VANTAGE POINT: Bridging the Gap
In the last decade, consumer products (CP) manufacturers and retailers have focused on optimizing everything from supply chain to the perfect sales call all in the name of finding new ways to better understand and serve consumers. While as an industry we have made significant progress in collaboration, there is a perfect storm brewing in today's economic climate that threatens these improvements. In addition, the economic outlook only indicates a widening gap between the retailer and manufacturer positions as shoppers tighten their belts. This perfect storm demands the attention of the CP manufacturer and retailer C-suite.
Manufacturers are challenged with an ever increasing competitive, complex and global marketplace where the need to drive innovation and bring new products faster to market is pivotal to grow sales, empower brands and increase shareholder value. Retailers are at similar cross roads, navigating the complex labyrinth of consumer loyalty, managing more global supply chains, and capturing and harnessing key business insights.
Consumers, on the other hand, are feeling the economic effects of rising commodities prices, growing fuel costs, stock market volatility and the mortgage crisis -- all of which are pressuring them to continually stretch their dollar and do more with less. In fact, according to the U.S. Bureau of Labor Statistics, the latest CPI index reached a 17-year high of 5.6 percent at an annual rate in July. This same economic reality has rippled across the pond to Europe as the impact of failed housing mortgages continues to drive a global economic downturn.
With these current challenges, it's clear -- perhaps more now than ever -- that bridging the gap between sales and marketing planning and retail execution is an imperative business capability. Said in another way, stronger customer service levels, higher consumer relevancy, responsive retail execution, and effective trade promotion are all core "must dos" in order to bridge the gap to not only survive, but thrive in today's global economic reality. Furthermore, CP companies that move fast to develop these capabilities, which allow them to truly differentiate when and where it makes dramatic improvements to customers and consumers ...will win!
As we look toward a potential continued economic slowdown in 2009, it is clear the time has come to accelerate investment in comprehensive demand side capabilities for manufacturers, which will give them strong services and insights to retailers. Without this it will become increasingly difficult to reverse shrinking profit margins and drive brand growth. This can only be achieved through developing processes from planning through to point of sale, to optimize sales and marketing activities to attract and retain loyal and profitable consumers.
Please join our conversation entitled "The Real Conversation... Around the world in 60 minutes... a global perspective on the changing 'first moment of truth' for Consumer Packaged Goods Companies in tight economic times." You will hear from a round table of experts from Sydney, New York and London. Kara Romanow CGT Executive Editor will host a panel of experts, including: Stuart Harker, CP and Retail Leader, Asia-Pacific PricewaterhouseCoopers; Lora Cecere, CP Leader, AMR; and James Walton, Chief Economist, IGD. To participate and register please go to the CGT Web site at www.consumergoods.com and click on the web events tab.
Manufacturers are challenged with an ever increasing competitive, complex and global marketplace where the need to drive innovation and bring new products faster to market is pivotal to grow sales, empower brands and increase shareholder value. Retailers are at similar cross roads, navigating the complex labyrinth of consumer loyalty, managing more global supply chains, and capturing and harnessing key business insights.
Consumers, on the other hand, are feeling the economic effects of rising commodities prices, growing fuel costs, stock market volatility and the mortgage crisis -- all of which are pressuring them to continually stretch their dollar and do more with less. In fact, according to the U.S. Bureau of Labor Statistics, the latest CPI index reached a 17-year high of 5.6 percent at an annual rate in July. This same economic reality has rippled across the pond to Europe as the impact of failed housing mortgages continues to drive a global economic downturn.
With these current challenges, it's clear -- perhaps more now than ever -- that bridging the gap between sales and marketing planning and retail execution is an imperative business capability. Said in another way, stronger customer service levels, higher consumer relevancy, responsive retail execution, and effective trade promotion are all core "must dos" in order to bridge the gap to not only survive, but thrive in today's global economic reality. Furthermore, CP companies that move fast to develop these capabilities, which allow them to truly differentiate when and where it makes dramatic improvements to customers and consumers ...will win!
As we look toward a potential continued economic slowdown in 2009, it is clear the time has come to accelerate investment in comprehensive demand side capabilities for manufacturers, which will give them strong services and insights to retailers. Without this it will become increasingly difficult to reverse shrinking profit margins and drive brand growth. This can only be achieved through developing processes from planning through to point of sale, to optimize sales and marketing activities to attract and retain loyal and profitable consumers.
Please join our conversation entitled "The Real Conversation... Around the world in 60 minutes... a global perspective on the changing 'first moment of truth' for Consumer Packaged Goods Companies in tight economic times." You will hear from a round table of experts from Sydney, New York and London. Kara Romanow CGT Executive Editor will host a panel of experts, including: Stuart Harker, CP and Retail Leader, Asia-Pacific PricewaterhouseCoopers; Lora Cecere, CP Leader, AMR; and James Walton, Chief Economist, IGD. To participate and register please go to the CGT Web site at www.consumergoods.com and click on the web events tab.
_______________________________________________________________________
Kathryn Gramling is the Global VP of Corporate Marketing for CAS. She has over 16 years of deep CPG industry experience. Before joining CAS, Kathryn was an executive at IBM where she held several international positions including EMEA Consumer Package and Retail Industry Solutions Executive IBM Software Group as well as Associate Partner for EMEA CPG CRM Solutions. Other experience includes PwC Consulting RFID leader, CPG Global Marketing Director and Americas CRM Consulting Manager. For more information, contact [email protected].