AUGUST 2 0 18
SPECIAL REPORT:
The Journey to Trade Promotion Excellence TECH SOLUTIONS GUIDE:
Digital Content Management Industry Research:
Product Image Creation
CMO of the Year Marie Gulin-Merle has proven to be a perfect fit for the digital age
CONTENTS AUGUST 2018
VOLUME 26 NUMBER 4
COVER STORY
CGT ADVISORY BOARDS EXECUTIVE COUNCIL
When it comes to digital transformation, Marie Gulin-Merle of Calvin Klein, Inc. (formerly of L’Oréal USA) has proven to be a natural leader. CGT sits down with this year’s “CMO of the Year” honoree to get her take on all things marketing.
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Departments
03 EDITOR’S NOTE Welcome to the Age of Innovation How do you succeed in a marketplace where the rules of engagement have changed dramatically? “Innovation” might be the one-word answer.
Special Reports 10
Quality and timeliness of product content are among the most critical factors in e-commerce success for consumer goods. However, the digital image creation process at many companies is still overly complex and far too slow. This exclusive industry research looks at trends in the development of product image creation.
23 TECHNOLOGY
SOLUTIONS GUIDE: DIGITAL CONTENT MANAGEMENT
CUSTOM RESEARCH
The Complexities of Image Creation
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CGT presents a comparison chart of solution providers on the forefront of content management for the consumer goods industry. Plus, an industry expert provides thought leadership for companies navigating this critical business need.
CGT ROADMAP
The Journey to Trade Promotion Excellence
The days of spreadsheets and 18-month planning calendars are history. Effective trade promotion strategies now demand a cross-functional, 360-degree understanding of consumer behavior. Here are 9 steps CPGs must take to get there.
Julia Anderson Smithfield Foods
Constance Howlett Estée Lauder
Denny Belcastro Kimberly-Clark
EJ Kenney SAP
Tony Bender Edgewell Personal Care
John Phillips PepsiCo
Michael Forhez Oracle Mike Gorshe Accenture Jon Harding Conair Corp. Justin Honaman Accenture
Kevin Puppe Johnson & Johnson Doug Rammel BAI Suavecito John Rossi Steve Sigrist Newell Brands Swan Sit Nike
EDITORIAL
Kevin Barnes Ferguson Enterprises Tony Bender Edgewell Personal Care Rick Brindle Mondelez International Ann Dozier Southern Wine & Spirits Michael Ferrara HairUWear Jon Harding Conair Corp. Peter Hatch Reynolds American Inc. Service Co. Chris Hobson VF Corp.
Constance Howlett Estée Lauder Betsey Nohe Morton Salt John Phillips PepsiCo Kevin Puppe Johnson & Johnson Doug Rammel BAI Suavecito Steve Sigrist Newell Brands Dan Woo Nestlé USA Filiz Yavuz Perry Ellis International
RESEARCH
Werner Graf, Chair Mindtree Gene Alvarez Gartner Lora Cecere Supply Chain Insights Michael Forhez Oracle Nona Cusick Capgemini Simon Ellis IDC
Don Lanham Hitachi Consulting Meena Surti Patel Cognizant Cheryl Perkins Innovationedge LLC Steve Rosenstock Clarkston Consulting
Consumer Goods Technology (USPS 0011-255, ISSN 1530-8421) is published 6 times per year: February, April, June, August, October and December, by Ensemble IQ, 1 Gateway Center, 11-43 Raymond Plaza, FL16, Newark, NJ 07102. Subscription rates: $89 for U.S. addresses; $99 for Canadian addresses; $109 for all other addresses. Single copies are $20; add $2 for postage to Canada, or $5 to other countries. For Air Mail, add $65. Copyright 2016 by Ensemble IQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or information storage and retrieval system without permission in writing from the publisher. Periodicals postage paid at Newark, NJ 07102 and additional mailing offices. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@ wrightsmedia.com or (877) 652-5295. POSTMASTER: send address changes to: Consumer Goods Technology, PO Box 1842, Lowell, MA 01853-1842.
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CGT | AUGUST 2018 | CONSUMERGOODS.COM
Welcome to the
MANAGING DIRECTOR AND PUBLISHER Albert Guffanti aguffanti@ensembleiq.com
Age of Innovation How do you succeed in a marketplace where the rules of engagement with consumers, retailers and more-nimble new competitors have changed dramatically? Based on the discussions held in June at the Consumer Goods Sales & Marketing Summit, “Innovation” might be the one-word answer. That conclusion doesn’t come simply from the fact that a leading innovation catalyst galvanized CGSM attendees with a pair of sessions on the event’s first day. “We iterate instead of innovate,” criticized Duncan Wardle, former vice president of innovation at The Walt Disney Co. and now creativity catalyst at id8&innov8, as he inspired attendees to flip that phrase. Nor is it because the conference’s final morning was unofficially labeled “Innovation Day” due to the lineup of new CG companies that took the stage to explain their unique go-to-market strategies (text-only ordering, consumer-specific product formulations). Or that attendees were able to test drive 10 emerging technologies designed to improve consumer engagement at a “Tip of the Spear Technology” showcase on day one. Beyond all those factors, the obvious need for real business innovation was the underlying message delivered by everyone who took the stage — even the three straight representatives from consumer goods companies that have been in business for more than 100 years (Kellogg, Church & Dwight and Colgate-Palmolive). Whether these speakers used the word overtly or not (although most did), it became obvious over the course of three days that innovation is the key to future success in the consumer goods industry. The driving force behind all of the “digital transformation” that’s taking place isn’t the need to rethink strategies, reimagine tactics or rebuild existing systems and processes. Efforts to drive incremental improvement, or even initiatives to add new skills that are fast becoming mandatory, will be insufficient. Rather, companies will only achieve success if they take the necessary steps to develop the cultures and capabilities needed to unlock true innovation. And that will require traditional companies to reconsider some of the current, admittedly sound business practices that have made them incredibly efficient over the years, but which often can hinder breakthrough innovation. Here’s one example: Zahir Dossa, founder and CEO of health and beauty manufacturer Function of Beauty, asserted that product makers should “accept some aspects of inefficiency to stay true to your brand.” Reacting to a question from the audience, Dossa was explaining his unwillingness to mass-produce some of the shampoos and conditioners Function of Beauty makes — which are uniquely formulated for each and every customer — for the sake of building scale. If “the future is ongoing, continual disruption,” as closing keynoter Patrick Fitzmaurice, principal at consultancy Caterpillar Farm, said, then companies might just have to forsake a little efficiency in the name of innovation. Speaking of innovation, we profile a true innovator this issue: 2018 “CMO of the Year,” Marie Gulin-Merle. We also examine a traditional CG process that’s in some serious need of innovation: trade promotion management. We hope you enjoy both features. Peter Breen, Editor-in-Chief
