Manage Trade Programs Across the Entire Cycle with Salesforce TPM

Estimated 2 min. read

The Consumer Goods industry is undergoing a massive digital transformation. According to Salesforce, 99% of Consumer Goods companies accelerated digital transformation in the B2B Route to Market when COVID-19 hit in 2020. In the same report, 86% of CG leaders agreed that they would not have been successful without digital investments across multiple functions like Account Management, Retail and Field Execution, and B2B Digital Commerce. Trade Promotion Management (TPM) was one of three investments that were prioritized for CG leaders during 2020.

The need for a consolidated platform

Consumer Goods companies spend on average 20% of their annual revenue on trade promotions throughout the year. Salesforce found alarming statistics that further proved the need for their latest innovation, TPM:

    • 72% of promotions fail to break even.
    • 60% of promotions go unevaluated due to a lack of analytical rigor and manpower.
    • 58% of business users in a survey believe existing solutions are only somewhat effective at revenue management.
    • 71% of customers use spreadsheets for trade promotion management.

Salesforce TPM allows you to take complete control over your trade promotions to manage trade processes across the entire cycle. As a manufacturer, you are working with the retailers to help drive profitable growth by placing the right promotion activities in the stores where the consumers are buying your goods. Ultimately that is the end goal, but it happens at multiple levels across your entire organization. Starting from Strategic Planning all the way through Reporting, here’s how Salesforce TPM helps you across your trade promotion cycle:

Salesforce Trade Promotion Management Process

Consumer Goods Cloud Consultant Leader

Over the years, we have been using our experience to help digitally transform the consumer goods industry. As our main industry focus, we are proud to be on the Consumer Goods Cloud Board, in addition to being the exclusive US launch partner of the Salesforce Trade Promotion Management (TPM) Pilot.

About Corrao Group

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interest d in learning more about how Corrao Group can help your company, read our reviews on G2!

Optimize Trade Promotions with Salesforce TPM

Estimated 2 min. read

Trade promotions that are well executed may significantly boost consumer demand for a company’s goods in retail stores. These trade campaigns, however, frequently fail due to outdated processes and technology.

These planning inefficiencies have a variety of causes. Account managers don’t have enough time to plan and execute effective trade promotions. Even then, planning can be siloed between different spreadsheets, accounts, homegrown systems, and brands. Additionally, account managers often replicate the same promotion from the year without assessing and optimizing new promotions. Add on the tedious and sometimes disconnected process of reconciling payments from previous campaigns; it’s no wonder why brands’ TPM campaigns continually fail.

So what are the solutions to making trade promotions more effective? Salesforce TPM and Data.

Here’s how Salesforce TPM allows brands to use data-driven insights to optimize and maximize their trade promotions.

Trade Promotions Today

According to Salesforce, 72% of promotions won’t break even. On top of that, 60% of businesses rely on spreadsheet-driven processes that don’t use real-time data, don’t connect with AI-driven analysis, and are difficult to manipulate at the account level.

Managing your accounts and revenue on one unified and connected platform benefits your trade promotions by:

    • Providing a library of promotions that enable dynamic funding
    • Accurate reporting with real-time data
      • Monitor and act on trade promotions across your entire platform
      • Improved visibility into spending and ROI
    • Faster promotion creation
    • Time-Saving Account Plans

Brands can realize these benefits by implementing the Salesforce Trade Promotion strategies below.

Salesforce Trade Promotion Calendar

Salesforce’s Trade Promotion Calendar allows you to plan the customer account with a simplified interface that minimizes data entry. You can view essential aspects of your account plan with adaptable views by user persona. Salesforce trade calendars can include all types of promotion events like discounts, coupons and rebates, demonstrations, trade promotion events, and trade shows.

With a live spreadsheet P&L, brands can view the performance of KPIs with enterprise visibility to identify holes in their trade plan for maximum ROI and book your calendar with the most effective trade promotions.

