NOVEMBER 2012 | AN EDGELL PUBLICATION

SALES & MARKETING BEST PRACTICES• HANESBRANDS

• ENERGIZER PERSONAL CARE

• KELLOGG

NEW! FALL 2012 TECHPREVIEWGUIDE

Entrepreneurial Spirit Drives Green Mountain Coffee Roasters, Inc. Toward Beverage Market Success

departments

03 e d i t n o t e the Broken Road

04 p u l s e

05 i n s i g h t s the Big three

John rossi, Wipro

25 o n l i n enew this month on consumergoods.com

27 B e t w e e n t h e l i n e s the Company You Keep

Werner Graf, tCs

contents n o v e m b e r v o l u m e 2 1 • n u m b e r 1 0

Entrepreneurial Spirit Drives Green Mountain Coffee Roasters, Inc. Toward Beverage Market Success

tech preview guide Fall 2012

Meet nine new technology solutions that can empower key business

processes and differentiate your company from the competition.

s p e c i a l s e c t i o n paGe 16

ConsumerGoods.Com | novemBeR 2012 | CGt 2

features

B e s t p R a C t i C e s : s a l e s & m a R K e t i n g

11 hanesbrands drives Retail excellence with data insights

14 energizer personal Care gets tpm Right the second time

15 Kellogg takes Control of product data

23 C u s t o m R e s e a R C hsales Force effectiveness a new survey finds technol-ogy investments are planned to improve performance.

CoveR stoRY pa g e 6

4

green mountain Coffee Roasters, inc. is on its way to becoming one of the world’s premier beverage and beverage maker organizations thanks to its risk-oriented innovation philosophies. Find out how the powerhouse Keurig single cup coffee brewing system defied the odds, and discover the company’s bold aspirations for the future.

^ Hot Product & Marketing News

2.TOC_v4.indd 2 11/5/12 12:58 PM

now live

• Meet 2012 Standout SMBs: Happy Family, Vera Bradley, Ateeco & More

• Get Data & Insights Best Practices from P&G and Clorox

Click here to access this issue!

consumergoods.com | november 2012 | cgt 3

www.consumergoods.com

CGT’s July/August Digital Issue

CGT’s April Digital Issue

edit note

In the consumer goods industry, “blow your mind” innovation often involves “stumbling toward success”, “misbehaving energy” and “sur-rogates for prescience”. those are just a few of the Kevin Hartley-isms that we came to know and love throughout the process of writing this month’s cover story about Green Mountain Coffee Roasters’ Keurig brand. We first met Kevin at CGTs growth & Innovation Forum this past september, where his enthusiasm, and gmcr’s unique approach to innovation, truly wowed the audience. It’s a success story that reads a

lot like rascal Flatt’s country song lyrics: “that god blessed the broken road/ that led me straight to you”. today, after overcoming its share of challenges, the company is leading the single-serve coffee revolution in north America. turn to Page 6 to find out what he had everyone buzzing about.

Like green mountain coffee roasters, Energizer

Personal Care shares a story marked by broken roads on Page 12. In a candid account, the company reveals why it chose to re-launch a tPm system and offers

best practices for getting it right the second time around. no sales & marketing-focused issue of CGT would be complete

without a story focused on downstream data. on Page 9, Hanesbrands explains the innovative ways in which it is utilizing a dsr for proximity analysis and much more.

Lastly, turn to Page 13 to view the Fall edition of CGT’s Tech Preview

Guide, wherein you’ll meet a handful of new solutions that can help your company to repave the broken roads in your journey toward business excellence.

tHe BroKen roAd

AlI ACkERMAnEditor

• Pfizer Consumer Healthcare Goes Beyond the Brand

• new Marketing Best Practices from Clorox, Alice.com & Coca-Cola

• new Research on nPDI Technology

Click here to access this issue!

3.EditNote_v4.indd 3 11/5/12 1:00 PM

the Pulse t h e b e at o f t h e i n d u s t r y

consumergoods.com | november 2012 | cgt 4

1 Innovation in a Box

campbell soup company intro-duced V8 V-Fusion juice drink boxes. Available in three flavors, each V8 V-Fusion juice drink box provides a combined serving of vegetables and fruit, is naturally sweetened with no added sugar, and is a good source of vitamin c.

4 All New Instant Coffee

J.m. smucker company has in-troduced the new look of Folgers Instant coffee crystals. the new consumer-friendly packaging re-design features an ergonomic shape with an easy-open flip top lid in a new three-ounce size offering.

3 A-B Aids Disaster Relief

Anheuser-Busch will provide more than 1 million cans of emergency drinking water for residents im-pacted by Hurricane sandy. since 1988, the company has donated more than 71 million cans of emer-gency drinking water following natural and other disasters.

2 Miller Lite Suits Up

to cultivate Latino leadership and promote higher education in the community, miller Lite partnered with the dallas cow-boys and the Adelante! u.s. education Leadership Fund to launch the scoring for educa-tion program again this year.

3

Vitamins Take Shape • Nature Made has introduced three new prod-uct lines: Vitamelts, Full strength mInIs and Adult gummies, all created to change the way people take vitamins. Vitamelts and Full strength mInIs will be available this fall; Adult gummies are available now.

41

4.Pulse_v5.indd 4 11/5/12 1:01 PM

consumergoods.com | november 2012 | cgt 5

John Rossi, Global Head of Consumer Goods Consulting,

Wipro

“coupling the dsr with a new com-ponent — a cg loyalty system —will be a key to success in the future. If you want to know your shopper and consumer, dsrs and loyalty infor-mation will be vital.”

insights

three big areas are allowing the consumer goods (cg) manufacturer to better know their shopper and consumer:

1 they’re speaking with them, but not via traditional methods. they’re using social media, shopper and consumer surveys, and Pos data versus syndi-cated data and panels to understand direct buying habits of shoppers at a store and regional level.

2 cg companies are using digital and social enablement, especially via mobile devices, for one-to-one conversations with the shopper and consumers. these discussions allow the manufacturer to create bet-ter relationships and evolve to direct-to-household and direct-to-consumer selling.

