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Part May
2021
REVENUE GROWTH IN AN INFLATIONARY ENVIRONMENT
Discovering Pockets of Demand 7
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 2
EXECUTIVE SUMMARYThe post-pandemic CPG industry has seen significant price inflation, driven by increased demand, out-of-stocks, reduction in promotion, and premiumization. As the economy rebounds, significant input price inflation and increased logistics costs are pressuring manufacturers to raise prices even as increased mobility is likely to moderate demand for in-home consumption categories. To win the market share battle in this unchartered environment, traditional pricing practices alone will not be sufficient. Managers will need to be agile and leverage technology, advanced analytics and newer, granular near real-time datasets to discover and capture profitable revenue growth opportunities.
PRICING CHALLENGES• Vaccination-enabled increased mobility, including return to schools, restaurants, entertainment, travel, etc., is expected to
decrease in-home consumption for several categories, but the rate of decline is uncertain and uneven across categories. • In step with easing demand is an increase in consumer price sensitivity and grocery shoppers will be more mindful of the
prices even as many other goods and services begin to compete for their wallet.• Manufacturers and retailers are fighting to retain new buyers acquired during the pandemic surge and will be eager to
improve their share position as supply and demand reverts to a new equilibrium. • Managing pricing in this challenging environment calls for innovative, agile growth strategies, leveraging the full spectrum
of revenue growth levers to spot and execute on profitable revenue opportunities.
BEST PRACTICES IN REVENUE GROWTH MANAGEMENT• Growth leaders typically capture 3-5 points of topline growth and 5-10 points in ROI improvement from pricing & trade investments. • Leaders in revenue growth have a strong understanding of which brands and categories are less price sensitive and take
pricing action accordingly. • Successful companies measure and monitor price elasticity changes closely and benchmark vs. category to understand
other levers they need to pull besides pricing and promotion.• Innovators leverage machine learning to quickly identify pricing opportunities and to ensure planned pricing moves are executed.• Leading companies also monitor promotion execution to weed out underperforming promotions, e.g., feature and display
conversion, deviations in promo event lift, and spotting and acting on unusual competitor promotions. • Leaders leverage a full range of price-pack architecture moves by understanding which consumers will pay what in which
channels (e.g., convenience, club, dollar, grocery); they also consider differentiated pricing and promotions online vs. in-store.• They strengthen their brand value proposition by precisely delivering what consumers value and premiumize smartly.• Winning brands match their products to unique occasions and price innovations to realize value.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 3
CPG Demand Surged in 2020 As In-Home Consumption Gained Share Due to Dramatic Drop in Out-of-Home Consumption
C O N T E X T
50
30
40
60
0
70
Feb Aug
5353
40
60
Dec
66
39
4752 53
45
55
4749
57
AprilJan
48
Mar
34
45
OctMay
55
June July
61
47
56
44
Nov
43
Sep
Food-at-home Food Away-from-home (incl. takeout & delivery)
132 131 133 104 123 129 135 136 131 137 131 138
4% 7% -4% -23% -15% -8% -4% -6% -2% -1% -5% -5%Total Food
($B)
Food-at-Home, Food Away-from-HomeShare of $ Spend
1.1%10.3%
0
20
2016-2018 CAGR 2020 vs. YA
+9.2
2.4%7.5%
0
20
2016-2018 CAGR 2020 vs. YA
+5.1
Omnichannel Estimated Volume & $ Sales % Change
Nonedible
$ Sales % Change 1.9% 13.9%
$ Sales % Change 3.9% 12.2%
Edible (Including Perishables)
Source: USDA Monthly Sales of Food with taxes & tips; Includes food sales across store types. IRI Omnichannel Model, data ending 12/27/20, Omnichannel is MULOC+Costco+ eCommerce, Volume is estimated based on MULOC weighted price/mix growth. IRI analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 4
Demand Outpaced Supply in Many Categories and Consumers Were Willing to Pay for Convenience, Trusted Brands and Premium ProductsMomentum Growth / Aisle % Volume CAGR (‘16-’19) vs. Volume Acceleration in 2020
10%
5%
3%
2%
5%-4%
0%-15%
-2%
-3%
-1%
0%
15% 20% 25%
6%
4%
1%
Juices
Cookies & Crackers
Baking
Volu
me
CA
GR
(’16
-’19)
CSD
Meat
ProduceDairy
Rfg. Meals
Household Cleaning
LaundryPet Care
FZ Desserts
Coffee & Tea
FZ MeatCondiments & Sauces
Nutrition/Weight Loss
Baby Care Rfg. BeveragesMouth Care
Skin Care FZ Fruit & Veg
Foils, Wraps, & Bags
Ethnic
Cosmetics
Ss VegetablesBakery
Household Plastics/Storage
Paper ProductsBaby Food
Seafood
Snacks
Breakfast
Disposable Tableware
Ss Fruit
Tobacco
Personal Cleansing
Hair Care
Sports/Energy Drinks
Floral FZ MealsHealth Remedies
SS Meals
Water
Candy
Liquor
Deli Meat
2020 Volume Growth Acceleration (Ppt. Difference 2020 Growth Rate - 2016-2019 CAGR)PositiveNegative
Alcohol
Beverages
Fresh General Food
Frozen Refrigerated
Beauty
Health
Home Care
General Merchandise
Tobacco
2020 CPG Average
COVID-19 demand drove high growth of leading brands in cleaning, OTC, paper products,
self-care, at-home food, comfort and
indulgence. Price sensitivity and
promotions dropped in these
categories.
Shoppers were willing to pay
premium prices, delivery fees, and membership fees
for added convenience and to
consolidate trips on platforms like
Instacart and DoorDash.
C O N T E X T
Note: Includes top 50 aisles by size. Source: IRI data for MULO+C (multi-outlet and convenience) / IRI analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 5
+8.2+1.3+2.0+2.9+0.4+2.4+1.0+1.2-0.8+2.5+0.8+3.6+0.1+0.9-0.4+0.5+0.4-0.5
Price Inflation Occurred Through Reduction in Promotions and Increased PremiumizationDecomposition of Price per Volume % Change vs. YA / Grocery Channel / 12 WE 3/21/21 – Example Categories
To learn more about premiumization , read The Premium Opportunity report. Note: Everyday price at item level. Promotions includes promotion frequency and depth (driven by frequency). Mix shift refers to difference in product mix vs. YA, driven by shifts to more premium brands (positive effect) countering shift to larger pack sizes (negative effect).