Post Event Analysis

Only 9.5% of companies are able to monitor promotions in-flight and reallocate ineffective investments. Salesforce Post-event analysis allows brands to conduct an analysis to determine the ROI achieved for individual activities, contracts, programs, and account plans. Gain powerful insights into your promotions to see how they performed vs. expectations.

Post event analysis from Salesforce TPM allows brands to have:

    • KPI P&L Analysis
    • Promotion & Tactic Reports
    • Account Reports
    • Flexible KPI Exports

Consumer Goods Cloud Consultant Leader

Over the years, we have been using our experience to help digitally transform the consumer goods industry. As our main industry focus, we are proud to be on the Consumer Goods Cloud Partner Advisory Board, in addition to being the exclusive US launch partner of the Salesforce Trade Promotion Management (TPM) Pilot.

About Corrao Group

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interest d in learning more about how Corrao Group can help your company, read our reviews on G2!

Salesforce Consumer Goods Cloud Conditional Surveys

Estimated 2 min. read

Salesforce Consumer Goods Cloud has released new features specifically on retail execution to help the consumer goods industry digitally transform. Exciting releases of the Consumer Goods Cloud Summer ’22 Offline App include Penny Perfect Pricing, Conditional Surveys, Asset Management, Payment Collection, Inventory & Quotas, Live Reporting, Substitution Management, Gamification, Supervisor Management, and Customer Segmentation.

Salesforce Consumer Goods Cloud Conditional Surveys 

In today’s market, consumer goods brands need a way to provide store and promotional compliance with real-time feedback. With Salesforce Consumer Goods Cloud Conditional Surveys, brands can conduct store audits with dynamic questions, capture activity-related picture taking, and conduct conditional audits and promotional compliance checks while offline.

Conditional Surveys ensure store and promotion compliance with real-time feedback by:

    • Executing conditional audits with dynamic questions
    • Taking pictures for selected questions
    • Groups all questions by activity/promotion
    • Perform audits at store or POS (secondary location) level
    • Using gamification concepts for performance progress

Additionally, Conditional Surveys ensure product compliance at the store level in an efficient way by:

    • Supporting exception reporting based on targets or historical values
    • Matrix view for efficient data capture
    • Search & filter options
    • Barcode scanning

If you would like to learn more about Conditional Surveys or the Consumer Goods Cloud Summer ’22 Offline Retail execution release, please contact us.

Consumer Goods Cloud Consultant Leader

Over the years, we have been using our experience to help digitally transform the consumer goods industry. As our main industry focus, we are proud to be on the Consumer Goods Cloud Partner Advisory Board, in addition to being the exclusive US launch partner of the Salesforce Trade Promotion Management (TPM) Pilot.

About Corrao Group

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interest d in learning more about how Corrao Group can help your company, read our reviews on G2!

Sources

Salesforce

Salesforce Consumer Goods Cloud Offline Penny Perfect Pricing

Estimated 2 min. read

As the consumer goods industry continues to face complicated challenges, it’s becoming essential for brands to shift to a digital and consolidated platform to maximize revenue growth. Salesforce Consumer Goods Cloud has released new features specifically on retail execution to help the consumer goods industry digitally transform. Exciting releases of the Consumer Goods Cloud Summer ’22 Offline App include Penny Perfect Pricing, Conditional Surveys, Asset Management, Payment Collection, Inventory & Quotas, Live Reporting, Substitution Management, Gamification, Supervisor Management, and Customer Segmentation.

Offline Penny Perfect Pricing

Consumer Goods sales reps need access to critical selling information when they are in the field or without wifi connectivity. With the new offline penny perfect pricing app, reps can execute their visit objectives and take orders anywhere with a solution that calculates the exact price based on customer-specific discounts, available promotions, and other pricing conditions. Additionally, sales reps can take orders while having a 360-degree view into potential promotion-driven orders to help them up-sell additional products. They can also execute inventory tasks for their list of products and review options to reschedule visits to retail locations and then sync their mobile device with Salesforce when back online. Salesforce penny perfect pricing allows sales reps to achieve retail execution excellence from anywhere in the world.

