Dears,There is little question that the world has changed over the last two years, and while consumer packaged goods (CPG) companies have been less affected than some other industry segments; they have not gone completely unscathed. They are dealing with consumers who are trading down to more affordable products, while their retail partners increase their private label mix and ask manufacturers to take more responsibility for fulfillment execution.
Product mix changes have driven higher than-normal profitability volatility, and cost-cutting measures have been stepped up. One consequence of this changing business environment is a refocus on service levels and both attracting and retaining key customers. As a result, despite cost-cutting measures, and tightening hurdle rates on IT investments, the interest in sales and marketing capabilities overall CRM interest is growing.
In the annual IDC Vertical Group survey of CPG executives, increasing sales volume and improving new product sell-in are both rated in the top 10 priority business initiatives as well as retaining existing customers. This is the first time that retaining existing customers has been as high as sixth place in the survey, and really highlights how important sales and marketing capabilities are becoming .Indeed, the important role of sales and marketing in both driving and achieving these key business initiatives cannot be overstated. Either through the management of the product portfolio, introduction of the right new products, development of new customers or the effective retention of existing ones, sales and marketing capabilities will affect profitability, sales development and the more rapid sell-in of innovation
Mobility and mobility tools are a factor here, as the nature of sales, particularly lends itself to the business benefits that mobility technologies can bring. It is no surprise, therefore, that in a recent
“Mobile Technology” survey by Telecom Major, 57 percent of respondents indicated the solution type with best return on investment (ROI) for mobile applications is CRM automation.
So, where do we expect consumer goods companies to focus their sales and marketing efforts in 2010? Based on survey results for 2010, activities and investments will be pragmatic and targeted on those areas of business building that can deliver the most impactful results, I discussed in brief some of the critical ones below
•Trade Promotion Management is both the second largest cost item on the consumer goods profit and loss statement and poorly understood by many manufacturers. Rethinking trade promotions will be an important focus for companies, in terms of the business process and the facilitating IT tools.
• Category Management, with a particular focus on the “SKU fight”. Category managers have not done a good job at controlling SKU counts in many consumer goods categories, and with the growth of private label and an increasing impatience on the part of retailers for better assortment balance, we see this as an important focus area.
• Downstream Data remains intriguing and challenging in its applicability to sales and marketing initiatives. It has enormous potential to help consumer goods companies improve promotions and new product introductions, but it requires a rethinking of many business processes and the use of more agile business tools.
• Direct-to-Consumer, although not the highest priority for consumer goods companies, it is an interesting growth opportunity and a way for manufacturers to improve “connectivity” with the consumer and combat the growth of retail private label.
• CRM Force Automation, driven both by emerging mobility tools and the desire to do a better job of attracting and retaining key customers.
I am currently exploring CRM handheld implementation nuances and business benefit, In near future I will share it with you .
Product mix changes have driven higher than-normal profitability volatility, and cost-cutting measures have been stepped up. One consequence of this changing business environment is a refocus on service levels and both attracting and retaining key customers. As a result, despite cost-cutting measures, and tightening hurdle rates on IT investments, the interest in sales and marketing capabilities overall CRM interest is growing.
In the annual IDC Vertical Group survey of CPG executives, increasing sales volume and improving new product sell-in are both rated in the top 10 priority business initiatives as well as retaining existing customers. This is the first time that retaining existing customers has been as high as sixth place in the survey, and really highlights how important sales and marketing capabilities are becoming .Indeed, the important role of sales and marketing in both driving and achieving these key business initiatives cannot be overstated. Either through the management of the product portfolio, introduction of the right new products, development of new customers or the effective retention of existing ones, sales and marketing capabilities will affect profitability, sales development and the more rapid sell-in of innovation
Mobility and mobility tools are a factor here, as the nature of sales, particularly lends itself to the business benefits that mobility technologies can bring. It is no surprise, therefore, that in a recent
“Mobile Technology” survey by Telecom Major, 57 percent of respondents indicated the solution type with best return on investment (ROI) for mobile applications is CRM automation.
So, where do we expect consumer goods companies to focus their sales and marketing efforts in 2010? Based on survey results for 2010, activities and investments will be pragmatic and targeted on those areas of business building that can deliver the most impactful results, I discussed in brief some of the critical ones below
•Trade Promotion Management is both the second largest cost item on the consumer goods profit and loss statement and poorly understood by many manufacturers. Rethinking trade promotions will be an important focus for companies, in terms of the business process and the facilitating IT tools.
• Category Management, with a particular focus on the “SKU fight”. Category managers have not done a good job at controlling SKU counts in many consumer goods categories, and with the growth of private label and an increasing impatience on the part of retailers for better assortment balance, we see this as an important focus area.
• Downstream Data remains intriguing and challenging in its applicability to sales and marketing initiatives. It has enormous potential to help consumer goods companies improve promotions and new product introductions, but it requires a rethinking of many business processes and the use of more agile business tools.
• Direct-to-Consumer, although not the highest priority for consumer goods companies, it is an interesting growth opportunity and a way for manufacturers to improve “connectivity” with the consumer and combat the growth of retail private label.
• CRM Force Automation, driven both by emerging mobility tools and the desire to do a better job of attracting and retaining key customers.
I am currently exploring CRM handheld implementation nuances and business benefit, In near future I will share it with you .
Have a Great Weekend , Ramadan Kareem to all.
Your Partner and Companion
DC*
No comments:
Post a Comment