EDITORIAL Editor-in-Chief: Peter Breen pbreen@ensembleiq.com Senior Editor: Nicole Gillo ngillo@ensembleiq.com Contributing Editors: Tim Binder, Jamie Grill-Goodman, Patrycja Malinowska, Charlie Menchaca, Samantha Nelson SALES Associate Brand Director: Bill Little blittle@ensembleiq.com Senior Account Executive: Jolly Patel jpatel@ensembleiq.com Assistant to Brand Director: Jen Johnson jjohnson@ensembleiq.com EVENTS Vice President, Events: Michael Cronin mcronin@ensembleiq.com Director, Event Planning: Patricia Benkner pbenkner@ensembleiq.com Director, Event Content: John Hall jhall@ensembleiq.com MARKETING Marketing Manager: Susan Tomaski stomaski@ensembleiq.com AUDIENCE ENGAGEMENT Director of Audience Engagement: Gail Reboletti greboletti@ensembleiq.com Audience Development Manager: Shelley Patton spatton@ensembleiq.com ONLINE MEDIA Director Product Development: Jason Ward jward@ensembleiq.com Web Development Manager: Scott Ernst sernst@ensembleiq.com Online Project Manager: Whitney Gregson wryerson@ensembleiq.com PROJECT MANAGEMENT/ PRODUCTION/ART Vice President, Production: Kathryn Homenick khomenick@ensembleiq.com Creative Director: Colette Magliaro cmagliaro@ensembleiq.com Custom Project Manager: Kathy Colwell kcolwell@ensembleiq.com Custom Project Manager: Judi Lam jlam@ensembleiq.com Production Manager: Patricia Wisser pwisser@ensembleiq.com Subscriptions: 978-671-0449 CORPORATE OFFICERS Alan Glass Executive Chairman David Shanker Chief Executive Officer Richard Rivera Chief Operating Officer & Chief Financial Officer Korry Stagnito Chief Brand Officer Therese Herbig President, Enterprise Solutions Joel Hughes Chief Digital Officer Jennifer Turner Chief Human Resources Officer Tanner Van Dusen Senior Vice President, Innovation
CORPORATE OFFICE 8550 W. Bryn Mawr Ave. Ste. 200 Chicago, IL 60631 Phone: +1 773-992-4450 Fax: +1 773-992-4455 www.consumergoods.com
CONSUMERGOODS.COM | AUGUST 2018 | CGT
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COVER STORY
CMO OF THE YEAR:
AN
EXECUTIVE When it comes to digital transformation, Marie Gulin-Merle has proven to be a natural leader
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M
arie Gulin-Merle was named chief marketing officer for L’Oréal USA in June 2014 after spending 14 years working her way up through the parent company’s marketing ranks and across the ocean from her native France. Her very first role as a L’Oréal “webmaster” accurately foreshadowed many of the new-age accomplishments Gulin-Merle achieved as CMO, which included a bevy of early-adopter work in digital media: rolling out the award-winning “Makeup Genius” mobile app, staging a Snapchat campaign for Maybelline during Fashion Week, becoming the first beauty advertiser on Pinterest, creating a virtual reality education program for Matrix, and launching beauty services on Facebook Messenger. But it has also encompassed strategic efforts that made a more lasting, fundamental impact, such as the unique training program she spearheaded with digital learning specialist General Assembly to get all L’Oréal marketers up to speed on best practices, or the development of the beauty company’s first in-house content studio — a state-of-the-art facility dubbed the “Beauty Terminal” that was designed to get new consumer engagement concepts to market at competitive-advantage speed. Those achievements have been recognized by numerous media organizations in the last few years (Ad Age, WWD, Business Insider). More importantly for her, it was noticed by PVH Corp.’s Calvin Klein, Inc. business: This spring, the fashion house lured Gulin-Merle away from L’Oréal to expand both its brand voice and its global marketing platforms. CGT recently sat down (virtually) with our CMO of the Year to get her take on the digital past, present and future of the consumer goods industry. PH OTO GR A PHED BY JUL I A N A T H O M A S
CGT: Can you talk a little bit about your childhood? Were there any defining moments that led you to be where you are today?
I was born in Paris, France, and have always been interested in technology, but also storytelling. Although I am a voracious book reader, I became interested in computers when I was 10 and discovered the Internet when my Dad first bought me access in 1996. I was not yet 20 but was fascinated by the idea of computers finally talking to each other. CGT: When did you first realize you wanted to pursue a career in marketing?
I have always been fascinated by brands, but realized that they were going to connect very differently to consumers at the end of the 1990s. I won a marketing award from L’Oréal on the thesis of Interactive Brands (while attending HEC Paris), and then entered the company in 2001. CGT: You had a long, much-lauded tenure at L’Oréal. Are there any accomplishments of which you’re particularly proud?
I am super proud of the Makeup Genius app (which has been downloaded more than 20 million times) and the first implementation of augmented reality in the cosmetics category. I’m also proud of the work we accomplished with General Assembly and now its Marketing Standards Board, which is redefining key skills for today’s modern marketing.
“At the end of the day, it will still be a question of marrying art and science using different new tools.” MARIE GULIN-MERLE, CMO, CALVIN KLEIN
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COVER STORY
CGT: Have you had any role models or mentors in
CGT: What digital tools have you found to be
your career — or in your life in general?
most effective in improving consumer engagement? Are there any that are particularly good at directly driving sales?
I was fortunate to meet great leaders and to learn from them. They have taught me resilience, listening and patience as the main skills to possess when running the marathon of a job.
In general, personalized content providing the right message for the right consumer at the right time is probably the most effective ‘tool’ today.
CGT: What would you say are the three most critical skills for a chief marketing officer these days? Which one do you think is your greatest strength?
CGT: How important has technology become to the
The top three skills to me are curiosity for the outside world, empathy for the consumer and your own teams, and the ability to be vulnerable and learn from failure. I would say my key strength is that I keep learning from what did not work and why. But in today’s world, things change so fast that there are no definitive patterns. I try not to define too many “marketing truths.”
Marketers are never tech-savvy enough. The landscape keeps evolving and it is fundamental to stay current. I am always in up-skilling mode.
CGT: What is the best way for brands to keep pace with evolving consumer expectations and changing shopping behavior?
Brands must always keep an innovation mindset and have a budget to be able to test what’s out there — even if premature. They should also invest in shopper insights to understand the consumer during the last miles and moments of truth.
modern marketing department? Are marketers sufficiently tech-savvy?
CGT: Please talk a little bit about the “GMAT for Digital” training program you oversaw at L’Oréal.
The program was done in partnership with General Assembly as an assessment of fundamental skills and knowledge in digital marketing. (Editor’s note: Thousands of L’Oréal marketers have taken the training, which now is also used during the employee recruitment process.) I am now partnering with General Assembly as a member of its Marketing Standards Board to develop the same certification for marketing in general. CGT: Are you a fan of marketing automation?
CGT: You’ve received particular praise for being an
Why or why not?
expert in digital transformation. What would you say is the secret to your success?
I am absolutely a fan, because it will enable greater pace in personalization. But intuition will keep playing a huge role in our ability to connect with consumers and define the right messages.
It is always risky to talk about success recipes in this fastchanging world. The real secret is that I have been fortunate to be surrounded by amazing talent and teams.
About the Award For the last five years, CGT has presented “CMO of the Year” to a consumer goods professional who has made a significant, demonstrable impact on his or her consumer goods organization through the implementation and successful use of new marketing strategies, technologies and processes. Through a program that begins each January, CGT solicits nominations from members of the consumer goods community. The nominations are narrowed down to no more than five finalists who are presented to CGT’s esteemed Executive Advisory Council and Editorial Advisory Board for voting. The winner is unveiled and honored each June during a special ceremony at the annual Consumer Goods Sales & Marketing Summit.