How Does Offline Penny Perfect Pricing Work?

Penny perfect pricing uses a pricing engine for comprehensive price calculation. The pricing engine considers customer and product pricing conditions, such as prices, discounts, and surcharges, to determine prices in various scenarios such as when recalculating delivery documents, creating an invoice for an on-demand sales order, and calculating pre-sales order or a return. Penny perfect pricing is integrated with the ERP system to provide the same pricing behavior, to reuse condition data, and to handle complete calculated documents.

Consumer Goods Cloud Consultant Leader

Over the years, we have been using our experience to help digitally transform the consumer goods industry. As our main industry focus, we are proud to be on the Consumer Goods Cloud Partner Advisory Board, in addition to being the exclusive US launch partner of the Salesforce Trade Promotion Management (TPM) Pilot.

About Corrao Group

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interest d in learning more about how Corrao Group can help your company, read our reviews on G2!

Sources:

Salesforce for Consumer Goods Expands Capabilities to Help Drive …. https://www.salesforce.com/news/stories/salesforce-consumer-goods-cloud-news/

Salesforce for Consumer Goods Announces New Innovations

Estimated 2 min. read

Salesforce has announced new innovations for the consumer goods industry that allows them to increase automation, expand selling opportunities, drive profitable growth, and more. As the consumer goods industry faces difficult challenges, it’s becoming critical for brands to shift to a digital and consolidated platform for business growth. Salesforce for consumer goods has announced the following innovations: Trade Promotion Management (TPM), Offline Penny Perfect Pricing, B2B Commerce & Marketplace, and MuleSoft Accelerator for Consumer Goods.

Trade Promotion Management

Salesforce Trade Promotion Management allows you to optimize retail pricing and promotions in real-time to maximize trading effectiveness. Manage reconciliation of claims and deductions against promotions and funds while streamlining settlements. Track the effectiveness of your promotions with real-time reporting. Learn more about how Salesforce TPM can optimize trade activity to drive revenue growth on a connected platform.

We had the honor of being one of seven global consulting partners exclusively chosen to participate in Salesforce’s Trade Promotion Management Pilot program this year. We partnered with a leading sports drink company to set up, run, and manage their promotions. Learn more about the pilot here.

Offline Penny-Perfect Pricing

Offline Penny-Perfect Pricing allows Sales representatives to take/place orders fully offline or anywhere with offline ordering— while promotion-driven orders help sales teams up-sell. Seamlessly calculate the penny-perfect price based on available promotions, flexible rules, and pricing conditions. Penny-perfect pricing ensures the price is consistent regardless of device, location, or internet connectivity.

B2B Commerce Wholesale Retail App

The new B2B Commerce Wholesale Retail App maximizes wholesale buying efficiency for consumer goods companies with sales collaboration, large cart ordering, and new virtual showrooms. The new Commerce Marketplace unites the fragmented buyer and seller landscape to create new revenue streams, giving brands and distributors the ability to expand reach by adding inventory to retail partners quickly.

MuleSoft Accelerator for Consumer Goods

Connecting critical data, systems, and applications like trade promotion management, product information management systems, and more will help you innovate faster. Mulsesoft Accelerator for Consumer Goods, companies can have a single source of truth for data and can quickly deploy trade and retail execution capabilities leveraging existing master data in traditional back-end systems.

About Corrao Group

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interest d in learning more about how Corrao Group can help your company, read our reviews on G2!

