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MAY 2019

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RETAIL INTELLIGENCE FOR THE STRATEGIC ENTERPRISE

IT’S HERE. Your #1 source for enterprise-wide strategies that drive growth for the consumer goods industry.

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INTRODUCING

By combining the best of Consumer Goods Technology and Shopper Marketing, Rise offers the consumer goods industry provocative content, exclusive analysis and interpretation of key industry trends for a more consumer-centric marketplace.

We spotlight the strategies, capabilities, brands and, most importantly, the people driving industry innovation.

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MAY 2019

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RETAIL INTELLIGENCE FOR THE STRATEGIC ENTERPRISE

INSIDE SILO BUSTING:

WHY CROSS-FUNCTIONAL COLLABORATION IS NO LONGER AN OPTION

STANDOUT SMALL BRANDS: 24 DISRUPTORS GRABBING HEADLINES AND MARKET SHARE

RETAIL TECHNOLOGY: USING AND RATING THE IMPACT OF 9 IN-STORE TOOLS

Hall of Fame

Peter McGuinness Helping Chobani create a demand-driven culture

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Contents. R E TA I L I N T E L L I G E N C E F O R T H E ST R AT E G I C E N T E R P R IS E

36

Global Watch We pick the brains of consumer goods professionals around the world from China to Brazil, getting a take on the path to purchase in their markets.

20

SPECIAL REPORTS

Hall of Fame Q&A: Peter McGuinness Chobani’s Peter McGuinness is one of three 2019 selections for the Path to Purchase Institute Hall of Fame. He’s helped Chobani create a demand-driven culture.

28

44

CPG companies are turning the tide against the old silo mentality – perhaps just in time. They recognize they need to collaborate to survive.

Carrying on a CGT tradition, Rise offers a pat on the back to 24 upstarts making unique marks on the evolving retail marketplace.

Cross-Functional Collaboration

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Standout Small Brands

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May 2019. VO LU M E 32 | ISS U E 5

DEPARTMENTS 6

Editor’s Note:

Peter Breen

14

P2PI Member Spotlight:

Volta Charging

NEWS

54

Activation Gallery:

In-Store Technologies

8

10

7 Microsoft

12 Artificial Intelligence-

Partnerships give the software giant a lead role in the grocery channel’s future.

L’Oreal tackles the woes associated with aging skin via augmented reality and AI.

Becomes a Grocer

8 Schwarzkopf

Leverages Mobile Video

Working with Shopkick, Henkel’s hair care brand finds success in Walmart’s aisles.

Enabled Tool

Leverages Amazon Dash

LG’s smart appliances are integrated with Dash replenishment functionality.

16 P2PSummit

Bumble Bee and SAP improve seafood traceability using a cloud platform service.

Asda’s chief customer officer will discuss the state/future of retail at P2PSummit.

10 Shoppers Can

18 P2PSummit

Levi’s leverages new technology that lets consumers customize individual jeans.

TerraCycle’s founder and CEO will show how we can help address the waste crisis.

Design Custom Jeans

P2P Toolkit

62

Shopping with Steve: Target

64

Solutions Guide:

Supply Chain Management

68

Solution Provider News

69

Personnel Appointments/ Editorial Index

70

Retailer Intelligence:

12 LG Electronics

10 Tracing Tuna via Blockchain

58

Oikos and Kroger

62

Preview: Andy Murray

Preview: Tom Szaky

Retail Intelligence For The Strategic Enterprise (USPS 4568, ISSN 2642-9985 ) is published monthly, by EnsembleIQ. Editorial & Advertising offices: 8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631. Subscription rates: $125 for U.S. addresses; $190 for Canadian addresses; $275 for all other addresses. Single copies (pre- paid only): $20 in the U.S. Periodical postage paid at Chicago, IL 60631, and additional mailing addresses. Copyright 2019 by EnsembleIQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877) 652-5295. POSTMASTER: send address changes to RISE. - Retail Intelligence for the Strategic Enterprise, PO Box 3200, Northbrook IL 60065-3200.

May 2019

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RETAIL INTELLIGENCE FOR THE STRATEGIC ENTERPRISE

Editor’s Note.

Editor-in-Chief Peter Breen, pbreen@ensembleiq.com

Rising to the Occasion

Executive Editor Tim Binder, tbinder@ensembleiq.com Managing Editor Charlie Menchaca, cmenchaca@ensembleiq.com Associate Director/Content Patrycja Malinowska, pmalinowska@ensembleiq.com Associate Editor/Content Cyndi Loza, cloza@ensembleiq.com

PETER BREEN, EDITOR-IN-CHIEF

Associate Editor/Content Jacqueline Barba, jbarba@ensembleiq.com

“It’s all demand-building.” That’s what cover subject Peter McGuinness, Chobani’s chief marketing & commercial officer, says of the common ground that unites the 17 sales, marketing and other departments that are united under his title. That alignment represents a significant mindset change on the part of traditional consumer product manufacturers, which were built successfully on a model in which all those departments played clearly defined, operationally distinct roles. But that model, which required the development of systems and processes that created and fulfilled consumer demand at scale, must now be reinvented for the digital age to create agile organizations that can nimbly respond to rapidly evolving, consumer-driven demand. Put more simply, companies must shift their operations from product-centric to consumercentric. And to do that, they need to better align internally, collaborate externally, and implement analytics-driven, consumer-focused business strategies. In recent years, Shopper Marketing has chronicled how marketers have been trying to better understand the rest of the organization – because the consumer demand they now encounter is just as likely an issue of product sourcing, or manufacturing, or order fulfillment as it is about one of the classic “Four P’s” within their traditional job descriptions. Meanwhile, sister publication Consumer Goods Technology has chronicled how all the internal departments within the organization need to better understand consumers. At CGT recently, the discussions about technology have evolved from tactical examinations of function-level “management” and “optimization” to strategic, full-scale “transformation” across the enterprise. With both communities looking for

many of the same answers, it seemed only logical to bring them together, for Shopper Marketing and CGT to undertake their own transformation and align themselves to better address the needs of this industry. So we did. Welcome to Rise: Retail Intelligence for the Strategic Enterprise. The first part of our name refers simply to the fact that consumer product manufacturers must get smarter about retail – although that knowledge does come in two forms: First, they need to better understand the overall retail marketplace and the key accounts for their brands, both of which have been changing dramatically. But they also are required to better understand the business of retailing more than ever before, because the steadily growing need to engage with consumers directly is demanding that they act like retailers, whether building up substantial direct-sales channels or less aggressively using DTC programs to improve engagement (and gather insights). The second part of the name needs a little unpacking. In our viewpoint, a “strategic enterprise” is one that, as suggested earlier, is strategically aligned to focus on consumers and shoppers. (Creative eyes in the audience may have noticed that the “S” in our logo comprises a pair of interlocking “C”s.) Our goal with Rise is to guide the industry toward sustainable growth and operational excellence by identifying unique solutions to the challenges of a consumer-centric marketplace. We will cover every aspect of the business that impacts consumer purchase decisions, from product ideation and development through the manufacturing and fulfillment processes and right on to the various sales and marketing activities that now drive engagement. So yes, there’s ambition in our name as well: We invite you to Rise with us.

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Editor Emeritus Bill Schober, bschober@ensembleiq.com Director – Production Ed Ward, eward@ensembleiq.com Creative Director Colette Magliaro, cmagliaro@ensembleiq.com Art Director Michael Escobedo, mescobedo@ensembleiq.com CONTRIBUTING WRITERS Dan Ochwat, Erika Flynn, Ed Finkel, Michael Applebaum, Chris Gelbach, Dawn Klingensmith, Neal Lorenzi, April Miller

SALES & P2PI MEMBER DEVELOPMENT President Terese Herbig, 773.992.4438, therbig@ensembleiq.com

Associate Brand Director Simone Knaap, 973.607.1374, sknaap@ensembleiq.com Associate Brand Director Bill Little, 828.237.3350, blittle@ensembleiq.com Associate Brand Director Rich Zelvin, 773.992.4425, rzelvin@ensembleiq.com Senior Director/Member Development Patrick Hare, phare@ensembleiq.com Director/Member/New Business Development Todd Turner, tturner@ensembleiq.com VP/Member Services Jennifer Zannelli, jzannelli@ensembleiq.com Manager, New Member Development Katrina Lopez, klopez@ensembleiq.com

ENSEMBLEIQ LEADERSHIP TEAM

Executive Chairman Alan Glass Chief Executive Officer David Shanker Chief Human Resources Officer Ann Jadown Chief Financial Officer Dan McCarthy Chief Digital Officer Joel Hughes Chief Innovation Officer Tanner Van Dusen President, Path to Purchase Institute Terese Herbig President, NA Retail Group and Canada Jennifer Litterick Executive Vice President, Events & Conferences Ed Several SVP, Technology Brands John Kenlon Group Brand Director, Healthcare Donna Kerry

EDITORIAL AND EXECUTIVE OFFICES 8550 W. Bryn Mawr Ave., Suite 200 Chicago, IL 60631-3731 Phone: 773.992.4450 | Fax: 773.992.4455

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Retailer Relations.

Microsoft Becomes a Grocer Partnerships with four chains give the software giant a lead role in the future of packaged goods retailing BY P E T E R B R E E N

The news came fast and furiously in early 2019, as software giant Microsoft unveiled agreements with Kroger, then with Walgreens and finally with Albertsons to help those top-10 retailers use new technologies to transform their shopper engagement strategies. At Albertsons, the partnership’s lofty goal is to digitally transform the customer journey, optimize internal operations and deliver better products and services. The enterprise-wide pact with Walgreens aims even higher at transforming health care, with retail plans including the test of “digital health corners,” a store-withina-store concept focused on showcasing relevant devices. And work with Kroger not only involves a digitally driven reinvention of the store experience but also a joint effort to launch “retail as a service” products for the rest of the industry.

Although Microsoft has a long history of providing software solutions to retailers, those three announcements – coupled with last summer’s agreement with Walmart to accelerate the retailer’s digital transformation by adding cloud and artificial intelligence tools to an existing partnership – made it clear that the grocery channel has become a key focus. While Microsoft is bringing a wide array of tools to the relationships, one commonality across all is the implementation of its Azure cloud platform. Another common denominator is the goal of helping Kroger, Walgreens, Albertsons and Walmart identify “what grocery is able to do to better serve their customers” and retain the perception of brick-and-mortar stores as “a destination,” according to Greg Jones, Microsoft’s director of industry solutions, worldwide retail and consumer goods. “It’s not just Shelf-edge shopping technology is just the tip of the partnership iceberg for Microsoft and Kroger.

The collaboration also extends to joint photo ops for Kroger CEO Rodney McMullen and Microsoft chief Satya Nadella.

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a technology decision, but [a decision to] work together to expedite innovation and transformation,” Jones said. The flurry of announcements was “the culmination of a lot of hard work” that wasn’t necessarily all timed to coincide with the National Retail Federation’s annual Big Show in mid-January, according to Jones. But it certainly helped the company generate even more buzz than usual at the event. Much of the coverage played up the fact that both Microsoft and its new partners share a common competitor in Amazon, whose well-publicized inroads into the grocery channel have largely inspired toward driving the transformations underway at all four retailers, and whose AWS Cloud has a substantial lead on Azure as the top cloud platform for business. Speaking at the NRF show, Kroger chief executive officer Rodney McMullen said that while Amazon’s presence wasn’t the driving force behind the collaboration, it “made the partnership much easier to talk about.” Speaking to CNBC in January, Albertsons chief information officer Anuj Dhanda acknowledged that, in addition to its technology acumen and experience with retailers specifically and large companies in general, the fact that Microsoft isn’t also trying to sell groceries was a factor for the company when choosing its partner. For us, it’s very much about working with our customers, bringing the innovation of both sides to the table for joint problem solving,” says Jones. “We’re always partnering and never competing with our customers.” A spirit of collaboration is readily apparent in the Kroger agreement, in which Microsoft will team with the retailer’s Sunrise Technologies division to “package up and bring their technology to market to benefit the industry,” said Jones. “This is a customer that is now very much a partner.” That sentiment is also evident in their “Connected Store” activity, which currently entails a two-store pilot of digital technology designed to enhance the shopping experience while collecting critical shopper data (see more on page 57). The partners took a “Let’s go ahead and get it started” approach to launching the pilot, McMullen said at NRF. “We’re more focused on what’s next than what’s there now.” Rise

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Shopper Marketing.

Schwarzkopf Leverages Post-Scan Mobile Video Working with Shopkick platform at Walmart, hair-care brand makes 18 videos and sees 96% video-completion rate B Y D A N O C H WAT

Schwarzkopf, a Henkel hair care brand, knows the unease or downright fear consumers might feel before changing their hair color. To help ease some of that stress before buying, Schwarzkopf developed 18 different mobile videos, each for a different Color Ultime hair dye product, that shoppers could scan and view over the Shopkick platform while in the aisle at Walmart stores. Leveraging Shopkick’s post-scan video technology, shoppers using the Shopkick mobile app could scan the front of any of the 18 packages (no QR code or bar code required; just hold up the package and scan) and a short video popped up inside the app with info about that specific color. Schwarzkopf launched this engagement for Color Ultime in November 2018 and ran it up to the New Year, although an update to the campaign is already being planned, according to Mai Crone, a Henkel shopper marketing manager based at the company’s U.S. headquarters in Stamford, Connecticut. “The video brought the color to life for the shopper, providing a clearer idea of what the color would look like on them,” she says. After scanning, Shopkick users received a number of “kicks,” the app’s form of reward currency to be exchanged for retailer and brand gift cards. “Choosing the perfect hair color for an at-home job is notoriously tricky. Customers often don’t know what the color will look like in real life, or if it’s the right color for them,” Crone says. “We felt it is important to reach shoppers at the time they are making their decision to help them make the best choice for their individual needs and desires.”

“We felt it is important to reach shoppers at the time they are making their decision to help them make the best choice for their individual needs and desires.” Mai Crone, shopper marketing manager, Henkel She says that Shopkick’s pay-forperformance model allows for the brand to drive incremental traffic, engagement and sales without a need to couple the videos or scans with additional coupons or offers at Walmart. The brand promoted this video-scan feature within the Shopkick app but also through some of its social influencers, all of whom can be found at TheFashionColorExpert.com. The influencers also talked about how the Color Ultime products worked for their hair care transformations, and that campaign element worked alongside other tactics such as print coops, on-pack IRCs and targeted digital ads that drove shoppers to Walmart.com.