-1.3%
1.9%
1.5%
-1.0%
-0.7%
-2.4%
0.9%
-1.4%
0.3%
0.8%
0.0%
-0.4%
-0.7%
1.5%
4.8%
4.2%
5.1%
3.5%
3.5%
1.5%
2.8%
4.3%
0.6%
4.7%
-0.2%
1.1%
1.0%
1.0%
1.3%
2.1%
2.0%
12.7%
8.2%
2.7%
2.9%
2.0%
4.3%
5.7%
4.3%
4.0%
4.3%
1.5%
5.1%
3.1%
2.3%
2.8%
2.4%
1.7%
1.2%
0.2%
5.9%
Spices / Seasonings
-0.4%
Dish Detergent
Chocolate Candy
Beer
Cups & Plates
Fz NoveltiesCSD
6.4%
Ice Cream
BreadSoap
3.3%
Bottled Water
Pasta
Salty Snacks
6.8%
7.0%
-0.1%
Sugar
Energy DrinksLaundry Detergent
8.3%
Pet Food6.8%
0.3%
Frozen Pizza-0.5%
14.4%11.8%
8.8%
3.0%
5.8%4.8%
4.8%4.4%
4.1%3.9%
2.8%
Tot Price / Volume Change
Increased Everyday Price
Reduction in Promotion
Mix Shift / Premiumization Mix Shift/
Premiumization
Δ vs. 16 WE 12/27/20
C O N T E X T
EdibleNonedible
Source: IRI POS 12 WE 3/21/21, 16 WE 12/27/20, Grocery channel. IRI Strategic Analytics..
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 6
Baking Mixes
Premium Brands Grew in Many Categories as Shoppers Traded UpCategory Price Tiers and Brands – Representative Categories
20.8% $15.5B
65.1%
64.0%
19.4%13.8%
L52
1.7%Pre-
COV
13.3%1.9%
$14.6B
25.8%
$1.6B
Pre-COV 62.0%
27.5%
8.6%3.6%
60.6%L52 8.8%3.1%
$1.3B
Pre-COV
29.6%
27.7%55.7%
54.2%
12.5%4.0%
12.1%4.1%
L52
$9.4B
$10.6B
Chocolate Candy
+0.2 -0.5 -1.1 +1.4
-0.5 +0.2 -1.4 +1.7
+0.1 -0.5 -1.5 +1.9
54.5%
9.9% 20.9%Pre-COV $5.3B60.4%
$7.5B
8.9%
27.7%6.2%
11.5%L52
-2.6 +1.6 -5.8 +6.8
Private Label Value Mainstream PremiumFrozen Entrées
Health and comfort brands contribute most
to premium growth
Soap
Premium brands with alternatives for allergies and
dietary restrictions gain shareSmaller premium
brands grew share
Premium small indulgences grow
Private Label Value Mainstream Premium
Private Label Value Mainstream Premium Private Label Value Mainstream Premium
C O N T E X T
Note: Price Tiers calculated at Major Brand Level from Subcategory Price/Vol as Premium > 1.25*Avg, Value < .75*Avg Source: IRI POS; Pre-COVID-19 52 WE 2/23/20, L52 WE 3/21/21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 7
For restaurants that remain open, sales are near pre-COVID-19 levels
Demand for categories will continue to be idiosyncratic
Demand for In-Home Consumption Is Expected to Decline vs. Last Year as Consumers Begin to Resume Pre-Pandemic Behaviors
-50
-40
-30
-20
-10
0
10
20
30
40
1/1/
2020
4/1/
2020
1/1/
2021
7/1/
2020
4/1/
2021
10/1
/202
0
7/1/
2021
10/1
/202
1
1/1/
2022
F&BVolumeMobility
Forecast
Median Forecast
Q1
‘21
Q2
‘21
Q3
‘21
Q4
‘21
based on assumption of full COVID-19 vaccine distribution by June 2021
+6%vs. Jan-Feb 2020 +3%
vs. Jan-Feb 2020
~+8%vs. Jan-
Feb 2020
2020 F&B volume~+10-12% vs. Jan-Feb 2020
+3%vs. Jan-Feb 2020
Full-Service Restaurants PerformanceAll Restaurants (including closed) $ sales % chg. vs. pre-COVID-19
-55
-83
-69
-53
-50
-48
-42
-42
-55
-61
-53
-50
-47-32
May
October
March
September
March
April
June
July
August
November
December
January
February
April
2020 vs. 2019
2021 vs. 2019
U.S. Consumer Mobility vs. F&B At-Home Volume% chg. from pre-COVID-19 (Jan mid-Feb ’20) base, 4 wk rolling avg – est. total Omnichannel
P R I C I N G C H A L L E N G E S
Omnichannel = MULO+C + Costco + eCom – Overlap. Source: Google Mobility – Workplace. IRI POS data. IRI Strategic Analytics models. IRI analysis.
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More Pricing Is Expected for 2021: CPGs Need to Leverage the Full Spectrum of Revenue Growth Levers as Price / Mix Growth AcceleratesCPG Price / Mix Growth
2019 2020Q1
12 WE 3-21-21L4
4 WE 4-18-21
Michael Hsu, Kimberly-Clark CEO"We expect some of the net benefit from COVID-19 dynamics, including higher consumer demand, to reverse. In addition, commodity costs are rising globally…"
James Quincey, Coca-Cola CEO“There will have to be some price increases… We intend to manage those intelligently, thinking through the way we use package sizes and really optimize the price points for consumers."
Andre Schulten, P&G CFO"As opportunities allow, we’ll close a couple of price increases with new product innovations, adding value for consumers.”
Note: Price / Mix is dollar-weighted price per volume % change across categories. Source: IRI POS Data, MULO+C; Earnings Call Transcripts.
