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How to Transform CPG Performance with Category Focused Digital Shelf Analytics
The Emerson Group's webinar highlights significant shifts in consumer packaged goods (CPG) strategies and e-commerce dynamics during and post-COVID-19, emphasizing the need for brands to adapt quickly to digital retail landscapes. It underscores the increasing importance of online grocery shopping, projected to reach 21.5% of sales by 2025, and the necessity for brands to manage search and promotions efficiently in an evolving market. Additionally, effective collaboration with retailers and leveraging data insights are essential for driving profitable growth in the competitive e-commerce environment.
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How to Transform CPG Performance with Category Focused Digital Shelf Analytics
- 1. November2020 & The Emerson Group ProgressiveGrocer Webinar
- 2. - Introductions - What’schanged - Category strategy online - CPG critical capabilities - A roadmap - Collaboration
- 3. • Emerson Group’sdigital shelf analytics partner • Everyday we gather from your priority retailers everything the shoppers see for every SKU in the category • Share of search and category shelf • Listings and availability • SKU presentation against brand’s standards • Price and promotion • Shopper feedback • We turn the data into insights that will drive profitable sales growth: • Strengthening your brands position in online retailers • Implementing effective, pricing, promotion and advertising programs • Identifying opportunities for you and the retailers Introduction to e.fundamentals & Emerson Group
- 4. 4 Emerson and e.fundamentalspartnership delivers competitive advantage With strategic & commercial priorities Specific focus by individual role Clear process and ways of working eComm share growth
- 6. 0% 10% 20%30% 40% 50% 60% 70% 80% 90% 100% womens razor blade womens razor womens blade bikini razor eyebrow razor razor womens disposable razor shave cream disposable razor Albertson’s Share of Search Your brand Key Competitors
- 7. e.Retail a must winnow opportunity
- 9. The research changeda lot in just a few weeks ● Major shift in investment in tools and capability ● Fully captured senior management attention ● Generally concerned about pace of progress Now Adjusting to a new normal . Jan - Feb Before shelter in place March - April Shelter in place orders ● Need to quickly adapt to working with a broad range of retailers ● How to upskill to execute at scale and at speed? ● How to ensure increased investment is productive? ● Need to pick up pace – a lot! ● Heavy focus on content management ● e.Commerce seen as a specialism ● Amazon and Walmart the priority
- 10. 2% 3% 3% 8% 15% 19% 27% 29% 39% 42%42% 47% 18% 24% 25% 33% 37% 41% 42% Fresh Food & Meat Bread, Bakery & Deli Dairy Products & Eggs Canned/Dry/Frozen Food Household & Personal Care Pharmacy Bulk/Heavy Items Online Shopping Preference 2018 BeforeShelterinPlace* 2020 During Pandemic 2020 ProjectedPostPandemic continue online shopping 90% growth pre-pandemic 5X Covid-19 has Permanently Transformed Importance of Online Grocery Source:Mercatus Survey
- 11. $993.0 $1,016.0 $1,039.0 $1,063.0 $1,087.0 $1,112.0 $1,138.0 $1,164.0 2018 2019 20202021 2022 2023 2024 2025 eGrocery Predicted to Reach 21.5% of Sales by 2025 • Building a competitive advantage online now is essential, creating a multiplier effect inthe future • Implications arein all areas and functions of business TotalGrocerySales(U.S.Billions) TotalProjectedGrocerySales(U.S.Billions) GroceryeCommerce Sales% (Pre-COVID) GroceryeCommerce Sales% (Post-COVID) 2.7% 3.4% 10.2% 12.5% 14.6% 16.9% 19.1% 21.5% 4.3% 5.4% 6.8% 8.5% 10.7% 13.5% Source:Mercatus
- 12. The opportunity forCPGs Retailers picking from store or offering curbsidepickupwill: • Reduce costs by reducing assortment tosimplify picking • Addnew larger pack items tomany categories Brands should be ready to offer advice on how to make these adjustments and defend distribution Search will continue to grow as a navigation tool on retailer sites and retailers will evolve the tech to guide purchase more. Brands need to manage search proactively Promotions react differently online andconsiderable tradespend isdriving out of stocks Ensuring promotions and banners are executed efficiently considering the impact of online growth is critical to brand health and profitability Retailer’s will increase pressure on suppliers toinvest incrementally in their online marketing services Get advantage by knowing which assets to pay for and how to leverage them
- 13. - Lets talkcategory management
- 14. Cat litter searchresults – category perspective Regular 23% Premium 59% Super Premium 18% Economy 4% Regular 58% Premium 38% Form 1 88% Form 2 8% Form 3 Form 1 74% Form 2 13% Form 3 13% Form 1 100% Flavor 1 16% Flavor 2, 20% Other, 64% Flavor 1, 26% Flavor 2, 35% Other, 39% Flavor 1, 17% Flavor 2 4% Other, 79% Regular 9% Premium 32% Super Premium 59% Amazon Retailer “A” Retailer “B”