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Crone says the Shopkick videos “exceeded industry norms” by achieving a 96% video-completion rate. Shopkick, based in Redwood City, California, says that its average video completion rate is 94%. (Schwarzkopf’s U.S. headquarters are located in Culver City, California.) Schwarzkopf has worked with Shopkick before but never to this extent and with the post-scan video tool. “Innovation is central to Schwarzkopf’s mission,” Crone says. For example, last summer Henkel launched a personalized hair care brand called My Specialist in China, available

only on the T-Mall online shopping site. The product works by a consumer mailing in a hair sample that a Henkel scientist tests microscopically to grade its level of dryness, damage and other factors. The consumer also fills out a questionnaire to supply more information. Henkel then sends along a highly detailed report on the hair and personalized products. Crone says it provides a one-on-one approach to hair care products and that “integrating immersive in-aisle video experiences with the help of Shopkick’s unique product offering is another way we’re working to propel our brand forward with the use of new technology.” Rise

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Emerging Technology.

Bumble Bee, SAP Use Blockchain to Trace Tuna BY P 2 P I S TA F F

Bumble Bee Foods is using a cloud platform blockchain service from SAP to trace the journey of the yellowfin tuna used by its Anova brand from the Indonesian ocean to dinner tables around the world. The announcement was made in March at the annual SXSW festival in Austin, Texas. Bumble Bee and SAP have been working to improve seafood traceability as consumers increasingly demand to know their food is safe and sustainably sourced. “More and more, our consumers and customers want complete transparency in food sourcing and safety,” said Tony Costa, chief information officer at Bumble Bee Foods, one of North America’s

largest seafood brands since 1899. “Thanks to blockchain technology, shoppers will soon be able to gain valuable insights about their fish and how it was sustainably caught by simply scanning a QR code on their mobile phones.” With SAP’s blockchain technology, retailers and consumers will be able to easily access the complete origin and history of Bumble Bee Foods’ Natural Blue by Anova yellowfin tuna by scanning on-pack codes. The blockchain technology will provide instant information about the fish-to-market journey, including the size of the catch, the point of capture and the fishing community that caught it, as well as valuable insights

Consumer Engagement.

Levi’s Will Let Shoppers Design Custom Jeans BY PAT RYC J A M A L I N O W S K A

Levi Strauss & Co. is transitioning to an operating model for the digital era, leveraging new technology to radically reduce the time it takes to bring a product to market and unveiling a new ability for consumers to design their own pair of jeans, Marc Rosen, executive vice president of the company’s direct-to-consumer business, said in March at ShopTalk. Beginning this fall, any consumer across the U.S. will be able to customize an individual pair of jeans. They’ll start by picking a base pair of unfinished jeans from one of the brand’s seven most popular fits and choosing a light or

dark wash. They’ll then be able to add a wear pattern, “whispering of varying location and depth, and destruction of varying shape and size” – enabling more than 1,000 possible design combinations, Rosen said. Consumers will also be able to choose from a select set of images and words they can etch onto their jeans to further personalize them. The jeans will be produced and shipped from the company’s Sky Harbor distribution center in Henderson, Nevada, and delivered to customer homes in a matter of days. Self-expression has always been part of the Levi’s brand, Rosen said, but the new offering

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to verify authenticity, freshness, safety, fair trade fishing certification and sustainability. “With SAP, we have the ability to track fish the moment it’s caught and as it travels around the world, telling the story of each tuna while positively impacting ecosystems and the lives of the people all the way down the line,” said Costa, who is a member of CGT’s Executive Advisory Council. “Bumble Bee has long been an industry leader in tracing its seafood products, and the addition of SAP’s blockchain technology allows us to further elevate our efforts.” Blockchain technology lets companies store data and create a tamper-proof supply chain history that can be shared and seen by each participant. For Bumble Bee, blockchain is the safest possible way to share data between parties because it is incorruptible and verifiable. Rise

lets all consumers express themselves through their denim, even those who aren’t crafters. It is made possible by digitizing the jean-finishing process with a new imaging tool developed in-house, and by automating the finishing process using existing and eco-friendly laser technology in novel ways. It’s a big change for the company, which has dubbed this modernmanufacturing operating model Project F.L.X., for “future-led execution.” “It is really a shift from selling what we make to making what we sell,” Rosen said. “That is turning our total business inside out and transforming the way we operate.” Rosen anticipates changes in four key areas as the company evolves to offer more customized product: product development, store experience, supply chain and marketing. Rise

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Insights & Analytics.

L’Oreal Launches AI-Enabled Skin Diagnostic Tool BY J AC Q U E L I N E B A R B A

L’Oreal USA has launched a digital skin diagnostic tool meant to tackle the woes associated with aging skin using augmented reality and artificial intelligence. The tool is born from an AI-powered algorithm developed by the company’s in-house ModiFace beauty tech firm and the L’Oreal Research & Innovation division, which “nourished” the technology by tapping into 15 years of research on skin aging and its photo database, according to a news release announcing the launch. The algorithm was trained on 6,000 clinical images from evaluation and research studies conducted in France, China, Japan, India and the U.S. on 4,000 people between

the ages of 20 and 80 with “skin aging atlases.” According to the release, these were the first exhaustive atlases of facial aging that address visual aging signs. (Skin atlases are used by clinicians or dermatologists today to help evaluate or predict the general aging of a face.) A newer model was then created and trained on more than 4,500 smartphone selfies of women under four different lighting conditions. Upon dermatologist testing, the results achieved a “high level of skin assessment precision,” even with varying facial expressions and phototaking conditions.

Consumer Engagement.

LG Makes Power Move With Amazon Dash BY J AC Q U E L I N E B A R B A

LG Electronics USA has integrated Amazon’s Dash replenishment functionality into its entire new portfolio of connected smart appliances as it aims to improve customer convenience beyond the products themselves.

Like the original Dash replenishment button, the compatible, Wi-Fi-enabled smart appliances (including dishwashers, washing machines and dryers) allow users to set up automatic reordering of detergent and laundry supplies from Amazon when supplies run low. “More customers are experiencing the convenience Dash replenishment offers and we are thrilled to team up with LG to integrate dash replenishment into LG’s broad selection of smart appliances,” David Jackson, general manager, Amazon Dash, said in a media release. “With Dash replenishment, you never have to worry about running out of household essentials like dishwasher soap, laundry detergent or dryer sheets, because your appliances can do

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The acquisition of ModiFace in March 2018 served as phase one in L’Oreal’s digital transformation, which chief digital officer Lubomira Rochet said is “focused on reinventing the beauty experience through technologies such as voice, AR and AI.” The manufacturer plans to divvy up phase two in multiple applications, the first of which is known as Vichy SkinConsultAI, which has launched in Canada in January and will roll out to the CPG’s websites globally later this year. The SkinConsultAI provides a tailored diagnostic experience in a three-step process: • Women take and upload a bare-faced selfie on the brand’s website. • The tech analyzes aging signs and allows women to discover their personalized skin aging matrix, skin strengths and priorities. • Each user receives a tailor-made product routine to address her specific skin care needs. Rise

the work for you and automatically reorder supplies, the moment you are running low.” Here’s how it works: • Using the LG SmartThinQ mobile application, customers connect Dash replenishment to LG smart laundry and dishwasher appliances. • Customers then link their Amazon account and set up Dash replenishment for their desired dishwasher and laundry supplies, such as detergent. • After setup is complete, LG smart appliances automatically signal Dash replenishment to reorder and deliver preselected items right to the customer’s door. • Customers can control key features via a single smartphone app or with voice commands using Alexa or the Google Assistant on select models, according to the release. “Our new smart features are now helping make mundane tasks like doing laundry and washing dishes easier than ever with Dash Replenishment compatibility while delivering a seamless experience in collaborative technology,” David VanderWaal, LG senior vice president of marketing, said in the release. Rise

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being in shopping carts on the way out is exponentially higher. Due to Volta’s unique model, brands that advertise on the stations also enjoy strong affinity and recall data.

Member Spotlight.

Volta Charging

What can Volta Charging offer to retailers? FAGENSON: There are three main drivers why retailers should adopt Volta now. First, Volta draws customers to the retailer by dispensing free fuel. This amenity is proven to extend dwell time and therefore increase shopper basket size. Second, media displayed on the Volta stations provides a new customer touchpoint, influencing shoppers’ buying behavior as they walk into the store. Finally, the retailer’s brand value increases by visibly demonstrating their support for a sustainable environment.

How does your company plan to use your P2PI membership resources? FAGENSON: Volta is participating in the P2P Summit and the Path to Purchase Expo. Our team looks forward to being a resource for retailers and brands looking to enhance their sustainability efforts – as well as drive sales. We love what we do and we are excited to involve as many brands and retailers in our mission as possible. Volta Charging operates a nationwide network of electric vehicle chargers that incorporate digital displays. Volta installs these place-based media stations in hightraffic retail locations and partners with advertisers to sponsor the service. As a result, Volta is able to provide stations free to drivers and retailers. By combining a green amenity with out-of-home media, Volta also helps retailers and brands demonstrate their commitment to sustainability. Institute staff asked Volta SVP Ted Fagenson a few questions about the business.

What can Volta Charging offer to brands? FAGENSON: As Volta charging stations are located on the path of entry to retail, brands have access to ad placements that have been unavailable to them until now. These brands understand that their product might not be on shoppers’ lists as they enter, but after seeing the can’t-miss ad when they’re about to begin their shopping experience, the likelihood of their product

Volta’s electric vehicle charging stations provide an opportunity for customers to get a free charge while taking care of their shopping needs and controlling their carbon footprint. The digital marketing capabilities of the electric vehicle charging stations provide the added benefit of highlighting current store promotions and customer loyalty offerings to shoppers entering the store. We are delighted to offer an amenity that helps our customers and the planet. — GEORGE WAIDELICH, VP, ENERGY OPERATIONS, ALBERTSONS COS.

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What are your predictions for the future of marketing, and how will you help your clients navigate it? FAGENSON: We all know that there are more marketing messages than ever being met with shorter and shorter attention spans. It is clear that you need to give something to get attention back. By our very model, we are helping both advertisers and retailers increase their share of time, basket and reputation by offering free charging to drivers. This also demonstrates to nonelectric vehicle drivers that the companies care. We will continue to look at ways to help brands and retailers stay top of mind. Rise

NOT A PATH TO PURCHASE INSTITUTE MEMBER? Join the 400+ companies who rely on the Path to Purchase Institute every day for strategies and best practices on succeeding in today’s chaotic consumer goods environment. For more information, contact Katrina Lopez at klopez@ensembleiq.com.

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Unveiling Innovation with Applied Solutions October 14-16, 2019 • Marriott Boston consumergoods.com/sales-marketing-summit An official event of:

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P2PI Events.

Asda Chief Customer Officer to Discuss the State/Future of Retail at P2PSummit BY A P R I L M I L L E R

P2PSummit Keynote

A Global Perspective on the Future of Retail When: Thursday, May 16, 4 p.m. Where: Fort Lauderdale, Florida More info: Path2purchasesummit.com

A global perspective gives you a chance to see possible future scenarios that might become more important factors for your particular business model. KEYNOTE SPEAKER Andy Murray, Asda

Disruption continues to drive the retail industry. How to leverage technology, the need to create in-store experiences for shoppers, consumer demand for transparency and many other changes have us asking what’s next and how we can succeed. During the Path to Purchase Summit in May, Andy Murray will sit down with FCB/RED president Tina Manikas for a candid conversation about the state of retail and where it’s headed. Murray will share his insights honed from years of experience working as an agency executive and in the consumer goods industry. Murray, the chief customer officer at Walmart-owned British supermarket operator Asda, previously served as Walmart’s SVP of creative and customer experience. In addition to founding Saatchi & Saatchi X, he has also held senior marketing and technology roles at Hallmark and Procter & Gamble. And he’s a Path to Purchase Institute Hall of Famer (2014 inductee). “Retail is largely a local business and the customer value proposition for a retailer always works in the context of the local market,” says Murray. “But a global perspective gives you a chance to see possible future scenarios that might become more important factors for your particular business model.” The UK grocery market is one example. While e-commerce isn’t as prevalent there as in the U.S., growth of discounters continues to cause disruption, he says. Other markets can learn from these challenges, even if they may be three to five years off. “If you go to Spain and visit a Mercadona, you’ll see a unique format for a grocery store that combines

May 2019

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service counters with great theatre combined with more club-type aisles for commodity ambient lines with a simplified range that manages packsizes in a unique way,” says Murray. “Every market gives you a look into possible format scenarios based on a myriad of conditions that effect the customer value proposition.” There are many factors putting pressure on the retail business model, Murray says — everything from growth in private brands to strains around labor costs — and there is no one-size-fits-all sustainable business model. “Just look at how difficult it has been for Amazon to optimize the Whole Foods acquisition,” he says. More important than copying another retailer’s model is making sure the right questions are being asked and the right problems are being solved. “How do we get clarity about the future at a time of great uncertainty? I think there are some answers in looking at the power of principles in retail that are worth discussing,” Murray says. “Rules to follow demand a high level of certainty but principles can create leverage points for when the environment is dynamic and changing.” Changes coming with 5G technology and blockchain as well as brand and retailer partnerships and the experiences that shoppers want in physical stores will also be part of the conversation between Murray and Manikas. “Tina works with a wide range of clients across global,” Murray says. “She’s got an incredible degree of insight into customer trends and behaviors, so I think we’ll all come away having learned something new.” Rise

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P2PI Events.