Sources:

Salesforce

Launch Partner for Consumer Goods Cloud TPM Pilot

Estimated 2 min. read

We are excited to announce that we’ve been selected as the exclusive US launch partner supporting Customer 360 for Consumer Goods with Trade Promotion Management (TPM)! Over the past two months, we have been working with Salesforce and a top American Sports Drink Company on their extensive trade promotion program. We learned first-hand that Consumer Goods Cloud TPM can optimize trade planning, track effectiveness with real-time reporting, manage funds and budgets, and streamline claims management. Throughout the engagement, we have found key insights into Salesforce’s latest product:

Business Validation of Salesforce TPM

    • Current disconnected systems don’t allow for ROI monitoring of Trade Promotion Funding, i.e. to time and resource-intensive.
    • Large teams of resources are involved in the Promotion Funding reconciliation.
    • Few companies actually have accurate, if any, ROI reporting!
    • Having a centralized system that supports integrations with ERP, POS, and other data sources will be critical to accelerate monitoring key metrics and improving ROI and forecasting.

Salesforce TPM Pilot

    • The solution provides scalability to managing large TPM programs with reduced resources.
    • The ability to easy clone Trade Promotions for future years will be a game-changer in the reduction of resources.
    • UI supports the Promotion KPI performance while also allowing for granular details with a few clicks.
    • KPI setup process provides real-time visibility for planning and active promotion.
    • The Scenario Planning feature is a game-changer for analyzing Year-to-Date results with projected promotions. This feature is also available for updating the balance of the year to optimal ROI.

If you would like to learn more about Consumer Goods Cloud TPM or the TPM pilot, please visit our website or email us at tkeil@corraogroup.com.

Consumer Goods Cloud Consultant Leader

Over the years, we have been using our experience to help digitally transform the consumer goods industry. As our main industry focus, we are proud to be on the Consumer Goods Cloud Partner Advisory Board.

About Corrao Group

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interest d in learning more about how Corrao Group can help your company, read our reviews on G2!

Salesforce Announces Customer 360 for Consumer Goods with Trade Promotion Management

Estimated 2 min. read

Salesforce has announced Customer 360 for Consumer Goods with Trade Promotion Management. Customer 360 for Consumer Goods delivers profitable growth as companies can increase profitability, win at the shelf, build brand relevance, and work efficiently from anywhere. With one single source of truth, Customer 360 for Consumer Goods gives you an intelligent and robust solution to help manage key accounts, deliver profitable growth, and accelerate time to value across your entire organization.

Salesforce Trade Promotion Management allows you to optimize retail pricing and promotions in real-time to maximize trading effectiveness. Salesforce TPM gives your team the resources they need to plan, manage, and execute relationships with distributors, customers, and end-consumer marketing on a consolidated and integrated platform. With Trade Promotion Management digitized, your brand can optimize trade planning, track effectiveness with real-time reporting, manage funds and budgets, and streamline claims management. To learn more about Salesforce Trade Promotion Management, visit our blog: Digitize, Unify, and Integrate Your Trade Promotion Management with Salesforce

We are excited to announce that we’ve been selected as the exclusive US launch partner supporting Customer 360 for Consumer Goods with Trade Promotion Management! Over the past two months, we have been working with Salesforce and a top American Sports Drink Company on their extensive trade promotion program. To learn more about the TPM pilot, please visit our blog: Launch Partner for Consumer Goods Cloud TPM Pilot.

Salesforce TPM Features

To learn more about Salesforce 360 for Consumer Goods with TPM, please visit our website.

Consumer Goods Cloud Consultant Leader

Over the years, we have been using our experience to help digitally transform the consumer goods industry. As our main industry focus, we are proud to be on the Consumer Goods Cloud Partner Advisory Board, in addition to being the exclusive US launch partner of the Salesforce Trade Promotion Management (TPM) Pilot.

About Corrao Group

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interest d in learning more about how Corrao Group can help your company, read our reviews on G2!

Digitize, Unify, and Integrate Your Trade Promotion Management with Salesforce

Estimated 4 min. read

Consumer Goods companies have been starting to transform a critical aspect of their business, Trade Promotion Management (TPM). According to Salesforce, 60% of companies rely on spreadsheet-driven processes that don’t use real-time data, don’t connect with AI-driven analysis, and are difficult to manipulate at the account level. In today’s competitive market, brands need a modern way to manage their trade spending related to planning and ultimately ROI. Account managers need the tools to thoroughly plan their trade spending, assess their performance in real-time, and collaborate with cross-functional teams to identify the best ongoing approach and strategy. Salesforce TPM allows you to take complete control over your trade promotions, allowing you to analyze promotion performance across customers, within customers, SKU, on-brand, and more to fully understand your performance and make crucial changes for maximum ROI.