3 cg companies are creating their own loyalty programs and using this information to better engage the shopper and consumer. By interact-ing directly with the cg company for special offers, consumers become part of the innovation process, an opportunity to create terrific relationships.

to accomplish these three things, leaders are creating a holistic view of the consumer, shopper, household and customer, which allows more successful in-sights and leads to optimizing marketing spend. the cornerstone is the demand signal repository (dsr). this is not the traditional data warehouse, and it requires specialists who know how to build proper hierarchies. coupling the dsr with a new component — a cg loyalty system — will be a key to success in the future.

the Big threeAre you usIng the rIght tActIcs to reAch todAy’s shoPPers And consumers?

the leaders aren’t looking at functional silos such as trade promotion or pricing optimization initiatives, which typically lead to the informa-tion residing in a single area. rather, they are integrating the sales and marketing information via the dsr. Actually, they are integrating the entire sales and marketing function across the enterprise. “re-realizing” that functional areas are interrelated is creating enhancements to the quality of the insights being performed at a brand, account, shopper and consumer level. the ability to create advanced analytics is driv-ing better insights.

digital transformation will also drastically change the cg industry — digital video measure-ment at the shelf whether it is a physical shelf or the smartphone; taking a picture of an ad and finding yourself with specialized products and offers; rec-ommended replenishment of standard household needs and having them show up at your front door will forever change consumer touchpoints. mobil-ity will drive the entire initiative and provide unique one-to-one selling opportunities.

Industry transformations will continue to evolve around the consumer. supply chains will change from pallets to eaches; manufacturing processes will create personalized products; and how we market and sell will change. the trans-formation of the apparel and footwear industry indicates where this will go for the food, bever-age, home and personal care segments. What a great time to be in the industry!

5.Insights_v6.indd 5 11/5/12 1:02 PM

consumergoods.com | november 2011 | cgt 6

c o v e r s t o r y b y a l l i s t o n a c k e r m a n

consumergoods.com | november 2012 | cgt 6

entrepreneurial spirit Drives Green mountain coffee roasters, inc. toward beverage market success

Green Mountain coffee roasters, Inc.’s

(gmcr) powerhouse Keurig single cup cof-fee brewing system was not an overnight success. In fact, throughout its development, little to no consumer research predicted that it would be a consumer hit. But despite all evidence to the contrary, sales for the Keurig system grew more than 50 percent per year from its introduction in 2008 to 2011, and it now sits on kitchen counters in an estimated 12 million u.s. households.

6-10.Feature_v5.indd 6 11/5/12 1:06 PM

consumergoods.com | november 2012 | cgt 7

clearly, this disruptive innovation proved to be the exception to the rule. But why? the answer lies in the entrepreneurial, risk-orient-ed innovation philosophies of the company behind the brand, gmcr (www.gmcr.com).

“Keurig is not the result of a classic Fortune 500 innovation stage-gate process,” says Kevin Hartley, vice president, enterprise strategy and new Business for gmcr. “the innovations were entrepreneur-led, and no mainstream company would have supported them. It was the passion of a small group of individuals who followed the funny sense that visionaries get. that’s the reason it exists today.”

Humble Beginningsto understand gmcr’s philosophy on innova-tion, we must travel back 31 years to the small town of Waitsfield, Vt., where Bob stiller just retired after selling e-Z Wider cigarette roll-

the dirty, yucky pot sits in the office all after-noon, and it’s half-baked and half-spilled,” explains Hartley. their solution was a closed, single cup coffee brewing system that had less-than-thrilling purchase intent scores and was extremely difficult to manufacture. they called their company Keurig, a word derived from the dutch word for excellence.

While Keurig was innovative for sure, get-ting offices to buy the new appliance proved challenging. In short, the founders realized that coffee drinkers are brand sensitive. the key to success was to find and offer a vari-ety of regionally-known coffee brands that

ing paper business for a cool $3.1 million. there, the “retired” entrepreneur found and frequented a small coffee shop named green mountain coffee roasters, which he later bought and expanded into a manufacturer of roasted coffee. over time, and with decades of hard work, gmcr blossomed into new england’s premier whole bean and roasted ground bagged bean coffee brand in grocery and convenience stores.

now, let’s skip ahead 14 years to massachu-setts where three “wild and crazy” entrepre-neurs were working together to crack the of-fice coffee pot conundrum; “You know, where

“gmcr and its Keurig business unit are 31- and 17-year overnight success stories where payrolls were put on personal credit cards and companies weren’t sure if they were going to make it week to week…the real path to disruptive innovation.” — K e v i n H a rt l e y, G m C r

c o v e r s t o r y

6-10.Feature_v5.indd 7 11/5/12 1:06 PM

consumergoods.com | november 2012 | cgt 8

catered to each individual’s unique flavor preference. new england’s premier coffee brand, green mountain coffee, was there to become Keurig’s official first licensee, pack-aging coffee beans in a patented container called the K-cup pack.

other license agreements followed with diedrich coffee, tully’s and Van Houtte, to name a few, but gmcr continued to be the leading K-cup pack roaster. In 1993, gmcr made an early investment in Keurig. In 2006, gmcr acquired the remaining 65 percent of Keurig for $104.3 million. In 2007, under the leadership of Larry Blanford, the company’s new ceo, they plotted their next big move outside of office and into consumer homes.

A Powerful Pairinggmcr’s acquisition of Keurig united two company cultures that clashed on paper: “one is highly-technical with type A engi-neers; the other is coffee-oriented, Vermont-crunchy,” explains Hartley.

off paper, though, he says they naturally gelled: “It is an interesting culture collision. What the two organizations shared, and still do, is a deep passion to wow and amaze consumers so that their socks actually go up and down when they see our innovations.”

• The variety of latent taste desires for premium gourmet coffee within the family unit. “Just because maude made the same pot of regular coffee for two decades didn’t mean that she actually likes regular cof-fee. she likes hazelnut decaf, but she had to make Harold happy for 20 years,” explains Hartley. gmcr’s K-cup packs could fix that. “In under a minute, Harold could have his bold morning coffee experience, and maude could have her cup of hazelnut decaf.”

• Taste variety desires by individual by day part. “In other words, consumers would prefer to have a big bomber coffee in the morning, then switch to decaf in the after-noon, and then have a cappuccino at night,” says Hartley. the Keurig single cup brewer could easily fix that too.

the acquisition also created a holistic business model that differentiated gmcr from its competition.

“In the world of closed coffee systems, we have a true razor/razorblade model wherein we design and build the brewers, and we design, build and package the beverages that go in the brewers,” says Hartley. “the innovations are done hand-in-hand.”

In contrast, others in the coffee and brew-er industries might partner with separate appliance manufacturers on the brewer side of the equation, which could possibly lead to disjointed innovation efforts.