P2PSummit Keynote: TerraCycle to Show How It Helps CPGs Address Waste Crisis BY A P R I L M I L L E R

P2PSummit Keynote

Collaborating on the Future of Packaging: From Linear to Circular When: : Friday, May 17, 8:15 a.m. Where: Fort Lauderdale, Florida More info: Path2purchasesummit.com

Recycling is critically important to help a symptom, but it is not going to solve waste at the root cause. KEYNOTE SPEAKER Tom Szaky, TerraCycle

Brands and retailers are beginning to deal with their packaging waste, but recycling is not enough. “We can’t recycle our way out of the garbage crisis,” says TerraCycle founder and CEO Tom Szaky, who will give a Path to Purchase Summit keynote presentation on May 17. “Recycling is critically important to help a symptom, but it is not going to solve waste at the root cause.” To create that shift – one from disposability to durability – Szaky and his company have teamed with some of the world’s largest CPGs to launch a new global shopping platform, Loop. “It’s the modern-day milkman,” he says, of the program that shifts the ownership of packaging from the customer to the consumer goods companies. Loop is launching midMay 2019 with pilots in New York, New Jersey, Pennsylvania and Paris. London comes later in the year, and pilots in California, Tokyo and Toronto are expected in 2020. Dubbed as a “circular delivery service,” shoppers subscribe to Loop and buy items online. Products, packaged in durable, reusable or fully recyclable packaging, arrive from UPS in a Loop tote bag that consumers then use to collect empty packages. UPS picks up the tote. Empty packages are sanitized and then reused. “Businesses big and small,” says Szaky, “are looking for solutions to respond to consumers’ desire to create less waste and better the environment.” The idea for Loop came about at the 2017 World Economic Forum. TerraCycle led the ideation and implementation, but Szaky is quick to note that the program would not

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be possible without many partners, including Proctor & Gamble, Unilever, PepsiCo, Mars, Nestle; retailers Carrefour and Tesco; operational partners Suez and UPS. Loop was officially announced at the January 2019 World Economic Forum. “Key reasons for joining are the ability to innovate for consumers (enabled by shifting ownership from the consumer to the manufacturer of the package) and the benefit of solving for the waste that disposability creates,” Szaky says. During the pilot, about 300 products — such as Dove deodorant, Crest mouthwash, Haagen-Dazs ice cream, Pantene shampoo and Tide detergent — will be available. Eventually the program could expand to physical and e-commerce stores. Szaky encourages anyone interested in what the future of consumption looks like to attend the P2PSummit session. “Consumers seek the most convenient and affordable options,” he says, “and one of our big challenges is to ask a consumer to change the way they access the products they love.” Convenience and affordability led the industry to single-use items and a culture of disposability. Recognizing that, Loop aims to solve the environmental issue of waste while at the same time still making it easy for shoppers to purchase and consume. “We realized that recycling and using recycled content is about trying to do the best you can with waste,” says Szaky, “but it’s not solving the foundational reason we have waste. We did a lot of reflection on that and realized that the foundational cause of garbage is disposability and single use.” Rise

| 18 | consumergoods.com 4/16/19 3:10 PM


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HALL OF FAME Q&A

Peter McGuinness Chief Marketing & Commercial Officer, Chobani

As CPG companies face a market in which more and more control is slipping into the hands of their consumers, they’d be well advised to heed the advice of management guru Peter Drucker: “The best way to predict the future is to create it.” One company, Chobani, is already doing just that, embarking on a sweeping, enterprise-wide reorganization centered on developing demand-responsive capabilities. Chobani’s revolutionary, almost inside-out approach to management is being implemented by Peter McGuinness, chief marketing & commercial officer. Over the past two years, he’s broken down interdepartmental walls and budgets while restructuring key parts of the company into a unified “Demand Department” that oversees all global demand creation, including marketing, sales, insights, product innovation, Where do you hail from? McGuinness: I grew up in a small coastal town in central New Jersey called Monmouth Beach. On one side was a bay and on the other was the ocean. Every hurricane it would be enveloped by water. My mom was a stay-at-home mother who owned several small businesses and was quite entrepreneurial in her own way. My dad worked for Burlington Industries, the big textile company that made Levi’s denim and fabric for couches and carpets. My dad came up through marketing and market research, and he spearheaded the “Crafted with Pride in the USA” program. He was ahead of his time, advocating for transparency in terms of country of [origin for] where things are made. Did you get your start in business during school? McGuinness: I went to a Christian Brothers Academy for high school, and then attended Roger Williams University in Rhode Island. I thought marketing was interesting, although

I wasn’t sure what it really meant. Like many college kids, I didn’t really know what I wanted. Every summer since high school I’d been a lifeguard, but in my junior year, a light went on, and I ended up interning at McCann Erickson in their accounting department. It was an utterly thankless job, inputting media invoices into accounts payables on what was called “The Donovan System.” You might input 1,000 spots off an invoice from NBC or ABC – and these were for massive clients like Sony and Coca-Cola – and if just one item was discrepant, the whole invoice was discredited. It was two summers of torture. Did you learn the fundamentals of the business doing that? McGuinness: Yes. I learned that I did not want to be in the accounting department. But it was a foot in the door, and upon graduation I thought I was a shoo-in at McCann. So, I showed up, explained that I wanted to be in account management, but their head of HR said, “Nope. At McCann you

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creative and commercial finance. The goal is relatively simple, he says: “Put our dollars where we are going to get the most demand.” McGuinness’s willingness to “create a future” for Chobani is one of many reasons he was selected this year to be inducted into the Path to Purchase Institute’s Hall of Fame. On May 16, McGuinness – along with Jody Kalmbach, vice president, digital experience, The Kroger Co.; and April Carlisle, VP, shopper marketing, CocaCola Co. – will be honored at the 26th Hall of Fame induction ceremony, held in conjunction with the Shopper Marketing Effie Celebration in Fort Lauderdale, Florida. Both events are part of the Path to Purchase Summit. In March, Bill Schober and Peter Breen interviewed McGuinness at Chobani’s offices in New York City.

need an MBA for that.” They instead sent me to the local media buying department (which was as low as accounting) and made me an assistant media buyer in local broadcast, which was a real eye opener. But you went on to become the youngest VP, SVP and EVP in the agency’s history, correct? McGuinness: I was able to get into the McCann training program. There was a team competition, and I’d been made the media person on a crossfunctional team, developing campaigns and presenting to the global executive team. When our team won, the CEO pointed at me and said, “Let’s get this kid into account management.” And off I went. I was put into account management, and even though HR’s guidelines said I was supposed to be an assistant for two years, in six months I was promoted to account executive. It went on like that: I was 25 when I made VP and was lucky enough to go on from there. Never judge a book by its cover, give people the benefit of the doubt

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HALL OF FAME Q&A Peter McGuinness, Chief Marketing & Commercial Officer, Chobani

and take chances on them, and you’ll be surprised by what they can achieve. You had quite a career in advertising ... McGuinness: It was a wild ride through McCann. I went overseas and ran Europe Middle East Africa (EMEA), which involved something like 38 offices, and that was a wonderful learning experience. Then I came back and in 2008 became CEO of Gotham, which was where we pitched the Chobani account and met Hamdi Ulukaya, its founder. I later became CEO of DDB Chicago.

Whether you’re selling a customer on shelf space or developing ads or creating packaging or point of sale, we’re all selling.

You didn’t initially win that first Chobani pitch, correct? McGuinness: No, we didn’t, and that was very humbling. We nailed the pitch, but Chobani was much smaller back then, although growing like a hockey stick. I think they thought we were too big, too polished, and maybe had a few too many Type A’s in the room. But we got a call six months later saying, “Hey, we made a mistake. We’ll give you the account, no pitch.” Was it clear back then that Chobani’s culture was different? McGuinness: Even from “Cup One” — when they’d just started — they set up a foundation and gave money to charity. From “Cup One,” they made it all natural, and they didn’t have to. They were a values belief-based company that did the right things regardless from the very beginning, and that always impressed me. How did you find your way to Chobani as an executive? McGuinness: Hamdi had talked to me about coming over several years ago, but at the time they were growing triple digits a year and just trying to keep up with demand. But then the category became congested. In the last few years, 800 new SKUs have appeared on the shelf. A lot of this is cannibalizing and there’s a lot of irrational pricing as well. Some of the big, traditional CPG companies are doing the whole “Greek washing” thing: Greek pretzels, Greek facials … all sorts of Greek stuff, but

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cheaply and made in a crappy way. It’s just the whole mess of big food. (That’s quotable, by the way.) Chobani meanwhile was expanding, so about five and a half years ago, Hamdi asked me to come over. Why did you say yes? McGuinness: I was 22 years into advertising and being an agency CEO had become less challenging and more of a financial exercise. And Chobani itself felt like an agency, with a culture that celebrates creativity. Ironically, I joined Chobani in the middle of an agency review — PR, shopper, all of it — although for the past year and a half, we’ve been doing 85%-90% of everything in-house. Why bring all of your agency work in-house? McGuinness: We wanted to see if we could move faster and have less of a learning curve. About six months ago, we did the same thing with retail execution, creating our own in-house team instead of brokering it out. And that takes us to one of your signature initiatives: the “Demand Department.” McGuinness: As forward leaning as Chobani was, we still had a legacy structure of separate sales and marketing departments. On a good day in pretty much any organization, marketing and sales quietly hate each other, and on bad days, almost fight. It’s just silly. Well, whether you’re selling a customer on shelf space or developing ads or creating packaging or point of sale, we’re all selling. If everyone sells, why have 17 different departments all reporting to different people? We collapsed those walls and reorganized category management, sales, research, marketing, advertising, graphic design, packaging, corporate affairs, insights, PR — all of it — into one group called the Demand Department. We have one big budget and we put our dollars where we are going to get the most demand. How did employees react to such radical change? McGuinness: We lost the old head of sales, and there were some other people,

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RETAIL INTELLIGENCE FOR THE STRATEGIC ENTERPRISE

The Chobani family extends its heartfelt congratulations to

Peter McGuinness on his induction into the Path to Purchase Institute’s Hall of Fame! Thank you for your tireless commitment to making delicious, natural, nutritious food more readily available to people nationwide. Your contributions to our company and the food industry as a whole are unparalleled.

©2019 Chobani, LLC

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HALL OF FAME Q&A Peter McGuinness, Chief Marketing & Commercial Officer, Chobani

They were a values belief-based company that did the right things regardless from the very beginning, and that always impressed me.

but you know what? With all the fiefdoms and silos and different budgets, no one really loved it. It was just the way it always was. And the good news with Chobani was that we didn’t have 40, 50, 60 years of legacy fiefdoms to deal with, which really would’ve been traumatic. How long did it take? McGuinness: We did it quickly — roughly six months, but we’ve been evolving and perfecting it ever since. So far, so good. What are the benefits? McGuinness: I can bring groups of people to key retail partners to do truly creative presentations. We’ll bring people from insights, marketing, R&D and even corporate affairs and our foundation, because it’s all a part of our brand. We want to let customers see everything there is to know about Chobani. When you just send a single salesperson, they have to try to interpret back everything. And while I love salespeople, their chronic complaint is that they don’t understand the new products, or the ads, or the marketing campaigns because “we’re always brought in late to

the process.” Well, now we are all in the Demand Department together, and it’s a big, hot mess — but it’s a fun mess. Now we show them food early, and yes, they still have their complaints. But they’re more involved upfront now and really understand what’s happening. And they give great feedback, especially on our retail toolkits and point-of-sale, because salespeople are smart. Are you concerned about too many cooks in the kitchen? McGuinness: We still move fast on the food, but we’re incorporating more market science and feedback from our customers and consumers. Hamdi is still signing off on every cup and bottle that goes out of the building. But I feel that the info we put in front of him is just better informed now. The other massive benefit — and it didn’t dawn on me initially — is the sense of pride. When we launch something now, the pride is off the charts. I’m not going to tell you it isn’t a little messier to have 16 departments involved and navigate all those opinions. But man, oh man, the group is so much more motivated.

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The third byproduct is knowledge transfer. I’ve heard marketing people say, “I finally understand how hard it is to sell.” Our salespeople now appreciate just how hard it is to design something. And we no longer create beautiful but unrealistic stuff because our designers didn’t understand commercial reality. Everybody is smarter, more sympathetic and empathetic. Were you emulating any other systems or companies? McGuinness: There were no models or consultants. I just knew that, after working here for almost five years, we were too siloed. Here we were doing all this exciting, modern, cutting-edge work in community relations, food development, universal wellness, refugees and the charitable foundation, and yet structurally, we were just like everybody else. It didn’t make any sense. It’s important to have your own playbook that makes sense. Why bring retail execution in-house? McGuinness: It’s critical. We have 33,000 doors and stores out there, and we were reliant on all these brokers. This is not an indictment on brokers. We still use brokers. But what if we in-housed a massive chunk of it? Wouldn’t Chobani employees, who were in the Demand Department and understood every ad, every SKU, and how products are made, be more effective with dairy managers, buyers and the consumers, especially if they are bonus based on demand creation? It’s just human nature. We have 70 in-house retail execution people now, and we are climbing to about 120 by July. Also, on the first Monday of every month, we hold a companywide “Retail Day.” Our latest retail tool kit — full of wobblers, violators, IRCs, everything — is sent to every single person in the company, including all the plant workers, who then go out and hit the stores. We photograph all of it and have a massive internal communication. People bring their kids and it’s awesome, galvanizing and inspiring.

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HALL OF FAME Q&A Peter McGuinness, Chief Marketing & Commercial Officer, Chobani

I’m not going to tell you it isn’t a little messier to have 16 departments involved. … But, man, oh man, the group is so much more motivated. Peter McGuinness Title: Chief Marketing & Commercial Officer Company: Chobani Years in industry: 27 Years with current company: 5 Career path: McCann Worldgroup, EVP, Worldwide Account Director (1992–2005); Momentum Worldwide, Regional President for Europe, Middle East & Africa (2005– 2008); Gotham Inc., Chairman & CEO (2008–2011); DDB Chicago, President & CEO (2011–2013); Chobani, Chief Marketing and Commercial Officer (2013–present) Education: Roger Williams University, bachelor’s in marketing and economics Community/industry activity: Ad Council, AAAA, Advertising Education Foundation (AEF), the Mobile Marketing Association (MMA), and the CMO Council of North America. He is a member of the Advertising Hall of Achievement.

Hall of Fame Induction

When: 6:30 p.m., May 16 Where: Fort Lauderdale, Florida More info: Path2PurchaseSummit.com

Ad agency veterans aren’t exactly known for being passionate about merchandising. What happened? McGuinness: Right now, the average yogurt shelf is cold, confusing and congested with 475 SKUs. It’s one of the worst places in the whole store. If we can make it beautiful and help with navigation, it benefits the category and it benefits us too. So yes, we’ll go in and fill voids and fix out of stocks and all the technical stuff, but then I want to make that shelf look beautiful. I want that shelf animated. I want it to look like a festival. When a shopper suddenly sees that one brand takes the time to do beautiful communication, how can they not be impressed? I don’t need to overintellectualize this: Of course it works. And I’m proud that we are doing it. It’s still early with Demand, but are there any major learnings yet? McGuinness: We’re doing less — although still a good amount — of what I’d call traditional advertising up the funnel. But our budget has shifted down the funnel to three components: point-of-sale, shopper and retail execution. It’s warfare out there, and I think that battle is won or lost at the shelf. When I do industry keynotes, I say that everybody has to stop with all the shiny object stuff. I’m proud to do television because it works. We still do digital, social and DMP [data management platforms], but at one point we all went so heavy on DMP that we “efficiency’d” ourselves to death. We didn’t have any up-funnel awareness and trial. So yes, I want to increase yogurt household penetration, but the reality is yogurt household penetration hasn’t moved much in five years. And yes, I want to do that as a category leader, but that’s a massive investment and it’s only going to happen gradually over time. I’m not going to stop doing advertising, but I am also going to spend more money closer to purchase. We just see the ROI. The data is clearer down the funnel, and closer to the purchase, and more inextricably linked to the result. When it comes to shopper and shelf, we do engage great outside agencies like Momentum.

