional areas (including Revenue Growth Management, Optimization, Data, Artificial Intelligence, IBP/S&OP, Headquarter Planning, Food Service, Advanced Analytics and more) that are helping retailers and consumer goods executives manage enterprise planning and trade promotions effectively. 2021 POI best-in-class vendors include Exceedra, Kantar, o9, PwC Strategy, Salesforce, SAP, Visualfabriq, and Wipro.
The Enterprise Planning (EPx) Vendor Panorama builds upon the research of the POI 2021 In-Store Retail Execution Vendor Panorama. The two panoramas are companion documents – the Retail Execution Panorama evaluates the in-store component of the promotion cycle, while the EPx Vendor Panorama focuses on end-to-end enterprise, headquarter and key account planning. Both panoramas are designed to help POI members improve their ability to manage planning and execution, trade promotions, pricing, enhance trading partner relationships, and drive profitable growth.
Key Strategic Insights from the 2021 POI Enterprise Planning (EPx) Vendor Panorama:
- The lack of connectivity between Trade Promotion Systems and Retail Execution Systems is severely impacting execution and revenue gains. Forty-eight percent of POI survey respondents agree that their companies are struggling to execute retailer aligned promotions at the store level.
- When cross functional teams utilize an end-to-end planning ecosystem, business units become connected and the outcome is effective enterprise planning with efficiencies gained across the organization.
- Data is foundational to success yet, companies are struggling to access, cleanse, harmonize, and hub the data. Sixty-four percent of companies continue to have data challenges with foundational data.
- Omni-channel shopping has increased and additional funding is allocated toward digital and shopper marketing, personal consumer offers, and E-Commerce. Vendor capabilities must advance to manage "modern trade" (traditional + digital/E-comm/AO).
- The RGM planning diligence and profit focus have transformed episodic, once-a-year planning into an ongoing and dynamic planning practice deeply rooted in advanced analytics.
- Trade promotion management, post-event and evaluation and optimization (TPx) is becoming a subset of emerging revenue growth management (RGM) initiatives.
POI EPx Recommendations include:
- Enable all enterprise and TPx planning, RGM, Integrated Business Planning and trade promotion related processes with technology.
- Evaluate systems and processes that will make the planning cycle more efficient and less burdensome. The POI survey found sixty-nine percent respondents feel the planning process is burdensome.
- Don't underestimate the need for change transformation. The POI Member Portal has historical summit presentations that contain peer set change management practices as well as presentations.
A breakdown of all of POI's recommendations are in the 2021 POI EPx Vendor Panorama.
"The POI is delivering greater insights through expanded research, POI member share groups, manufacturer and solution provider advisory, POI CPG Leadership Council and additionally, connecting through live/hybrid virtual summits with increasing numbers of cross-functional consumer goods executives around the globe. Vendor advancements are increasing data to analytic insights, cross-functional collaboration and action, and reducing administrative burden. We are impressed with the innovative Solution Provider advancements that support manufacturer and retailer collaboration, help teams respond with agility, and grow profitable business in challenging times," said Michael Kantor, CEO and Founder, POI.
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,industry leadership virtual events, POI advisory, and the Promotional Collaborative Capability Matrix (PCCM). POI aims to instill a financial metrics and research-based discipline not typically found with other trade groups.
The goal of our innovative approach is collaborative holistic planning and promotion optimization. The focus is on the customer/shopper through sales, marketing, and merchandising strategies, as well as organizational effectiveness and revenue growth in the new reality. 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 virtual and hybrid events, and how to engage with leaders on the CCM, visit http://www.poinstitute.com/ or email Mkantor (at) poinstitute (dot) com or Pbrown (at)poinstitute (dot) com
Media Contact
Theresa Smith, POI, +1 (818) 704-8481, [email protected]
SOURCE Promotion Optimization Institute
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