With a strong business model and pas-sionate employees in place, gmcr began to embark on a new mission: to become north America’s premiere coffee system. Its aspiration was to build Keurig and green mountain coffee into powerhouse brands on the national stage.

Again, consumer research totally under-estimated the eventual success. It indicated that consumers would always favor the drip coffee maker that could brew a cup of coffee for 8 to 10 cents. But entrepreneurial spirit drove gmcr forward. they believed that researchers and consumers misunderstood two things:

c o v e r s t o r y

6-10.Feature_v5.indd 8 11/5/12 1:06 PM

consumergoods.com | november 2012 | cgt 9

so around the time of the acquisition, the combined gmcr and Keurig teams decided — after some major strategic work — that the play would be to drive toward north American counter ubiquity, which meant that reliability had to skyrocket, prices had to plummet, and choices needed to proliferate.

“When that all came to together in that weird Zen-like way, it started to explode,” says Hartley.

In 2003, Keurig single cup brewers and patented K-cup packs hit the consumer mar-ket via high-end department stores. In 2008, they became available for sale through gro-cery stores across the country. According to IrI data for 52 weeks ending october 5, 2008, initial supermarket accounts that car-ried green mountain coffee K-cup packs as part of their specialty coffee selection experienced more than twice the growth in dollar sales of the national average for the specialty coffee category.

to continue providing a wide variety of coffees, teas and hot cocoa, gmcr acquired all of Keurig’s licensed roasters over a num-ber of years and also entered into manu-facturing and distribution agreements for single-serve packs with newman’s own, caribou coffee, J.m. smucker co. (Folgers

In fact, Hartley works hard to eradicate the word “innovation” from his lexicon all togeth-er, instead opting to use the phrase “producing new product hits” and likening the process to producing a hit Hollywood film.

“our role is to produce, as in the John Las-seter of Pixar kind of produce, monster hit

products on the global stage,” he says.But instead of hiring the best di-rector, costume designer or actor,

he’s hiring state-of-the-art scien-tists, engineers, physicists, re-searchers and so on, that work together toward clear aspira-

tions. It’s open innovation with a twist wherein he’ll assemble

the best possible team, combining world-class employees with state-of-the-

art experts — no matter where they are located across the globe — to produce a new product, even if most of the work must be done virtually.

these innovation teams operate with clear protection from the organizational an-tibodies that typically fight new ideas. this mitigates the problems most organizations experience where executives chip away at an innovative idea until it doesn’t even resemble the initial concept that consumers got excited about. once gmcr’s innovation team takes

and millstone), dunkin’ donuts, starbucks and conagra (swiss miss).

momentum hasn’t slowed. Broad con-sumer adoption of the Keurig single cup brewing system boosted gmcr’s 2011 net sales to $2.7 billion, and the company ex-pects to reach 2012 net sales of $3.8 billion.

Bold Aspirationsto maintain its high growth rate, constant fast-paced in-novation is required on the appliance side, the beverage side, and in other growth op-portunities beyond the com-pany’s traditional products.

“our shared aspiration as a company is to transition from north America’s largest coffee and coffee brewer company to one of the world’s premier bev-erage and beverage maker organizations,” says Hartley. A brewer on every counter and a beverage for every occasion, if you will.

gmcr is moving full force toward that goal using a standardized approach to new product development, which is based on its entrepreneurial roots and does not re-semble the processes used at your average Fortune 500 company.

c o v e r s t o r y

DID YOU KNOW...?click here

6-10.Feature_v5.indd 9 11/5/12 1:07 PM

consumergoods.com | november 2012 | cgt 1 0

it through market and feasibility gates, the product is then gracefully transitioned to one of the existing line organizations to be scaled.

“every innovation we revere, every great product and brand, was created with mis-behaving energy, yet we run most of the global 1,000 with the structure that rewards behaving, not misbehaving,” says Hartley. “If you really want to produce new product hits, then you have to be an effective surro-gate — through processes and people — for

entrepreneurial spirit, which is the antithesis of a risk-averse, large-scale organization.”

this approach has led to major innovations in 2012 for the Keurig brand:

• Keurig vue brewer: Launched in Febru-ary 2012 and paired with new single cup Vue packs, this new platform maintains the

four minutes on the same machine,” says Hartley. “It is truly amazing.”

the new products brought to market by gmcr have revolutionized the way the people make coffee in north America. one could argue that the visionaries at gmcr are clairvoyant in their ability to produce new product hits despite conflicting research and consumer insights, but Hartley has another take on their success:

“You’re either prescient or you’re not, and I do not believe that we are. If you’re not, then you have to take surrogates for prescience seriously, in terms of processes and people, to create true disruptive innovation.”

simplicity and convenience of the existing Keurig K-cup system with added customiz-able features so consumers have control over the strength, size and temperature of their beverages. As an added bonus, the Vue system represents an incremental step on gmcr’s journey to reduce its environmental impact. the Vue pack’s base cup is made from polypropylene #5 plastic and can be re-cycled wherever polypropylene #5 plastics are accepted. gmcr has since expanded the Vue brewer line into the commercial market.

• Brew Over Ice Technology: In July 2012, gmcr launched two new innovative Brew over Ice beverages: the original donut shop coffee sweet & creamy Iced coffee K-cup packs, and the first-ever iced fruit brew in a K-cup pack, Vitamin Burst. Both options of-

fer consumers entirely new ways to enjoy their Keurig brewers, and Vitamin Burst, in particular, catapults gmcr’s beverage options beyond coffee, tea and hot cocoa.

In all, gmcr today sources, produces and sells more than 30 brands and 200

varieties of coffee, cocoa, teas and other beverages in K-cup and Vue packs.

“now, you can brew a cup of Hazelnut de-caf, French roast, Vitamin Burst or a sweet & creamy Iced coffee in less than a total of

c o v e r s t o r y

“my job is to have a process in place that brings together each variable that is statistically cor-related with success and push it to within an inch of its life.” — K e v I n H a rT l e y, G M C r

6-10.Feature_v5.indd 10 11/5/12 1:07 PM

consumergoods.com | november 2012 | cgt 1 1

best practices s a l e s & m a r k e t i n gB y a l l i s t o n a c k e r m a n

& a l a r i c e p a d i l l a

Hanesbrands Inc. (www.hanesbrands.

com) is getting a much deeper sense of consumer demand. After select-ing a demand-sensing solution, this everyday apparel maker is helping to

From Push to PullHAnesbrAnds uses dAtA InsIgHts to drIve retAIl excellence

transform itself from a push-based to a pull-based consumer brand.