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How does the Demand Department team interact with other areas of the company? McGuinness: We basically have two groups at Chobani: Supply and Demand. In the past, we were throwing some new product ideas to Supply that were not fully thought through, making it easy for them to say no. But now that we have NPD [New Product Development] in Demand, and the key supply chain folks are in the process alongside sales, forecasting and commercial finance, the opportunities are better baked and our success rate is higher. Well then, let’s talk about Chobani’s values. McGuinness: To be relevant, you must stand for more than just the product you make. Consumers expect you to make a good product. But when you are transparent and have a point of view, you’re also not going to be beloved by everybody. And that’s OK, too. Now I grant you, it’s easier when you have a founder like Hamdi. He was told he couldn’t make company shares available to every employee, but after two years of lawyering, he figured out a way. That story went up on NBC. com and had 54 million views because people need to hear something good. When we added paid parental leave for men, women, foster, natural and adopt, we just put it out there and it organically took hold because people want to hear something good. And when we sued certain people who defamed us [about Chobani’s hiring practices], it became an antibullying story. It’s all part of modern demand creation and modern brand building. When we agreed to a “60 Minutes” interview a year and a half ago, we knew it was a risk because we knew they’d talk about our refugee work. They’ve since rerun it three or four times. We put paid media around that earned media and grew a point and a half of share. That’s modern brand building. You should use everything you have to create differentiation, brand preference and brand love. Any final thoughts? McGuinness: If what you are doing is genuine, truly special and germane to the brand, you should talk about it. It’s a delicate, delicate dance. Just make sure it’s authentic and you’ll be on the right side of the consumer. Rise

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CROSS-FUNCTIONAL COLLABORATION

COLLABORATE TO SURVIVE CPG companies are turning away from the old silo mentality – perhaps just in time BY M I C H A E L A P P L E B AU M

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May 2019

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global chief information officer of Smithfield Foods, has since morphed into a complete organizational overhaul — including a new COO, Dennis Organ, appointed in January 2019 — and a new communications system to share ideas and information across the entire company.

SALES

In 2015, two years after being acquired by Chinese food producer WH Group, Smithfield Foods introduced a new centralized operating model dubbed the “One Smithfield” concept. What began as a way to “capitalize on our size to better support our brands and gain supply chain efficiencies,” says Julia Anderson,

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COLLABORATE TO SURVIVE

It’s been a huge change. The new structure affords us a much more streamlined way to collaborate and make decisions. JULIA ANDERSON, SMITHFIELD FOODS

“We implemented a greenfield ERP (enterprise resource planning) program, and we built an enterprise project management office to track all growth initiatives,” recalls Anderson. “Now we’ve added an idea tracker, a collaboration site that allows us to crosscollaborate functions with tools and share ideas and solutions with universities, think tanks, startups, agencies and trusted partners. It’s an opt-in system. It began in partnership with IT and growth and emerging business, and then we opened it up to supply chain, manufacturing, engineering and the CMO office. We now have plans to expose it to the entire enterprise.” Here’s how the system works: “Let’s say we have a team going out to work with our partners in Silicon Valley to look for a startup opportunity, and we have business outcomes in the supply chain around sustainability or in marketing around engaging consumers through our website,” Anderson explains. “We’ll be able to publish that out and we’ll have people able to attend meetings or be a part of the deal flow. It allows us to get the right personnel in the room and take decisive action on next steps.” She adds: “It’s been a huge change. The new structure affords us a much more streamlined way to collaborate and make decisions.”

CULTURE IS THE KEY Smithfield Foods’ evolution illustrates how much work goes into transforming a traditional CPG company into a truly collaborative environment. In theory, cross-functional collaboration may seem like a simple idea: encourage teams from multiple departments and functions to work together on mutual business objectives. In reality, it is a lot more difficult. “It is much easier said than done. It impacts budgets and agencies and internal teams,” says Debbie Zefting, director of shopper strategy and engagement at Barilla America. “I think most companies know this needs to happen, and conversations are starting, but you still see overlaps or white space around the issue.” New tools and formal

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restructuring certainly can help, but they are only part of the solution, says Anderson. “Technology is an enabler. Successful companies have built a collaborative mindset into their culture,” she says. “This can be difficult for many CPG companies because it is not natural to work on shared business outcomes as a team.” These comments speak to the heart of a persistent problem — “breaking down the silos” — that CPG marketers have been debating for years. So why hasn’t more progress been made before now? Some say it comes down to paralysis and fear, which is understandable: Marketers are under constant pressure to prove ROI in order to justify spending, if not their own roles. Perhaps as a result, many marketers are reluctant to allow other teams and functions, both inside and outside the marketing department, to take credit for their successes and share in ownership of the brand. Whether this attitude stems from fear or outright ego, experts say it is a surefire way to dampen collaboration and impede progress and innovation. “Too many marketers think of collaborating as, ‘I’m going to get a bunch of people to do what I want them to do,’ versus, ‘I’m going to get the smartest people into the room to become part of a multidisciplinary growth team that’s laser focused on the consumer,’” says Heidi Froseth, a former CPG marketer and veteran agency executive in the shopper space. “It takes courage to collaborate. It amounts to saying that

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COLLABORATE TO SURVIVE

It is much easier said than done. It impacts budgets and agencies and internal teams. DEBBIE ZEFTING, BARILLA AMERICA

you don’t have all the answers.” It is not so much the silos themselves that are the problem, adds Froseth, but rather the ways in which marketers allow the structures to thwart collaboration and original thinking. “Existing silos could work if the organization has key horizontals working across these initiatives. You don’t necessarily need each discipline on each team. Rather, it is often episodic and you need to bring in the right expert for the right project.” In fairness, committing to a departure from the entrenched silo approach is a lot less complicated for smaller and more nimble companies than the likes of Procter & Gamble. Just ask Peter McGuinness, chief marketing officer at Chobani. (See “Hall of Fame Q&A” on page 20.) Less than two years ago, Chobani united 16 previously distinct departments under the “Demand Creation” banner. Today, all sales and marketing departments, along with product development and insights, are part of the demand creation team that report up to McGuinness. McGuinness acknowledges that the realignment was easier for Chobani to do because, as a relatively young company, “we didn’t have 40 years of legacy systems” to deal with. Even so, it has been a complex undertaking. The planning process and regular cross-functional meetings, he says, are “a big hot mess, but it’s a fun mess.” He adds: “The teams understand each other; there is sympathy and empathy across departments. The knowledge transfer is also great. Everyone understands the business.”

A MATTER OF SURVIVAL CPG companies can no longer get away with merely paying lip service to collaboration. The issue is now a matter of survival. Multiple existential threats and an ever-changing consumer are forcing companies to rethink the way they operate – or else, as evidenced by the recent struggles of major food companies like Campbell Soup and Kraft Heinz, suffer the consequences. Not only are traditional packaged goods companies trying to combat dwindling product/brand relevance, they are doing so while

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largely still relying on a business model that can no longer address all of the ways in which today’s consumers engage with brands, shop and make a purchase. “Most companies are still set up in traditional organizational teams. However, many traditional marketing tools are now becoming shoppable and people are coming in and out of shopping experiences,” notes Zefting. “As a marketing team, we need to think about the experience we want our consumers to have and then work toward that goal, regardless of organizational silos.” Silos exist in many forms, yet data silos are arguably the most corrosive to traditional CPG companies. Channel-agnostic buying and selling has accelerated the need for a singular view of the consumer. Thus, data and insight sharing must extend throughout the organization. It is critical for sales, marketing and functions down the supply chain to be working off the same set of data in order to translate those “shoppable” moments into concrete behaviors that lead to a purchase. “With unprecedented choices, today’s consumer is clearly now experiencing a path to purchase that hasn’t been linear in a while,” says Sri Rajagopalan, vice president of digital new business models at Johnson & Johnson. “This means when a product is engaging with a consumer, that moment may be a complex mix of a product introduction or reinforcement of value and yet also bring on the opportunity for the consumer to complete the purchase transaction.”

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COLLABORATE TO SURVIVE

[Our] teams understand each other; there is sympathy and empathy across departments. The knowledge transfer is also great. Everyone understands the business.

Because so many new products are introduced and sold through channels that operate beyond the traditional store, says Rajagopalan, sales and marketing can longer exist as independent functions. “Social media vehicles have given the wonderful experiences of one-to-one communication with brands and e-commerce websites have created opportunities such as ‘answered questions.’ Then we have direct to consumer brands that communicate, introduce, engage, connect, sell, sample and encourage user-generated content. This is marketing and selling all in one,” he says. “As the industry evolves and digital penetration increases, I believe commercial roles will be a blend and will need to understand both brand equity and consumer efficacy, as well as be able to conduct displays, win search (SEO/SEM) and deliver value to the consumer in what they sell.”

LOOKING AHEAD For CPG marketers looking to the future, e-commerce is perhaps the incentive

PETER MCGUINNESS, CHOBANI

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they need to forge a deeper culture of collaboration. The share of CPG sales derived from e-commerce is expected to double to 10% in the next three years, according to research firm Statista. In the age of Amazon, companies need to establish better cooperation, data sharing and strategic alignment between their digital and brickand-mortar retail sales operations. “In most companies that I am aware of, the shopper marketing teams work on the pure play e-commerce customers,” notes Zefting. “However, Amazon has such an influence on non-Amazon sales, we need to have the conversation on when they are a marketing asset and when they are a customer.” While shopper marketing has fostered a fair amount of interplay between brand marketers and retail category managers, sales, marketing and merchandising teams, this idea of working as a single coordinated unit has not necessarily spilled over into the broader organization. But that may be changing. “I see more cross-functional boards that work together — especially on e-commerce — across supply chain, packaging, logistics, finance, marketing and selling,” notes Rajagopalan. “I’ve also observed a trend where dedicated e-commerce leaders spearhead these efforts at many organizations, including retailers. When these functions work together, e-commerce becomes part of the strategic plan that looks forward a few years, and when execution happens, it delivers upon set goals.” So who will drive further change? According to Rajagopalan, brand marketers have a direct role to play in the industry’s push toward greater collaboration. “Since traditional marketing roles are the primary communicators for brands, it is important they adapt and understand this paradigm shift.” Others say that change must come from the top. “Senior leadership should have a vision for alignment on what their big bets are, and they should put in place a multidisciplinary project team that’s responsible for delivering that big bet,” says Froseth. Anderson adds: “I do think brand managers can make a difference. Think of ways to do things differently using data. The whole CPG organization really needs to think like a startup.” Rise

| 34 | consumergoods.com 4/16/19 3:18 PM


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GLOBAL WATCH

PERSPECTIVE ON THE PATH TO PURCHASE FROM AROUND

THE WORLD BY E R I K A F LYN N

LOCATION: SHANGHAI, CHINA

Brian Chau, General Manager, E-Commerce, China, The Coca-Cola Co. Experience in market: More than 20 years My job: “I lead the fastest growing online B2C business for the Coca-Cola system in China.” Shopper behavior: “The shopping experience in China has been fundamentally digitalized over the last few years, which is well-reflected in the term ‘New Retail’ first introduced by Jack Ma of Alibaba. Central to this is the seamless integration and interaction of the online and offline shopping experience, enabled by the highly connected digital ecosystems and big data enablement. In the beverage category, whereas the path to purchase would only sit within a brick-and-mortar store location in the old days, it is now extended far beyond to multiple digital/online touchpoints and devices.” External technologies: “The pervasive digital payment ecosystem is

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definitely the one impacting the path to purchase the most in China, since it enables a highly seamless and convenient shopping experience.” Collaboration: “Digital partners in China are generally very willing to collaborate with brands. For example, we have been working with our partners on big data mining initiatives to help us in developing product innovations, digital activations and even route-to-market optimization.” Successful activity: “For the 2018 and 2019 Chinese New Year, we have collaborated with the Alipay/Alibaba ecosystem to transform a traditional Chinese ritual (giving red pockets) to a fully integrated digital online shopper marketing experience, leveraging our CocaCola Chinese New Year packaging as an invitation to participate and as a gamification media to deeply engage with consumers.” Keeps you up at night: “Whether we have a robust future-state digital/online commerce capability and enough bench strength in place to keep up with the fastchanging digital landscape in China.” E-commerce: “E-commerce is already highly developed in this market, given China is already the No. 1 e-commerce market globally. Moving forward as the shopping journey becomes more digitalized and connected, it’s never good enough to only consider e-commerce in China, without covering the omnichannel implications in the marketplace.”

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LOCATION: SAO PAULO, BRAZIL

Roberto Torres, Perfect Stores & Hot Zone Senior Manager, Mondelez International

Experience in market: More than 15 years My job: “My area is responsible for the 5P’s strategy definition for all of our categories in every retail environment where we have our products. We define Perfect Stores targets, assess the biggest ‘closing the gaps’ opportunities, convert insights into action, and provide capabilities to our team and customers in order to influence and leverage superior execution at the point-of-sale.” Shopper behavior: “Although shoppers vary by category, a typical shopper in our market is a woman (nearly 70%) who buys twice a month and is within middle income. Shopper behavior has dramatically changed in three significant ways: 1) they are being more multi-retail environment, jumping from five to eight retail environments in the last five years; 2) they are more tech-driven, finding the best deals using smartphones and even choosing which store to go to based on what they find on retail apps; and 3) likely to grow in the future is the use of services such as Rappi, which would reduce the number of ‘real’ shoppers in the

May 2019

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store, impacting our impulse-driven categories’ sales.” The store-within-a-store trend: “We could see industry leaders segmenting their categories’ products according to decision tree hierarchies and then creating a more pleasant environment through fancy POS materials. We have seen this with wine, coffee, health & beauty and craft beers. We’ve made our own attempts, such as segmenting chocolates by consumption occasion (for me, for us, for them). This had promising results in the pilot (the growth was two times faster) and has been rolled to more than 300 stores. All of these initiatives are to create a more pleasant shopping trip and to reduce shopper leakage to other retail environments.” External technologies: “Retail apps are really the ones having the biggest impact on the path to purchase. Shoppers choose what and each brand to buy before being at the point-of-sale based on their promotions. Sometimes, they even choose which retail store to visit.” Collaboration: “It depends on the initiative. In general, [retailers] are collaborative. There are many examples of collaborative initiatives, such as category management, exclusive shopper campaigns, joint business plans, etc. However, since the country has been in a recession for a few years now, customers are becoming more tactical and a bit less open to initiatives that do not have a quick return on results.” Successful activity: “Our biscuits team put together a strong campaign behind Oreo. To be eligible, the shopper had to buy Oreo products and subscribe on a website to participate in a contest to win trips to South Africa and a variety of other prizes weekly. To execute this campaign there was a POS execution incentive, artistic tabloids (leaflets), digital communications and PR media. The full communication plan enabled superior execution at the POS, leading to an increase in sales, record market share, better distribution and more extra spaces during the campaign period. All of this with a positive ROI (+1.7%).” Keeps you up at night: “Bringing some innovative analysis/vision that might create a WOW effect on my peers.” E-commerce: “It has developed significantly, with most larger retailers having their operations. All of them started with electronics and appliances, but now also have grocery. However, e-commerce still represents too little in our categories (less than 2%). The main challenge here is finding ways of leveraging sales online for products that are impulse-driven.”