Why Companies are Moving to a Unified Platform 

With cross-departmental planning, consumer goods companies and retailers can target investments at the store and channel level. Omni-channel selling has made the route to market more complex as companies are now engaging with multiple partners across in-person and virtual teams. Traditional CG models utilize spreadsheets or homegrown systems to track, report, and analyze all promotions across multiple partners. Using a spreadsheet to track promotions does not support real-time collaboration and accurate ROI. Manual processes take away from selling and analyzing, making it impossible to identify what’s working and what isn’t in real-time. Here are four reasons why CG companies are shifting to a consolidated TPM platform.

Route to Market is Getting Complicated

    • Companies today need to be able to target and create different promotions with multiple omnichannel retailers based on channel, region, and store buy-level. It becomes impossible to track and manage various promotions in spreadsheets or homegrown systems without real-time TPM data.

Manual Tracking

    • Utilizing Spreadsheets and homegrown systems to track promotions is hurting your company. Working on spreadsheets is cumbersome, inhibits collaboration with file permissions, and is prone to be inaccurate.

Accruals and delays in reporting can result in P&L issues

    • According to Salesforce, 60% of trade promotions go unevaluated due to a lack of analytical rigor and staffing. CG companies utilizing spreadsheets deal with P&L issues as they fail to learn which promotions bring in the best revenue vs which don’t. Analyzing trade spend efficiency becomes difficult to manage without real-time data, as reconciliation occurs in the following quarters. You need the ability to pivot or quickly scale based on promotion performance.

No Ability to Clone/Replicate Successful Promotions

    • After completing a successful promotion, wouldn’t it be nice to clone or replicate the same promotion in less than 2 minutes? Account Managers are spending way too many hours reinventing the wheel of successful promotions when they could be focused more on developing strategies and relationships for more profit growth.

Salesforce Trade Promotion Management (TPM)

58% of business users do not have the real-time data and analytical tools to thoroughly evaluate the effectiveness of their trade fund programs (Salesforce). Salesforce TPM can help you improve revenue growth by optimizing trade activity on a consolidated and integrated platform. Investigate promotion performance across customers, within customers, on-brand, SKU, the event level, and overall performance. With one single source of truth, Salesforce TPM gives your team the resources they need to plan, manage, and execute relationships with distributors, customers, and end-consumer marketing. Here are the ways Salesforce is helping businesses create a digitized, unified, and integrated TPM platform.

Maximize Trade Spend Effectiveness

    • Plan the customer account with a simplified interface that minimizes data entry.
    • View essential aspects of your account plan with adaptable views by user persona.
    • Identify holes in your trade plan with a comprehensive trade calendar.
    • View performance of KPIs with enterprise visibility and live spreadsheet-like P&L.

Deepen Trade Promotion Analytics

    • Increase trade spend efficiency with post-event analytics and visualization of performance metrics.
    • Identify and effortlessly clone successful promotions.
    • Compare planned uplift vs actuals with sell-in and consumption data.

Manage Funds and Claims

    • Deposit, transfer, or adjust funds and monitor budgets to evade overspends.
    • Review budgets within a single or consolidated checkbook view.
    • Manage reconciliation of claims and deductions against promotions and funds while streamlining settlements.

Strengthen Cross-Functional Alignment

    • Collaborate with marketing, field sales, and finance on a single platform to better manage 360-degree support plans.
    • Find optimal account or promotional plans with scenario planning and real-time performance comparison.
    • Share promotion details to gain alignment from internal stakeholders and retail partners.

If you would like to learn more about Salesforce’s Trade Promotion Management (TPM), please visit our website.

