2021 Strategies: Holistic View, Scenario Planning and Data Management
In case you missed it, 10 years of grocery e-commerce growth seemingly happened overnight. Amidst the COVID-19 pandemic, the adoption rate for “click and collect” was unprecedented. We all witnessed (and probably participated in) the acceleration of this shopping behavior.
Online spending for food and beverages in Q3 of 2020 totaled $6.5 billion, according to Consumer Brands Association. That’s an increase of 162% over the same quarter in 2019! While this is impressive, here’s the problem: a majority of CPG companies are struggling with online trade promotion.
According to the Promotion Optimization Institute, 87% of CPGs surveyed for their 2020 TPx Vendor Panorama Report admitted to struggling with modern trade. That’s a big issue to have during an e-commerce boom.
We can only imagine the TPx discussions that took place on Zoom calls around the world:
- How can we replicate impulse buying online?
- What do we do about sampling and in-store displays?
- Can we maintain sales velocity with the same BOGO discounts?
- How do we capitalize on the demand for pack sizes versus single servings?
If 2020 taught CPG companies anything, it’s the need for speed, agility and new strategies. To stay competitive in 2021, here are three TPx strategies CPGToolBox can help you with:
Holistic View: The ability to plan, track, manage and evaluate e-commerce programs within the same context that you view brick-and-mortar programs will offer a more holistic view of your business. Seeing the big picture in real-time, keeping stakeholders in the loop and maintaining a pulse on evolving shopping habits and behaviors will provide a competitive advantage.
Scenario Planning: The plans you executed in 2019 and canceled in 2020 won’t serve you well in 2021. Scenario planning is the key to better understanding outcomes for your trade spend plans. The Vision by CPG solution provides simple drag and drop functionality to try out multiple scenarios and instantly see the best outcomes.
Data Management: You need the ability to cross reference multiple sources of data in order to develop better forecasts. A digital trade spend management tool allows you to not only house data in one place but integrate all the different data sources. You will benefit from seeing and executing a side-by-side evaluation of shipments, SPIN, consumption, and inventory data.
If you’re ready to attack new strategies and manage TPx differently this year, click here.