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LOCATION: SINGAPORE

Chitkala Nishandar, Marketing Operations Lead, Asia Pacific, Consumer Business, 3M

Experience in market: 13 years in Asia My job: “I am responsible for planning and ensuring the right execution of regional integrated brand communication programs, online and offline, in the Asia-Pacific region. I also lead the insights and planning function for the region for our consumer business.” The path to purchase: “As data becomes cheaper in Asia, the use of mobile phones to search, view content and transact purchases has become commonplace. It varies vastly across the region, though. For higher value products, there’s more pre-search involved; even for lower-end products that offer innovation/differentiation, online pre-search is becoming increasingly relevant. Having a strong digital footprint is important, as well as word of mouth. This has changed in a big way over recent times.” Shopping/buying stage: “This is where comparisons become important. There is more fluidity offline to online and vice versa in Asia. It’s important for retailers to work with their vendors/manufacturers on building a strong omnichannel strategy. As the cost of having promoters instore becomes more constraining, we need to rely on more electronic in-store media or online to support marketing and

May 2019

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other demand-generation activities. When consumers are buying, it’s important to have retargeting, improve ratings and reviews, have relevant and updated content, and build ongoing promotional plans.” Collaboration: “Retailers are usually quite collaborative and looking for win-win solutions. Increasingly, they are aware that they need to partner with manufacturers to build programs that are mutually beneficial and will bring in footfalls, increasing the shopper’s overall basket. The ability of the manufacturer to leverage insights data and POS data to build strategic recommendations is critical. We used simulated planograms to model expected outcomes on sales impact in Australia. The learnings not only helped our customer adjust existing shelf plans, but also helped other country teams when they used the information to input into their plans and share with their local partners.” Successful activity: “To grow a mature home improvement solutions business in Taiwan, we developed a comprehensive learnings plan through shopper insights. Working with our retail partners, we conducted in-store shopper observations and intercepts to build an understanding of the shopper behavior in-store, which helped us build a joint plan on planogram changes to increase shoppability and ease of navigation at the shelf. Understanding the shopper needs, persona and touchpoints also helped to develop a more targeted strategy to accelerate sales with the right portfolio, resulting in a significant growth in the business with our customer.” Keeps you up at night: “Constantly ensuring we have the right programs along the entire shopper journey to support the excellent and innovative product offerings from the 3M stable; ensuring we have a data-driven media and communication strategy; and keeping pace with the high speed of transformation in Asia Pacific – both in terms of consumers and customers.” E-commerce: “E-commerce development varies widely across Asia Pacific, with China being the most developed in terms of size and growth as well as the evolution in technologies that support its growth, followed by Korea. That includes agility in integrated marketing across digital touchpoints and the utilization of big data. The seamless shopper journey across communication touchpoints to the digital marketplace and digital payment options has enabled a dramatic transformation in how consumers access a wide spectrum of choices.”

| 40 | consumergoods.com 4/16/19 3:33 PM


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LOCATION: MEXICO CITY

Dennise Gaona, Go to Market and Shopper Sparkling Director, Mexico Business Unit, The Coca-Cola Co.

LOCATION: PANAMA

Sebastian Posteraro, BEO (Business Executive Officer), Nestle Purina Experience in market: 1 year in Panama; 20 years with the company in various countries including Argentina, Columbia, Mexico, Chile and Peru. My job: “To ensure that strategic business priorities are achieved, lead change and reach business goals over the next four years.” The path to purchase: “The channels of commercialization are evolving rapidly, and with it retailers are designing simpler, more direct solutions, looking for the highest impact in stores experientially. The consumers of today demand so much that they won’t accept errors or lack of information. … If they do not have what they went in to look for they could change brands.” Shopper behavior: “The shopper has various options and information at hand. Price always has relevance at the time of the decision, but it must be accompanied with ‘something more …’ such as products that are increasingly healthy, natural and that also contribute to global trends with packaging that, for example, [is environmentally friendly] and that not only looks to take care of the person and their family but also the planet.” Internal/external technologies: “The technologies that are most impactful definitely are the digital platforms and comparison websites. The conventional path to purchase, in my opinion tends to disappear or to be minimized.” Collaboration: “The collaboration of retailers will depend on how predisposed this industry is to adapt to its own strategies. If the industry is willing to do so, retailers would become very cooperative, insofar as they do not tend to close. For example, less and less retailers value category advisors and mediumterm joint strategies.” Successful activity: “We have installed parks for dogs in green areas and also promoted that companies accept pets in jobs in the appropriate conditions. We believe that pets and people are better together, contributing to recreation, socialization, less stress and a healthy life, [and we have communicated] this in social media campaigns.” Keeps you up at night: “Ensuring product quality for consumers and pets, and developing people with potential who believe in organizational values and culture.” E-commerce: “We’re still underdeveloped. There’s a long way to go, at least in the category I work in.”

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Experience in market: 17-plus years My job: “To decode brand strategies into commercial and trade marketing integral solutions across channels to develop a proper shopper journey and ensure wins at the point-of-sale.” The path to purchase: “We have an online and offline path that allows us to provide shoppers what they want, while creating a strategy driven by our mission. It all starts in the pre-purchase, creating awareness for our target. During the purchase we ensure the proper shopper journey in each channel, offering the shopper different product choices. At the end, we close the circle by developing experiences for our consumers. One of the biggest opportunities is connecting shoppers and consumers through technology. We need to link the online and in-store experiences, always considering the consumer at the center and during the path to purchase. It’s important to consider the consumer/shopper as one.” Shopper behavior: “The typical shopper – for one of our main channels – is often females who are more likely to have large households. Shopper omnichannel behavior and habits have been evolving through four main macro forces: technology, individuality, wellbeing and instant gratification.” Internal technologies: “Artificial intelligence and data analytics, which provide a deeper consumer/shopper understanding.” External technologies: “Technology continues to evolve at a rapid pace, allowing shoppers to connect with brands, products and other people at any time, on any device, anywhere.” Collaboration: “We have developed a collaboration process with our key customers in Mexico to maximize top initiatives at the point-of-sale. It’s important to mention that customers are requesting integral solutions that enable category growth not only on the transactional side, but also enabling innovative experiences like digital platforms that allow us to connect and increase shopper traffic to the stores. An example of this is our #BeSanta campaign that was developed and executed with one of our largest customers. The Integral Communication Plan included 17,900 activated stores, an exclusive can edition and customer collaboration through their own digital campaign.” Keeps you up at night: “In a dynamic market environment, I always think of how to reinvent and offer an integrated consumercentric shopper journey.” E-commerce: “It’s still in an early stage in Mexico, due to the low level of banking among the population. However, the most advanced sectors are the food and retail aggregators. In the near future, we expect that our sector will reach the financial digital solutions that Brazil has.” Rise

| 42 | consumergoods.com 4/16/19 3:34 PM


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ENTERPRISE EXCELLENCE

STANDOUT SMALL BRANDS

A pat on the back to 24 upstarts making unique marks on the evolving retail marketplace forecast from IDC Manufacturing Insights that’s been circulating through the consumer products industry sounds as much like a warning as a prediction: Small brands are going to steal 10 to 15 share points from larger, traditional companies over the next few years. Why? Well, because they can. The barriers to entry that for decades made bringing a new brand to market a lengthy, arduous task – the need to gain widespread distribution and fund mass media advertising, to name two of the bigger ones – have largely disappeared, thanks primarily to the digital tools that make directto-consumer communication possible (and really, really inexpensive). To recognize this trend, we decided to provide this brief overview of 24 brands that currently are making names for themselves – literally and figuratively – across the industry. While many of these brands are digital natives, few are online-only. And the ones

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who are “pure plays” likely won’t remain that way for much longer: Not only do most upstarts ultimately learn that some level of retail distribution is critical for scaling the business, but many leading retailers (Target chief among them) are now actively sourcing from the digitally native ranks as a way to differentiate their in-store inventory and attract younger shoppers. There’s also a good chance that some of these brands won’t be considered upstarts much longer because they could make pretty good acquisition targets for traditional companies, many of which know that the fastest way to regain lost market share is to buy whoever stole it. Without further ado, we hereby present our list of “Standout Small Brands,” the ankle-biters who are grabbing headlines and sales away from traditional companies, but who also might be able to teach their more-established competitors a few things about going to market in the consumer-centric era.

| 44 | consumergoods.com 4/16/19 3:41 PM


Brand/Company Name: AdoreMe Year Launched: 2012 Founder: Morgan Herman-Waiche AdoreMe uses machine learning algorithms to create a personal showroom of lingerie, sleepwear and swimwear encompassing a customer’s style, favorite color palette as well as best shapes and fits. The company offers a subscription service and a “pay as you go” model, has developed partnerships with department stores Nordstrom and Lord & Taylor, and last year began opening its own brick-and-mortar storefronts. The digital-native brand’s stores boast smart fitting rooms outfitted with digital displays that employ RFID tags and IoT to show product details and let shoppers request different garments.

Brand/Company Name: Birchbox Year Launched: 2010 Founders: Katia Beauchamp, Hayley Barna

Brand/Company Name: BarkBox Year Launched: 2012 Founders: Carly Strife, Matt Meeker, Henrik Werdelin New York-based BarkBox offers a monthly subscription service providing toys and treats to 600,000 dogs (and having served more than 2 million) in the U.S. BarkShop.com provides a curated e-commerce experience, and the company offers custom collections via its retail partner network (including Target). In 2018, BarkBox began working with software provider Oracle NetSuite for solutions across subscription, retail and e-commerce. Bark boasts more than 11 million followers across social media. “Our focus is [now] on bringing dogs and people that don’t live online into the Bark universe,” said Allison Stadd, VP of brand reach & affinity.

New York-based Birchbox is an online beauty retailer offering a monthly subscription of personalized samples. Operating in the U.S., UK, France, Spain, Belgium and Ireland, the company has more than 1 million subscribers and 2.5 active customers. Birchbox features 500 prestige brands, both mainstream and indie, in its online shop, where subscribers can buy full-size versions. The company says 50% of its subscribers shop for full-size products, and 35% of its revenue comes from sales of full-size products. The company garnered attention in late 2018 as it unveiled a partnership with Walgreens that brought dedicated Birchbox experiences to 11 stores.

Brand/Company: Coconut Bliss Year Launched: 2005 Founders: Luna Marcus, Larry Kaplowitz Coconut Bliss sells a variety of wholly organic, non-dairy frozen desserts. The company leverages social media and provides consumers with unique experiences through its Bliss Van, which travels to local events and embarks on annual road trips. Coconut Bliss champions sustainability with plant-based bio-resin polyethylene pint cup packaging, made from the husks of sugar cane. It also seeks to empower women through collaborative fundraising. Coconut Bliss products are widely available at retailers such as Kroger, Whole Foods and Albertsons Cos.

May 2019

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| 45 | consumergoods.com 4/16/19 3:44 PM


STANDOUT SMALL BRANDS

Brand Name: Gainful Company Name: Gainful Health Inc. Year Launched: 2017 Founders: Eric Wu, Jahaan Ansari Brand/Company Name: Curology Year Launched: 2014 Founders: David Lortscher, Glenn Lortscher, Nancy Satur, Kris Fredrickson San Diego-based skincare startup Curology is a direct-to-consumer company that uses web-based technology and medical professionals to individually treat acne with a customized prescription formula containing three ingredients. The company initially specialized in once-a-day creams but recently launched facial cleansers and moisturizers to offer a full skincare routine. Patients answer questions and take bare-faced pictures, then a doctor formulates a product that is mailed to their door. Curology doesn’t use algorithms or health insurance but was created by doctors to help those struggling with acne find easy and affordable treatment. According to Glossy, Curology has tripled its consumer base in each of the last two years and secured $17 million in funding.

Gainful is a personalized protein powder subscription service. Once shoppers complete a quiz on Gainful. com, an algorithm tailors a protein powder blend to their unique body types, dietary restrictions and fitness goals. Green tea extract, for example, might be added to blends for users who want to slim down to promote weight loss and prevent weight gain. An ingredient breakdown for each personalized blend is available through the website, where users also have access to a registered dietitian.

Brand Name: Forto Company: Dyla Year Launched: 2015 Founder: Neel Premkumar Neel Premkumar concocted a beverage smoother and stronger than regular coffee, then took his organic, fair-trade and cold-brewed coffee shots to market with his father-inlaw’s savings. Distribution began in U.S. military bases and last year grew to include Walmart, bringing the brand’s store count up to more than 50,000 U.S. locations. A former marketing executive for Nestle, Premkumar positioned the product to target the “all-dayer,” a consumer who values an extra 10 minutes in the day-to-day.

May 2019

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| 46 | consumergoods.com 4/16/19 3:46 PM


ML_RiseAd19_Bedtime_4f.pdf

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BEDTIME IS THE NEW BUY TIME More shoppers “buy now” before even getting out of bed

49% of consumers shop from bed while their partner snoozes alongside.* Whether they’re perusing the physical mall or tapping “Buy Now!” from beneath their 300-thread-count sheets, shoppers leave a trail of data everywhere they browse, click, and buy. And at MarketingLab, it’s our job to capture it. With a technology-based method like no other, we discover complex shopper behaviors at every point along the journey. We convert data into insights, strategies, and stellar creative so you can win with shoppers in real time. Even if it’s their bedtime.

Ready? Let’s talk. *Source: PayPal Holiday Research 2017, PayPal November 2017

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Contact Mark Lenss mark@marketinglab.com 612.329.4804

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STANDOUT SMALL BRANDS Brand/Company Name: Glamsquad Year Launched: 2014 Founders: Alexandra Wilkis Wilson, Jason Perri Glamsquad began life as an on-demand styling service, establishing a network of hair and makeup professionals who are dispatched to make house (or office or hotel) calls to meet the urgent beauty needs of women. It moved into retail last summer by partnering with CVS/pharmacy to provide services inside the drugstore chain’s new BeautyIRL store-within-a-store concept. The 500,000plus appointments Glamsquad has conducted serve as “micro-labs” for understanding consumer needs and testing products, chief executive officer Amy Schecter told ShopTalk attendees in March. That knowledge informed the launch of a self-branded haircare product line last December. “Data is our superpower,” Schecter said.

