Actionable Insights From APT's Retail Practice
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So Many SKUs, So Little Space

April 14th, 2017 | Posted by APT in Manufacturing - (Comments Off on So Many SKUs, So Little Space)

The number of SKUs in stores has tripled since the 1980s – but sales have not grown at the same pace. Now, many retailers are reducing the vast number of products and pack sizes offered in-store in an effort to create a more streamlined shopping experience, simplify supply chain logistics, and reduce out-of-stocks. As a result, shelf space is increasingly constrained.

This shift creates greater pressure for consumer packaged goods organizations (CPGs) to optimize their in-store assortment. With fewer items on the shelf, CPGs must be as strategic as possible with the products they do offer. Quantifying the impact of each assortment change will help organizations make smarter decisions about which products to prioritize to fuel growth.

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Sizing Things Up: How CPGs Can Get Pack Size and Pricing Right

March 27th, 2017 | Posted by APT in Manufacturing - (Comments Off on Sizing Things Up: How CPGs Can Get Pack Size and Pricing Right)

Consumers want convenience, and consumer packaged goods companies (CPGs) must find the winning combination of pricing and pack size to keep up with this demand.  For example, consumers increasingly seek products that fit their on-the-go lifestyles, prompting brands like Campbell’s and Organic Valley to introduce smaller pack sizes. But rolling out new pack size options presents critical challenges, ranging from potential sales cannibalization to shelf space constraints and private label competition. How can organizations determine which pack sizes and pricing will both satisfy consumers and drive revenue growth? (more…)

Branded Cafes: CPGs Come Face-to-Face with Consumers

January 31st, 2017 | Posted by APT in Manufacturing - (Comments Off on Branded Cafes: CPGs Come Face-to-Face with Consumers)

Beyond advertising, consumer packaged goods (CPG) manufacturers have traditionally had limited interaction with their end consumers, instead leaving direct interaction to their retail partners. However, more and more companies are taking increased ownership of the consumer-brand relationship.

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Information Age: The key steps to achieving data quality over quantity

August 5th, 2016 | Posted by Haley Jackson in Financial Services | Manufacturing | Retail - (Comments Off on Information Age: The key steps to achieving data quality over quantity)

In an article featured in Information Age, APT’s Marek Polonski discusses how businesses can make the most of the data already available to them to drive better decision making and increase revenue. He outlines how to make an organization’s data actionable in five key steps. The first? Don’t be a perfectionist when it comes to data collection. Click here to read about the other four.

Why CPG brands must make eCommerce a priority

June 29th, 2016 | Posted by Dan Schreff in Manufacturing - (Comments Off on Why CPG brands must make eCommerce a priority)

In a recent MarketingTech article, APT SVP Rupert Naylor discusses the importance of developing an eCommerce strategy for CPGs. “[CPGs] must prioritise selling through eCommerce channels to achieve long-term success, as consumers continue to increase their online shopping behavior.” Click here to read the full article.

Starting from Scratch: How to Build a Billion Dollar Budget

October 19th, 2015 | Posted by Holly Rooker in Manufacturing - (Comments Off on Starting from Scratch: How to Build a Billion Dollar Budget)

The number of companies referencing zero-based budgeting during quarterly earnings calls increased from 14 companies in 2013 to roughly 90 companies in 2015.  With the rise of zero-based budgeting in the CPG industry, how can managers effectively and efficiently make the best budgeting decisions?

Rather than building from the previous year’s budget, zero-based budgeting requires managers to build their budgets each year from the ground up.  This approach forces managers to justify the value of each budget line for the upcoming year.

Proving the value of dozens or even hundreds of initiatives, however, can be difficult and time-consuming.  Running tests in a small subset of stores or markets can enhance the zero-based budgeting process by helping managers quickly and precisely identify the incremental impact of each initiative across functional areas: (more…)

Three Steps to Introducing Products with More Success

June 30th, 2015 | Posted by JDouglass in Manufacturing - (Comments Off on Three Steps to Introducing Products with More Success)

CPG companies are predicted to introduce over 2,000 new products in 2015. However, new product launches fail between 60-80% of the time.

Why can’t CPGs crack the code of rolling out the right products? What are these multi-billion dollar CPGs missing in their innovation process? (more…)

CPGs leverage digital channels to connect with customers

February 11th, 2015 | Posted by Haley Jackson in Manufacturing - (Comments Off on CPGs leverage digital channels to connect with customers)

While the majority of consumer packaged goods sales are still derived from brick and mortar retail, the evolution of new distribution channels has increased the feasibility of manufacturers distributing and marketing products directly. As previously discussed, CPGs are leveraging these to explore new strategies (e.g., loyalty initiatives, direct shipping services) to more closely interact with consumers. Bolstering online and mobile capabilities can increase access to customer data and enable manufacturers to keep up with consumer trends, such as the growing shift towards shopping in digital channels. Traditionally, digital platforms have primarily served to educate consumers about products, but by enabling online or mobile purchases, manufacturers can collect shopping behavior data directly to learn more about their customers’ preferences. Other potential upsides to leveraging a digital DTC channel include strengthened brand loyalty and engagement and more control over product assortment and pricing. (more…)

Should CPGs increase focus on consumer data?

January 13th, 2015 | Posted by Evan Newkirk in Manufacturing - (Comments Off on Should CPGs increase focus on consumer data?)

Historically, consumer goods companies have been limited in the ways they can interact with their end consumers and collect data about them.  Retail partners, with their direct contact with the end consumer, have owned the lion’s share of the data, leaving CPGs with access only to data that is shared or can be purchased.  However, in recent years, the evolution of additional channels has allowed CPGs to expand beyond traditional data sources and begin to create their own customer-focused databases. (more…)

How can manufacturers maximize the ROI of online ads?

November 24th, 2014 | Posted by Haley Jackson in Manufacturing - (Comments Off on How can manufacturers maximize the ROI of online ads?)

Over the years, manufacturers have refined their strategies for investing in POS displays, in-store signage, endcaps, and free-standing inserts to attract customers to their products in stores. More recently, manufacturers have increasingly allocated spend to paid search and online advertisements to assert a digital presence for their products. While it is relatively straightforward to measure the online sales impact of these digital advertising investments, it is much more difficult to confidently determine the effect that online investments have on in-store sales. Without an understanding of the complete sales impact across channels, manufacturers cannot be sure of the true ROI of online advertising.

Manufacturers can leverage in-market testing to measure the offline sales impact attributable to online advertising and glean insights to improve the effectiveness of future investments. Results from such tests can answer key questions to help maximize manufacturers’ return on digital marketing investments, such as: (more…)