With the velocity demand signal repository (dsr) from vendor man-aged technologies Inc., or vmt,

(www.retailvelocity.com), Hanes-brands intends to increase sell-through performance and inventory visibility from the time of shipment through store-level scanned sales at the register. It aims to “facilitate a consolidated view of our customers across all departments,” according to Pete bobalik, vice president of technology at Hanesbrands. boba-lik also reveals that “speed is critical when dealing with ever-changing consumer demand.”

Hanesbrands currently receives Pos data by sKu, by store, by week (or by day, in some instances) from retailers that make up about 70 per-cent of its u.s. retail business. veloc-ity is the dsr solution that Hanes-brands now utilizes to manage and harmonize its Pos and inventory data. In order to analyze and use that data, Hanesbrands leverages micro-soft Analysis services cubes for ad-hoc reporting, tableau for advanced visualizations, and other statistical and gIs (geographical Information system) tools, according to santia-go restrepo, director, business Intel-ligence & Analytics, Hanesbrands.

company at a GlanceHanesbrands is a provider of basic apparel products, like underwear, bras, socks, tees, fleeces, and more, with brands like Hanes, Playtex, Wonderbra and Bali. With about 50,000 employees, Hanes is a global company doing busi-ness mainly in the U.S. market, but also in Latin America and Asia.

11-13.BP_Hanes_v6.indd 11 11/5/12 1:52 PM

consumergoods.com | november 2012 | cgt 1 2

best practices sales & marketing

the marketing drivers such as assort-ment and promotions.”

another useful application of proximity analysis for Hanesbrands is to understand the performance around a major mall. the challenge is that not all stores are specifically inside the mall; for example, mass retailers are usually close to a major mall and therefore, are part of the same mall “ecosystem”.

“By doing a ecosystem analysis, we were able to determine the stores that were close to the major malls and analyze the whole mall ecosys-tem,” says restrepo. “We were able to understand how performance was different based on the mall’s composition and competition, and take the appropriate actions.”

Consumer Segmentationseveral processes at Hanesbrands have benefited from having accurate Pos data by store, leveraging a “con-sumer segmentation schema”, a system that classifies all u.s. house-holds into consumer segments, based on demographic and lifestyle characteristics, and implementing advanced analytics methodologies. Here are a few examples:

words of wisdom

“Having ‘Per-formance’ and ‘Potential’ for each store, we can understand how a store is performing and take specific actions. For example, the action we take on stores with high potential, but low performance, is likely invest-ing resources, while we won’t invest resources on stores with low potential and low performance.”— santiago restrepo, director, Business intelligence & analytics, HanesBrands inc.

Good Proximitygetting Pos data by store facilitates a proximity analysis. “By perform-ing a proximity analysis, we are able to calculate the distance between re-tailer’s stores and their competitors, and understand if the performance is different,” restrepo explains. “For example, we realized that the stores of retailer X, that were closer to retailer Y, were performing worse than the stores that are distant. this enabled us to pay special attention to these stores and improve their performance by changing some of

1234567

For other CG companies looking to implement a DSr, Santiago restrepo, Director, business Intelligence & Analytics, Hanesbrands Inc., shares his top tips:

do not underestimate the importance of “master data manage-ment” – i.e. sku, store, and product attributes. “Having the right product attributes and hierarchies and clean store lists that are constantly updated is very important,” restrepo says.

do not underestimate the complexity of Pos/sell-thru data, which should be clean and, in order to be actionable, very de-tailed (by sku, by store, by week/day).

embedment should happen at both the executive and manager/analyst levels, and needs to be properly resourced.

dashboards must be tailored for specific functional areas. “Building a generic dashboard that is good for everyone, but perfect for no one, is not going to be used as much as one that is tailored for the specific needs and requirements of a specific business group,” he explains.

recurring “insightful” business updates, from data coming from the dsr, are necessary to demonstrate uses and to trigger ideas.

employ a system that is flexible and fast. users expect the reports and queries to come back in a few seconds, not minutes. it should also be user-friendly.

Follow best practices in data visualization. stephen Few and edward tufte are two of the go-to gurus for data visualization, according to restrepo.

DSR Best Practices

11-13.BP_Hanes_v6.indd 12 11/5/12 1:52 PM

consumergoods.com | november 2012 | cgt 1 3

best practices sales & marketing

Store Assortment Optimization: With a consumer segmentation schema, Hanesbrands was able to create a consumer profile for a specif-ic product or behavior, and determine the best stores for that specific prod-uct/behavior. “For example, if we are launching specific apparel for sport a, we can get a consumer profile or index of each segment on sport a,”

says restrepo. “using the consumer profile, we can analyze all the cus-tomers around every store, and de-termine the best stores to place our sport a products, or do promotions. implementing a methodology like this usually increases sales per store about 300 to 400 percent.”

Test and Control: a traditional con-sumer goods company’s retail tests often look at whether sales in-creased or not, and only at the stores where the test was performed. “un-fortunately, external factors, like seasonality, competitor’s actions, etc., usually clutter the analysis and make it difficult to evaluate the ef-fectiveness of the tests,” restrepo explains. “the methodology we de-veloped uses a clustering algorithm to define ‘similar/control’ stores, and compares their performance to the ‘test stores’.”

Forecasting: rather than basing fore-casting on orders or shipments, which have a lot of fluctuations due to the retailer’s inventory adjustments, Hanesbrands is changing its forecast-ing processes to be more based on Pos, resulting in “being able to in-

crease the forecasting accuracy and providing better service to our retail-ers, while decreasing our inventory levels,” says restrepo.

so what’s next for Hanesbrands’ demand-driven future? “We’ve been successful in getting the data and building the systems and processes that enable our retail and market-ing analytics practices,” maintains restrepo. the next phase, and the most difficult one, according to him, is “change management”.

that’s when “our sales and mar-keting organization will embrace and utilize the new analytical tools and systems, making them part of their day-to-day job,” he states. an-other upcoming challenge will be to get retail buyers to understand and implement the new analytics meth-odologies. “right now our focus is on embedment, training and usage increase. We’ve made a lot of prog-ress, but have a long way ahead of us,” restrepo concludes.