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CMO OF THE YEAR 2018
A Genius Among Us L’Oréal’s Makeup Genius app uses smartphone cameras and proprietary technology to recognize a consumer’s facial characteristics. Using the information, the app lets users “apply” L’Oréal products to test how they look. The technology even lets shoppers scan products in stores for immediate testing. Once the makeup is applied, users can change the camera angle to get different perspectives. The images can also be saved to share via social media.
Source: L’Oréal
CGT: What are your thoughts on the need for data-driven insights?
Insights are more than needed — it will be a question of survival for brands. We have so much data, but extracting insights will more and more become a competitive advantage. CGT: How does the role of the marketing department change when the business objective changes to direct-to-consumer sales? Is that where the consumer goods industry is heading?
The direct-to-consumer mindset has always been the way marketers think. Now we are lucky enough to be able to apply it to a sales channel. Being DTC first will reinforce the role of marketing in organizations. CGT: What is the role of marketing in the current
“Things change so fast. I try not to define too many marketing ‘truths.’” MARIE GULIN-MERLE, CMO, CALVIN KLEIN
CGT: What attracted you to Calvin Klein, Inc.? What are your primary objectives in the new role?
I believe Calvin Klein has always been a marketing innovator. I feel fortunate to be able to contribute to the redefinition of the brand in this new digital age. CGT: What lesson would you most like to tell your college-age self?
I think maybe two lessons: “Be patient,” and “Perception is reality.”
consumer goods marketplace? How has that changed over the course of your career? Will it continue to change?
CGT: What role will brands be playing in the lives of
Technology has changed everything in the way we do marketing. And I believe we are just scratching the surface of what’s ahead. Voice, for instance, is going to redefine brand equities and connections in an untapped way.
I think brands will not be able to function without data, and the winners will be the ones able to best leverage their data. At the end of the day, it will still be a question of marrying art and science using different new tools. CGT
consumers in 10 years?
CONSUMERGOODS.COM | AUGUST 2018 | CGT
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COVER STORY
CMO of the Year: Finalists A QUARTET OF INDUSTRY PROFESSIONALS ROUNDS OUT THIS YEAR’S CROP OF TOP MARKETERS
Lee Applbaum CHIEF MARKETING OFFICER
PATRÓN SPIRITS INTERNATIONAL With Applbaum as CMO since 2013, the premium tequila brand has continued its digital focus and its streak of annual double-digit sales growth. During his tenure, he has guided several marketing innovations, including a voice-powered cocktail-recommendation system on Amazon Alexa, an augmented reality tool built to help launch Extra Añejo Tequila, and another cocktail recommendation engine on Foursquare. Recently acquired by Bacardi, Patrón has also pushed the boundaries on product design through collaborations with Academy Award-winning director Guillermo del Toro and French crystal house Lalique.
Antonio Lucio CHIEF MARKETING & COMMUNICATIONS OFFICER
HP INC. Lucio “has demonstrated an unparalleled commitment to advancing diversity and inclusion, both within HP and with agency partners, to drive systemic change in the marketing and advertising industry,” according to his nominator. Under his guidance, women have accounted for 50% of new marketing leadership hires in the U.S. and 50% of internal promotions to director and above worldwide. Externally, the “Business Powered by Diversity” initiative challenges agencies and production houses to diversify their HP teams. To date, HP’s “Reinvent Mindsets” campaign has produced ad spots aimed toward women, African Americans, and the LGBTQ+ community.
Scott Parker CHIEF MARKETING OFFICER
ATKINS NUTRITIONALS Parker’s vision for Atkins has been nothing less ambitious than teaching the world about healthier ways to eat. He has transformed the company’s original Atkins bars and shakes business into an everyday lifestyle brand. Marketing activity now focuses on that mission, and includes free consumer information presented on atkins.com and through social media. In addition, Parker led and inspired the marketing team to repackage all bars and shakes to spotlight delicious food in real-world settings; that activity has significantly boosted sales and in-store merchandising.
Justin Woolverton CHIEF EXECUTIVE OFFICER AND FOUNDER
HALO TOP CREAMERY Launched in 2011, Halo Top has taken the food and beverage industry by storm, debunking the notion that ice cream can’t be healthy while vaulting to the top of the category in 2017 by becoming the best-selling pint of ice cream in grocery stores. As company founder and chief executive officer — not to mention inventor of the original product recipe — Woolverton has overseen the company’s well-orchestrated marketing strategy, which was built on a sturdy foundation of social media and strategic partnerships that have fostered a loyal, and growing, consumer base.
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HONORING
BY NICOLE GILLO
T H E I N AU G U R A L AWA R D S PRO G R A M H O N O R S FE M A L E M OV E R S A N D S H A K E R S I N T H E C O N SU M E R G O O D S C O M M U N I T Y In this industry, it’s often noted that the primary consumer target is of the female demographic. However, according to data compiled by Evia, women account for less than 20% of U.S. tech jobs, even though they make up more than half of the U.S. workforce (not to mention the population). But the times they are changing, and with many companies actively taking steps to attract more female employees, it’s no coincidence that some of the most powerful women in consumer goods can be found in technology roles. Eight award-worthy professionals were honored last June at the inaugural “Women in Tech Awards,” a program co-sponsored by CGT and HCL Technologies to recognize females who are playing vital roles in the development and implementation of technology within the industry. The awards were given in three categories: Industry Leadership, Rising Star, and Excellence in IT Transformation. We herein recognize our three official Women in Tech honorees. For extended profiles of all eight finalists, visit www.consumergoods.com.
R I S I N G S TA R
SALLY STUART
Senior Manager of E-Commerce Strategy, NEWELL BRANDS
The Rising Star award is given to a woman in a technology-focused role (aged 35 or younger, manager-level or higher) who has made a significant impact on her company’s success through the innovative adoption or deployment of technology. “Anyone who is engaged in e-commerce needs to have an expertise in IT,” says Stuart. “I started my career in a management consulting subsidiary of a large IT company. I chose the role because I believed in the founder’s mission and I met great people while I was interviewing. Since then, the majority of my roles have not been within IT groups; however, it’s invaluable to know how to partner with my IT counterparts and understand all of the requirements needed for business transformation projects.” E XC E L L E N C E I N I T T R A N S F O R M AT I O N
INDUSTRY LEADERSHIP
LISA NAPOLIONE Senior Vice President of R&D, THE ESTÉE L AUDER COMPANIES
The Industry Leadership award is given to a seniorlevel consumer goods executive who not only serves as a role model through her career accomplishments, but also works to influence the advancement of other women in technology-focused areas of the industry. “I have empowered my R&D teams to innovate how we do our work, bringing a stronger focus to our science and moving true innovation forward,” says Napolione. “What I did for the team was open the door of possibilities, bringing their fresh ideas forward and putting them into action. It has been exhilarating to be a part of such a dynamic effort where everyone across all sub-functions, levels and locations has a voice and can make a lasting impact.”