Brand: Grove Company Name: Grove Collaborative Year Launched: 2014 Founders: Stuart Landesberg, Jordan Savage, Chris Clark Grove’s mission is to “help all families create the home that reflects the best of themselves” by selling products that will be “a positive force for human and environmental health,” according to Landesberg’s LinkedIn page. The brand’s line of all-natural cleaning, beauty and personal care products is home-delivered via auto-replenishment (or single purchase), with customers given a free consultation before making their selections. Like-minded brands such as Method, Seventh Generation and Mrs. Meyers are also part of the inventory. Some packaging can be returned for recycling. Last-mile logistics provider Convey Inc. recently helped Grove improve fulfillment precision.

Brand Name: Hint Company Name: Hint Inc. Year Launched: 2005 Founder: Kara Goldin Hint began as a healthy lifestyle brand best known for its flagship unsweetened flavored water. Fast-forward 14 years, and the brand’s assortment now comprises fruit-scented sunscreen, sparkling and caffeinated water and water in kid-friendly boxes (with aluminium-free deodorants to be added soon). Working with software provider Oracle NetSuite, the company also boasts a booming direct-to-consumer business that represents 45% of Hint’s overall sales. Hint SKUs are available via DrinkHint.com and at retailers including Target.

May 2019

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WHEN YOU KNOW WHAT SHE KNOWS, THE FUTURE IS EVERYWHERE.

PREDICTIVE COMMERCE INTELLIGENCE

©2019 Mars Advertising Inc, All Rights Reserved.

SM

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STANDOUT SMALL BRANDS

Brand Names: Kiss/Joah Company Name: Kiss Products Year Launched: 1989 Founder: Sung Yong Cheng Kiss Products originated as a beauty supplier. As its products increased in popularity, the company expanded to mass distribution via Walgreens, Walmart and others. It now claims to be the world’s largest manufacturer and distributor of professional quality nail products. Kiss and sister brand Broadway Nails are available in more than 90 countries. The company’s products include nail care, nail jewelry, nail art, and manicure & pedicure tools. In 2018, Kiss brought an exclusive K-beauty line called Joah to CVS/pharmacy. The brand’s marketing efforts employ women of all complexions and ethnicities, aligning closely with the retailer’s “Beauty in Real Life” commitment.

Brand Name: Inca Kola Company Name: Continental Food and Beverage Year Launched: 1935 in Peru; 1980 in U.S. Founders: Joseph Robinson Lindley (Peru); Luis Jardines (U.S.) Developed long ago in Peru, Inca Cola made its way to the U.S. in 1980. Coca-Cola Co. purchased the Inca Kola trademark from Continental Food and Beverage in 1999, then licensed the rights back to CF&B, which is the exclusive bottler in the U.S. Despite a declining trend in the sugar-sweetened carbonated soft drink category, CF&B has grown the Inca Kola brand through a marketing strategy that utilizes relationships with local chambers of commerce to create brand awareness. The company has implemented an automated sales-delivery-warehousing system that allows orders to be fulfilled in 24 hours.

Brand/Company Name: Myro Year Launched: 2018 Founder: Greg Laptevsky Myro, which amassed a pre-launch 16,000-person waitlist, is a plant-powered deodorant available as a subscription or one-time bulk purchase via MyMyro.com. Free from aluminum, parabens, phthalates, baking soda, artificial colors and any synthetic fragrance, the brand boasts five scents that are available through pods that are fully recyclable and use about 50% less plastic than typical deodorant packaging. The pods work in tandem with branded reusable cases to further reduce plastic waste.

May 2019

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Brand/Company Name: Prose Year Launched: 2018 Founders: Arnaud Plas, Catherine Taurin, Paul Michaux, Nicolas Mussat Using machine learning to make personalized hair care accessible, Prose sells custom-formulated hair products catering to specific needs and goals, even taking into account pollution/ humidity levels and water quality based on a customer’s location. Shoppers place one-time or subscription custom orders via Prose. com that are mixed in the company’s New York lab. Its founders created the business’ data-driven and ingredient-centric model to solve for customer pain points unearthed while working for companies such as P&G and L’Oreal.

Brand/Company: Revolve Year Launched: 2003 Founders: Michael Mente, Mike Karanikolas The Los Angeles-based e-commerce apparel business is known for its high-profile influencer activations, but the data prowess of its founders also made it successful. The company works with emerging as well as celebrity designers and analyzes the types of apparel shoppers want based on online sales. It also keeps in close contact with its buyers through automated notifications, as well as a tagging system that logs the individual attributes of the clothing it sells. The company manufacturers and designs several of its own brands to stay on and ahead of trends.

Brand: Salty Britches Company: AWC Tuck Co. Year Launched: 2017 Founder: Amy Tucker

Brand/Company Name: Rael Year Launched: 2017 Founders: Aness An, Binna Won, Yanghee Paik The founders created Rael to offer healthy alternatives to traditional feminine care products that are full of toxic chemicals. Rael’s product line includes organic cotton pads and pantyliners (both No. 1 Amazon Best Sellers in their respective categories), biodegradable cardboard and nonapplicator tampons, as well as an assortment of facial sheet masks and acne healing patches to help alleviate hormonal skin issues that occur during menstruation. Having recently raised $17.5 million in a Series A funding round, the company plans to grow its direct-to-consumer site, GetRael.com, and explore partnerships with major brick-and-mortar retailers. Several products made their way into Target in April.

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Salty Britches was borne out of a need to find relief for the irritated, ocean-chafed skin of founder Amy Tucker’s son. She developed an ointment that is non-GMO and preservative-free. The company then expanded to offer another seasonal product for winter skin relief. The company will soon offer a third product — an all-season skin barrier ointment — on the Salty Britches website. Tucker has utilized the RangeMe product sourcing platform to discover service providers and help bring the items to market.

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STANDOUT SMALL BRANDS

Brand: Spindrift Company: Spindrift Beverage Co. Year Launched: 2010 Founder: Bill Creelman

Brand/Company Name: Seapoint Farms Year Launched: 1996 Founders: Laura Cross, Kevin Cross Southern California-based Seapoint Farms is an importer, manufacturer and seller of edamame products and snacks, including frozen or dry roasted edamame, fruit and nut blends, seaweed snacks and most recently edamame-based rice and pasta products. According to its website, Seapoint Farms was the first American company to bring edamame into U.S. supermarkets and health food stores. In 1999, after the FDA concluded that foods with soy protein may reduce the risk of heart disease, Seapoint Farms began its mission to educate consumers about soy’s health benefits. The company uses only non-GMO soybeans, is a participant in The Non-GMO Project and is vegan and USDA-organic certified.

Spindrift positions itself as the first sparkling water made with actual squeezed fruit sourced from family farms. CEO Bill Creelman started the Newton, Massachusetts-based company in his quest for a more natural beverage. The company initially had a soda line but ditched natural flavors and cane sugar to focus on the sparkling water category – with impressive results. Its 10 flavors can be purchased at Starbucks, Target, Kroger and Amazon as well as on the DTC Spindrift Marketplace.

Brand: True & Co. Company Name: PVH Corp. Year Launched: 2012 Founders: Michelle Lam, Aarthi Ramamurthy, Beatrice Pang Brand/Company Name: TenTree Year Launched: 2012 Founder: Derrick Emsley The Canadian company sells lifestyle apparel made out of natural, recycled and mostly animal-free materials, but the products are just a vehicle for its social mission: to plant 10 trees for every item purchased. Consumers are able to directly affect the environment and health of communities with a unique tree code used to decide what type of trees they want planted, and to track and monitor their individual impact. With 25 million trees planted so far, the company is on its way to reaching its goal of 1 billion by 2030.

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The San Francisco-based lingerie company aims to solve one of women’s most misunderstood tasks: finding the correct bra size. With help from designer Nikki Dekker of lingerie maker The Lake & Stars and an algorithmic “fit quiz,” True & Co. recommends bras based on each individual’s body and preferences. The idea originated when co-founder and CEO Michelle Lam became fed up with fitting rooms and misfit bras, and now the company places personalization and customer data at the epicenter of its business. Now owned by the same company as Calvin Klein, True & Co. boasts a consumer community of more than 7 million women and has been referred to as “the Netflix of bras.”

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Brand/Company Name: Untuckit Year Launched: 2011 Founders: Chris Riccobono, Aaron Sanandres

Brand Name: Tweed Company Name: Canopy Growth Year Launched: 2013 Founders: Bruce Linton, Chuck Rifici Based in Canada, where recreational marijuana was legalized nationally last fall, Canopy Growth aspires to be the world’s largest pot producer. The public company generated $139 million in revenue in 2018 – although sales skyrocketed 300% in the “legalized” fourth quarter. Tweedbranded retail stores will be “coming to a neighborhood near you as soon as we’re allowed to,” Canopy promises on its website. A license to produce hemp in New York is the first move across the border. In February, the company unveiled a deal with media maven Martha Stewart to advise and help develop cannabis-based health products for pets.

The simple premise – sell dress shirts designed to be worn untucked to men who already wear them that way – has driven $150 million-plus in sales and oodles of investment funding. While 80% of sales are driven online, the company has 51 physical stores (as of January) and plans 100 more over five years. The product offering has expanded to include items for boys and women. Untuckit is now dealing with the “exponential increase in the complexity of the business” wrought by omnichannel retailing, including tackling data synchronization (for marketing and customer experience purposes) and inventory management, Aaron Sanandres told TotalRetail.

Brand/Company Name: Urban Skin Rx Year Launched: 2010 Founder: Rachel Roff Clinical skin care and digital native brand Urban Skin Rx exclusively caters to multicultural and melanin-rich skin types and tones, with a focus on Millennial women. Licensed aesthetician Rachel Roff (pictured), who also founded Urban Skin Solutions Medspa (one of the country’s first medical spas for ethnic and darker skin tones), designed the brand to address common issues like scarring, uneven skin tones, melisma, acne and hyperpigmentation. Until this year, the brand was only available online, but it has since expanded to retailers including CVS/pharmacy, Target and Ulta.

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Activation Gallery.

In-Store Technologies Retailers, often with the help of brand partners, are increasing the use of technology to enhance the store experience. To see what’s currently out there and determine the impact these technologies are having, Rise partnered with Fayetteville, Arkansas-based Field Agent. In March, the retail intelligence firm sent its agents to a variety of stores to gather information (and take photos). Here’s what they found.

Dollar Shave Club

Overall experience: 5/5 Easy to use: 5 Meets a shopper need: 4.7 Makes me want to shop this store: 5 Would influence my purchase: 4.3 Agents said the vending machine, which they experienced in the Mall of America in Bloomington, Minnesota, was visually appealing and easy to use, and it made the checkout process smooth and efficient. A “major problem” experienced from more than one agent was out-ofstocks. “That was disappointing.”

Google Home Hub at Lowe’s

Overall experience: 4.0/5 Easy to use: 3.8 Meets a shopper need: 3.6 Makes me want to shop this store: 3.4 Would influence my purchase: 3.2

Agents gave the display a strong overall rating but were more critical about specific criteria. They almost unanimously liked the display’s clean, crisp look and interactive features. But they were split on its ability to adequately showcase the product’s capabilities. The display was “too loud and didn’t show enough options to explore,” said one.

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BevMo Voice Assistant Overall experience: 4.4/5 Easy to use: 4.4 Meets a shopper need: 4.2 Makes me want to shop this store: 4.6 Would influence my purchase: 3.8 Agents generally enjoyed the interactive experience, although more than one thought the volume of the digital assistant was too loud, drawing undesired attention to the shopper. Another was “impressed by the vast wealth of information the assistant was programmed to provide.” One considerate agent was happy he didn’t have to bother a store employee for information.

Target Beauty Kiosk Overall experience: 4.2/5 Easy to use: 4.8 Meets a shopper need: 3.8 Makes me want to shop this store: 4.0 Would influence my purchase: 3.6 Easy. Fun. Fast. High quality. Those were some of the mostly positive descriptors agents provided after using the kiosk. One negative: “The only action item was email. It didn’t tell me where the product was located in-store. It also didn’t provide much detail around the product – like a description, price or reviews.”

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Activation Gallery.

Sam’s Club Tablet Overall experience: 4.4/5 Easy to use: 3.8 Meets a shopper need: 3.8 Makes me want to shop this store: 4.2 Would influence my purchase: 3.4 Agents said this was a great experience for children: “It would truly keep both the 12-year-old and the 3-year-old interested.” Another wanted more from the tablet: “They need to have all the products interactive … with entertainment in between ... and discounted offers and everything you want to know about the product. And online ordering with one touch.”

Touchscreen Display at Hannaford

Walgreens Digital Cooler Doors

Overall experience: 4.2/5 Easy to use: 4.4 Meets a shopper need: 4.4 Makes me want to shop this store: 3.8 Would influence my purchase: 3.2

Overall experience: 4.2/5 Easy to use: 4.6 Meets a shopper need: 4.4 Makes me want to shop this store: 4.2 Would influence my purchase: 3.6

Agents said they would like to see more of these displays. Among the comments: “It’s an extremely interesting way of educating consumers,” with “sensors that can give you more information on the product you pick up.” One said there was a glitch at first where the display didn’t acknowledge that he picked up the product. Another added that “the screen instructions were confusing.”

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Agents were impressed by the attention-grabbing power of these doors. One liked that if a product was out of stock, its corresponding image on the screen was not as bright. The displays are capable of showing relevant advertising based on the gender and age of those who approach, as well as weather conditions, although one agent said there was no evidence of that working.

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Virtual Artist at Sephora Overall experience: 4/5 Easy to use: 4.0 Meets a shopper need: 4.0 Makes me want to shop this store: 4.0 Would influence my purchase: 4.0 Generally, agents thought the kiosk was fun and easy to use. “It was very easy to try on a wide variety of different looks. It also has tutorials and a photo booth.” One thought the experience was a little confusing at first, considering all the different options. Another didn’t think the looks, when applied, were accurate. “It feels like a Snapchat filter.”

Digital Shelves at Kroger Overall experience: 3.8/5 Easy to use: 4.6 Meets a shopper need: 4.4 Makes me want to shop this store: 4.0 Would influence my purchase: 3.6 This technology is a positive addition, agents agreed. One said Redmond, Washington, “is a tech town, and I would expect this of the local grocery store.” More than one noticed a malfunction – with the displays “glitching out with vertical lines.” Agents liked the promotion of coupons available through the Kroger app, although “it would help if they corresponded with the products on the display.”