1.9%3.3% 4.0% 4.4%
3.3%
5.3% 5.6%6.7%
% chg vs. YA % chg vs. 2YA
3.5%4.4%
5.1%5.7%5.7%
7.9% 7.4%
8.8%
EDIBLE
NONEDIBLE
Price / mix has grown on average 2.5%over last 10 years
Price / mix growth last exceeded
5% in 2008
Dave Marberger, Conagra CFO“History shows us that price adjustments are more likely to be accepted in the market when industrywide and broad-based input cost inflation occurs…”
Vivek Sankaran, Albertsons CEO“Inflation of 3% to 4% can be passed on to the consumer, but if inflation goes higher there will be difficult conversations throughout the supply chain.”
Linda Rendle, Clorox CEO“We’re looking at price increases…in a category-by-category approach… We’ll focus on… margin-accretive innovation.”
P R I C I N G C H A L L E N G E S
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 9
Price Sensitivity Is Rising Again After Dropping During the COVID-19 PandemicCPG Average Promoted Price Group (PPG) Price Elasticity / Grocery Channel
-18.9
-14.8-16.3
-8.5
-17.1
-12.9
Edible Nonedible
-10
39 w/e 3/1/20 26 w/e 10/26/20 39 w/e 2/28/21
% reduction in volume from 10% increase in price
-2.6+0.8
-6.3+4.4
P R I C I N G C H A L L E N G E S
Revenue Growth Management Opportunities | Reshape elasticity curves leveraging behavioral economics (e.g., attribute priming, anchoring, assortment curation, bundling).1
1Psychology of Pricing: Reshaping Your Elasticity Curve Note: Avg PPG price elasticity measured across PPGs (top 80% by volume) in representative categories. Source: IRI Revenue Growth Management proprietary models.
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Retailers and Manufacturers Will Fight to Improve Market Share and Retain Buyers Acquired During the Pandemic Surge
Retailers Will Be Fighting for Market Share Even as Some In-Home Consumption Switches to Out-of-Home
Manufacturers Will Work to Retain the New Consumers They Acquired During Pandemic
Top Growing Brands by New Buyers Gained
Large Brands gained an average of 1.9 M
new buyers
Medium Brands gained 1.3 M
Small Brands gained 0.7 M new buyers
3
1
2
Angel Soft 13.2 M 34%
Lysol 12.1 M 56%
Charmin 11.2 M 47%
2020 HH Penetration
No. of HH Buying Chg. vs. YA
3
1
2
3
1
2
Germ X 20.2 M 19%
Microban 8.9 M 7%
Kinder 8.7 M 20%
Hunt’s 8.4 M 57%
Bimbo 7.8 M 34%
Northern 6.9 M 22%
Source: Earnings Reports. IRI 2020 Trends and 2021 Emerging Growth Pockets. / Note: Costco is average of latest 4 quarters ending Feb 14, 2021. Comparable Sales Growth excludes Fuel for most Retailers
EdibleNonedible
19.3%
16.9%
16.3%
14.4%
14.1%
12.8%
11.8%
8.6%
Latest Quarter Quarter Ending
20.5% Jan 30, 2021
11.8% Feb 27, 2021
21.6% Jan 29, 2021
11.2% Dec 31, 2020
10.6% Jan 30, 2021
12.6% Feb 14,2021
10.8% Jan 29, 2021
8.6% Jan 29, 2021
Comparable Sales Growth
P R I C I N G C H A L L E N G E S
Latest Fiscal Year
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 11
P R I C I N G C H A L L E N G E S
Promotions Will Revert to “Normal” Levels as Retailers andManufacturers Fight to Retain Buyers and Grow Market ShareCPG Promotional Index / MULO
Promotional index defined as % of dollar sales sold with any merchandising condition, indexed to YA value. Source: IRI POS data ending 3/21/21
EDIBLE
NONEDIBLE
93.6
57.979.3 88.1 93.8
146.7
90.9
57.379.5 88.0 87.8 87.5
4 WE 04-18-21
Q1 ’20 12 WE 03-22-20
Q2 ’20 12 WE 06-14-20
Q4 ’20 12 WE 12-27-20
Q3 ’20 12 WE 09-06-20
Q1 ’21 12 WE 03-21-21
vs. YA vs. 2 YA
99.3
60.9 73.4 79.1 83.2
130.595.5
58.1 73.1 79.5 82.6 88.0
Revenue Growth Management Opportunities
Winners will rethink and innovate on promotions –
in-store and online – that drive truly incremental volume and reduce unproductive spend.
ExpectationsExpect promotions to revert to
normal levels later in the year as consumer mobility starts to
increase and away-from-home spending recovers.
Some manufacturers have invested to expand their
capacity and will be pressured to drive volume.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 12
Winners Will Leverage All Revenue Growth Levers
CATEGORIES
COMPETITION
OCCASIONS
SHOPPERS
PROMOTIONS
EVERYDAY PRICES
BRAND VALUE
INNOVATION
CHANNELS
New Skillsets that Leverage Technology, Real-Time POS, Consumer and Shopper Data, Advanced Analytics, Machine Learning, and Artificial Intelligence
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 13
Investments in Machine Learning Enable Quick Identification of Pricing Opportunities and “Size of the Prize”Machine Learning Provides Real-Time Insights, Enabling Quick Action
Retailer A
Retailer A
Retailer C
Retailer E
Retailer E
Retailer F
Retailer G
Retailer H
Retailer I
Geo A
Geo A
Geo A
Retailer K
Retailer K
Retailer L
Retailer L
Retailer L Retailer J Retailer I
Retailer M
Retailer M
Retailer M
Retailer H
Retailer H
Geo B
Geo B
Geo B
Retailer N
Retailer N
Retailer O
Retailer O
Retailer C
Retailer B Retailer C Retailer D Retailer E Retailer F
Retailer KRetailer J Retailer I Retailer G
Retailer G
Which Retailers have NOT Reflected 15% SRP Increases on Product A?
Brand A – Unify Predictive Recommendations May/June ’20Category in Channel, Price & Promo OpportunitiesAutomated Insights
Brand A
Brand A
Brand A Retailer A, Retailer B,
Retailer A, Retailer B,
Brand A Product A
Retailer A
Retailer C
Retailer C
Retailer C
Retailer B
Retailer D
Brand A Product A
Brand B Product A
Brand A Product A
Brand B Product A
Brand A Product B
Brand C Product A
Brand A Product A
Brand D Product A
Brand A Product B
Brand E Product A
Brand A Product B
Brand F Product A
Brand A
Brand A
Brand A
Brand BBrand C
Retailer A, Retailer B, Retailer A, Retailer B,
Retailer A, Retailer B,
Identify Pricing OpportunitiesPrioritize Pricing Decisions
Based on the Size of the Prize
C A T E G O R I E S
Manual and inconsistent revenue management processes used to search for price and promotion execution gaps and opportunities will be replaced with on-demand, proactive, real-time push of alerts and predictors so that managers can quickly capture revenue growth opportunities.