- 15. Search category opportunities- premiumization Retailer (all US) Economy Regular Premium Super Premium Amazon 0% 9% 32% 59% Retailer 1 0% 59% 27% 14% Retailer 2 16% 53% 26% 5% Retailer 3 0% 24% 59% 18% Retailer 4 7% 45% 38% 10% Retailer 5 4% 58% 38% 0% Retailer 6 9% 30% 17% 43% Retailer 7 4% 46% 25% 25% Retailer 8 43% 14% 29% 14%
- 16. Search category opportunities- premiumization Retailer (all US) Economy Regular Premium Super Premium Amazon 0% 9% 32% 59% Retailer 1 0% 59% 27% 14% Retailer 2 16% 53% 26% 5% Retailer 3 0% 24% 59% 18% Retailer 4 7% 45% 38% 10% Retailer 5 4% 58% 38% 0% Retailer 6 9% 30% 17% 43% Retailer 7 4% 46% 25% 25% Retailer 8 43% 14% 29% 14%
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- 19. We Make itEasy For our Shoppers: • Show up where they shop For our Clients: • Drive profitable and sustainable growth OurMission 19
- 20. OurKeyPillarsforGrowth 6 Areas DriveEcommerce Reach Get it Right Why • 90% of In Store Purchases are Digitally Influenced • Use E-Commerce as a brand builder for instore purchase • Empower Your Retailer through best practice sharing • Emerson Group preferred partners provide competitive advantage 20 Digital Shelf Excellence Amazon.com + Pureplay Retailer.com Continuous Learning Model Supply Chain Economics Partnership Value
- 21. ContentExcellenceiscrucialinourcategories Imperative to inspirethe shopper to add to cart in the moment of truth when she engages with our brands Must Haves High quality pack shots Lifestyle images (product In use) Claims and Benefits Review highlights above the fold Shortform video, user generated content Icons to tell the story Regimen, “how to use” if applicable
- 22. SampleEmersonBusiness–BuildingPlan Top in SearchCompetitive Price and Promotion The Right Assortment Quality Ratings and Reviews Conversion driving Content Phase 1: Getting started • Establish initial list of search terms based on E-Comm Practice brand+ insights from customer • Establish online pricing that supports customer objectives and maintains pricing ladder across assortment • Identify promotional capabilities • Based on customer needs, build appropriate eComm assortment to support business objectives • Create strategy for supporting “hero skus” from the proposed assortment with ratings and reviews • Investigate syndication opportunities as appropriate • Identify priority skus and what content is available to support • Determine content guidelines/restrictions Phase 2: Test & Learn • Monitor Share of Search performance for hero skus and adjust search terms to boost organic search rank • Test paid search • Tests & evaluate promotional opportunities • Monitor performance of original assortment • Kick-off any eCom specific packs or packaging required • Build initial review volume for hero SKUs - Goal =50; minimum 10 • Ensure avg. star rating above 4 stars • Experiment with different types of images on hero skus - Lifestyle - Infographics • Include below-the-fold content Phase 3: Ramping up • Invest in paid search • Ensure your hidden keywords are still relevant and adjust accordingly • Establish full promotional calendar and measure ROI • Evaluate additional opportunities for strengthening portfolio/meeting consumer demand - Launch new eCom packs generated in Phase 2 - New launch strategy - Trade-up strategy - Variation strategy • Build review volume for Tier 2 • Establish process for answering consumer questions/responding to negative reviews • All hero skus have mobile-optimized+ lifestyle images • Experiment with different types of images on Tier 2 SKUs • Add video content where applicable Phase 4: On-going optimization • Continue to explore new forms of product discovery • Establish strong relationship with buyer to unlock additional opportunities • Monitor and adjust pricing strategy based on shifting consumer preferences • Be aware of any price- matching activity • Monitor top-selling SKUs (own brand + competitors) from other online platforms and identify gap- filling opportunities • Identify opportunities for cross- category bundling • Address negative reviews and work with customer to remove any untrue/outdated reviews • Leverage ratings and reviews to inform future content and unlock additional marketing opportunities • Incorporate learnings from ratings and reviews into content • Experiment with seasonal content • Check keyword relevancy quarterly
- 23. Where should yoube? ● Look to develop closed loop solutions ● Data/Insight ● Decision/Action ● Track/Review/Learn ● Combine your data sets , build advanced analytics capability and develop insights around valuable use cases Longer Term . Now Near Term ● Develop ways of working across the business ● Upskill frontline sales and marketing managers to work in the omni- channel ● Build a test and learn culture ● Manage promotions and banners together ● Know the value of retailer’s marketing tools ● Strong product standards in place ● Managing search performance ● A clear point of view on assortment development ● Focus on availability ● Understand online promotion
- 24. e.fundamentals US clientenquiries: Darren.Horne@efundamentals.com VP Sales North America e.fundamentals RFIs and RFPs: Jo.Campbell@efundamentals.com VP Commercial Partnerships