11-13.BP_Hanes_v6.indd 13 11/5/12 1:52 PM

consumergoods.com | november 2012 | cgt 1 4

best practices sales & marketing

When energizer Personal care (www.

energizer.com) integrated Playtex into its portfolio, it adopted tradeinsight’s (www.tradeinsights.com) trade Promo-tion management (tPm) system to standardize processes across the business and garner better visibility into trade spend activities. But the task of harmonizing brands while im-plementing a new tPm tool resulted in a lower-than-planned adoption.

realizing a tPm system alone would not resolve the company’s trade promotion inefficiencies, se-nior level management at energizer Personal care and trade-

insight collaborated to take a fresh look at manufacturers’ internal pro-cesses and culture, business needs, specific adoption barriers and train-ing methods to devise a new course of action. it was determined that the tPm software would be re-branded and re-launched.

“the decision to re-launch was difficult, but necessary,” says Pe-ter seidita, director of commercial development at energizer Person-al care. “many never fully under-stood the true functionality of the system the first time around. the adjustments made and improved processes put into place helped us learn to work with the software’s functionality, not against it.”

the first step called for the as-sembly of a core tPm project team.

cross-functional

leaders from senior management, fi-nance, sales and it had the responsi-bility of overseeing the initiative and establishing the right culture.

second, a “power user group” was established to act as an advisory panel, testing group and to serve as advocates and teachers during the new roll out.

next, energizer Personal care worked with tradeinsight to con-

figure elements within the tPm tool to support its re-fined processes. Following the official re-launch, a train-ing team hit the road to en-sure every member was set

up for success. the entire “re-implementation”

process resulted in more accurate sales forecasts for energizer Personal care, a valuable suite of online and offline reports to benefit the field teams, and trust in the tPm system and available data.

“the re-launch has made us more efficient and effective,” affirms seidita.

tPm re-Fresh energizer Personal care gets tPm right the second time around

Fast Facts

<< Consistency is KeyCreating consistent trade policies and procedures across Energizer’s diverse brand portfolio was a key part of its TPM re-launch.

Full Potential Energizer Personal Care fully uses its TPM system for financial planning relative to trade spend; the company also started phasing its broker organi-zation into the fold.

consumergoods.com | november 2011 | cgt 1 4

Company at a GlanceEnergizer Personal Care USA, which is a division of Energizer Holdings, Inc., markets the Playtex, Schick, Wet Ones and Hawaiian Tropic consumer goods brands.

words oF wisdom“We have buy-in and collabo-

ration right at the top, which has transcended throughout the entire organization.” — Peter seidita, direCtor oF CommerCial develoPment, enerGizer Personal Care

14.BP_Energizer_v5.indd 14 11/5/12 1:54 PM

consumergoods.com | november 2012 | cgt 1 5

fast facts

Data EnthusiastKellogg Company is taking a strong stand in making sure consumers get the right information about its products. It is among the most enthu-siastic advocates and supporters of the GDSN.

MDM in RetailWakefern’s robust MDM system is fully integrated to support logistics, store operations, replenishment, advertising and promotion manage-ment, as well as management of the Wakefern wholesale centers.

best practices sales & marketing

understanding that consumers rely heavily on mobile applications and web sites to get the right informa-tion about products, kellogg com-pany (www.kelloggcompany.com) en-sures there is a “single version of product truth” internally and exter-nally when communicating product information to retail customers.

kellogg created a disciplined, centralized process to set up prod-uct information in its material mas-ter databases that use saP software (www.sap.com). “managing the complexity and size of kellogg’s operations demands that we have a strong sense of governance over our product data,” says ryan Zima, master data manager at kellogg.

through the central management of kellogg’s customer logistics ser-

vices group, the product attributes of every kellogg product is gathered in its own new item form, requir-ing detailed inputs from staff in its food development, engineering, fi-nance, nutrition labeling, Packaging technology, Quality and marketing groups. the master data group then normalizes the data for various enter-prise applications, including synchro-nizing product information through 1Worldsync (www.1worldsync.com) and the global data synchronization network (gdsn) (www.gs1.org).

kellogg partnered with Wake-fern food corp., the operator of shoprite and Pricerite stores, to investigate how product informa-tion for the special k strawberry meal Bar is communicated through the supply chain.

Wakefern uses the gdsn as a pri-mary means to set up and maintain item information to support mer-chandising, Buying, store opera-tions, logistics and marketing. its processes demand and require a broad set of product data such as weights and dimensions, ingredi-ents, nutritional information, etc.

overall, the totality of the special k Bar product information shared between kellogg and Wakefern supports key processes. for exam-ple, merchandising benefits from proper category management, shelf planning and shelf descriptions. likewise, marketing benefits from properly displaying products on the shoprite from Home web site, cir-culars and loyalty programs.

“the electronic, standardized, one-to-many communications enables a faster speed to market through our many channels of distribution,” con-cludes rich Borrasso, business de-velopment manager of kellogg.

taking control kellogg and Wakefern Partner to track Product data tHrougH tHe suPPly cHain

consumergoods.com | november 2011 | cgt 1 5

The Butterfly Effect In a complex network of moving parts, a missing or wrong piece of product data upstream will have dra-matic effects downstream, disrupting the supply chain at many points, and ultimately affecting the consumer.

<< Data OverloadKellogg maintains at least 340 pieces of attribute information for the Special K Strawberry Meal Bar. Inputs for any product within Kellogg can come from as many as 200 people in the company.

15.BP_Kellogg_v3.indd 15 11/5/12 1:55 PM

consumergoods.com | november 2012 | cgt 1 6

s p e c i a l s e c t i o n

We operate in a world where change is a given. And while change may not

always be welcome, it is almost always necessary in order to remain rel-

evant with whomever you are trying to please. In this industry, consumer

goods (CG) companies must continually change and refine their business

strategies to keep up with customer and consumer demands. And that

means that technology companies must, in turn, continually evolve their

products to help the CG companies keep up. That’s why, twice a year, CGT

publishes a Tech Preview Guide. This Fall edition will introduce you to

nine new solutions that can help you change your company for the better.

fall 2012TechPreviewGuide9 new Technology Solutions to Help Drive better business results

16-22.TPG_v10.indd 16 11/6/12 1:30 PM

s p e c i a l s e c t i o n

consumergoods.com | november 2012 | cgt 1 7

201 2 T ec h P r e v i e w Gu i d e

SCAplanner™SCA Technologies • Launched: november 2012

Filling a need: scA offers solutions for companies who need to reduce the impact of volatility across demand, capacity, and commodity cost fluctuations associated with direct materials.