Source: IRI disguised client example.
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Winners Leverage Quick Pricing Diagnostics to Quantify the Risk / Reward Continuum for Pricing ActionsSelect Examples – Pricing Risk / Reward Evaluation – Volume Sales Rate Index by Price Point
Elastic Example: High Pricing RiskSales Rates React Strongly to Changes in Price
Inelastic Example: Low Pricing RiskSales Rates Are Relatively Unchanged as Prices Increase
C A T E G O R I E S
Pricing diagnostics often help quantify price leverage for a brand in the context of its competitive value position and save companies from unnecessary price moves when opportunities lie elsewhere.
Note: Reported Base Price Point is the point’s range ending point and includes a full dime’s worth of prices. Points start at this value, i.e., $0.99 is a Base Price Point of $0.90 thru $0.99. Source: IRI MULOC
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 15
Take Price in Categories That Have a Lower Volume Impact Representative Categories – Category Volume Change from 5% Price Increase
Greatest Volume Decrease
Least Volume
Decrease
Chocolate Candy-8.3%
Ice Cream/Sherbet
-7.2%
Toothpaste-6.4%
Salty Snacks-7.4%
Bottled Juices - SS-7.2%
Cookies-7.1%
Batteries-6.0%
Crackers-8.3%
Bottled Water-6.9%
Vitamins-3.3%
Frozen Pizza-8.2%
Laundry Detergent-7.5%
Baking Needs-7.4%
Source: IRI Revenue Management Database. 39WE 2/28/21.
Revenue Growth Management Opportunities
Managers who invest to understand price elasticity for their
brands and categories, as well as
competitive and substitute solutions
across key purchase scenarios, can
increase topline sales by more than 2%.
Leaders take price early in select categories and
brands to increase their optionality and retain promotional
flexibility as needed.
C A T E G O R I E S
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 16
“Instead of having a team dedicated to pulling data and searching for price and promo execution gaps, technology does that work for us and delivers us exactly the insights we need as soon as data is released, saving our finance team hours of work every week.”
— Director of Revenue Management
Monitor Competitive Price Gaps at Market-Account Level in Real Time and Take Quick Corrective ActionClient Example – Aggressively and Granularly Monitor Competitor Price Gaps
C O M P E T I T I O N
Source: IRI disguised client example.
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Monitor Competitive Promotions and Their Impact to Identify and Quickly React to Promotion Opportunities and RisksBenchmarking Promotional ExecutionConvenience Channel, Latest 52 weeks vs. Latest 12 Weeks on Promotion
Brand A Brand ACompetitor CompetitorAny Merch Quality Merch
Last 52 Weeks Last 12 Weeks36
34
2018
8 8
26
C O M P E T I T I O N
Brand A Brand ACompetitor CompetitorAny Merch Quality Merch
Competitor is now getting more than its fair share of quality
merchandising.
Note: Weeks of promotion support less frequent than comparison products. Brand A had fewer weeks of support than 1 comparison product for Latest 52 WE 02-21-21. Minimum promo weeks of support difference is 1.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 18
-2.0-1.9-1.8-1.7-1.6-1.5-1.4-1.3-1.2-1.1-1.0
Leaders Track Changes of Own Brand and Competitive Brand Price Sensitivity to Determine Appropriate ActionExamples – Brand Base Price Elasticity
-1.4
-1.0
-1.6-1.7
-1.7
-1.5
-1.9
-1.7
Pric
e El
astic
ity
20212020
Source: IRI Revenue Management Database. Pre-Period = 39WE 3/1/20; Post-Period = 39WE 2/28/21.
Less price sensitive
Minimal Change
Less price sensitive
More price sensitive
-1.8%-21.2%-5.9%
+39.5%
Premium breakfast cookie with claims:
• Whole Grains• 4 Hours of Nutritious
Steady Energy• Natural Flavors
Mainstream waferwith no claims Indulgent pizza with a wide
variety of forms and crust options with claims:
• 100% Real Cheese• Preservative-free crust• No Artificial Flavors
Premium, exotic flavors with claims including:
• 100% Real Cheese• Preservative-free crust• No Artificial Flavors
• Avoid everyday price erosion
• Use targeted promotions to drive volume
• Strengthen brand value proposition
• Monitor promos to cut unproductive events
• Leverage differentiating product claims on packaging to take price
• Use brand equity to secure quality support for events, improving lift for the remaining weeks on promo
• Seek any remaining pockets of leverage across the category to be able to take price
• Ensure a strong, compelling price-value curve vs. competitors
C O M P E T I T I O N
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 19
16ct
80ct
Non-Promo Price Per Unit
28ct
Non
-Pro
mo
Pric
e pe
r Cou
nt /
Oun
ce
40ct
14ct
20ct
4oz
40ct
8oz
7oz
14ct
20ct28ct
20ct24ct
30ct
Product 1
Product 2
Product 3
Product 5
Product 6
Product 4
Non-Promo Price Per Unit
12oz
Non
-Pro
mo
Pric
e pe
r Cou
nt /
Oun
ce
24oz
24ct
12oz
60ct
24ct
48ct
24oz
8oz
24ct
Product 1
Product 2 Product 5
Product 3
Product 4
Product 6
A Key Lever of Revenue Growth Is Identification and Correction of Misaligned Price-Volume Curves in a Competitive ContextClient Example – Brand 1 vs. Brand 2 Price / Volume Curve – Retailer 1 Non-Promoted Avg. Price per Unit, 52 WE February 23, 2020 – Retailer 1
Brand 1 Brand 2
E V E R Y D A Y P R I C I N G
Incentive curve analysis across retailers, triangulated with elasticity modeling, identifies new price-pack opportunities.
Source: Disguised Client Example. IRI Consulting analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 20
“Our team
focuses now on
forward-looking
actions instead
of working with
backward data.”