Consumer Goods Cloud Consultant Leader

Over the years, we have been using our experience to help digitally transform the consumer goods industry. As our main industry focus, we are proud to be on the Consumer Goods Cloud Partner Advisory Board, in addition to being the exclusive US launch partner of the Salesforce Trade Promotion Management (TPM) Pilot.

About Corrao Group 

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interest d in learning more about how Corrao Group can help your company, read our reviews on G2!

Sources 

Salesforce Trade Promotion Management Images

Salesforce Trade Promotion Management 

TPM Guide Form 

Salesforce Trade Promotion Management Blog 

Inside Consumer Goods and Retail Digital Transformation Data and Trends

Estimated 7 min. read

In March of 2020, McKinsey conducted a worldwide consumer survey to understand the impact of COVID-19 on consumer sentiment, consumer behavior, and the digital transformation of the industry. The impact of these rapid changes has not been the same for all consumer goods companies. Some dealt with a tremendous decline in sales/profit and unfortunately had to lay off thousands of employees, whereas other companies succeeded and thrived through the pandemic to grow and accelerate. But what was the key difference between these two different outcomes? Digital Transformation. Digitization, online ordering and delivery, and remote working became widespread overnight. New trends that might have taken a decade to come to life happened in days. Here are the new ways that have changed the industry forever.

Five Major Changes in Consumer Spending

    1. Shift to value and essentials
      • Consumers are more mindful of their spending and buy less expensive products.
      • Increased focus on household essentials; cutting back on most discretionary categories.
    2. Increased digital and omnichannel presence
      • Most consumer industries have seen more than 10% growth in their online customer base through COVID-19.
      • Most plan on shopping online with the use of e-commerce.
    3. Decrease in loyalty
      • Many consumers have tried different brands due to supply-chain disruptions.
      • According to Mckinsey, “Our research shows that in China and the United States, 75% or more of consumers reported trying a new shopping method.
    4. Health and “caring” economy
      • Consumers buy more from companies and brands that have healthy and hygienic packaging as well as demonstrate concern for employees and customers.
    5. Homebody economy
      • In most countries, more than 70% of survey respondents did not feel comfortable resuming their normal out-of-home activities (2020).

How COVID-19 has Changed Consumer Behavior

Rapid shifts have heavy implications on retail and consumer goods companies. Three main changes have occurred because of COVID-19:

    1. Covid-19 is transforming consumers’ lives
      • Three change forces: Economic downtown, preference shifts, and digital acceleration
    2. Behavior changes are not linear, and their stickiness will depend on satisfaction with the new experiences
    3. The Future is now: Players should prepare
      • Prepare for consumption declines or trading down
      • Address footprint offer and shopping experience for new reality
      • Follow consumers in their new decision journeys when marketing and communicating

Behavior changes will reshape consumer decision journeys, and companies will need to adapt fast

Retailers will face challenges across multiple departments. Here are some of the challenges Sales, Marketing, and Assortment are facing.

Sales

      • Reinvented shopping experience: hassle-free shopping in a high-hygiene environment; change store layouts and proposition, reconfigure checkout, per longer operating hours, omnichannel experiences.
      • Right-size network to recognize 15% drop in consumption.
      • Leapfrog digital capabilities toward first-class e-commerce, consider drive-through, click-and-collect.
      • Reevaluate physical-store footprint as traffic from professionals and tourists declines and affects travel retail and on-the-go consumption.

Marketing

      • Consumers have changed where and how they engage, and marketing spending should reflect this.
      • Stay relevant across multiple touchpoints (brand.com, platforms, e-retailers, own stores, multibrand stores).
      • Allocate resources in line with journey shifts; eg, increase digital engagement (social, influencers, D2C) away from out-of-home advertising, print, trade marketing.
      • Win in loyalty shifts: ensure a first-class customer-relationship-management system, foster trust through communication, and provide incentives for first-time shoppers.