UniqUe FeatUres: managing your sourcing costs, budgets, pricing and potential risk is challenging. scA tech-nologies, a leading provider of cost management solutions, can provide the strategic advantage you need.

scAplanner™ is a web-based enterprise suite of software that pro-vides a collaborative process to plan, track and optimize cost of goods and prices. the solution enables up-to-date forecasts, planning and cost optimization to manage market and supply variances of high-value strategic items.

unlike traditional planning methods that can be slow, complex and compartmentalized, the solution allows companies to anticipate enter-prise costs and margins, respond with optimal operational decisions, adjust pricing in faster cycles and orchestrate alternatives to capture business benefits.

Key Users: scAplanner™ is used by individuals supply chain (Pro-curement & commodity councils), Finance (risk management) and corporate social responsibility (supplier development & sourcing).

expected BeneFits: scA helps companies orchestrate operational alternatives for their value network decisions that enable them to reduce cost of goods sold by 3 to 5 percent annually.

Want to KnoW more? Download more info about SCAplanner™.

SAP Sales & operations PlanningSAP • Launched: may 2012

Filling a need: Aligns and optimizes demand and supply plans along with financial goals via context-centric visibility and consistent metrics across business functions to satisfy future demand profitably.

UniqUe FeatUres: sAP sales & operations Planning, powered by the sAP HAnAtm Platform, combines demand and supply planning

across business functions along with finance and financial modeling in one seamless solution. the solution supports contextual social collaboration across all stakeholder teams throughout the planning process and enables real-time

simulation and scenario planning to quickly align varying views of de-mand and supply plans into a single, unified forecast.

Key Users: the sAP solution enables effective forecasting from an executive, strategic level to a tactical level across business functions, including supply chain, sales, marketing, finance and more.

expected BeneFits: Improves forecast accu-racy to mitigate supply risk, optimizes inventory levels to lower carrying costs, and ensures on-shelf availability to elimi-nate risk of last sales.

Want more inFo? Download more information about SAP S&OP.

CAtegOry: supply chain CAtegOry: supply chain

CONNeCtIONS

Web Site

CONNeCtIONS

Web Site

16-22.TPG_v10.indd 17 11/6/12 1:31 PM

s p e c i a l s e c t i o n

consumergoods.com | november 2012 | cgt 1 8

201 2 T ec h P r e v i e w Gu i d e

Potential To Sell (PTS)Shiloh Technologies • Launched: december 2012

Filling a need: Pts identifies the greatest estimated lost sales by item and store through analysis of probable root causes. this is actionable information that could positively impact suppliers’ sales.

UniqUe FeatUres: Pts provides actionable information via report-ing and analysis features that identify the store/item combinations that are falling below pre-calculated sales over a user-specified time period.

Pts uses sophisticated algo-rithms encompassing a multi-tude of factors that could cause lost sales, yet remains simple and repeatable for the user.

Key Users: Pts has an in-credible breadth of use across all supplier departments. Identifying lost sales, on-shelf availability and

additional sales opportunities has the potential to impact all ar-eas involving sales analysis, replenishment, forecasting, order-ing, promotions, retail execution and category management.

expected BeneFits: Pts will reveal hidden opportunities and esti-mated lost sales by item/store so resources can focus on the most impact-ful areas first, increasing roI. When execution exceptions are corrected, sales usually increase. By knowing the true potential of an item, you can forecast and realize true financial opportunities in many other processes.

Want to KnoW more? Download more info about Potential to Sell.

Sopheon Accolade version 8.0Sopheon • Launched: April 2012

Filling a need: Helps companies improve innovation results by increas-ing their innovation success rate, accelerating their response to changing consumer demands, and focusing their resources on high-value innovations.

UniqUe FeatUres: end-to-end solution for the entire cg in-novation lifecycle, including stra-tegic product planning, ideation, concept development, and inno-vation process execution (includ-ing stage-gate and beyond); pow-erful scenario-based optimization

improves portfolio prioritization and selection; integration of consumer research into the front-end of innovation, increasing the value of new ideas and concepts; embedded best practices that reflect over 10 years of leadership in cg innovation.

Key Users: Accolade supports the daily innovation work of cross-functional business people. this includes all team members that participate in the innovation process, includ-ing marketing, r&d, operations, supply chain, quality, finance, and sales; and all business leaders that make investment decisions for innovation.

expected BeneFits: Increase revenues and profits from new prod-ucts by as much as 40 to 60 percent; increase the value of portfolio by 75 to 100 percent; improve product success rates by 15 percent or more; and reduce time-to-market by up to 30 percent, speeding your response to changing consumer needs.

Category: cross-Functional tool Category: Innovation

CoNNeCtIoNS

Web Site

LinkedIn

twitter

White PaperCoNNeCtIoNS

Web Site

16-22.TPG_v10.indd 18 11/6/12 1:31 PM

s p e c i a l s e c t i o n

consumergoods.com | november 2012 | cgt 1 9

ecodeXSelerant • Launched: July 2012

Filling a need: create a comprehensive approach to sustainable product development from concept through development and launch to

the end of the product application.

UniqUe FeatUres: ecodeX elevates visibility of sustain-able assessment throughout every stage of the product lifecycle (such as carbon footprint, water use, energy use, land use, etc.).

Key Users: ecodeX was developed for sustainability departments; however, even non-experts can see and understand actionable results to significantly increase the product’s sustainability.

expected BeneFits: the sustainability consortium (sustainability-

consortium.org) has cited that a comprehensive solution from concept to market and final use is essential for a truly sustainable product. these concepts have allowed selerant customers to reduce their carbon foot-print and dramatically reduce the environment impacts.

Category: Innovation

CoNNeCtIoNS

Web Site

Webinar

Case Study

201 2 T ec h P r e v i e w Gu i d e

SEE THE BEST SUSTAINABILITY SOLUTION QUICKLY

Now you can improve the sustainability of your new products with

lifecycle assessment from concept to market delivery with EcodEX™.

This comprehensive solution is just one part of the DevEX Product

Lifecycle Management software.

made bySelerant is a member of

Simple user-interface

Rapid results

Provides a methodologically sound environmental assessment

You can visit us online at Selerant.com or request a demo at info@selerant.com.