VP of Revenue Management
Product Retail Account
Price Recommendation(Allowable Range, Current,
Recommended)
Unit Sales Change
Revenue Change
Contribution Change
% % %
Brand A, Pack 1 Account X 2.2% 1.7% -0.4%
Brand A, Pack 2 Account Y 22.7% 11.6% 9.3%
Brand A, Pack 2 Account Z 0.1% 0.0% 0.0%
$4.12
It’s Critical to Quickly Determine Optimal Everyday Prices at Account and Pack Level, Especially in an Uncertain and Uneven EnvironmentClient Example – Impact of Everyday Price Changes
$4.12 $5.04
4.35
$1.69 $2.06
$1.92$1.69
$1.83 $1.99
$1.79 $1.91
-5.3%
-12.0%
+6.7%
E V E R Y D A Y P R I C I N G
“
”Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 21
Brand A
Brand A
Retailers can use promotions strategically to drive growth where there is greater price reaction and return on investment.
Brand A
Brand A
Leaders Leverage Technology to Proactively Identify and Correct Violations of Pricing Guidelines Client Example – IRI Opportunity Alerts
Retailer 1 is the only retailer that is in violation
of the established lowest promoted price
point of $0.79
P R O M O T I O N S
Capturing Such Granular Opportunities Can Collectively Lead to a 1% Increase in Revenues
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 22
Optimize Trade Calendars at Brand-Pack-Account Level by Testing Different OptionsClient Example
Summary of metrics for each potential scenario
Recommendation rationale
Key inputs and assumptions (COGS, list price, etc.)
Summary of expected outcome for each scenario
Simulate different # of wks of different promos
P R O M O T I O N S
Simulate Runs & Measure Impact of Different Promo Calendars(including changes to everyday price)
Evaluate Scenarios at the Account and Across Accounts
Giving access to promo effectiveness, scenario capabilities enabled sales growth up to 5% for same level of trade spend
Source: IRI disguised client example. IRI POS Data, Pricing Study, Trade Simulator, and Consulting Analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 23
Leverage Machine Learning to Drive Profitable Trade DecisionsClient Example – Trade Event Optimization
Looking across investment opportunities for each brand we found significant variation in effectiveness
of existing investment being made…
…and used this to optimize the mix of Hi/Lo and EDLP promos at an account level to drive top- and bottom-line growth.
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
9 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
8 9 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0
7 8 9 1 0 1 0 1 0 1 0 1 0 1 0 1 0
6 7 8 9 1 0 1 0 1 0 1 0 1 0 1 0
5 6 7 8 9 1 0 1 0 1 0 1 0 1 0
5 5 6 7 8 9 1 0 1 0 1 0 1 0
4 5 5 6 7 8 9 9 9 9
3 4 5 5 6 6 8 8 8 8
2 3 4 5 5 5 6 6 7 7
0 2 3 4 5 5 5 5 5 5
0 0 2 2 4 4 5 5 5 5
0 0 1 1 2 2 4 4 5 5
0 0 0 0 1 1 2 2 4 4
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0-$1.00
-$0.50
$0.00
$0.50
$1.00
$1.50
$2.00$2.50
$3.00
$3.50
$4.00
$4.50
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000
Price Investment ($ per week)
Incr
emen
tal P
rofit
per
Dol
lar I
nves
ted
Evaluating against the total system profit pool ensured trade plans that benefitted both the client and its retail partners.
In addition to driving the manufacturer / retailer win-wins, these new trade plans significantly increased ROI.
8
16
16
16 PPG A $2.99
PPG A MEGA $3.49/$2.99
PPG A $3.49
PPG B $3.49
PPG C $7.99
EDLP PPG A
12
16
16
14
$3.78 $4.49
0
Original Scenario$3.78 Base Price
$4.49 Base Price$3.49/$2.99 Scan PromosPromotions
Expected Improvement vs. Original Scenario
Volume +8%Net Sales +8%Mfg Profit +8%Trade ROI +28 ppts
Retail Sales +9%Retail Profit +10%Retail Mgn +1 ppts
Manufacturer Metrics Retailer Metrics
BOO50B1G1
Must Buy 3
P R O M O T I O N S
IMPACT: 10 ppts ROI Improvement Drove Operating Profit Improvement of 15% and 5% Increase in Sales
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 24
P R O M O T I O N S
6.7%
5.1%
4.3%
18.3%
8.6%
6.1%
6.5%
22.3%
6.8%
5.1%
4.4%
18.5%
Promoted Price
GroupAccount
Recommended Quality Merchandising Weeks
Recommended Total Weeks
Unit Sales Change
Retail Sales Change
Mfr. Profit Change
Change Result Change Result % % %
Pack 1 Account X -2 31 +2 41
Pack 1 Account Y +2 38 -1 41
Pack 2 Account Z +3 21 -- 32
Pack 2 Account K +4 26 +5 32
When a Category Grows More Sensitive, Brands Need to Guard Equity and Ensure Their Fair Share of Quality Merchandising to Drive ProductivityClient Example – Promo Weeks of Support vs. Competitor Products: Selected Outputs
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 25
Monitor Promos to Ensure They Drive Planned Results, But Allow for Ongoing Refinements in the Trade Calendar and Avoid OversaturationPromo Execution and Competitive Promotions Brand A Pack 2 at Retailer X
TPR Feature Display F&D> 50% TPR 200% 250% 300% 400%
BOGO 100% 150% 200% 300%
Buy 2, get 1 75% 100% 150% 200%
20-25% TPR 50% 100% 125% 175%
10-19% TPR 25% 50% 75% 150%
< 10% TPR 10% 30% 50% 75%
Everyday Price 20% 35% 35%
Illustrative Example
Process done for all packs and geographies selected for analysis.