Assortment

      • Reimagine value for money: price, private label, quality, branding, merchandising.
      • Capture new needs: health, safety, fresh, new ready to eat; reduce exposure to highly discretionary categories.
      • Adapt formats to new needs: polarization in pack size (large and single packs) and hygiene certainty.
      • Rethink brand mix: increase exposure to post-COVID-19 loyalty-shift winners (trusted A-brands and local brands), and simplify assortment.

How Shopping Behavior is Changing

Shopping behavior has changed dramatically because of COVID-19. Brands are now being forced into what Mckinsey calls the “Fight to Online”. Here are three main data points Mckinsey found on how shopping behavior is changing:

    • Digital Shopping is here to stay.
      • Categories, where expected growth in online shoppers exceeds 35 percent, include essentials such as over-the-counter medicine, groceries, household supplies, and personal care products.
    • Millennials and high-income earners are in the lead when it comes to shopping online.
    • Consumers are switching brands are an unprecedented rate.
      • Shoppers have cited a number of reasons for switching brands, with availability (in-store and online), convenience, and value leading the pack.

12 Disruptive Trends Hurting Traditional Business Models

Why hasn’t the old success model continued to grow? Because the model has been pummeled by 12 disruptive trends during the previous decade. COVID-19 has intensified most of them.

The New Model

Traditional consumer business models are becoming obsolete. More and more companies are realizing they must innovate to a new model in order to remain competitive and “win.”

The seven shifts of the next normal

Accelerating the Recovery in Consumer Goods Through Digital and Analytics Programs

Is your Management Team Preparing for the Future of Work?

Questions to consider:

    • What is the size and scope of the workforce that would be affected by your road map and technology?
    • What business changes or adjacencies could generate significant new jobs?
    • Do you have a plan to train people for the skills of the future? Do you need partners?
    • Given the workforce implications across the economy, would you prefer to address them proactively or reactively?\
    • Do you have a plan to source new talent at all levels of the company?
    • How do wages need to evolve so that you retain workers and attract good talent?

CEO Prospectives on COVID-19 and Digital Transformation

Nick Vlahos, CEO of Honest (Consumer Goods)

    • “Consumers are spending their money on brands they believe they can trust.”
    • “By giving the consumer an experience that connects with how they shop and by creating solution sets that meet her needs, we start to create stickiness and loyalty to our brand.
    • “We’re constantly listening and responding to the wants and needs of our customers.”

Hubert Joy, CEO of Best Buy

    • “My personal experience is different. When we started the turnaround, I was very clear about my philosophy, which was that profit is not the purpose but that purpose is to contribute to the common good. We did not spend time in the first three years of the turnaround on refining our purpose. We spent the time saving a ship that was sinking, by addressing key operational-performance drivers.”
    • “We spent a lot of time on making sure that the soil of the company was fertile. A lot of our emphasis was on creating a joyous, growth-oriented culture, on creating a very human environment where people felt that they belonged, that it was a human organization, that we emphasized individual development.”
    • “The purpose of Best Buy, in relation to customers, is not just to sell you a TV or a computer – though we’d gladly help you buy one. But it goes beyond that. It’s about what we call enriching lives through technology by addressing key human needs. The reason people buy a computer or a phone is not really for the product, it’s for what it can do.”

Daniel Zhang, Alibaba Group CEO

    • “We are a data-driven company. We create value from the data generated by the real activity of users and merchants; we use data as fuel for our marketplaces to help merchants better serve their customers. That is our logic, and we have been working on this for many years.”
    • “Technology and data empower our whole business— not only on the sales side and marketplace side but also in the back-end office, in customer service, in every single area. This is how we work.“
    • “In this digital era, when we talk about Alibaba’s future, we focus on helping our business partners win through successful digital transformation, rather than about how we can make ourselves even stronger. When small businesses can grow faster and grow healthier, it will benefit the whole society.”
    • “We give our people a lot of space to try new things. It means you have to accept mistakes. The vast majority of innovations will result in failure; you have to acknowledge that”

Time to Go Digital

When all these trends come together, it is clear that COVID-19 has required companies to make dramatic changes. Now is the time to go digital, and there are several products that can help you achieve business and customer success.

