Consumer Packaged Goods
Introduction:
The Consumer Packaged Goods (CPG) market for manufacturers covers the supply of products to many of the retail sectors described here. Today’s modern retailer has adopted many different go-to-market strategies, store formats, business structures, customer differentiations, assortments and sales channels. The CPG manufacturer has had to respond when managing the life cycle of its product portfolio and the development of new products for the changing retailer environment. Unlike the retailer, the CPG manufacturer has two distinct classes of customer: the retailer and the consumer. Often the consumer is easier to persuade than the retailer. AMP2’s unique tools can play a crucial part in winning the retailer over with the insight it can provide about their go-to-market strategy within which the CPG manufacturer can pitch his own products. AMP2 can play a crucial role in identifying how to construct the incentives needed to sell a portfolio of products to a specific retailer.
AMP2 is a product of its time, attuned to these important needs and challenging the status quo. Neither retailers nor manufacturers know the combined effect of all the parts of their go-to-market offer for a particular week or period overall or by market. Thus you must conclude they are operating sub-optimally. They can and should predict the actions and interactions in the marketplace more effectively and in expectation of the results not in fear of them. AMP2 puts the CPG manufacturer in the driving seat to win more business with the retailer and have greater access to the consumer through those wins.
Category Management:
The grocery sector has largely embraced the Category Management philosophy to manage the whole marketing, merchandising, go-to-market, buying and selling activities of a retailer’s business. AMP2 helps them manage this process and makes it operational, bringing together all the many functions that make up the overall buying and selling elements of retail, so it’s obvious we are well placed to assist the CPG manufacturer to anticipate those category management outcomes and collaborate with the retailer to win a full part of their shelf space and mindset to market the product portfolio.
Almost every major market has become very competitive in recent years irrespective of company size or format. This has made it necessary to rethink the methods and processes retailers are using to operate their buying and selling activities. The need to make the most of a particular market or assortment has never been greater; the need to respond to competitor activity never more necessary. The low inflation environment and low or even negative sales growth brought on by the worldwide economic downturn put particular pressure on the grocery sector with its historically lower margins. The retail sector had become use to inflation and positive growth figures bolstering their businesses year-on-year. These factors are now working against the sector and CPG players need to think about these consequences as they fight even harder for each linear foot on store shelves. The thinking, analysis and insight that needs to go into category plans that enhance the retailer’s overall category performance whilst at the same time benefitting the CPG user’s own portfolio is crucial and the AMP2 toolset will allow the CPG user to model the retailer’s business from a category P&L perspective and run multiple business scenarios in ‘’war game’’ mode. AMP2 is a critical toolset for category captains. Don’t go into battle without it!
Application of Science:
Retail Express’s use of science and technology brings merchandising and trade funds analysis together and properly supports the category management philosophy with its much greater focus on analysis and evaluation with a hardnosed commercial and financial approach. This is represented in AMP2 with the category P&L which brings together the impact of all prices, incentives, promotions, adverts, events, promotional displays, flyers, coupons, loyalty points, kiosks, mailers etc., into a real time simulation that understands the effects of each touch point on the customer and the interaction of different touch points. Thus AMP2 presents the category manager in the retail business and the product manager in the CPG manufacturer with a financial go-to-market P&L before committing to the whole proposition in anticipation of the best results. Of course this financial impact analysis is used in conjunction with the AMP2 optimization tools to achieve the best mix of the strategic positioning on price/promotions/trade funds and best execution in regard to the competition and the market/budgets over the quarter and year being planned.
AMP2 is the solution where science and merchandising meet – smarter science = better results.