Prom
oted
Pric
e
Typical Promotional Lifts Alerts trigger when promo event yields greater or less than expected/threshold lift
Action: Identify incremental execution opportunities
at that and at other accounts
Alerts trigger when competitive promo event yields greater than typical lift
Action: Work with account teams to assess why
event yielded unexpected lift and act
P R O M O T I O N S
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 26
S H O P P E R S
Revenue Growth Innovators Leverage Frequent Shopper Data to Understand Which Promotions & Packs Drive Truly Incremental SalesClient Example – Responsiveness of Promotions by Shopper Segment / Segment Index to Average
Pack A: Deeper Must Buy 3 Promo
Pack A: BOGO with Display Support
Pack B: Shallower BOGO50
Pack B: Buy 2 Get 1 with Display Support
Strong Response from Loyal Buyers
Skewed More Toward Light Buyers & Switchers
More Evenly Distributed; Higher Focus on Switchers
Strong Response From Switchers
107
102
115
178
156
91
117
102
146
125
110
14686
96
170
122
107
145
103
87
112
113
103
121
134
115
194
130
94
101
78
97
101
100
107
167
CA
TEG
OR
Y U
SAG
E
Heavy
Medium
Light
Heavy
Medium
Light
Heavy
Medium
Light
Loyal to Other Brand
Loyal to Brand X
Switcher
Revenue Growth
Management OpportunitiesRetailers canunderstand the effect of their pricing and
promotion on specific shopper
segments in order to drive
penetration and incremental
revenue.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 27
Use Shopper Data to Tailor Promos and Merchandising Types to Target Specific Shopper Segments Like Brand SwitchersClient Example – Promotional and Merchandising Responsiveness by Shopper SegmentSegment Level Engagement Indices vs. All Promotional Weeks, IRI FSP Data
BRAND LOYALTY
Feature BOGO
150 200 142
130
134 130
160
160 170 142
Loyal to other brands
Heavy
Moderate
LightCATE
GO
RY U
SAG
E
40% off with Display
Loyal to Client Brand
Loyal to other brands
Loyal to Client Brand
S H O P P E R S
Deep feature events engage heavy category buyers, in particular brand switchers, while deeper display events engage moderate and light category buyers, in particular brand switchers.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 28
Use Shopper Data to Identify Tactics That Attract Brand Switchers and Adjust Promotional StrategyClient Example – Brand Switcher Share of Pack Sales% of Sales Total Category and Client Brand X, IRI FSP Data
11% 52%
20%
37%
78%
All Other
2%
Larger PacksSmaller Packs
Total Category
Client Brand
Client brand was not getting fair share of brand switchers due to not offering a competitively priced small pack.
S H O P P E R S
Winners gain additional revenue and share growth by understanding shopper preferences and purchase behavior at account level.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 29
S H O P P E R S
Shopper Data Identifies Key Weeks to Run Promotions and for Partnerships With Retailers to Win with Specific Shopper SegmentsClient Example – Dollar Sales Index by Week for Millennials with Moderate Category Engagement – IRI FSP DataSegment Level Sales Index by Week($ index)
Identified key category weeks to
win through promotions when
millennials are most engaged in
the category.
Leaders leverage granular analytics to identify key weeks to promote when
valuable shoppers are in the market.
Winners work collaboratively with retailers to engage
with the right shoppers, right packs, and right
promotions at the right time.
Source: IRI disguised client example.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 30
Leaders Tailor Pack Size Offerings by Channel to Strengthen the Value Proposition and Better Incent Upsell OpportunitiesClient Example – Refining Price Pack Channel Architecture
Competitive, Channel-Specific Packs Developed via a Granular Understanding of ShoppersIMPACT: New assortments grew multi-pack sales 12–15% across all channels; grew mkt share to a 5-year high
Source: IRI client work.
Current Architecture Recommended Architecture
Winning Manufacturers
factor in retailers’ shopper perspectives and collaborate with the retailer to bring the right
packs, prices and promotions to the
market.
Retailers fine-tune assortment; build both value and premium offerings and
manage trade-in gap between
value and mainstream and
between mainstream and premium brands.
S H O P P E R S / C H A N N E L S
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 31
Online Price Sensitivity Remains Lower Than Grocery Price SensitivityCPG Average PPG Price Elasticity Grocery, e-Commerce
-18.5-20.5
-14.7-13.0
-16.6
-13.8
-10
39 w/e 3/1/20 26 w/e 10/26/20 39 w/e 2/28/21
% reduction in volume from
10% increasein price
Note: Average PPG price elasticity measured across PPGs (top 80% by volume) in 30 representative categories. E-commerce based on pure-play ecom retailer. 26 WE 10/6/19 vs. 26 WE 10/4/20. Source: IRI Revenue Growth Management proprietary models.
-3.8 +1.9-7.5
+0.8
Revenue Growth Management Opportunities
Winning retailers attract and retain omnichannel
shoppers who are less price sensitive and more loyal with
right targeting, messaging and assortment.
ExpectationsLeading players consider
differentiated assortment and pricing in-store vs. online to incent
traffic to both channels.Break line-pricing for complex flavors, special packs and LTOs
in e-commerce where consumers are willing to pay extra for value.
Promote differently in-store and online.Grocery E-Commerce –
Pure Play Delivery
C H A N N E L S
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 32
Brands and Products That Can Make More Targeted and Aligned Claims Have Price LeverageSelect Examples – While shoppers tend to appreciate sourcing claims, they rarely are willing to pay more for them.
Source: IRI Revenue Management Database. Pre Period = 39WE 3/1/20; Post Period = 39WE 2/28/21.
Claim:• Natural & artificial
flavor added
Claims: • Certified B Corporation• Gluten Free• Non-GMO
Claims: • Non-GMO• Responsibly Sourced
Packaging• Fairtrade• Cage-free Eggs
ICE
CR
EAM
/ SH
ERB
ET
Blue Bell Mainstream Ice Cream
Ben & Jerry’sTheme-flavored Premium Ice Cream
So DeliciousSpecialty Dairy-Free Ice Cream
CR
AC
KER
S
No claim
Claims: • Baked• 100% Real Cheese
Claims:• Baked• No artificial colors or flavors• Non-GMO• 100% Whole Grain Wheat
Keebler Club CrackersMainstream Cracker
Pepperidge Farm GoldfishMainstream Snack Cracker
TriscuitMainstream BFY Whole Grain Cracker
-3.162021
Elasticity
-1.992020
-1.582021
Elasticity
-1.672020
-1.202021
Elasticity
-1.712020
-1.922021
Elasticity
1.722020
-1.302021
Elasticity
-1.362020
-0.662021
Elasticity
-1.162020
B R A N D V A L U E
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 33
Leveraging Multiple Claims on Packaging Helped Elevate a Brand to a More Premium Price PositionClient Example – Strengthening Brand Value Proposition
Combined Claim:“Organic, No Artificial Ingredients, 3g of Protein per Serving”
No single claim could justify enough of a premium to offset the costs of carrying it.
