COVID has dramatically accelerated the move to eCommerce and the majority of CPG companies are struggling with online trade promotion. While much work needs to be done, many POI members and vendors are rising to the challenge.
WYKOFF, N.J. (PRWEB) August 24, 2020
The Promotion Optimization Institute (POI), the leading resource for trade marketing and merchandising executives, today released its 2020 POI TPx Vendor Panorama, and found that 87% of consumer packaged goods (CPG) companies surveyed reported that they are struggling with modern trade. The 2020 POI TPx Vendor Panorama also found that many of the vendors in the panorama are starting to create the necessary linkages between digital and traditional promotions.
“Even in the face of COVID-19 and the consumer products industry paradigm shift that is taking place, Trade Promotion and Revenue Growth Management is more relevant today than ever before,” said Pam Brown, Chief Commercial Officer of the POI. “COVID has dramatically accelerated the move to eCommerce and the majority of CPG companies are struggling with online trade promotion. While much work needs to be done, many POI members and vendors are rising to the challenge.”
The POI analyzed 21 vendors across 15 functional areas (including AI, Data, and Advanced Analytics) that are helping retailers and consumer goods executives manage trade promotions effectively. The 2020 POI Trade Promotion best-in-class (by functional area) vendors include: Accenture, Acumen, Blacksmith Applications, Cornerstone Capabilities, Data Ventures, Deloitte, Eversight, Exceedra, Kantar, Periscope by McKinsey, PwC Strategy&, SAP,TABS Analytics, UpClear, Visualfabriq, and Wipro.
The TPx Vendor Panorama builds upon the research of the POI 2019 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 TPx Vendor Panorama focuses on headquarters. Both panoramas are designed to help POI members improve their ability to manage trade promotions, enhance trading partner relationships, and drive profitable growth. The 2020 TPx Vendor Panorama has added new sections to the panorama to include vendor capabilities in baseline development, IBP, deductions/claims/settlements, food Service, funding/spend, and Revenue Growth Management.
Key Strategic Insights from the POI TPx Vendor Panorama
- The majority of retailers and manufacturers are not focusing their enterprise TPx planning on the consumer but are instead clinging to processes, and systems that are still internally focused and based on old paradigms.
- Due to COVID-19 data implications and seismic shifts in the economy and behavior,
teams need to evaluate for model drift and then re-calibrate the models.
- Eighty-two percent of companies continue to have data challenges. Data is foundational but companies continue to struggle to access, cleanse, harmonize and hub the data. In order for CPGs to offer consumers personalized offers it is critical that the data is accurate.
- Many TPx offerings lack data management capabilities. This is a key differentiator in vendor support and the quality of promotional outcomes.
- Evaluate the holistic enterprise for cost efficiency, as the global environment and
organizational dynamics have changed.
- IT teams need to re-evaluate IT project portfolios and technology spending by focusing on digital, analytics visibility, optimized planning, forecasts, and supply chain.
POI TPx Recommendations include:
- Enable all enterprise and TPx planning, RGM, and trade promotion related processes with technology. Adding spreadsheets to compensate for inadequacies in system choice only adds cycle time, complexity, multiple versions of the truth, increases the chance for errors and negatively influences the customer experience.
- Evaluate systems and processes that will make the planning cycle more efficient and less burdensome. Seventy-three percent of POI survey respondents feel the planning process is burdensome. In the 2020 TPx Vendor Panorama, POI has noted each vendor’s modeling approach.
- Don’t underestimate the need for change transformation. The POI Member Portal has historical summit presentation that contain peer set change management practices as well as presentations.
A breakdown of all of POI’s recommendations are in the 2020 POI TPx Vendor Panorama,
Vendor Evaluation for POI TPx Best-In-Class
In the 2020 POI TPx Vendor Panorama, solutions from 21 vendors were evaluated, including additional “localized” solutions that focus on specific geographic areas such as Europe or North America. The following 19 capabilities were analyzed and compared: company viability, geographic strategy, market responsiveness and track record, deployment capabilities, market understanding, vertical/industry strategy, partner leverage, company vision, product aptness and flexibility, delivery flexibility, TPM functionality, TPO completeness, user experience, analytical capabilities, product vision, configurability, and Revenue Growth Management.
“This is the most comprehensive and essential research and analysis we’ve done at the Promotion Optimization Institute (POI) since our inception nearly 12 years ago,” said Michael Kantor, CEO and Founder, POI. “The POI is delivering more capabilities, insights and connecting live plus virtually with increasing numbers of consumer goods executives around the globe. We are proud to lead by example and are impressed with how the Solutions Providers are driving advancement for sales, marketing, and merchandising executives at leading brands and banners in challenging times.”
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, 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 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.