ShopperTech Update September 10, 2014 - Volume 5, Issue 12

In This Issue

DIGITAL SOLUTIONS: Why CPG Companies Must Plan for a Digital Future

TRADE PROMOTION: Top Five Mistakes Companies Make When Evaluating Trade Spend ROI

EXPERT ANALYSIS: More Grocery Chains Discontinuing Loyalty Cards

LEAD Marketing Conference: Call for Speakers

STI MARKET WATCH

STI Social Media Groups

Quick Links

Shopper Technology Institute website

LEAD Marketing Conference

CPGmatters Ezine

Digital Solutions

Why CPG Companies Must Plan for a Digital Future

Consumer packaged goods (CPG) companies need to plan for a "1-5-10" market in the United States during the next five years, in which digital's current 1% penetration will likely expand to 5% and could accelerate to as much as 10% in short order, according to a new report from the Grocery Manufacturers Association (GMA).

The report, The Digital Future: A Game Plan for Consumer Packaged Goods, highlights how CPG companies can best position themselves for growth and unlock digital and e-commerce opportunities. It was prepared for GMA by the Boston Consulting Group (BCG), Google, and Information Resources, Inc. (IRI).

Digital penetration of 5% represents nearly one-half of total CPG growth during the next five years, meaning that companies without an effective digital capability risk stagnation, loss of share, and even shrinking sales...

read entire story

Trade Promotion

Top Five Mistakes Companies Make When Evaluating Trade Spend RO

By Rob York

There is a rigorous mandate within the consumer goods industry to control, manage, and evaluate the performance of trade funds, which are generally the second highest line item in the corporate budget, second only to cost of goods sold. Trade spend for most consumer packaged goods (CPG) manufacturers is closing in on 20 to 25% of annual gross company revenue. In addition, trade spend has become arguably the highest priority for the CPG industry as a whole. Thus, it's easy to see how even small improvements in trade spend performance will have a significant impact on earnings.

Here are the top 5 mistakes that companies make when evaluating trade spend ROI...

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Expert Analysis

More Grocery Chains Discontinuing Loyalty Cards

Last summer Albertsons, Shaw's, Star Market, Acme and Jewel-Osco supermarkets did away with their loyalty programs. Most recently, Pathmark and Waldbaums - both grocery banners of A&P - have discontinued their loyalty cards. To maintain shopper loyalty, the chains will focus on everyday lower prices on staple items and specials listed in a weekly sales circular. Throughout the industry, loyalty memberships in grocery stores have decreased by about 1% since 2010.

Discussion Questions:

Do you expect more chains to discontinue their loyalty programs? Are frequent shopper cards becoming less important for retailers to maintain shopper loyalty? Have shopper opinions about the use of loyalty cards changed over time?

Here's what the experts have to say...

read entire story

LEAD Marketng Conference

Call for Speakers at the Fall

Virtual LEAD Marketing Conference

The 6th LEAD Marketing Conference, scheduled for Wednesday, Nov. 12, is now accepting speaker/sponsors.

This "virtual" conference for retailers and CPG manufacturers covers all aspects of Loyalty, Engagement, Analytics & Digital applications.

LEAD is the chance for top solution providers to speak with hundreds of manufacturers and retailers in supermarket, drug, mass, discount, convenience, and club channels. Speakers can present the ways in which their sophisticated marketing strategies and new and emerging technologies can engage shoppers, analyze their behavior, and enable trading partners to improve their operations.

Produced by the Shopper Technology Institute and CPGmatters, LEAD allows 500 industry professionals to attend without spending time away from the office. Reservations for speaking slots -- which sold out at our May conference -- will close on September 30.

For more information, call 216-534-9933, write to Linda@LEADMarketingConference.com or visit www.LEADMarketingConference.com/speakers-2014.html

Market Watch

Power Shift Continues in Retailers' Favor: Kantar's Category Study

Whole Foods, Instacart Partner for One-Hour Grocery Delivery

VideoMining's At-Shelf Insights Platform Receives Major Investment

Inmar Acquires Millennium Process Coupon, Inc.

RECENTLY PUBLISHED

Shopper Technology Institute's Second Book,

New Directions in Shopper Technology

New Directions in Shopper Technology, the second book from the Shopper Technology Institute. Building upon the foundations of last year's Essentials of Shopper Technology, the book is divided into five sections: Shoppers, Loyalty, Engagement, Analytics and Digital and contains 19 essays on how mobile marketing, social media, sophisticated analytics, Big Data and the like are continuing to evolve.

Those changes-and others-are presented in this book. As well as reading about their area of expertise, progressive executives will gain a fuller understanding of the entire industry.

Click here to read sample chapters and view ordering information for the paperback and Kindle editions.

Shopper Technology Institute Sponsoring Members

PREMIUM MEMBERS