May 2019

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Emerging Technology.

P2P Toolkit

A roundup of technology-driven tools that drive consumer understanding, engagement and conversion on every step of the path to purchase.

Chicago-based InContext Solutions, at the forefront of mixed reality solutions for brands and retailers, announced it is merging its technology with the category management solutions from JDA Software, Scottsdale, Arizona, that are powered by machine learning and artificial intelligence. Together, InContext’s Shopper MX platform (which enables brands and retailers to visualize product in stores or store layouts virtually) will be incorporated into JDA’s category management portfolio, including the JDA Category Knowledge Base to help stores test and develop stronger product mixes for locations. In what might have been more exciting than the 2019 Super Bowl itself, PepsiCo/Frito-Lay’s Tostitos livestreamed a bowl of tortilla chips and salsa for 53 straight hours leading up to the kickoff of the game. The brand hosted the livestream on Tostitos.com, claiming the livestream length as the “unofficial world record.” The bowl of chips and salsa were filmed inside the Tostitos Cantina onsite at the Super Bowl in Atlanta. Fans could approach the bowl and eat. Current and former NFL players appeared too. Consumers who tuned in to the livestream were encouraged to comment using #TostitosLiveBowl in order to change up dips during the video and win free jars of product or bags of chips.

London-based Kino-Mo and its HYPERVSN brand has launched two new 3-D holographic tools for brands and retailers, beginning with a display screen that is 80% larger than its previous LED screen and runs 3-D visuals at 30 frames per second. The other is an online portal called the HYPERVSN 3D Studio, which enables brands using the service to create their own customizable holographic content. Kia Motors leverages display help from HYPERVSN, and the company has rolled out displays for M&M’s World Store and Nike in Seoul, Korea.

Dan Ochwat, a P2PI contributor for nearly two decades, has been on the lookout for digital path to purchase tools since 2011. Send comments and P2P Toolkit inquiries to danochwat@gmail.com.

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Kroger developed a mobile wallet solution of its own called Kroger Pay that blends a shopper’s loyalty card information and credit card information into one quick payment over the mobile phone. Shoppers using the Kroger app on an iOS or Android phone unlock the pay feature with a pin code and then simply scan a QR code at checkout for a quick pay that includes the promotional offers and the loyalty information. To go with the announcement of the payment solution, Kroger also created a Kroger Rewards debit card to help shoppers earn fuel points and more grocery rewards.

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With the help of Microsoft and its Microsoft Azure cloud-driven platform and Azure AI technology, Kroger is piloting a connected store experience in two locations (Monroe, Ohio, and Redmond, Washington). The effort centers on smart shelves synced to the Kroger app that provide shoppers with personalized offers, and digital shelf tags that update pricing, promotions and nutritional info in real time. The shelves connect with Kroger’s current “Scan, Bag, Go” guided shopping experience while collecting data for store staff to manage outof-stocks and curbside pickup orders. CPGs can purchase ads to run on the shelves and personalize them to shoppers in-aisle based on demographics.

Gemr, Nashua, New Hampshire, is a social site and mobile app for collectors that is a few years in and gaining some traction. The company likens its social network to Facebook meets eBay, a place for collectors to find and connect with likeminded collectors, seek and buy product they’re collecting, post and share new finds, discuss collections with fellow fans, and discover new trends. The site has worked with brands that feed off the collector scene (such as Nintendo and Cabbage Patch Kids) to engage with fans, so for the right brand it has a direct avenue to loyal fans and shoppers.

Acquired by Walmart’s Jet.com more than two years ago, Vancouver-based Shoes.com is an e-commerce site that manages footwear transactions for Jet.com and is working with Walmart’s incubator Store No. 8 and its Jetblack service. (New York shoppers enrolled in Jetblack can buy personalized items over text for quick delivery.) Recently, Shoes.com teamed up with Slyce, Toronto, to integrate visual search technology into the Shoes.com mobile app (which goes by ShoeBuy, based on the original name of the company). Through Slyce’s 3-D mobile image recognition platform, mobile users can take a photo of an actual pair of shoes or grab a pic of shoes in a magazine ad and the platform will search for those shoes or the closest matching pair to purchase.

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P2P Toolkit. In 2016, Procter & Gamble’s Olay launched its Skin Advisor tool, a web-based tool that leverages artificial intelligence to recommend skin products to consumers based on a photo they supplied and how they answered questions. At the Consumer Electronics Show (CES 2019), the brand updated the platform with new tools including “Olay Future You Simulation,” a mobile digital tool testing in Asia that enables a consumer to receive a visual simulation of what they will look like in 20 years and also provides a personalized skincare regimen to aid the process. Another tool for the China market is a “Skin Decoder,” a camera attachment for the smartphone that amps up the resolution of images to provide a more detailed skin diagnosis for a user to track over time. Olay also presented a small device called the “Olay Smart Wand” that works with the Olay Skin Advisor mobile app. Consumers point the wand to their skin and electromagnetic technology inside can identify skin issues to treat. Lastly, P&G rolled out a standalone device called Setlist, similar looking to a voice unit, that is an AIdriven, personal-tracking IoT tool that helps track routines and skincare goals.

The denim smart jacket called Jacquard from Google and Levi’s revamped the smart technology within its threads to send pertinent tracking alerts and notifications to its owners. Now, when wearers wander too far from their jackets, an alert will automatically be sent to their phones indicating where that jacket is. Additionally, if people wearing the jacket tiptoe too far from their phones, the smart devices on the sleeve will blink an alert. If a wearer leaves the jacket at a restaurant, for example, the location feature will also enable the user to find the jacket’s last known location through the phone. Users can control how many alerts they receive and can control what kind of light or vibration alerts they receive on the coat sleeve. Other new notifications on the jacket include a blink when an ordered Lyft or Uber is arriving, as well as when the phone is receiving a call.

UNLOCKING THE FUTURE OF COMMERCE FOR ENTERPRISE GROWTH

November 12-14, 2019 Hyatt Regency Chicago

An official event of:

Produced by:

Path2PurchaseExpo.com

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Shopping with Steve.

Target

in Schaumburg, Illinois Steve Says:

This month I’ll not only examine the traditional shopping trip at a newly remodeled Super Target, I’ll also show how the shopping experience can be combined with the pickup (or delivery) of staple items, which will no doubt emerge as the norm as adoption increases. The remodel is a considerable enhancement. Target is seeking to reclaim its “tar-zhay” moniker that dates back to the early 1990s. I think the retailer is succeeding as it inspires shoppers and fills shopping carts.

If you consider the transient nature of my shopping visits, this approach saves me a lot of time, considering that every store is new to me and finding products on my shopping list can be a bit of a challenge.

Steve Frenda, executive advisor for EnsembleIQ and the Path to Purchase Institute, has been a passionate retail watcher for more than four decades. Having worked as a retailer, for a brand manufacturer and in the infotech world, he is an authority on the entire path to purchase and its changing face. Contact Steve at sfrenda@ensembleiq.com

Check out the reimagined housewares department, which again utilizes lighting, imagery and asymmetrical fixturing to create a more relaxed experiential retail journey.

Since I travel the country in my RV, I have a regular need to stock up on staples in food as well as household goods. These tend to be modest-size transactions due to my storage limitations, but I know that I can place an order ahead of time and have it waiting at the Target of my choice over the next day or two. I have also done this with Walmart as well.

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Certainly, consumers’ motives for using a combination of in-store and in this case pickup will be different, but in my case the benefits are very tangible. The result is increased efficiency, which in turn leads to a more satisfying store experience.

I was struck by the incredible sight lines, inspiring imagery and asymmetric fixtures in the beauty department. The effect in my mind is that it creates a mood where you are willing to slow down and shop a bit.

As you might expect, Target does a great job of creating a mood to celebrate seasons, including Easter. Signage throughout the store invites customers to “Hop This Way” to the Easter holiday alcove. Great value and imaginative displays inspire shoppers.

I observed a significantly enhanced fresh food area in the supermarket portion of the store. For years, I have accused Target of treating food in general, and especially the perimeter departments, as a “hobby.” In this new format, we see a significantly increased commitment to produce, deli and bakery.

As you walk throughout the store, the newly fashioned departments create something of a “treasure hunt.” The liquor department is a section unto itself that is inviting with great ambiance and lighting effects.

We talk a lot about experiential retail being a key to success, and Target has done a terrific job creating department after department that causes you to slow down, be inspired and prepare to purchase an entire ensemble.

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Rise Solutions Guide.

Supply Chain Management The following is a comparison chart of 24 companies providing solutions for various needs within the consumer goods supply chain, including activities related to planning (demand forecasting, inventory optimization, etc.) and execution (warehouse management and transportation management, load optimization, fulfillment, etc.). For more information about these and other supply chain solution providers, visit consumergoods.com.

CO M PA N Y / W E BS I T E

Alloy

www.alloy.ai

Amber Road

www.amberroad.com

*Aptean

www.aptean.com

BluJay Solutions

www.blujaysolutions.com

K E Y C L I E N TS

U N I Q U E F E AT U R E S / B E N E F I TS

Integrated Demand Forecasting and Planning

Did not provide

The solution combines advanced statistical forecasts, granular sales and inventory visibility, as well as marketing and event intelligence to build demand plans at any level. It then dynamically aggregates and disaggregates plans, compares versions and presents automatic inventory and order forecasts.

Amber Road Global Trade Management Platform

• Coca-Cola Co. • General Mills • Unilever

The platform has a broad, deep solution footprint that centralizes functionality for supply chain execution across the product lifecycle. This allows for data reuse and reduces the number of software vendors required.

Aptean Supply Chain Solutions

Not available

Aptean’s solutions deliver 20/20 insight by letting clients monitor and manage every link of the supply chain, automate their processes, derive actionable insights from big data, and create a collaborative view across their network.

BluJay Solutions Transportation Management

• Barilla • Danone North America • Ken’s Foods

BluJay’s Transportation Management is a single-workflow, multi-tenant SaaS system that enables process automation and collaboration between trading partners, with visibility and actionable intelligence for freight moves across all modes globally. It controls transportation costs and improves service.

P R O D U CT

Information compiled by Rise

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P R O D U CT

K E Y C L I E N TS

U N I Q U E F E AT U R E S / B E N E F I TS

Demand Solutions DSX

• Clif Bar • Everlast • McIlhenny Co.

DSX software-as-a-service offers functionality for demand planning, collaborative forecasting, inventory planning, production planning and scheduling, sales and operations planning, and integrated business planning. Demand Solutions serves customers in 79 countries.

Digital Supplier Network & SW

• Procter & Gamble • Michelin • Honeywell

Elemica accelerates digital transformation by connecting, automating, anticipating and transforming inter-business supply chain processes for the products that CPG and chemical companies buy, sell and move for their customers.

Exceedra

Exceedra Integrated Planning

• ACH Foods • Bayer • Weetabix

Exceedra is a global provider of integrated business planning solutions to the consumer goods industry. It works with customers to improve performance in trade promotion management/optimization, customer business planning, joint business planning, and S&OP.

*FedEx Supply Chain

Warehouse Operations and Distribution

Not available

FedEx Supply Chain empowers companies to discover the full value of their supply chains by developing tailored, technologybased logistics solutions and nurturing strong relationships with customers.

Infor

www.infor.com/products/ infor-nexus

Infor Nexus Supply Chain Network

• Electrolux • Havertys Furniture • J.M. Smucker Co.

Infor Nexus combines artificial intelligence, Internet of Things technology and advanced visualization through an end-toend collaborative network to provide real-time visibility and predictive intelligence.

Insight, Inc.

SAILS

• Ocean Spray • Henkel • Abbott Laboratories

The advanced modeling software’s sophisticated optimization and simulation engines allows companies to analyze their complete supply chain operations, including procurement, manufacturing and finished goods distribution.

CO M PA N Y / W E BS I T E

*Demand Solutions

www.demandsolutions.com

Elemica

www.elemica.com

www.exceedra.com

www.supplychain.fedex.com

www.insightoutsmart.com

JDA Software

Luminate Demand Edge

Did not provide

Luminate Demand Edge leverages machine learning to produce highly accurate demand forecasts. It goes beyond traditional forecasting methods, incorporating hundreds of real-time demand signals to help retailers make more-informed, risk-aware business decisions.

*Jesta I.S.

Jesta Supply Chain Solutions

• Carter’s • Perry Ellis International • Puma

The company’s solutions provide 360-degree visibility into the procurement process by giving all the organization’s global partners access to the same real-time order details, shipping and tracking information, and location statuses through one centralized platform.

LeanCor Supply Chain Group

Third Party Logistics, Supply Chain Consulting

Did not provide

LeanCor’s mission is to advance the world’s supply chains. Its integrated divisions for training and education, consulting and logistics specialize in lean principles to help organizations eliminate waste, drive down costs and build operational excellence.

Logility

Logility Voyager Solutions

• Continental Mills • Fender • HyperX

The Logility Voyager Solutions platform leverages an innovative blend of artificial intelligence and machine learning to automate planning, improve operating performance and accelerate the digital supply chain from product concept to customer delivery.

jda.com

www.jestais.com

www.leancor.com

www.logility.com

Information compiled by Rise

May 2019

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Rise Solutions Guide. CO M PA N Y / W E BS I T E

P R O D U CT

K E Y C L I E N TS

U N I Q U E F E AT U R E S / B E N E F I TS

Neogrid North America

Demand Driven Replenishment

• Apple • Sony • Microsoft

Neogrid provides a demand-driven replenishment and inventory management platform that enables end-to-end supply chain visibility, synchronization and automation to increase inventory turns, balance inventories and generate greater profits. The platform improves forecast accuracy, increases collaboration, synchronizes workflows and harmonizes data.

*Manhattan Associates

www.manh.com

Manhattan Active Supply Chain

• Adidas • Carhartt • Nature’s Best

Designed to facilitate easy technology updates, the Manhattan Active suite of solutions allows enterprises to optimize large and complex operations, adapt to market and demand changes, and iterate and innovate at speed.

One Network Enterprises

Supply Chain Control Tower

• Philip Morris • Albertsons • Dollar General

One Network’s Intelligent Control Tower uses AI and serves as a system of engagement across trading partners, orchestrating companies, people and things to work together in real-time to serve the end consumer.

Oracle SCM Cloud

• Grupo Bimbo • Knoll • The Wonderful Company

The comprehensive Oracle SCM Cloud incorporates the digital supply chain with capabilities including product innovation, strategic material sourcing, outsourced manufacturing, integrated logistics, omnichannel fulfillment, and integrated demand and supply planning. The functionality can be deployed incrementally.

