trade

Why retail store CPG brands have grown 18% post-recession

The article below shows the continuing growth of private label (store branded) products in the U.S.  However the penetration of private label is far less than in other countries.  I think there are strategies that branded CPG companies can leverage to maintain share.  What have you seen as effective strategies? Why store brands have had […]

Continue reading

LEMPERT / IDC Report: 87% of CPG companies have trade promo tech in 2012 vs 45% in 2011

My friend, Phil Lempert, "The Supermarket Guru", reported today on a new IDC report on trade promotion. I am a bit surprised at the results of the report, frankly.  I am not certain the actual utilization of trade promotion technologies has caught up with...

Continue reading

PHIL LEMPERT VIDEO: A perfect storm in CPG / Retail trade promotions in 2013

Phil Lempert, a true SupermarketGuru (SupermarketGuru.com) states f ood price hikes that grow dollar sales but impede unit volume force manufacturers to promote in order to move units.  It's a costly way to retain or grow share.  Trade spend is...

Continue reading

Effective Response to Illicit #CPG Trade: Thoughts & a SEMINAR in SEOUL

Change the illicit trade equation by transforming the way you use information.  Everyone knows effective regulatory compliance relies on good information. But in today’s globally-integrated world, rapid access to whole market data is...

Continue reading

Trade promotion summit – good materials online

 IBM was a sponsor and presenter last month at the Promotion Optimization Institute's important industry event The "Predictive: Path to Promotion Optimization Summit.  POI is the key industry body in the world of trade promotion for cons...

Continue reading

IBM publishes Trade Promomtion Optimization white paper

 IBM has released just TODAY a new white paper on Trade Promotion Optimization.  This paper shares the insights of IBMers working with consumer products companies around the world with a common focus on Trade Promotion Optimization transforma...

Continue reading

Who Do You Love More – M or R ?

  Most of us like coupons, or a price reduction at the grocery or retail store, especially for the things we want to buy anyway.  Most of the time that discount is paid for largely by the company who designs and manufactures packaged food, beverage, paper, personal care, or related products.   Let’s call them ‘M’.   M ‘spends’ a lot of money for that – discounts which add up to the equivalent of 10% to 20% or even more of revenue, depending on what data source you look at.  M must love you; that is a lot of investment they are throwing out to shoppers and consumers, albeit broadly and without distinction.  The retailer – let’s call them R - helps by making extra space, or advertising the sale in their weekly circular, but most of the ‘money’ comes from M.  So maybe M loves you more than R. Or maybe not.  Recently I received an envelope from the retailer where I do most of my shopping.  I wasn’t too excited, expecting it to be another version of R’s weekly circular or maybe highlighting some particular items from M companies on sale to everybody.  But lo and behold it was a offer for me and me alone.  The envelope held sixteen separate coupons for items which I had purchased at the store in the past, some recently and some a few months prior.  Of the sixteen, six were for R brand or private label and the other ten were for goods from a number of different M companies.    Food, juice, fresh vegetables, toothpaste, canned goods, a deli product, a cleaning product and other things were all included. I was touched.  R had obviously taken data gleamed form my loyalty card, done the work to get support from a number of M companies, and then sent a truly meaningful offer just for me.   Now, I suppose that the M companies are footing part or most of the bill for the coupon discounts, so they still love me and I appreciate that.  But R made it all happen.  And R is offering me coupons for their own brands too.   That got me thinking.  R is now able to show their love for me as an individual.  Maybe you get these coupons and your local R loves you too, for the person that you are. Recently I have been using those loyalty points programs with a couple of M companies.  But that is a hassle, since I need to find these complicated codes and type them in manually.  I know that M is trying to deepen our relationship but it feels a bit difficult.  Plus, the relationship is still built around their product(s) and not about me in all my dimensions as a buyer of goods.  Contrast that to R who made it easy for me.  I did nothing differently but R is showing how much more they love me now.  They even brought M along for the date.   And the relationship is centered around me.  So maybe R loves me more.  But wait.  Maybe M truly does love me more, but they just can’t show it since so many other things intervene.  I’m so conflicted.  Love deserves reciprocation but I have only so much economic loyalty to throw around and I’m feeling confused about how to allocate it.  So who do you think loves you best, M or R?  And who do you love more? 

Continue reading

IBM at the “Predictive” Path to Promotion Optimization

  IBM will participate in and present at the "Predictive" Path to Promotion Optimization Summit  taking place November 6-8 in Chicago.  This will include findings from our upcoming Chief Marketing Officer Study, which is t...

Continue reading