Actionable Insights From APT's Retail Practice
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Optimizing CPG Advertising Spend in the Age of Digital Media

September 11th, 2017 | Posted by APT in Manufacturing - (Comments Off on Optimizing CPG Advertising Spend in the Age of Digital Media)

Over $14 billion. That’s the total measured-media spend for the categories of Food, Beverages and Candy and Personal Care in the US in 2016. Highlighting the large investments CPGs are making in advertising, these were two of the largest measured-media spending categories. Research also shows that internet ad spending is forecasted to be the biggest ad medium in the US in 2017 – even topping television – with an expected investment of $69 billion.

As digital advertising becomes increasingly prevalent and CPG advertising budgets continue to grow, organizations must carefully re-allocate media spend across digital channels as well as mass media platforms, such as radio and print ad campaigns. In order to make informed investments in this area, CPGs first need to understand the true value of digital campaigns for their business. From there, they can develop a better understanding of where to focus their marketing spend, and strategically distribute budget across programs for maximum impact.

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Streamlining the Supply Chain: Applications of Business Experimentation

August 8th, 2017 | Posted by APT in Manufacturing | Retail - (Comments Off on Streamlining the Supply Chain: Applications of Business Experimentation)

Marketing, merchandising, promotions, and pricing: these are just a few of the areas in which leading retailers and CPGs are already leveraging business experimentation to test new programs and measure their overall impact. While organizations are increasingly standardizing analytic processes to evaluate new initiatives in these areas, there is a significant opportunity to optimize programs in another crucial area: supply chain.

With the emergence of Amazon and other online-only competitors, it’s more important than ever that CPGs and their retail partners collaborate to ensure they have the right products on the shelf at the right times. Applications for retailers and CPGs to leverage test vs. control analysis may seem more easily applicable for programs such as new pricing structures and marketing campaigns. However, there are a variety of “testable” initiatives that retailers and CPGs should consider to inform their decision-making and strategies. This approach will ultimately help them develop a greater competitive advantage in a changing industry environment.

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Cracking the Code: The Importance of the In-Store Experience

July 5th, 2017 | Posted by APT in Manufacturing | Retail - (Comments Off on Cracking the Code: The Importance of the In-Store Experience)

There is an undeniable appeal to shopping without ever leaving your home. As devices like Amazon’s Alexa further shorten the path to purchase, it is becoming increasingly easier for consumers to fulfill their shopping needs online.

The growing competition from online players places greater pressure on traditional retailers to capitalize on one key advantage: real estate. While a majority of online shoppers still prefer to make purchases in physical stores, it is vital for brick-and-mortar retailers to optimize the in-store experience as the process of browsing shifts more and more to online and mobile channels.

To make the most of their physical locations, retailers must proactively take steps to enhance the in-store experience. One innovative way they can do so is through working with their CPG partners to develop new strategies and refine existing ones. Through this collaboration, retailers and CPGs can launch initiatives ranging from sampling and in-store events to live consultations and demos designed to drive shoppers into the store and keep them there, with the ultimate goal of increasing sales.

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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…)