NEELU SETHI
Senior Vice President, Chief Information Officer, REDDY ICE
Awarded to a woman in a technology-focused role who successfully led the adoption of a new technology into her organization during the previous 18 months. “In almost every role there has been someone I admired, reached out to, and have asked for mentorship,” says Sethi. “My mentors continue to be a key part of my journey, always shaping my DNA. I was once told, ‘Don’t look at obstacles as a problem, but find a way to turn those bricks that are thrown your way into a foundation for your new success.’ That is a guiding force for my accomplishments.” Those accomplishments have included recognition as a “Top 25 Women-in-Technology” by the Dallas Business Journal and as American Business Award’s “Digital Transformer of the Year.”
CONSUMERGOODS.COM | AUGUST 2018 | CGT
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Custom Research VISUAL CONTENT CREATION
The Complexities
CHART 1
Who currently creates your visual content?
of Image Creation BY CGT STAFF It’s considered fact among consumer goods manufacturers that the quality and timeliness of product content are among the more critical factors in e-commerce success. It’s also been well established that the most critical type of content is the product image — especially as online sales steadily move from desktop computers to smallerscreen mobile devices. Yet the digital image creation process at many consumer goods companies is still too under-serviced, too complex and, most importantly, far too slow, according to research conducted this summer by CGT and Grip. And that’s despite one more fact: digital content is now essential to success across all sales channels. Only about half of companies (53%) have the ability to turn around visual content within a single business week, and only 12% are able to produce images in less than one day, according to the study, which surveyed content creators across consumer goods companies, retailers, agencies and consultants. All of those groups are involved in the typical image creation process, which is handled by a mixture of internal and external resources at 50% of consumer goods companies. One obvious reason for these all-too-common delays is the need to produce multiple variations of the standard packaging graphics to meet the growing demands of discerning consumers. Another is that 60% of workflow processes still begin with a time-consuming photo shoot, despite the availability of software modeling tools that could speed things up considerably. Furthermore, despite the growing need to tailor content for the rapidly growing mobile channel, only 40% of companies are producing the “Mobile Ready Hero Images” that will make an immediate impact with smartphone-viewing shoppers. What’s worse, more than one-fourth of companies haven’t even identified the need to do so. The industry, therefore, still has a lot of work to do in identifying the tools and developing the processes that are needed to create impactful product images at the quality and speed that today’s consumers demand. CGT To view full results from the survey, visit www.consumer goods.com.
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Internal team
35% 50%
Combination of both
External agency
15%
Nearly half of companies still wait more than a week to receive requested product images.
CHART 2
How is your visual content initially created? 60%
Photo shoot 3D modeling and accompanying software
29%
By an agency specializing in product imagery
49%
Other
17%
of companies use both internal and external sources to create content; 49% of companies use an agency.
CHART 3
On average, how long does it take to receive requested content? Less than one day
12%
1-5 days 6-10 days
41% 11%
11-14 days
18%
More than 14 days
18%
CHART 4
On average, how many product image variations do you need? 6%
1
By Frans Vriesendorp, Founder and CEO, Grip 9%
47%
2-5
9%
More than 14 10-14
29%
6-10
of companies still use resource-heavy photo shoots to create product images.
CHART 5
On average, how much of your time is spent managing content generation? 47%
Less than 10% 10%-15%
41% 9%
25%-50% 50%-60%
0%
More than 60%
3%
CHART 6
Do you create ‘mobile ready hero images’? 40% ■
26% 14%
Improving Visual Content Creation
■
■
17%
■
■
Yes, we currently create them Yes, we plan to begin creating them We are evaluating whether or not we need them No, we don’t plan to create them No, we plan to create a different type of mobile-ready image
While the practice of selling products online continues to grow and evolve, with more variations added each day, the process for creating vast amounts of visual content to showcase them has not. Challenges abound, because a single product can require thousands of image variations to be produced: There are hundreds of e-commerce platforms, each with very different requirements; products are sold in multiple countries and regions; and social media platforms are ever-changing. The survey we conducted reveals that an average of seven days is needed to create a product image, and that the majority of the people responsible for visual content creation are still relying on resource-heavy photo shoots and working with agencies to produce their visual content. In addition, 40% of brands recognize the growth of e-commerce shopping on mobile and are already creating mobile-ready hero images. To address the resulting speed and scale issues, some brands have turned to 3D technology for the creation of visual content. Creating a representation of a product in 3D removes the need for a photo shoot and lets brands generate multiple variations of the same image with increased speed. Even considering the need for someone skilled in 3D, the impact to time and cost can be significant when weighed against the cost of agencies or photo shoots, post-production and edit rounds. Some brands also are leveraging 3D technologies that don’t require a 3D specialist to operate. In this case, the people tasked with visual content creation can generate the required content themselves, and often choose to integrate it directly within their CMS, DAM or PIM. As more brands evaluate their visual content creation processes, it both reveals technology as a solution and provides an elevated level of self-awareness around existing workflows and the changes that can be made to unify processes across departments, brands, and regions.
3%
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NEXT MEETING October 29-31, 2018 Orlando, Florida
JOIN THE LEAGUE OF LEADERS AND CONTRIBUTE TO THE CAUSE OF INNOVATION AND ACTION The League of Leaders is an elite task force of industry peers who learn through sharing, who act through collaboration, and who lead through collective support. It is an exclusive gathering of influential executives in the consumer goods industry who are committed to fostering best practices for the strategic use of technology to drive meaningful business growth. This exclusive executive program is committed to identifying best practices and deepening the understanding of business and technology efforts across the enterprise. Those invited to join the League don’t just follow the trends; rather, they pave the way for new thinking. Put simply, you have to be excellent – and you have to stay excellent. The companies that have been invited — consumer goods manufacturers along with elite industry partners and solution providers — have impressed CGT with their industry-leading passion and prowess. They understand that collaborative learning with other leading thinkers positively can positively impact the industry at large. League of Leaders meetings deliver: • Powerful peer introductions and connections • Access to key business contacts • Strategic discussions on the future of the industry • Advance exposure to research, reports and case studies • In-depth access and connection with CGT’s editorial staff
FOR MORE INFORMATION ON JOINING THE LEAGUE OF LEADERS, PLEASE CONTACT: Albert Guffanti Brand Director, Consumer Goods Technology Email: aguffanti@ensembleIQ.com Phone: 973-607-1301
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T H E
J O U R N E Y
T O
T R A D E
P R O M O T I O N
E X C E L L E N C E
R O A D M A P
The Journey to Trade Promotion Excellence EFFECTIVE STRATEGIES NOW DEMAND A CROSS-FUNCTIONAL, 360-DEGREE UNDERSTANDING OF CONSUMER BEHAVIOR With the numerous, transformational changes taking place across the industry, you would think that a business practice representing as much as 20% of a consumer packaged goods company’s total revenue and as much as 60% of its total marketing spend would be at the top of the list for an overhaul. But you’d be wrong.