Potential Individual Claims the Brand Could Make Did Not Make a Significant Difference …
…But Shoppers Were Willing to Pay a 25% Premium for a Combination of the Claims
Impact: Not only did the brand strengthen its appeal among core users, but it also helped trade-up mainstream cracker buyers.
Individual Claim
Impact on Price Shoppers Would Pay
Shopper Rationale
Organic +3% “That doesn’t mean it’s healthy”
No Artificial Ingredients
+3% “Yes, but it’s not good enough to be organic”
3 Grams of Protein
+5% “That could be due to a series of bad additives”
Source: IRI client work.
B R A N D V A L U E
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 34
Soap Brands With Natural, Beauty Benefitting Ingredients Gained Share Over Mainstream BrandsPremium Brand Share Growth – Select Examples
Source: IRI POS; Pre-COVID-19 52 WE 2-23-20, L52 WE 3-21-21
Fair trade, made with organic oils
Naturally derived ingredients including lavender, eucalyptus, shea
L52 Share: 1.0%+0.04 ppt chg. vs. pre-COVID-19
L52 Share: 0.1%+0.01 ppt chg. vs. pre-COVID-19
Moisturizing, for sensitive skin,plant-derived ingredients
including almond milk, agave, raw coconut, avocado oil
L52 Share: 1.1%+0.5 ppt chg. vs. pre-COVID-19
B R A N D V A L U E
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 35
Tailor Products to Different Needs and Occasions for Revenue GrowthBrand Innovation – Select Examples
Original cookie with resealable package to
maintain freshness
Base OreoStandard Pack (14.3 oz)
ThinsStandard Pack (10.1 oz)
Mini Snack PacksStandard (12 oz)
Snack packs for single-serve personal consumption;
convenient travel size that’s great for on-the-go snacking
Thin cookies for a lighter, crispier take on the original
Oreo, with resealable container with an easy-pull tab
Source: IRI Revenue Mgmt. Database. Pre Period = 39WE 3/1/20; Post Period = 39WE 2/28/21. IRI POS, MULO, 52 WE 4-18-21. Price Index calculated as (Price per Volume/Standard Pack Size Price per Volume)*100.
-1.602021
Elasticity
-1.56
Elasticity
-1.37
Elasticity
-1.43
Price/Vol (PPV) Price/Vol Price/Vol
2020 2021-1.782020 2021
-1.222020
153PPV Index to Standard Pack
168PPV Index to Standard Pack
$3.23
Price/Unit
$3.3014.3oz$3.31
Price/Unit
$5.0710.1oz
$4.81
Price/Unit
$5.5412oz
O C C A S I O N S
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 36
In a Very Competitive Category, a Manufacturer Needed to Premiumize to Remain Financially ViableClient Example – Strengthening Brand Value Proposition Example
“Good source of protein”New Claims:• 30g Protein / 13g Net Carbs• Good Source of Fiber• No Preservatives
…resulted in a gain of an additional ~4 ppts of share through growth in both volume and price / mix
…gaining 0.6 ppts of share with no additional investment in product COGS
A frozen foods manufacturer added a protein claim to take credit in the short-term…
Tailored innovation around the protein concept...
I N N O V A T I O N
IMPACT: This brand nearly doubled its profit dollars per unit after strengthening its high protein positioning.
Note: Disguised Client Example
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 37
Brands That Differentiate Through Premium Ingredients, Unique Flavors and Dietary Alternatives Can Price MorePremium Brand Pricing and Share Growth – Select Examples
Source: IRI POS; MULOC, L52 WE 4-18-21. Pre-COVID-19 52 WE 2-23-20.
Basil, Cherry Tomatoes, Asiago, Cremini Mushrooms
L52 Share: 1.7%+0.3 ppt chg. vs. pre-COVID-19
L52 Share: 3.7%+0.2 ppt chg. vs. pre-COVID-19
L52 Share: 0.8%+0.3 ppt chg. vs. pre-COVID-19
Premium Ingredients Unique Flavors Dietary AlternativesDairy Free, Soy Free
Gluten Free, Meatless BBQ Chicken, Sicilian,
Four Cheese, Margherita
$6.15
Price/Unit
$6.45
Price/Unit
$7.46
Price/Unit
152Index to
Category Avg
159Index to
Category Avg
184Index to
Category Avg
Winners home in on granular consumer data to understand emerging trends, articulated and unarticulated, to capture pricing opportunities (e.g., limited time offers, seasonal products).
I N N O V A T I O N
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 38
• Monitor price elasticity at a granular level with high frequency to capitalize on pricing opportunities in the supply-constrained environment.
• Continuously track promotional effectiveness and direct investments to efforts that deliver the highest returns.
• Understand price-pack opportunities across channels and consumers and assess potential evolution, especially with e-commerce vs. in-store.
• Ensure adequate opening price points and value products, while driving sales of premium and super premium products.
• Manage the trade-in gap between value and mainstream and between mainstream and premium brands.
• Drive occasions and innovate to realize value.Man
ufac
ture
rR
etai
ler
• Attract and retain omnichannel shoppers who are less price sensitive and more loyal with the right targeting, messaging and assortment.
• Fine-tune assortment; build both value and premium offerings and manage the trade-in gap between value and mainstream and between mainstream and premium brands.
• Understand the effect of pricing and promotion on specific shopper segments in order to drive penetration and incremental revenue.
• Use promotions strategically to drive growth where there is greater price reaction and return on investment.
• Continuously monitor price and promotional elasticity at granular levels and adapt revenue growth management practices.
• Articulate your total value to consumers and shore up your opening price point products as inflation picks up and a segment of shoppers trades down and looks for value products and retailers that offer more value.
To win the market share battle in this inflationary environment, it is critical to quickly discover pricing and promotion opportunities and enable granular execution by providing prescriptive and intelligent recommendations to the right decision makers (HQ/Field, HQ/Store). To do this at scale, CPGs and retailers need to leverage advanced analytics (e.g., elasticity), new technologies (e.g., machine learning, automation) and datasets (e.g., shopper, consumer, POS). Winners are enabling their organization to make profitable decisions via new sets of tools.