16-22.TPG_v10.indd 19 11/7/12 10:16 AM

s p e c i a l s e c t i o n

consumergoods.com | november 2012 | cgt 2 0

201 2 T ec h P r e v i e w Gu i d e

vistaar SmartTrade Vistaar Technologies, Inc. • Launched: 2012

Filling a need: consumer goods companies need to deliver the right products into the market, with a proposition that works for each customer and that delivers growth and profitability expectations to the manufacturer. this requires a winning approach across all key revenue drivers – with pric-ing and promotions be-ing very critical. Vistaar smarttrade enables both pricing and promotions to function as an integrat-ed commercial strategy.

UniqUe FeatUres:

smarttrade is built on a powerful technology platform that integrates all aspects of price promotion strategy, execution and performance man-agement. Powered by a comprehensive data model that includes both in-

ternal and external data sources, it has workflow capabilities to manage coordination across the company and provides system guidance with alerts and recommendations to man-age planning and negotiations with customers.

expected BeneFits: Vistaar price management solutions have been launched in many industries. most

customers realize 1 to 3 points in increased margin and sustained rev-enue along with increased productivity in the price planning processes.

Want to knoW more? Download more info about Vistaar SmartTrade.

Stratum 6.1 business IntelligenceSilvon Software Inc. • Launched: February 2012

Filling a need: stratum was designed to help cPg businesses glean valuable insights from sales and operations data via quick-to-deploy analytics and reports that highlight key performance metrics.

UniqUe FeatUres: stratum integrates information from erP, crm, scm, Pos, etc. into a single business analysis and reporting platform. the application’s packaged analytics provide decision mak-ers with cross-enterprise visibility to sales and operations performance. the most recent release integrates seam-lessly with microsoft excel and other office applications, providing additional options for delivering performance data easily to internal users and external parties with whom the enterprise may wish to collaborate.

key Users: A cross-enterprise BI application used by analysts, demand planners, sales and operations personnel and line-of-business executives.

expected BeneFits: stra-tum gives cPg decision mak-ers the insight needed to bet-ter understand sales trends, demand patterns and trade promotion effectiveness, and drive improvements in inven-tory, supplier and production performance.

Want more inFo? Download the Silvon Stratum for CPG brochure.

CaTeGory: sales & marketing tool CaTeGory: cross-Functional tool

CoNNeCTIoNS

Web Site

LinkedIn

Facebook

Twitter

CoNNeCTIoNS

Web Site

LinkedIn

Facebook

Twitter

16-22.TPG_v10.indd 20 11/6/12 1:31 PM

s p e c i a l s e c t i o n

Data Management Services1WorldSync • Launched: September 2012

Filling a need: Consumers rely heavily on mobile applications and web sites to get information about products. But where does this information come from? Is it accurate? Typically, web and mobile ap-plication providers scour the web sites of retailers and downstream customers to get product information. And these customers get infor-mation from manufacturers, either through paper forms, or, preferably, through the Global Data Synchronization Network™ (GDSN®). What the system lacks is consistency and a single version of product truth.

UniqUe FeatUres: 1WorldSync Data Management Services provide the platform for manufacturers and downstream customers to manage and synchronize product information through the GDSN. 1WorldSync works with 15,000+ customers in 50+ countries. It provides a robust data pool application and a full suite of product data governance services.

key Users: Manufacturers who need to take control of product infor-mation. 1WorldSync Data Management Services can help them establish

and distribute a single version of product truth that is used both internally and for their customers.

expected beneFits: With unparalleled knowledge of best practices in Product Data Management, 1WorldSync enables companies of all sizes to source, cleanse, maintain and exchange product information with trading partners. It also provides the connections for companies to col-laborate and communicate product data among a rapidly growing global network of companies, large and small, in many industries.

Want more inFo? Contact 1WorldSync at +1-866-280-4013

CONNECTING TRUSTEDPRODUCT DATA EVERYWHERE

Are your customersgetting the rightproduct data?

We manage the world's product data, driving commerce and convenience for businesses and consumers everywhere.

See our work withKellogg Company

1worldsync.com

CoNSuMerGooDS.CoM | noveMber 2012 | CGT 2 1

Category: Innovation Tools

CoNNeCtIoNS

Web Site

201 2 T ec h P r e v i e w Gu i d e

16-22.TPG_v10.indd 21 11/6/12 1:32 PM

s p e c i a l s e c t i o n 201 2 T ec h P r e v i e w Gu i d e

wAiT! There’s More!

If you’re hungry for more information about technology

options for the consumer goods market, check out CGT’s

2012 Technology Solutions Guide Series.

Each report listed below features a comprehensive listing

of solution providers in the space and will help

lead you to make the right investment for your

business needs. Plus, industry experts debate each area’s

hot trends in roundtable format.

• 2012SupplyChainPlanningSolutions• 2012Data&AnalyticsSolutions• 2012CustomerManagementSolutions• 2012ProductInnovationSolutions• 2012ConsultantServices• 2012SupplyChainExecutionSolutions Clickanywhereinthisboxtoaccess the2012TechnologySolutionsGuideSeriesonwww.consumergoods.com.

Category: Sales & Marketing

QuoforeMojoQuofore(AFSTechnologies) • Launched: October 2012

FillinG a need: Mojo lets your field sales representative choose their device — iPhone, Android, etc. — and have mobile applications at their fingertips for field sales, merchan-dising, DSD, in-store marketing, van sales and more.

UniqUe FeaTUreS:

Mojo leverages the power of mobil ity, the interoperability of Cloud Computing, and the benefits of Soft-ware as a Service (SaaS) to deploy retail execution solutions quickly and cost effectively without the need for dedicated infrastructure.

key USerS: Field sales force, drivers, sales and market-ing, corporate planners

expecTed beneFiTS: Mojo is designed to help consumer products companies compete more effectively in the field and allow them to quickly capture advantage in new and emerging markets. The solution’s highly configurable multi-tenant architecture allows multi-national and multi-divisional companies to roll out multiple, localized implementa-tions in much less time and at a lower cost.

CoNNeCtIoNS

Web Site

COnSuMergOODS.COM | novEMbEr2012 | CgT 2 2

16-22.TPG_v10.indd 22 11/6/12 1:32 PM

consumergoods.com | november 2012 | cgt 2 3

28%

25%

20%

18%

5%

Lack of smart recommendations to increase penetration,assortment and reduce out of stocks

Lack of tools and real-time information to make business decisions

Lack of visibility to product, price, promotion and placement

Disjointed collaboration with retail

Ineffectiveness of customer meetings

5%Lack of business KPS to measure and track performance

BARRIER

28

25

20

18

5

50 5 10 15 20 25 30

38%

28%

18%

10%

5%

Business Intelligence tools

Spreadsheets

Analytical services and support

Advanced business intelligence toolswith real-time optimization engine

We don’t perform analysis.