S P O N S O RE D BY
CONSUMERGOODS.COM |
AUGUST 2018 |
CGT
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THE JOURNEY TO TRADE PROMOTION EXCELLENCE
R O A D M A P
An unprecedented level of change is moving the CPG industry toward digital marketing, e-commerce and even direct-to-consumer sales. Yet traditional brick-and-mortar stores still represent more than 90% of product sales in nearly every packaged goods category. Correspondingly, spending on trade promotion — the financial fuel that has driven marketing at retail for decades — still represents the second largest line item on the ledgers of most CPG companies, with more than $500 billion spent annually around the world. Historically, the internal processes of trade promotion management and, more recently, trade promotion optimization, have sought to improve the practice and alleviate many of the issues that CPGs have historically faced by letting them track spending and ROI, compare activity and share best practices across retail accounts, and plan more effective programs. But improving the practice of trade promotion is insufficient in today’s highly volatile marketplace. There are far too many factors affecting consumer purchase decisions for trade promotion to be planned and executed as a stand-alone activity. And there is far too much money at stake for companies to continue inefficient, unprofitable practices: Gartner finds that as much as 67% of trade programs don’t break even. Yet this urgent need still hasn’t sunk in at some companies. Last fall, when CGT surveyed executives about their priority areas for digital transformation, trade promotion finished near the bottom of the list. There are many reasons for this. Legacy management systems and planning processes, for one, which have become even more entrenched due to the traditional “volume over value” mindset that has made it difficult for companies to react to a more fragmented, less-physical retail marketplace. Then there are the traditional retailers, who’ve come to rely heavily on trade spending not just to drive sales but also to boost (or even provide) net income. But these and all other obstacles must be overcome for consumer goods companies to effectively respond to the new realities they’re facing. This report provides a 9-step roadmap to future success.
1. Recognize the Need In a fall 2017 survey, 92% of packaged goods executives acknowledged that digital transformation was a business imperative for their organization. Yet only 29% of those executives identified trade promotion as a specific “priority area” for change. “I think the root cause is that most CPGs have historically thought of ‘digital’ as a marketing thing,” says David Moran, co-founder and chairman of Eversight. “With more than 50% of grocery trips touching a digital asset during the path to purchase, this obviously is not something that can be ignored anymore.”
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CPGs Must Embrace Change Now
Q
In what key ways has the practice of trade promotion management changed in the last five years? BRUSSÉ: Trade promotion management has actually changed very little in the last five years, and that’s the essence of the problem! While we have certainly seen an Jaco Brussé Co-founder and increased demand to address rising trade spend, there Chief Executive has been a very low uptake of tech solutions. Rather than Officer a visionary approach with an openness to process-led visualfabriq transformation, we see most CPG companies fixed in the transactional mode: still dependent on spreadsheets, stuck in conversations focused on efficiencies, and searching reactively for functionalities they hope might improve their existing legacy solutions. For instance, research confirms that CPG significantly lags behind in its uptake of solutions enhanced by artificial intelligence. According to Gartner, there has been a low 15-20% uptake in digital solutions — and these are still dependent on process, so deliver very little change. When it comes to improving trade promotion profitability, most companies are not yet asking different questions or looking for totally different solutions. What is sorely lacking is the vision of what it takes to be a future-fit CPG company managing trade promotions in a sustainable way.
Q
What have solution providers been doing to facilitate the transformations needed to address these changes? Do they have the authority to lead the way? BRUSSÉ: At visualfabriq, we have brought our solutions to market in a responsible way. We are engaged on an ongoing basis with leading global analysts such as Gartner, Promotion Optimization Institute and Forrester so that CPG companies can easily access independent evaluations of our solutions and our company. As the first provider to bring an applied AI solution to the market, we also recognized that we have a role to play in creating awareness and promoting understanding of AI. Our leading AI thought leader, Carst Vaartjes, engages, presents and publishes to help the CPG industry better understand applied AI and what it can do for them right now. Our authority, though, doesn’t just come from the perspective of our leading tech innovation. As the founders of visualfabriq, Carst and I were previously CPG professionals. We created the visualfabriq platform and solutions because we had first-hand experience with not having the tools we really needed and wanted. We built the platform to integrate any volume, velocity and variety of both internal and external data, in a matter of minutes, with a single version of the truth because we deeply understand what the CPG industry needs in order to plan, manage and optimize trade promotions that do increase revenue and profits.
“ What’s needed is the vision of what it takes to be a future-fit CPG company managing trade promotion in a sustainable way. ”
Q
How would you scorecard the industry right now? How many companies have addressed the need for change to improve their revenue management practices? BRUSSÉ: The majority of CPG companies are still operating in the old paradigm with legacy solutions combined with spreadsheets. Of course, everyone wants to improve their revenue management and organizations do try. There are many CPG companies paying way too much money, and taking way too much time, to implement solutions that don’t deliver their business cases. There’s low awareness and understanding of the latest tech and what it can do right now for businesses. There’s a lack of vision among leadership, a lack of willingness to embrace new tech and a lack of ownership of the processes that are needed to get a CPG company to today’s technological frontier. This, of course, has far-reaching impact, such as creating a serious disconnect between young Millennial workers and the tools the business provides for them to do their work. After all, you can’t expect the Millennial Generation to go well together with spreadsheets.
Visualfabriq offers a platform for CPGs to fundamentally restructure trade promotion and forecasting by integrating data, artificial intelligence and workflows to augment the capabilities of employees and generate more profit.
THE JOURNEY TO TRADE PROMOTION EXCELLENCE
R O A D M A P
Despite an otherwise strong response to the tectonic shifts taking place in the marketplace (consumer engagement and S&OP planning were ranked as the top priorities in that survey), trade promotion hasn’t gotten its fair share of attention. The inertia comes at two levels: reluctance among leadership to recognize the need for change, and a hesitance among trade practitioners to adopt new systems and processes. “CPG companies have had a relatively long period of doing ‘business as usual,’ with little experience in adapting to tech disruptions. This won’t go on,” said Jaco Brussé, chief executive officer of Visualfabriq. “Top management needs to recognize the value of investing in change management processes to help people adapt quickly and effectively.” “Whatever you do, you must have senior leadership buy-in. That will then flood down into the cross-functional teams, internally and externally,” says Tim Carrigan, director of sales planning and operations at Mizkan Americas. “In doing that, any process, policy, system, technology [or] sales plan you put in place will have a much greater opportunity to succeed.” There are signs that this is happening. One leading IT consultancy recently reported that CPG clients are increasingly asking for assistance in transforming their trade practices.
67
%
of trade programs don’t break even, according to Gartner.
2. Ditch the Darn Spreadsheets For years, the symbolic — as well as literal — obstacle to trade promotion optimization has been the spreadsheet, that still-pervasive piece of software holding companies back from developing truly shareable, actionable and timely business intelligence practices. “It’s amazing how many companies are still using spreadsheets. You can’t get visibility throughout the enterprise with them,” says Tim Hall, global media lead for consumer goods and services at Accenture. “There’s no connectivity to any of the required master data and no access to any real-time consumer data.” In other words, there’s no way CPGs can undertake any of the other steps outlined in this roadmap if they’re still working off spreadsheets. The key tech enablers are already available: complex data integration and management tools, a bounty of outside data streams, digital interfaces that democratize data across the organization, and analytics platforms that can drill right down to specific business solutions. (Although, in some cases, it still requires some “partner knitting” to pull together all those capabilities.)
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It’s Time to Unlock True TPM Value
Q
In what key ways has the practice of trade promotion management changed in the last five years?
