Bill Pearce, CMO of Del Monte Foods company recently gave some advice to his peers in a talk. He suggested that they “spend on marketing, capital investment and innovation or risk losing your business in the next 5 years.” He did this in the face of an environment where the management (mostly through avoidance) risk is the name of the game.
Part of the advice was to review what was working and what was not in this new environment. Using a historical viewpoint is a mistake because the “revenue stream now is not where the stream was 12 months ago.” Mr. Pearce intoned that “now is NOT the time to shy away from new ideas” further suggesting that you fund them by cutting current practises that worked in the past, but look dubious now or are break-even. “The companies that invest in innovations and roll out…new services now will reap disproportionate benefits when the economy makes a turn.“ (more…)
We did a bit of work recently looking at a major retailer display program in a top 3 retailer across the stores in a top ten marketing area. The retailer accounts for almost 50% of FMCG (Fast Moving Consumer Goods) sales in this market so, if the manufacturer is going to succeed in using display in this market, either standalone or in conjunction with other in-store media . . . they need to succeed with this retailer.
Some interesting findings based on the ShelfSnap analysis. The retailer took pictures of all of their displays, uploaded them to our service and we identified the products, facings, OOS, assortment etc. on the displays. Some findings:
1. All stores that had the display up.
2. 58% had the two brands included in the promotion that were specified . . . wow!
3. All stores that had the display had an endcap. Of those stores:
a. 20% had a 7 shelf endcap (why do we care?, it affects assortment of flavors!)
b. 42% had a 6 shelf endcap
c. 38% had a 5 shelf endcap (more…)