Salesforce created Consumer Goods Cloud to help the industry digitally transform their business to accel now and in the future. Salesforce Consumer Goods Cloud offers you an intelligent and powerful solution to help you manage key accounts, deliver intelligent growth, optimize field execution, TPM management, and accelerate time to value across your entire organization.

About Corrao Group

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interested in learning more about how Corrao Group can help your company, read our reviews on G2!

Sources

https://www.mckinsey.com/~/media/mckinsey/industries/retail/our%20insights/perspectives%20on%20retail%20and%20consumer%20goods%20number%208/perspectives-on-retail-and-consumer-goods_issue-8.pdf

All photos via Mckinsey 

Keeping Up With the Rapidly Changing Retail and Consumer Goods Industries

Estimated 3 min. read

The consumer goods and retail industry has been undergoing a massive digital transformation these last few years. Both industries have faced rapidly evolving technology, economic instability, changing consumer behaviors, and consumer demographic shifts. Add on the effects of COVID-19, and the retail and consumer goods industries have accelerated by a decade. Redefining your business model is not an easy task to deal with. Left unaddressed, these changes can destabilize and render traditional consumer goods business models. Businesses must innovate and adapt to succeed in today’s digitally accelerated world.

Dominant Consumer Goods Business Models

Deloitte University Press recently studied 97 Consumer Goods companies to analyze and find what business model delivers exceptional performance. Based on the report, Deloitte found outstanding winners in the ecosystem who focused on three dominant business models: Operational Excellence, Brand Leadership, and Customer Solutions. Each business model focuses differently on key strategies, operations, and KPIs (See Figure 1 via Deloitte). Exceptional winners clearly understand how they create and deliver value, a clear business strategy, and deliver exceptional customer solutions. They have figured out what they’re really good at and have configured their model accordingly.

Figure 1

There are four themes that set Exceptional Winners apart from their peers:

    • They focus on what they do best by constructing a coherent business and operating model— Deloitte calls this the Business Model Coherence Premium.
    • They drive value from one of three business model types—Operational Excellence, Product/Brand Leadership, or Customer Solutions.
    • They develop a set of essential and specific capabilities that work together as part of a self-reinforcing business model.
    • They drive greater maturity into the distinctive capabilities than their peers.

Digital Transformation With Salesforce

Innovating your business model to remain competitive in today’s market is required to stay in business. Redefining your model involves finding solutions to help your company digitally transform to unite your teams around the customer with customized solutions. Companies are starting to ask the right questions like, “Can we change processes in a way that will result in more productivity, better decision-making, and a more profitable customer experience with personalization”? Another question is, “How much faster can we do the tasks we are currently doing with the help of automation”?

Enter Salesforce. Moving your business processes onto the #1 CRM platform allows you to better connect with your internal staff, partners, customers, and potential customers from anywhere in the world. With a 360-degree view of your crucial data, you are in total control to have more connectivity and accessibility, increased collaboration, and improved efficiency.

Salesforce created Consumer Goods Cloud to help the industry digitally transform their business to accel in today’s world. A move to Salesforce Consumer Goods Cloud gives you an intelligent and strong solution to help you manage key accounts, deliver intelligent growth, optimize field execution, TPM management, and accelerate time to value across your entire organization. Learn more about how Consumer Goods Cloud is helping the industry digitally transform.

About Corrao Group

Since 2002, we have been helping B2B organizations of all sizes optimize their business processes with Salesforce and their third-party applications. As everyday Salesforce power users, Corrao Group understands how flexible the Salesforce platform is to support every business department. We’ve worked with nearly 1,050+ customers, implementing, customizing, and optimizing over 2,150+ Salesforce projects. If you are interested in learning more about how Corrao Group can help your company, read our reviews on G2!

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Sources

Deloitte University Press
Salesforce