Trade promotion has become an ingrained part of how the consumer goods industry works. The new generation of consumer is savvy and looking for every brand interaction Tim Hall Senior Manager, to be connected, personalized and convenient. Consumer Goods As a result, we are seeing the need for some form of & Services-Software hybrid business model that combines a powerful online Strategy & Development and physical presence. For consumer goods companies, Accenture this means increased focus on trade investments and pricing strategies that appeal to consumers, whether they’re online or in a brick-and-mortar store. Cloud-based trade promotion management solutions are just one of the ways we’ve seen consumer goods companies successfully combine the integration of a trade investment strategy and the execution of traditional TPM into a single system. As companies move to become modern enterprises, there is now the potential to get even more accurate insight and information with the emergence of new technologies such as AI and machine learning. The opportunity to sense and respond to ever-changing shopping behavior comes with the challenge of assimilating new technologies into legacy systems.
Q
What have solution providers been doing to facilitate the transformations needed to address these changes? Do they have the authority to lead the way?
The big global consumer goods companies that have long defined the industry are now competing with digitally born players that are smaller and, in most cases, better equipped to respond to change. They live and breathe data and analytics and will continuously use consumer insights to shape rapid innovation. To keep pace and truly move the trade promotion dial, modern consumer goods companies must focus on developing promotion strategies that relentlessly anticipate and respond to fast-changing consumer needs at any given moment. The challenge is that global companies tend to have a complex set of partners and systems to navigate. To succeed, they require solution providers that are able to provide one source of truth and can connect internal departments such as marketing, sales and finance, as well as the broader ecosystem of suppliers, distributors, retailers and online providers. At Accenture, we place trade promotion management at the core of every digital transformation program. Increasingly, we are also using emerging technologies such as AI to enhance data and analytics so that companies can
“We place trade promotion management at the core of every digital transformation program.” get one step closer to predicting the “shelf winners” without needing to rely on a data scientist to decipher the data.
Q
In a recent CGT report asking about digital transformation priorities, trade promotion was ranked very low. Why is this the case, given the massive investment so many companies make in trade?
This comes as a surprise. Trade promotion management offers huge potential to not only manage significant spend but to also get closer to understanding changes in consumer behavior. Investing in a trade promotion management solution — as well as analytical capabilities — provides companies with a solid foundation from which to scale a broader digital transformation program that is focused on delivering successful and sustainable revenue management. We often work with CGs that are seeking to improve compliance and build better, stronger connections with retailers and consumers alike. Our Accenture Cloud TPM — with forecasting capabilities — offers enterprises the opportunity to create a scalable foundation to optimize trade promotion and, ultimately, let them be smarter about where funds are allocated and across which physical and digital channels.
Accenture is a leading global professional services company providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. The company works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders.
THE JOURNEY TO TRADE PROMOTION EXCELLENCE
R O A D M A P
“Ironically, for an industry providing ‘fast moving’ goods, CPG is slow-moving when it comes to a coherent vision of the future and an understanding of what it’s going to take to become future-fit,” says Brussé. The industry’s low uptake on artificial intelligence is testimony to the conservatism that keeps companies leaning toward legacy solutions rather than embracing the latest offerings.” “Sometimes it’s a case of not knowing what you don’t know,” said Kevin Massie, director of strategic sales planning operations at Ferrero USA, during a recent industry webinar. “I think companies struggle with [determining] the right system — not necessarily the cost, although that’s important, but which one will help them get to the answers they’re trying to achieve.” A fall 2017 study from Supply Chain Insights found that CPGs believe the change management required to implement new technology is increasing, not decreasing, as a barrier to effective trade promotion. That concern will have to be addressed.
3. Start Thinking ‘Outside In’ What CPGs need these days isn’t just optimized trade promotion, but reimagined trade promotion. Supply Chain Insights principal Lora
70% of consumers
are now using digital tools to compare prices while shopping, according to Deloitte.
Cecere describes it as moving from “inside-out” planning to “outside-in” planning, where trade promotion shifts focus from enterprise processes and transactional efficiencies to become a truly collaborative response to actual consumer demand. “A lot of trade spending processes were built around 12-week lead times to print circulars and pallet drops for big box stores,” says Moran. “In a world where a shopper is most likely reading the weekly circular on her phone, our processes haven’t caught up.” “You need to make sure the consumer experience is the same across every channel,” says Hall, especially since 70% of consumers are now using digital tools to compare prices while shopping, according to Deloitte. In addition to counteracting vigilant shoppers and ensuring that trade activity and consumer promotion don’t counteract each other, incorporating outside data — economic indicators, social sentiment, community events, weather, etc. — will also lead to much smarter demand planning.
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Putting Together the Total Package
Q
In what key ways has the practice of trade promotion management changed in the last five years?
It shocks me how much it hasn’t. If I were to scorecard the transformation that’s taken place in marketing and compare it to how sales teams have adapted David Moran Co-founder and in a world of digitally connected commerce, it’s not Chairman flattering to most sales organizations. For marketers, Eversight it’s now a given that multivariate testing and artificial intelligence and automation are standard tools, yet most trade management programs are stuck in the old world of econometric regression of the last two year’s data to pick winners. I’d love to hear more sales leaders talk about a roadmap towards programmatic selling within five years. There are between five and 10 consumer goods companies who are far out ahead of their peers. They’re redefining what it means to think about trade promotion management — combining decision authority with national consumer promotion/couponing/shopper marketing dollars to have an integrated view of their shopper-facing investments. They’re using far more modern tools in terms of offer testing, automated planning and artificial intelligence. The lines between marketing and sales might be blurring, but they have a clear picture of the total package.
Q
How would you scorecard the industry right now? How many companies have addressed these changes to improve their revenue management practices? How many are still bogged in the same old spreadsheets? I think most companies are still setting their sights too low in regard to trade promotion effectiveness. I’ve seen too many organizations use the crutch of “crawl, walk, run” to prioritize enhancing administrative solutions to handle the operational processing of trade — versus putting more emphasis on running better promotions from day one of a transformation. The leading companies are doing it the opposite way: moving to a “precision guidelines” approach to empower the field to be increasingly granular and sophisticated in terms of putting the right types of offers out in the marketplace that will more effectively boost sales. It’s a lot easier to get field acceptance of administrative controls when they’re coupled with hard proof that having those systems in place also provides the tools they need to help hit their numbers.
“I’d say that retailers are generally feeling far more urgency than brands to change how they price, promote, and personalize.”
Q
Is there any urgency among retailers to improve the trade promotion management process, or are they worried about upsetting the financial applecart? In a post Amazon-Whole Foods world, I’d say that retailers are generally feeling far more urgency than brands to change how they price, promote, and personalize. That said, they’re also trying to get a lot done. These initiatives compete with a short-term focus on handover options — for example, making sure there’s a credible way to click and collect, or get home delivery, or subscription ordering. Promotion initiatives have been a lot more fragmented. Should you run dynamic promotions to compete with Amazon, or build a proprietary “digital offers wallet,” or work to minimize promotions that subsidize the base and instead shift funding into offers that drive loyalty? I think the industry is still trying to determine which bets to make here.
Eversight leverages AI and experimentation to create and deliver smart, dynamic pricing and targeted promotions. Founded in 2013, Eversight is headquartered in Palo Alto, California.
