OUTLOOK
To meet pandemic demand , many manufacturers expanded capacity , suspended niche product line production and postponed planned NPD releases , while many categories saw price inflations from reduced promotions and increased premiumisation . But as mobility continues to increase and shoppers return to some ( missed ) pre-pandemic behaviours , more normalised demand may mean lower volumes for some suppliers as shoppers who traded up to more premium category offerings won ’ t necessarily maintain their new shopping habits and product preferences .
At the same time , delivering profitable growth will be more challenging . Increased COGs and continued supply-chain issues will impact everything from microchips to potato chips and make it more expensive to produce existing product lines and bring NPD to market while returning to more normal trade events and promotions . Shoppers may potentially become more price sensitive , too .
Take a more holistic approach to managing revenue growth As macro-economic factors impact the broader market ( think private label ), retailers and suppliers must proactively collaborate with one another and internally to improve the shopper value equation . Attacking price is challenging but will become more imperative as cost pressures increase . Develop a clear understanding of shelf and promoted price elasticities across your range and adjust price in “ pockets ”, taking into consideration channel-specific shopper needs .
4 . KNOW YOUR BLUEPRINT Change is occurring at an unprecedented pace . Australia ’ s increasingly diverse consumer landscape , including e-commerce and its completely different fulfillment and delivery challenges , is adding to the data explosion . As these changes continue , the hurdles facing functionally siloed organisations will only grow . But change is hard . Successful collaboration means retailers and suppliers must carve out time and energy to learn to work crossfunctionally , within and between partner organisations .
Partnering across marketing , supply chain , planning and store operation functions to increase on-shelf availability and enhance instore support aligns to a united purpose to serve shoppers and communities . As technology enables fast and secure data integration , retailers , CPG partners and third-party suppliers can create transparent platforms that can identify collective opportunities and customer-centric strategies – and measure progress .
Collaboration is key and must begin at the top and cascade down through retailers and manufacturers . Be proactive to identify products with the least market share impact to free up space for new product innovation , and ensure your ranging decisions and NPD focus is on products that will drive share growth and category sales . Through true cross-enterprise collaboration , retailers and suppliers can tackle persistent business challenges in inventory , product development , placement , promotional investments and assortment .
Deliver a roaring ROI through collaborative strategies Personalising collaborative , one-to-one marketing strategies can help achieve enhanced ROI while better serving shoppers with the right product , price and margin , in the right channel . This requires manufacturers to move from being a supplier to a trusted business partner willing to tackle powerful customer engagement opportunities , while retailers truly listen and act upon supplier guidance . The evolution is not easy , but the payoff is significant .
Collaborative business portals align and fully integrate data through a single point of access . IRI ’ s Collaborative Gateway delivers a manufacturer-agnostic view of what is happening and a holistic view of the shopper within the retailer environment . Granularity is at a daily and store level . Through shopper panel data integration in the retailer hierarchy , you can also gain an overview of all key shoppers and move quickly together , with confidence , and significantly outgrow non-collaborators . •
Optimise your trade investments to grow your category :
• Promote price elasticities at different discount depths
• Tailor promos and merchandising to specific shopper segments
• Track promotional effectiveness ( adjust , test and learn )
• Collaborate to optimise overall promotional program impact
• Ensure each channel has the right pack size for your shopper
• Create new occasions with new or adjusted packs sizes across channels
• Use portfolio gaps to better deliver on price per volume pack thresholds
• Collaborate to identify on-pack , ATL or shelf opportunities
• Ensure your innovation pipeline is built around the premium or occasion benefits
Attributes that are most important to influencing your sales
Segment 8.4 %
Brand 20.7 %
Price Range
Flavour
Pack Size
Pack type
20.5 %
19.4 %
16.8 %
14.5 %