SAP Integrated Business Planning

• Avocados from Mexico • Edgewell Personal Care • Hershey Co.

SAP Integrated Business Planning enables the real-time supply chain by connecting stakeholders across the organization and integrating S&OP, demand and supply planning, and inventory optimization to help customers meet demand rapidly and profitably.

TrueVUE Supply Chain Visibility

Did not provide

Innovative RFID technology and cloud-based analytics enables users to track and control inventory throughout the supply chain. The user-friendly application offers real-time access to product flow data, providing smarter brand and customer protection.

SYSPRO Enterprise Resource Planning

• 1000 Bulbs • Perrone & Sons • Ramar Foods

The SYSPRO Enterprise Resource Planning software solution for cost-effective, on-premise and cloud-based utilization offers simplicity of use, scalability, information visibility, analytic/ reporting capabilities, business processes and rapid deployment methodology.

www.neogrid.com

www.onenetwork.com

*Oracle

cloud.oracle.com/ scm-cloud

*SAP

www.sap.com/consumer

Sensormatic Solutions

www.sensormatic solutions.com

*SYSPRO

www.us.syspro.com

Transportation Insight

Multi-Modal Enterprise Logistics Solutions

Did not provide

Transportation Insight is an enterprise logistics provider leveraging a robust blend of supply chain analytics, parcel optimization technology, TMS, WMS, and data solutions to engineer and execute multi-modal supply chain strategy, helping shippers protect profitability.

UNEX Manufacturing

UNEX Order-Picking Solutions

• Aubuchon Hardware • George J. Falter Co. • Cutter & Buck

UNEX provides order-picking and storage solutions for retailers, manufacturers and distributors that speed fulfillment, save time and space in facilities, improve inventory control, increase pick efficiency, and give greater visibility to SKUs for fewer pick errors.

Wipro Ltd.

Connected Warehouse

Did not provide

The solution extends the shelf life of legacy warehouse management systems by eliminating the need for costly upgrades. It integrates disparate warehouse management systems and provides visibility on a single platform for superior fulfillment performance.

www.transportation insight.com

www.unex.com

www.wipro.com

Information compiled by Rise

May 2019

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Congratulations to the 2019 Hall of Fame Inductees! April Carlisle

VP, Shopper Marketing, National Retail Sales

From everyone at the

Jody Kalmbach VP, Digital Experience

Peter McGuinness

Chief Marketing & Commercial Officer

Event at:

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Produced by:

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Solution Provider News. more relevant content in the form of digital ad messages and promotional savings. The platform provides CPGs numerous digital media solutions that can drive instore and online sales, support new product launches, build brand loyalty, support shopper themes and amplify in-store events.

Ember Glows with Concept Designs Concept Designs, Palo Alto, California, developed a comprehensive display program for the temperature-controlled cups and mugs of Ember Technologies, Westlake Village, California. Originally developed to merchandise in Best Buy, the centerpiece of the display system is an angled stage that presents the various products. Retractable cables allow shoppers to lift and hold the cup and mug. For a larger in-store presence, wedge-shaped side wings can supplement the main stage. Ember expects the display to roll out to other retailers.

Quotient and Giant Eagle Team on Digital Media Giant Eagle and Quotient Technology launched Giant Eagle Advantage Media, a digital media platform that allows CPG brands to better reach Giant Eagle shoppers with more precise digital ads and promotional offers. Mountain View, California-based Quotient powers the platform and is the exclusive partner for executing shopper media programs on GiantEagle.com and off-platform that leverage Giant Eagle customer data. The digital service benefits shoppers as they will receive

Kantar, Profitero Help Brands with E-Commerce London-based Kantar and Dublin-based Profitero formed a global partnership dedicated to creating a suite of advisory, analytical and capability-building services to help their clients become more efficient at e-commerce. Kantar and Profitero will help joint clients manage their e-commerce and omnichannel investments more efficiently through services that seamlessly bridge the gap between strategy and execution. Mutual clients of the two companies will also see the benefits of the partnership through events and share groups, advisory projects and analytics packages.

Del Monte Foods Unlocks Innovation with Accenture Accenture, New York, helped Del Monte Foods gain more visibility into its IT operations, access real-time customer insights to inform decision making and reduce IT spending costs by up to 35 percent. Accenture also helped increase Del Monte operating efficiencies by significantly reducing the time it takes for its professionals to receive IT capabilities, service and support from weeks to less than an hour.

May 2019

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Del Monte Foods’ IT transformation journey arrives at a time when the company is setting the stage for a new era of innovation and growth. In a fiercely competitive market, Del Monte realized that it needed to modernize its technology infrastructure and increase its ability to sense and respond to opportunities to capture greater market share by accelerating the speed of product to market.

Syndigo Acquires Content Analytics Chicago-based Syndigo acquired San Francisco-based Content Analytics, which provides content management and analytics to the consumer, retail and e-commerce industries. The combination of Syndigo’s Content Experience Hub with Content Analytics’ end-to-end e-commerce platform further strengthens Syndigo’s ability to provide accurate and verified product information. The company’s solutions provide brands and retailers with an integrated platform that enables the efficient transfer of core and enhanced product attributes between brands and their customers. Rise

Send your solution provider news – new products, projects, programs and technologies – to Charlie Menchaca at cmenchaca@ensembleiq.com.

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Personnel Appointments. BRAND MARKETERS Georgia-Pacific, Atlanta Justin Honaman was named Georgia-Pacific vice president, data, analytics and digital transformation. He leads the advanced analytics and insights, master data management, procurement/sourcing technology, and digital core teams within strategic sourcing and procurement. Honaman was previously managing director, digital technology, at Accenture. His background has largely focused on data/analytics and digital capabilities within the consumer goods, manufacturing and retail sectors. Honaman has led global transformation programs from the industry, management consulting and technology perspectives. PepsiCo, Purchase, New York Steven Williams, former senior vice president and chief commercial officer for Frito-Lay’s U.S. operations, was appointed CEO of PepsiCo Foods North America, which includes Frito-Lay North America and Quaker Foods North America. He replaces Vivek Sanakran. RETAILERS Albertsons Cos., Boise, Idaho Vivek Sanakran was named Albertsons

DEB HANNAH

KERRY LYONS

Cos. president and CEO. He succeeds Jim Donald, who will continue as co-chairman of the board with Leonard Laufer. Sanakran’s experience encompasses CPG, retail, manufacturing, logistics, technology, and research and development. Shoe Carnival, Evansville, Indiana Deb Hannah was named Shoe Carnival vice president of marketing. She previously was Kellogg Co. vice president of shopper marketing and scale promotions. Hannah also held roles at Starbucks and Kimberly-Clark. Walmart, Bentonville, Arkansas Katie Finnegan, principal of Walmart’s incubation arm Store No. 8, departed the company after more than seven years. She co-founded Store No. 8, which, through

STEVEN WILLIAMS

JUSTIN HONAMAN

startups, explores how new retail technologies can transform Walmart’s consumer shopping into a next-gen experience. SOLUTION PROVIDERS Ripple Street, Irvington, New York After eight years leading marketing and sales at Ripple Street (formerly House Party), Kerry Lyons was promoted to CEO. Lyons is focused on helping brands create authentic human connections in an increasingly digital world and proving the ROI of peer influencers. Her other duties include bridging the gap between the online, in-home and retail experience and growing consumer connections through branded communities on the Ripple Street platform. Rise

Editorial Index. 3M ..............................................40 Accenture .................................68 AdoreMe ...................................45 Albertsons Cos................... 7, 14 Amazon.com ...........................12 Asda............................................16 AWC Tuck Co............................51 Barilla America .......................30 BarkBox .....................................45 BevMo........................................55 Birchbox ....................................45 Bumble Bee Foods ................10 Canopy Growth ......................53 Carrefour...................................18 Chobani....................... 1, 21, 32 Coca Cola Co., The ..........36, 42 Coconut Bliss...........................45 Concept Designs....................68

Content Analytics ..................68 Continental Food and Beverage ..........................50 Curology ...................................46 Danone North America .......70 Del Monte Foods ...................68 Dollar Shave Club ..................54 Don Jagoda .............................70 Dyla.............................................46 Ember Technologies .............68 FCB/RED ....................................16 Field Agent...............................54 Gainful Health .........................46 Gemr ..........................................59 Giant Eagle ...............................68 Glamsquad...............................48 Google ................................54, 60 Grove Collaborative ..............48

Hannaford ................................56 Henkel ......................................... 8 Hint ............................................48 Hour Media Group ................70 Hubbard Radio .......................70 InContext Solutions ..............58 JDA Software...........................58 Johnson & Johnson ..............32 Kantar ........................................68 Kino-Mo ....................................58 Kiss Products ...........................50 Kroger ............. 7, 57, 58, 59, 70 Lamar .........................................70 Levi Strauss & Co. ...........10, 60 LG Electronics USA ...............12 L’Oreal ........................................12 Lowe’s ........................................54 Mars Inc. ....................................18

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Microsoft.............................. 7, 59 Mondelez International.......38 Myro ...........................................50 Nestle .........................................18 Nestle Purina ...........................42 News America Marketing ....70 Quotient Technology ...........68 Path to Purchase Institute....14 PepsiCo/Frito-Lay ...........18, 58 Procter & Gamble ...........18, 60 Profitero ....................................68 Prose ..........................................51 PVH Corp. .................................52 Rael .............................................51 Revolve ......................................51 Sam’s Club ................................56 SAP..............................................10 Seapoint Farms.......................52

Sephora .....................................57 Shoes.com ................................59 Shopkick ..................................... 8 Slyce ...........................................59 Smithfield Foods ....................28 Spindrift Beverage Co. .........52 Syndigo .....................................68 Target ..................................55, 62 TenTree ......................................52 TerraCycle .................................18 Tesco ..........................................18 Unilever .....................................18 Untuckit ....................................53 Urban Skin Rx..........................53 Volta Charging .......................14 Walgreens............................ 7, 56 Walmart............................7, 8, 16 YouTech .....................................70

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Retailer Intelligence.

Kroger and Oikos ‘Draft’ Another Winner BY CYN D I LOZ A

For the second straight year, Danone North America’s Oikos activated its sponsorship of the National Football League Draft with a “Flavor Draft” campaign at Kroger, this time expanding the effort’s footprint by including Midwestern chain Roundy’s. As it did last year, Oikos conducted consumer research to come up with three new Oikos Triple Zero flavors: mint chocolate, mango and passion fruit. “We actually came up with six top flavors [this year] that are trending not only from a flavor-palate

perspective, but also trending with Millennials,” says Tony Fung, Danone’s senior shopper marketing manager – Kroger. The final flavors were selected based on consumer research as well as input from Kroger’s executive team. “We collaborated more on selecting the flavors this year,” Fung says. From Feb. 4 through March 14, consumers visited OikosFlavorDraft.com to vote for their favorite flavor and enter a sweepstakes awarding a grand-prize trip to Nashville, Tennessee, in April to watch the NFL Draft. Two hundred runners-up received a $50 NFL Shop gift card. YouTech, Brisbane, California, administered the microsite, and Don Jagoda, Melville, New York, handled prize fulfillment. The program and sweeps ran at all Kroger chains excluding Harris Teeter. The winning flavor rolled out to Kroger stores in April in packaging, communicating the SKU’s exclusivity as the winning flavor of the Flavor Draft. After July, the packaging will change but the flavor will remain exclusive to Kroger. “[Last year’s] Oikos Flavor Draft customer campaign was a tremendous success, driving strong customer engagement and fresh new excitement in the yogurt category,” says Tom Crowder, Kroger category manager, yogurt. “Green lighting the 2019 Oikos Flavor Draft … was an easy decision. With our extensive customer insights

[from Kroger subsidiary 84.51], Kroger shoppers already play a huge role in deciding what goes on our store shelves. This campaign is the perfect program to amplify the customer voice.” Due to the success of its first run, this year the program was fully integrated within the Kroger.com experience and ecosystem, which was a “huge win for us,” Fung says. “That is something that we were not able to do in year one. In year two, we kept the same URL and worked with YouTech and 84.51 to have the site integrated within Kroger.com.” Kroger loyalty cardholders who tried to vote or enter the sweeps more than once per day were directed to Oikos e-commerce pages within Kroger’s chain websites. Similar to last year, Kroger provided Oikos with loyalty data from 84.51 to develop a targeted advertising program, focusing specifically on heavy and light Oikos buyers and shoppers buying in the Greek category. The marketing plan for the Flavor Draft also included: • radio spots and Facebook updates from Hubbard Radio’s WKRQ; • a full-page ad in Hour Media Group’s Cincinnati Magazine; • three outdoor billboards (via Lamar, Baton Rouge, Louisiana) with one placed next to Kroger’s downtown Cincinnati headquarters and two positioned near Kroger Cincinnati stores; • in-store floor clings from News America Marketing’s SmartSource; and • social media posts from the Flying Pig Marathon and Cincinnati’s NFL team, the Bengals. Oikos also drummed up support for the program among Kroger employees. The brand hosted a lobby event at Kroger’s headquarters encouraging staff to sample this year’s three competing flavors and vote. Since the NFL draft took place in Nashville this year, Oikos also staged a store associate contest in the Nashville market, awarding NFL tickets to the store with the highest sales of Oikos single-serve yogurt. Rise

For a look at more images from this program at Kroger, visit P2PI.org. Path to Purchase Institute members have access to more than 7,650 images and 600 articles of marketing and merchandising activity at Kroger, along with a full Retailer Profile outlining the chain’s operations and strategies.

May 2019

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In a complex, omnichannel world...

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The power shift is evolving the commerce landscape Consumers want to be able to search, compare, and buy from anyone, anywhere (in-store, online, in-app or wherever that may be) and at any time. They’re driving changes not only in product offerings, but in the way products are distributed.

How can CPGs and retailers keep pace with ever-evolving consumer demands and maintain control of their supply chain?


By being strategic with distribution and enhancing the experience Retailers are racing to provide the best—and most convenient—consumer experience across a growing ecosystem of touchpoints and distribution models: in-store, online, pick-up, delivery and direct-to-consumer.

CPGs are revamping their supply chain strategies and finding partners to drive agility, speed and customized product offerings. To be successful, using one optimized supply chain is key.

Partner with the industry leader to help your brands win Take control and improve responsiveness and profitability with customized commerce supply chain solutions For more than 15 years, Menasha has been at the forefront of the retail industry, providing revolutionary and insightful solutions to help retailers and CPGs navigate a complex omnichannel world. Menasha’s evolving approach leverages real-time data along with its broad geographic network to help customers identify and execute category-winning strategies through a single, optimized supply chain.

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Profile for ensembleiq

Rise - May 2019  

Rise - May 2019