THE JOURNEY TO TRADE PROMOTION EXCELLENCE
R O A D M A P
4. Get Faster The long-standing practice of sticking to an “annual plan” that might have been scheduled 18 months in advance is as outdated as the slide rule — or at least should be. That model was created by the desire to build efficient, cost-effective commercial planning cycles and lock in corresponding media plans. But today’s world requires companies to not only shorten the planning window but to develop the ability to adjust trade programs on the fly in response to real-time market conditions. “Traditional models are based on what happened previously, not currently,” says Hall. “We now need to look at models based on what’s trending over the last two weeks and what consumers are saying now,” says Hall. The Supply Chain Insights study found that it takes CPG companies an average of four weeks to measure the effectiveness of trade campaigns; only 19% are able to measure results in one day. That’s a far cry from the real-time monitoring and subsequent course correction that increasingly takes place in the digital promotion realm. Improvements in both TPM and retail execution tools could ultimately make that possible in stores as well.
5. Gain Internal Alignment Achieving the speed, agility and marketplace transparency already discussed will be impossible for a company operating in traditional silos. Sales, marketing and every stage of the supply chain have to be on the same page. “The models and the algorithms are there. We have the magnitude of data we need,” says Hall. “The boundary is still the need to break down the barriers” between departments. “Demand creation and fulfillment can’t be separate anymore,” said Gail Horwood, senior vice president of integrated marketing & brand experience at Kellogg Co., who has been helping the CPG build a cross-functional “Integrated Commercial Planning” team that builds, executes and measures trade, consumer promotion and media programs collaboratively. “CPG companies need to transform into process-led organizations, entirely aligned around end-to-end processes, and make data-driven decisions using a single version of the truth based on their customer metrics,” says Brussé. A necessary first step for some organizations would be to adopt TPO tools that make it easier to identify and share results and best practices across retail accounts.
6. Rethink Spending Similar to that rigid, long-term promotional calendar, the idea of planning budgets based on the
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THE JOURNEY TO TRADE PROMOTION EXCELLENCE
R O A D M A P
prior year’s number “plus or minus” should be retired. CPGs need to start letting the money follow the data to get the best bang for their bucks. Zero-based budgeting is becoming popular elsewhere in the marketing world. “It leads to more ownership, commitment and involvement,” says Brussé. “Zero-based budgeting demands that solutions are put in place so that people can act faster, and this drives change in organizations.” While it doesn’t require any kind of technology upgrade or systems modification, it does call for a significant shift in traditional thinking — not only on the part of CPGs, but also at their retailer partners (see below). “What really makes ZBB distinctive is a culture of scarcity and a willingness to challenge default assumptions. You can do that with any accounting technique for budget setting,” says Moran. “If your company has this mindset, it’s easier to change everything. If it doesn’t, no amount of ZBB is going to fix your trade troubles.”
20
%
of a CPG’s total revenue and as much as 60% of its total marketing spend is devoted to trade promotion.
7. Work Better with Retailers In the most recent Retail and Consumer Goods Analytics Study, 27% of CPGs identified trade promotion as a key area of focus for improving analytics capabilities. (The only areas considered more important were consumer insights, promotion effectiveness and demand forecasting.) Not surprisingly, only 8% of retailers said the same thing. Zero-based budgets and from-scratch promotional plans can be a pretty tough sell for retailers, who have entire categories to worry about and who have, over the years, become almost dangerously reliant on CPG contributions: Kroger collected $8.5 billion in vendor allowances in fiscal 2017 — a figure representing nearly four times the company’s net earnings for the year. Retailers are starting to come around. “They’re facing the same challenges as CPGs, so most are now willing to adapt and change, says Hall. “Working in partnership, retailers and CGs have the potential to build huge competitive advantage.” “CPGs and retailers have traditionally taken an adversarial approach where each party plays their
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THE JOURNEY TO TRADE PROMOTION EXCELLENCE
R O A D M A P
cards very close to their chests,” says Brussé. “New solutions providing a single version of the truth and actionable insights have turned this completely around. These solutions demand that CPGs and retailers are open and collaborative, with the shared goal of delivering benefits to the consumer.” Improved performance transparency is also driving a greater understanding of traditional plans and anniversary promotions that have not paid out. With the analytics tools now available, both sides are far better equipped to collaborate effectively.
8. Embrace AI With all the data that now needs to be synthesized and analyzed, often down to the granular level, artificial intelligence will play an increasingly important role in the transformation of trade promotion. For one, it will be immensely beneficial in pulling together all the disparate data sources that come into play for the outside-in purview discussed earlier. “Whether they take small steps or immediately go for the big bang, everyone should be exploring AI,” which can “take away the need to make everyone in the organization a data scientist” by handling the heavy analytics lifting, Hall says. And that lets the humans in the room focus on the marketplace intelligence needed to activate AI-driven insights. “It is critical for CPG companies to harness the full power of their data, which means they need to embrace applied AI and rely on the prediction models, which only improve over time. It’s time for CPGs to trust the machine,” adds Brussé.
9. Play to Win, Not Sustain This new era of trade promotion will require consumer goods companies to get far better at demand planning through deeper, broader consumer understanding and a more open, collaborative relationship with retailers. The end goal is programming that drives real, sustainable growth rather than a series of short-term incremental lifts. “The scale and pace of change can seem daunting, but it doesn’t have to be,” says Hall. “Technology has been largely seen as a back-office asset, but we view it as one of the greatest enablers of our time.” “CPG leaders need to promote a clear vision of what it means for their company to be future-fit. They need to have a mindset that embraces change,” says Brussé. “Companies need to become flexible, resilient, learning organizations adept at changing roles and responsibilities to align with changing processes and market forces.” It’s time to make this line item really pay off. CGT
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Tech Solutions Guide
In this edition of the Technology Solutions Guide series, CGT presents a comparison chart of solution providers on the forefront of digital content management, with tools ranging from content creation all the way through to performance analysis. To kick things off, EnterWorks chief executive officer Rick Chavie offers some thoughts on key trends in an exclusive Q&A.
It’s long been said that the Q first step in building an effective product content strategy is ensuring accuracy and consistency across the online universe. In general, has the consumer goods industry gotten there yet? What are the lingering obstacles?
RICK CHAVIE CEO EnterWorks
CHAVIE: Accuracy and consistency in product content are objectives that, if achieved, place a consumer goods company on the threshold of an effective online presence. However, compel-
ling, competitive digital success requires companies to do much more. They must commit their entire organization to dominance through data, not just in support of merchants and product designers, but also by engaging their colleagues in supply chain, e-commerce, catalog divisions, sales, and procurement. This is a journey of continuous content renewal, not a destination. The explosion of content, and the demand for more relevant content, expands the complexity of product data management that companies need to master. The key obstacles remaining on this data pathway include: • Transforming static, periodic catalog content into continuous, dynamic digital content. • Complying with content standards even as large sellers look to differentiate and demand unique content from brands. • Keeping pace with customer demand for visual content (3D, multi-views, virtual twins).
Another commonQ ly stated goal has been the implementa-
tion of systems providing a single source of truth across the enterprise. How are we doing in this respect?
