POI research demonstrates that throughout 2021 our CPG industry began digitally transforming in our new reality. New levels of leadership and strategy emerged and are being demonstrated from all levels in the organization.
NEW YORK (PRWEB) February 14, 2022
The Promotion Optimization Institute (POI), the leading resource for enterprise planning, trade marketing, RGM, and merchandising executives, today released the seventh annual POI 2022 State of the Industry Report. In a second year dominated by inflation and supply chain difficulties, 43% of CPG manufacturers surveyed reported that they were dissatisfied with their ability to manage trade promotions. This is the fifth time in the last seven years where there has been an upward decrease in satisfaction. Only 58% reported they were at least somewhat satisfied with their ability to manage promotions.
“POI research demonstrates that throughout 2021 our CPG industry began digitally transforming in our new reality. New levels of leadership and strategy emerged and are being demonstrated from all levels in the organization. For 2022 and beyond, we believe that Holistic Enterprise Planning, Supply Chain, Omni-Channel balance, and finding areas of efficiency with people, process, and systems are critical to future growth,” said Pam Brown, author of the POI State of the Industry report and Chief Commercial Officer, POI.
With the pandemic pushing greater adoption of ecommerce and enterprise digitalization across nearly all retail sectors, 48% percent noted that developing a digital practice starts with gaining necessary digital budgets. Twenty-two percent reported a need for a dedicated digital team, and 24% reflect a need for dedicated analysts. In addition, 59% said that in order to understand the potential, impact, and ROI of digital enablement the team needs digital ROI evaluation capabilities.
The annual POI 2022 State of the Industry Report focuses on the intersection of the people, processes and technologies required to be a suitable collaboration partner in the promotion and distribution of consumer products. This report utilizes the data and insights from the recent POI 2021 Enterprise Planning, Revenue Growth Management and Retail Execution Surveys and represents responses from over 120 leading consumer goods manufacturers.
Key Industry Report Findings:
- With inflation in high swing and the depth & speed of analysis increasing, manufacturers are expanding their Revenue Growth Management (RGM) practices. Seventy-two percent are adding tools or analytical capabilities to support new RGM processes, 66% are advancing practices, diving deeper optimized promotion, pricing, and pack growth analysis, and 46% are adding new RGM personnel to support. Fifty-five percent (+16) of respondents noted that RGM teams are now owners of the post event ROI analysis.
- Trade Promotion, Planning and Optimization (TPx) solutions bring transformative results to CPG manufacturers. According to respondents, TPx helped eliminate poor performance (36%), led to process improvements (32%), and provided greater visibility to the business and opportunities/risks (38%).
- POI research reveals that companies continue to struggle with compliance and in-store execution. Fifty-eight percent (+10%) of respondents reported that their companies are struggling to have retailer aligned promotions executed at store level. Seventy-two percent don’t have the tools needed to make appropriate decisions at store level.
- Data quality continues to be a foundational issue for manufacturers. When asked about the quality of the organizational data 20% of responders note poor quality and 45% respond average. To mover the needle on RGM, 61% note that data cleanliness and management need to be improved.
- The majority of companies are spending a larger portion of their company’s annual revenue they spend on trade promotions. According to survey respondents, 26% (+6) spend between 11-15% and 64% (+9) spend between 16-20%. In addition, 36% (-9) of respondent companies are spending upwards of 21% with 14% (+6) spending over 27% in trade.
The 2022 POI State of the Industry Report is available today for download here.
About the Promotion Optimization Institute:
POI brings together manufacturers, retailers, solution providers, analysts, academics, and other industry leaders with the specific objective of collaboratively improving enterprise planning, promotion management and distribution of consumer goods. Members of POI share cross-functional best practices in both structured and informal settings. Additionally, members benefit through our industry alliances, the Certified Collaborative Marketer (CCM)™ program, share groups, and industry-leading summits around the globe. POI aims to instill a financial and metrics-based discipline not typically found with other trade groups. The goal of our innovative approach is collaborative promotion optimization. The focus is on the consumer/shopper through sales, marketing, and merchandising strategies. Our POI executive advisory boards keep us apprised of industry needs and help us provide desired outcomes for members, sponsors, and academia.
For more information visit: http://www.poinstitute.com or contact:
— Michael Kantor, Founder & CEO, POI, phone 914-319-7309, or email mkantor(at)p-o-i(dot)org
— Pam Brown, Partner & CCO , POI, phone 707-332-0450, or email at pambrown(at)p-o-i(dot)org
The Certified Collaborative Marketer (CCM) ™ is a trademark belonging to the Promotion Optimization Institute. All other trademarks are the property of their registered owners.
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