Revenue Growth Opportunities
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 39
Join IRI for the Revenue Growth Management Webinar May 20
(click here to register)
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IRI’s Revenue Growth Management Enterprise Solutions Are the Nexus of World Class Predictive Price & Trade Models and Real-Time POS Data
Opportunity Alerts & Predictors
• Delivers a fully automated personalized decision-making platform with alerts and size of the prize
• Harnesses IRI’s advanced store-level price and promo modeling to determine granular, retailer-specific impacts
• Leverages machine learning for quick identification of opportunities
Price &Trade Advantage
• Enables price and trade strategy to maximize sales, share, and profit objectives by war-gaming multiple scenarios and comparing outcomes.
• Informs price and trade decisions based on full category results from pricing and promo actions
• Harnesses IRI’s advanced store-level price and promo modeling to determine granular, retailer-specific impacts
PricingDiagnostic
• Manages risk by identifying changes in sales velocity at specific price points and price gaps and identifies root causes for sales and share change
• Achieves planned price realization and avoids key competitive gap violations.
• Avoids sales losses at customers that appear threshold- and gap-compliant on average.
Action and Impact3-5% growth in sales
Up to 5% growth in margin
Generate 3% to 5% improvement in price realization and
trade efficiencies for top-and bottom-line growth
10X+ productivity gains in determining root cause of
business trajectory and identifying areas of improvement
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 41
IRI Offers Solutions and Services to Drive Pricing Discipline in a Downturn, From End-to-End Consulting to Automated Alerts and Granular Analytics
Assortment Planning Strategy
• Delivers a fully automated personalized decision-making platform
• Harnesses IRI’s advanced store-level modeling to determine granular, retailer-specific impact
• Simulates full category results from assortment and space decisions, accounting for demand transfer
• Allows contingency and scenario planning, along with ongoing monitoring and tracking
Portfolio Profitability Consulting
• Provides end-to-end guidance to strengthen value proposition
• Chooses most profitable opportunities among pricing, pack size, messaging, and innovation
• Grows both top and bottom line while also driving market share
• Builds win-win for retailers and manufacturers to drive engagement and compliance
Segment-Specific Pricing Optimization
• Enables more strategic pricing based on securing longer-term shopper loyalty
• Targets price and promo opportunities that resonate with most valuable shoppers
• Strengthens position as a strategic advisor to retail
• Decomposes price and promo elasticity across consumer segments
Action and Impact>2-5% sales growth
2-5% retail category growth3-10% growth in sales
10-20% reduction in COGS>5% margin gains
5-10% growth in sales5 ppts gain in trade lifts
5-10% increased conversionUp to 10% gains in basket size
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 42
Mark ClousePresident and CEO, Campbell Soup CompanyNovember 10, 2020
Stuart AitkenChief Merchant & Marketing Officer, The Kroger Co.September 3, 2020
Vivek SankaranPresident & CEO, Albertsons CompaniesAugust 25, 2020
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 43
IRI’s Latest CPG and Retail Insights Reports to Manage the Impact of COVID-19 (click to see full report)
The Changing Shape of the CPG Demand Curve
Discovering Pockets of Demand
COVID-19 Emerging Point of View
Recession Proof Your Business
IRI COVID-19 Impact Assessment Reports
14. Vitamins, Minerals, Supplements13. America Is Ready for Football12. Revenue Management
Opportunities in a Pandemic11. Home for the Holidays10. Powering the Future of
Convenience Retail9. Reignite In-Store
Merchandising in Grocery8. SNAP Benefits7. U.S. CPG Growth Leaders6. E-Commerce5. Boomers4. A Global Perspective3. Tracking Transformation2. Meat and Millennials1. Anticipate the Future
4. Winning in CPG E-Commerce3. Innovation for a Post-
Pandemic World2. Harness Growth in 20211. The Premium Opportunity
5. COVID-19 Vaccine Update: Impact on CPG Industry
4. Anticipated Vaccine Adoption & Impact on the CPG Industry
3. Potential Impact of Reduced Unemployment Benefit Changes on F&B Spending
2. Consumer Stimulus, Unemployment Benefit Spending & Shopping Behavior
1. The Impact of a Second Round of Stimulus on the CPG Demand Curve
7. Defending and Recapturing the Shelf
6. Innovation Lessons From the Great Recession to Apply Today
5. Building Brands During Recessionary Times
4. Recessionary Lessons to Apply to Private Label Today
3. How Big Brands Performed During the Great Recession
2. Maintaining Pricing Discipline During a Recession
1. How the Great Recession Reshaped CPG Demand Curve
5. Anticipating Life After COVID-19
4. Consumers Provide a Pessimistic View of Coming Months
3. Tracking the Dramatic Pivot of U.S. Consumer and Shopper Behavior
2. Then and Now: Consumer CPG Behavior During Economic Downturns
1. COVID-19: Impact on CPG and Retail
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 44
The IRI CPG Demand Index™ provides a standard metric for tracking changes in spending on consumer packaged goods. U.S. Demand Index™ Forecasts are delivered through a proprietary, fully automated forecasting solution that anticipates consumer demand.Channel Shift Index™ provides a standard metric for tracking changes (migration) in spending on consumer packaged goods across select channels. The IRI E-Commerce Demand Index™ provides a standard metric for tracking changes in spending on consumer packaged goods purchased online. Inflation Tracker™ provides the well-known price per unit metric for tracking changes in pricing of consumer packaged goods. Supply Index™ provides a standard metric for tracking changes in product availability (i.e., in-stock rates) in stores for consumer packaged goods.Out-of-Stock Levels for Top-Selling Subcategories by Market Area in the U.S.Top U.S. Topics from IRI Social Pulse™
CPG Economic IndicatorsAccess IRI’s industry-standard metrics for consumer product demand and supply during the pandemic, our CPG inflation tracker and the latest data on category trends, out-of-stock levels, consumer sentiment and more.
Demand Index™ U.S. Demand Index™ Forecasts
Channel Shift Index™
E-Commerce Demand Index™
Inflation Tracker™ Supply Index™ Out-of-Stock Levels
for SubcategoriesU.S. Topics from IRI Social Pulse™
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 45
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