Monday, March 14, 2016

Brands Need to Jumpstart Online Channel

Build a Solid Business Case
Despite eCommerce being the primary driver of growth in many consumer goods categories, it is not always easy to immediately prove a return on investment-based business case for the level of effort and outlay required to succeed in the channel. In the early stages at least, it is unlikely that online channel revenue alone will be significant enough to add up to much in terms of direct ROI. In any case it may not even be possible to get reliable online sales figures.

In the absence of reliable or convincing eCommerce point of sales data, the argument for investment focuses on three key areas:

1. Protecting valuable brand equityIf left unattended poor quality information, images and errors in the online channel can quickly lead to shopper confusion and damaged brands. Getting the content basics right – and keeping them up-to-date – for the channel is the essential first step for any brand.

2. Impact of online on other channels. In the majority of categories today the online channel is more important for the influence it exerts on other channels than it is for sales in its own right. Industry watchers, including Deloitte, Forrester, Kantar and PWC, all point to the significant impact of online browsing on all other channels. Anything from 50 to 75 per cent of in-store sales initially start with an internet browser or mobile app. In the US for example has become the go-to site for pre-purchase product research, with 44 percent of US consumers starting their product searches on Amazon, more than all search engines combined. Of those 44 percent, 87 per cent ultimately buy elsewhere. Winning off-line is truly dependent on first winning online.

3. Future proofing the organization. For eCommerce, it’s no longer a case of “if” or “when,” but “how much.” Innovation and technology shifts are driving shopper behavior online. If your products are not available and winning in the online channel today, your organization will miss out on the eCommerce tipping point when it comes for your key categories. Any one of the points above should easily justify the investment required to make a success of an eCommerce program.

Create a Relevant and Realistic eCommerce Strategy
The eCommerce strategy you adopt will depend heavily on where your organization and categories are in terms of eCommerce maturity. For some organizations, the eCommerce strategy might focus on protecting brand equity, educating consumers, ensuring compliance with brand guidelines and building brand presence. For others, the strategy could be more about impacting omni-channel and offline sales, brick-and mortar shoppers, and brick-and-mortar retailers that have an online presence. A third approach would concentrate more on actual eCommerce revenue via pure plays and online retailers.

In each case it’s going to require a slightly different approach to strategy, planning, execution and how you develop your resources and eCommerce programs.


Sunday, March 13, 2016

Mobile Surpasses Print and Desktop in Search for Offers

Mobile apps are the top go-to place to find coupons, says a new study. More than four of ten consumers (42.8 percent) search for coupons using a mobile app, followed by print and desktop.

The study from RetailMeNot, a digital offers marketplace and Placed, which connects ads to store visits, delivers an extensive analysis around consumer trends in couponing and the impact that mobile has had in changing the shopping planning process.

Key findings of “The State of Coupons and the Role of Mobile” report based on 10,843 consumer responses:

  • Coupons remain the shopper’s primary savings method. More than 3 in 5 consumers actively seek out coupons in preference of other types of promotions. 
  • Coupon users plan ahead before redeeming. 85 percent look for coupons (non-grocery) prior to visiting a retailer. 
  • Shoppers’ identify their top 5 favorite shopping apps. In order of preference, the top shopping apps are Amazon, RetailMeNot, Walmart, Groupon and eBay.

“Coupons are no longer limited to Sunday circulars; however, coupons are still the number one incentive that consumers prefer,” said Marissa Tarleton, CMO, North America, RetailMeNot. “Mobile has made coupons an on-demand activity, with nearly half of consumers preferring to look for coupons via a mobile app, the number one choice for conducting searches. Retailers who embrace this change in consumer behavior to deliver offers at all stages of the planning process are poised to capture sales in the moment.” 

Full article here

Wednesday, February 17, 2016

FMCG E-Comm Trends for 2016

  • Tablets and Mobile shopping will outweigh desktop purchases, putting the focus on app optimisation and website performance
  • Product Content will become the differentiating factor for retailers and FMCG brands online
  • The Consumer is King in 2016
  • In-store shopping will go digital as retailers connect shoppers’ phones to their basket
  • Medium-sized retailers will be challenged on all sides when it comes to home delivery, as both global pure players and local stores look set to soar online
  • Personalisation is the name of the game for FMCG companies, as they work to engage with consumers online

Tuesday, February 16, 2016

Top 5 Trends for CPGs in 2016

Similar to previous years, 2015 saw notable transitions in the consumer goods space, and companies should expect big changes in 2016 as well.  Growth in omnichannel retailing, the increasing influence  and importance of digital marketing and data analytics, a relentless focus on cost efficiency, and shifting consumer preferences will be major forces impacting the industry. Here are five key trends consumer packaged goods companies (CPGs) should expect in 2016:

Omnichannel expansion

Reallocation of marketing spend
Greater consumer focus through data insights
The growing influence of private equity
Healthier, more convenient products

Full article here

Wednesday, February 10, 2016

Study Urges Shopper-Centric Approach Versus Traditional Process

Category management is in the crosshairs of the retail food industry.

A new study by the Food Marketing Institute (FMI), Deloitte Consulting LLC, and Winston Weber Associates claims the traditional process is stagnant. The good news is that a roadmap to a more insightful shopper-centric way of doing business is accessible in today’s market. The collaborative business planning study suggests that the biggest shortcomings of category management relate to being too product-focused and too narrow in approach.

“Similar to the ambitions of the 1995 Efficient Consumer Response initiative, our analysis in Shopper-Centric Retailing recommends a culture change that challenges our comfort levels and bucks current trends in category management,” said Mark Baum, FMI’s chief collaboration officer. “We are calling for an industry transformation to adapt to today’s new consumer.” 

The study found that 100 percent of retail and consumer packaged goods respondents believed some degree of change is required; a quarter of respondents believed that nothing less than an entire redefinition and transformation is necessary. Conversely, 85 percent of retailers have made either “no change” or “moderate change” to the initially-prescribed eight-step category management process.