CHAVIE: Overall, consumer goods content is progressing
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Tech Solutions Guide
in the right direction, which includes content self-generated by brands as well as content arising from companies offering industry repositories of product data (such as 1WorldSync). These activities, along with agreed-upon standards (such as SmartLabel and GS1), have streamlined data exchange in enabling B2B2C commerce. Early on, digital content exchange was focused on a supply-side, single source of the truth. However, today’s push is demand-centric as marketers and merchants require a richer, shared view of centralized content to promote brand values and product content to individual consumers in the form of personalized offers. The demand-driven digitization wave puts pressure on all companies throughout the content value chain, from manufacturers, to wholesalers, to retailers/e-tailers. Much progress is being made in regard to: • More accurate, up-to-date, transparent content in response to consumer demand. • Improving compliance with product labeling data regu-
“Today’s digital content push is demand-centric as marketers require a richer, shared view to promote brand values ... and personalized offers.”
lations via B2B2C collaboration. • A greater array of product attributes, images, videos, reviews, and specifications.
What methods Q and metrics are manufacturers using
to evaluate the impact of their digital content? Is the industry getting better at giving consumers what they want? CHAVIE: Information-obsessed shoppers are driving a commerce environment that requires continually enhanced and personalized product content. When the content varies by channels and even individuals, that raises the bar
“Manufacturers must be willing to risk some channel conflict by going direct-to-consumer to get accurate insights on content and offer effectiveness.”
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for measuring effectiveness. In the trade promotion game, it was accepted that the individual consumer was one step removed from the measuring process or that indirect market measures could be used. Not so today. In order to accurately measure how consumers respond to digital content, manufacturers must be willing to risk some channel conflict by going directto-consumer to get accurate insights on content and offer effectiveness. Further, the best manufacturers understand the need for a content lifecycle management perspective that embraces large-scale, test-andlearn methods in understanding what attributes, messages, and images are resonating with consumers. By leveraging a multi-domain master data management solution, organizations can utilize combinations of product, customer and location-specific data in testing the effectiveness of their content and offers, and ultimately can drive sales and margin lift. Ideally, their retailer partners will share similar information to raise their collective effectiveness in the digital age. CGT
B2B2C Content, Commerce & Analytics Platform Enabling Content and Commerce for Retailers and Brands in Food, CPG, Beauty & Pharma
Synch to GDSN
Single View of Content
Food & Consumer Goods Digital Grocery including recipes, coupons, contests; non-food endless aisle
Converge product data to dynamically link supply & demand chains.
Enable Rich Content
Pharmacy, H&BA, Drug Stores
Differentiated Experiences Enrich product content to enable user & touchpoint personalization.
24-hour pharmacist access, medication reminders, OTC and Prescriptions
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Tailor content specific to channels, segments and devices - embrace complexity!
Promotions, Loyalty, Trade Offers/Coupons
B2B2C Foundation for Vertical Expansion Product Information Management (PIM) Master Data Management (MDM) Content Lifecycle Management
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Tech Solutions Guide
2018
DIGITAL CONTENT MANAGEMENT
SOLUTIONS CHART
P R ODUCT
KE Y CG CUST OMER S
UNIQUE FEATUR ES /B ENEFITS
Instigo
• LALA • Mizkan • Unilever
Automates shopper marketing artwork processes, enabling quicker executions. The platform converts digital and in-store tactics into templates that are linked to menus of brand, retailer and product-specific content to enable real-time customization.
Content Analytics Platform, Content Management & Syndication Reporting Suite
• Kimberly-Clark • Procter & Gamble • PepsiCo
An end-to-end e-commerce solution that combines a full suite of analytics and reporting with content management and syndication capabilities.
Edgenet
• Best Buy • Kohler • Lowe’s
Combines product experience management and GDSN capabilities in one platform. Organizes, distributes and analyzes all product content in one place.
Enable
• Mary Kay • Fender • HP Hood
Provides the single view that enterprises need to acquire, manage and syndicate product information.
www.gladson.com
Content Experience Hub
Did not provide
A single-source solution for core/enhanced digital product content, GDSN, nutrition, ingredient and allergen data across a network of suppliers, retailers, distributors and trading partners; validation/correction services ensure accuracy and consistency.
Grip
Grip 2.0
• Heineken • Nivea
Web-based software that automatically generates visual content. Provides marketers and brand managers the ability to generate an image of any product, on any background, at any angle.
Watson Content Hub
Did not provide
A cloud-based, head-optional, enterprise-level CMS equipped with AI tagging and intuitive UI for ease of use for marketers; APIs and a preconfigured content delivery network for developers.
Jasper PIM
• Chuck Levin’s • Skullcandy Inc. • Spinning
A full SaaS technology that’s available in a subscription licensing model. The platform offers a built-in iPaaS and comes with full support.
CO M PA N Y / WE B S IT E
Cierant Corp.
www.cierant.com/ smo-suite
Content Analytics www.content analyticsinc.com
Edgenet
www.edgenet.com
EnterWorks
www.enterworks.com SEE AD ON PAGE 25
Gladson
www.grip.tools
IBM
www.ibm.com/products/ watson-content-hub
Jasper PIM
www.jasperpim.com
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Tech Solutions Guide
C O M PA N Y / W E B SIT E
P RODUCT
KEY CG CUST OMERS
UNIQUE FEATUR ES /B ENEFITS
Kwikee, an sgsco company
eCom Engine
• Kraft Heinz • Nestlé • Procter & Gamble
Helps products stand out on the digital shelf by combining retail insights, content creation services and syndication capabilities within a single offering.
LANSA
Data Sync Direct
• Del Monte Foods • Kellogg Co. • L’Oréal
A PIM built on GDSN standards for suppliers, distributors and retailers. Key features include a certified 1WorldSync connector, GDSN rules validation engine and event-driven workflow.
Amazon Sales & Share Analytics Dashboard
• Coca-Cola • Philips • Procter & Gamble
The dashboard uses website indexing, machine learning and proprietary software to estimate weekly online sales and traffic figures with 90%+ accuracy down to the SKU level.
OneSpace
Merchandiser
• Nestlé-Purina
Uses consumer search data to drive the creation and optimization of product content at scale, helping brands tailor content to shopper behavior and quickly deploy updates across retailers.
Riversand Technologies
Digital Asset Management
• Orkla • SC Johnson • Ulta Beauty
The software integrates with Riversand’s MDM and PIM platforms to help organize, track and manage digital assets. This results in easily discoverable high-value content, increased customer engagement, and reduced time-to-market.
Product Experience Management Platform
• Bosch • Coca-Cola • Fruit of the Loom
Combines product content management, a broad commerce ecosystem and actionable insights into one platform. This closed-loop functionality enables brands to continually deliver compelling shopping experiences across digital touch points.
SAP
Commerce Cloud
• The Annie Selk Companies • Frucor Suntory • Henkel
Enables organizations to deliver personalized digital commerce experiences. The feature-rich, comprehensive commerce platform simplifies digital transformation, reduces total cost of ownership and accelerates time-to-value.
Solidpepper
B2B Cloud Business
• Croix Rouge International • Kone • RipCurl
Offers advanced product search, order entry/import, connected shops and an offline platform for salespeople, creation of technical data sheets, and a personalized product catalog.
Product Master Data Management
• General Mills • Kimberly-Clark • Kraft Heinz
The multi-domain MDM is a flexible, scalable solution that eliminates silos and connects people, processes and systems, turning data into actionable information for faster, smarter decisions.
www.kwikee.com
www.lansa.com/pim
One Click Retail
www.oneclickretail.com
www.onespace.com
www.riversand.com
Salsify
www.salsify.com
www.sap.com
www.solidpepper.com
Stibo Systems
www.stibosystems.com
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