Global POI research reflects that 75% agree that their companies are struggling to have retailer-aligned promotions executed at the store level, only 10% of companies have automated in-flight capabilities, and 28% lack retail execution technology.
WYCKOFF, N.J., April 25, 2023 /PRNewswire-PRWeb/ -- The Promotion Optimization Institute (POI), the leading resource for enterprise planning and execution, revenue management, trade marketing and merchandising executives, today released its 2023 Vendor Panorama for Consumer Goods Retail Sales Execution (RetX) Capability & Solution Advancements. The 2023 global RetX Panorama found that 75% (+17% over 2022) of CPG executives surveyed agree that their companies are struggling to have retailer-aligned promotions executed at the store level, only 10% of companies have automated in-flight capabilities, and 28% lack retail execution technology.
The tenth annual POI RetX Vendor Panorama evaluated 13 vendors and provided best-in-class distinctions across 15 different categories. The report utilized data and insights from POI's 2023 State of the Industry Survey of consumer product goods manufacturers around the world to identify where they are succeeding and struggling in the promotion, distribution, and execution of consumer products.
"In the last three years, we have witnessed the retail landscape change significantly," said Pam Brown, Chief Commercial Officer, POI. "Shopper behaviors changed in the heart of the pandemic, and consumer behavior has not fully returned to pre-pandemic habits. The need for a consistent brand experience for consumers is bigger than ever, and consumers are interacting with their favorite brands through more digital channels in an unprecedented fashion. Manufacturer execution in brick-and-mortar retail locations remains a top priority of CPG manufacturers and retailer, and yet, the need for more direct-to-consumer (D2C), omni-channel offerings, and a digital presence continues to grow."
POI designed the Vendor Panorama to help consumer goods companies stay abreast of retail execution trends, understand "what's possible" from a technology perspective, and gain best practices. Vendor products and solutions were evaluated across advanced imaging technology (IR/AR), analytical insights, coaching, connected enterprise, data analytics visualization, desktop UX, distributor management, guided selling, interactive customer presentations, internal collaboration, mobile UX, omnichannel engagement (including eCommerce/ B2B/ DTC/Tele-virtual), predictive and prescriptive analytics (AI/ML), retail activity optimization (RAO), and retail merchandising.
Key In-Store Retail Execution Survey Findings:
- 49% of manufacturers report that data and insights are not fully leveraged within their organization, which limits effectiveness and decision making.
- 70% of organizations do not connect retail execution systems with TPx planning capabilities, reducing enterprise visibility to actual retail shelf conditions, in-flight monitoring and promotion & shelf compliance.
- 56% of retail execution store activities and 51% of calls are prioritized & scheduled based on needs and constraints, which underlies the need for current RetX technologies that can automate prioritization with AI/ML.
- 52% reported their off-line capabilities are not being met. In these cases, efficiency is compromised and sales can suffer.
- 44% of survey respondents do not have sell more capabilities enabled. Selling more is one of the most common reasons we hear of manufacturers investigating new retail execution software. Selling more is core to a sales person's effectiveness in the field.
- 46% of responding manufacturers have added direct-to-consumer (D2C) as a part of their go-to-market strategy. These companies are expanding and coordinating their omni-channel and brand presence.
Recommendations:
- As you utilize the POI vendor panorama to benchmark your retail execution capabilities, consider advancing the following capabilities in your organization: route and activity optimization, advanced imaging technology (IR/AR), suggested orders, key performance indicators, data management and reporting. Vendors have substantially advanced these areas to include artificial intelligence/machine learning and other advanced technologies that can give your teams a competitive edge.
- Consider where your organization can utilize omni-channel capabilities to increase market penetration and gain efficiencies and effectiveness across the channels.
"As the landscape of retail execution continues to evolve in our new reality, it is vital that manufacturers, retailers and technology providers collaborate, and most importantly, continue to innovate and think outside the box. Innovation and being nimble will be the key to gaining in-store execution, improving the consumer experience, and moving the needle in brand loyalty," said Brown.
The 2023 POI State of the Industry Report is available at https://poinstitute.com
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. POI continuously improves and champions Holistic Enterprise Planning, Promotion, Pricing and Assortment Optimization, Revenue Management, Advanced Analytics & AI, Digital, eCommerce, and Data Management. Additionally, POI has led industry advancement and members benefit through POI's industry alliances, the Certified Collaborative Marketer (CCM) ™ curriculum & certification and POI's global virtual and hybrid industry leadership events.
The goal of our innovative approach encompasses holistic enterprise planning, revenue management, collaborative promotion & pricing optimization and execution. The focus is on the customer/shopper through sales, marketing, and merchandising strategies and includes all cross-functional partners across the holistic organization. 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) P-O-I (dot) com or Pambrown(at)P-O-I(dot)com
Media Contact
Michael Kantor, Promotion Optimization Institute Optimization Institute, 1 9143197309, [email protected]
SOURCE Promotion Optimization Institute Optimization Institute
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