The Analyst Viewpoint
Consumer goods manufacturers that want to assess a low-cost/low-risk SaaS-based approach - to address the challenges of retail data sharing to improve data visibility and increase the success of promotions, new product introductions and day-to-day shelf availability - should evaluate RSi.
-Peter Bambridge,
Gartner Group
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CPG Companies: Marketing
Retail Execution Management for the Marketing Organization
Marketing execution is probably both the most critical and challenging part of a CPG company business.
Promotions represent over 40% of items sold by CPG companies yet 40% of promotions fail to achieve their revenue goals, leaving companies with exit inventories wrecking havoc in replenishment processes. Meanwhile, poor store-level promotion allocation drives the out-of-stock rate to 16% or twice the level of baseline products - dramatically contributing to the sales failure rate! New product introductions fail to perform any better: studies estimate the failure rate between 70% and 95% - leaving companies huge inventories of unwanted products and broken S&OP.
One of the main causes of these failures can be attributed to the lack of a real-time connection between marketing and the store reality. When sales numbers for a new product arrive four weeks after the launch, when the post mortem promotion evaluation analyzes last month events, it is no longer possible to alter the course.
Introducing Retail Execution Management for the Marketing Organization
Retail Execution Management bridges the gap between promotion and product launch design, planning, execution down to the store level and ROI evaluation for marketing. Leveraging real-time data combined with proprietary algorithms to extract knowledge from event history, Retail Solutions customers are able to design and execute truly effective promotions and launches:
- Leverage prior promotion and product launch performance data at the store-level to understand design flows and correct merchandising mechanisms and quantity allocation
- Monitor sales in real time for promotions and new product introductions to trigger replenishment and/or alter production schedules
- Understand the true ROI of your events, including real cannibalization rate and sustainable changes to baseline category demand
Retail Execution customers have experienced some of their highest, most tangible wins in the marketing area with a minimal level of effort - shifting forever the design and execution of promotions and launches.
Welcome to Retail Execution Management, powered by Retail Solutions.