TOOL

38

28

18

10

50 5 10 15 20 25 30 35 40

Figure 2: Tools Used for Sales, Promotion and Channel Performance Analysis Note: Total percentage may not equal 100% due to rounding.

Figure 1: barriers to market expansion for Sales Force Note: Total percentage may not equal 100% due to rounding.

consumer goods (cg) companies are constantly striving to grow by pen-etrating new markets and expanding assortments to existing retailers. to achieve this goal, many sales orga-nizations are focused on improving store execution by transforming ex-isting processes and leveraging new technologies to improve efficiency. this month, CGT partners with mind-tree Limited to take a look at current challenges and the business drivers that are causing changes, as well as tools that are being deployed. the barriers are varied but in this era of “big data”, it’s no surprise that many organizations are turning to analytics to help provide insights and facilitate decision making to improve overall sales performance.

survey respondents operate with complex multi-channel multi-coun-try distribution networks, and about half sell more than 500 products.

While the majority are food manu-facturers, there were not drastic dif-ferences based on company size.

ChallengesImprovements to channel effec-tiveness face several challenges, including communication, which has led to delays in adopting price or product changes. consistent ser-vice was also an issue, as well as a reluctance to change, to a lesser ex-tent. When asked specifically about expanding penetration, the barriers were more evenly split (see Figure 1). Lack of smart recommendations was cited by 28 percent, followed by lack of tools (25 percent), lack of visibility (20 percent) and disjointed retail collaboration (18 percent).

the desire for actionable insights to drive recommendations was ap-parent, with 63 percent claiming their sales force was only partially

custom research b y k a r a r o m a N o w

sales Force effectivenesstechnoLogy Investments PLanned to ImProve PerFormance

23.24.CR_v3.indd 23 11/5/12 1:56 PM

consumergoods.com | november 2012 | cgt 2 4

custom research

We recommend best-in-class consumer goods (cg) organizations to marry ef-fective insight extraction with efficient insight distribution. Why? A typical cg sales person can be found swimming in a flood of data, yet feeling trapped in a desert devoid of insights. this makes it difficult to seamlessly connect channel strategies and execute collaboratively. the data flows from all directions — Pos, nielson/IrI, warehouse shipping, edI, you name it. the good news is that, submerged in the waves of data, lay valuable insights that can be leveraged.

did a customer order spike because of an unplanned promotion? check! did a dsd shelf placement mistake lead to a drop in sales of a product? check! Have retailers started to cancel orders due to high returns? check! Has the right assortment reached the right store? check this one, too!

this pursuit of insights is being enabled by the availability of tools that harmonize data from different sources to make sense from it rapidly. this brings us to the second part of the equation: how ef-fectively are the insights being provisioned to the sales force? Herein, visualize a technology platform such as a portal that delivers alerts, KPIs, order information, customer satisfaction and the like to the sales personnel. this is the mechanism that we see best-in-class organizations will increasingly gravitate toward.

We foresee cg organizations empowering the sales force and increasing their effectiveness by disseminating deep insights delivered through multiple technologies. We think mobile devices will be at the forefront of this revolution to drive collaborative execution.

equipped to make important deci-sions to improve sales performance. only 25 percent of those surveyed felt they were fully equipped; we expected to see better readiness amongst larger companies, but that was not the case throughout the survey, despite well-defined pro-cesses and available business intel-ligence (BI) tools.

Technologyoverall, there was a mix of processes and measurement tools, indicating a wide gap in maturity levels (see Fig-

ure 2). While almost half of respon-dents claimed to have well-defined processes with supporting technol-ogy, almost as many (41 percent) have no standard processes or uni-fied technology. most companies do possess tools to perform analysis, but actionable insights seem to be lacking for many. However, almost 40 percent have implemented BI, with another 10 percent reporting advanced BI, including optimization capabilities. unfortunately, 28 per-cent are only using spreadsheets, which provide limited capabilities.

When asked specifically about It challenges for sales, lack of predic-tive analytics was cited by one-third of respondents, followed by an in-ability to get a 360-degree view of the customer due to multiple appli-cations. In fact, half of respondents are predicting performance based on past shipments but cannot pre-dict the cross-sell opportunities, and only 13 percent claim that they pre-dict and recommend the right as-sortments at the outlet level.

to address these challenges, 62 percent are planning some sort

of It investment to improve sales force effectiveness. more than half of respondents are targeting in-vestments on larger iconic stores to maximize returns, and analyt-ics capabilities are at the top of the priority list to improve deci-sion making. For many, analytical platforms are being sought to go beyond existing BI functionality. others are building consolidated platforms to provide a single view for all activities, and some plan on adopting mobile technology to gain visibility remotely.

The Pursuit of Insights • By Rajiv Puri, Head CPG and Retail Industry Group – US, Mindtree Limited

DOWNLOAD NOWClick here to read the research in its entirety.

23.24.CR_v3.indd 24 11/8/12 12:22 PM

consumergoods.com | november 2012 | cgt 2 5

online t h i s m o n t h o n c o n s u m e r g o o d s . c o m

coming next monthTop 100: Consumer Goods registrythis “can’t miss” issue ranks the top 100 public consumer goods companies by annual revenue. You’ll also find out who leads in key vertical markets like Food, Beverage, Packaged goods, Footwear, Apparel and others. Also, the most memorable technology and business process initiatives of 2011/2012 will be revisited. Plus, meet the winners of CGT’s annual awards.

Top 5 mosT-read headlines

hot Articles

1. Kraft Foods Inc. to Become Mondelez International, Inc.

2. Coke Tops Social Media Brands List

3. 2012’s Fastest-Growing CG Companies

4. Unilever Brand Backs Social Entrepreneurs

5. PepsiCo Taps Category Management Solution

Coca-Cola innovation sparks supply Chain revolution With the need to offer a greater number of beverage choices from a fountain dispenser, coca-cola tackled the challenge to reinvent the fountain business.

hallmark innovates milestones to momentsFind out why the company transformed how it innovates and engages its consumer.

www.consumergoods.com/casestudies

4

3

25.26.Online_v6.indd 25 11/5/12 1:58 PM

consumergoods.com | november 2012 | cgt 2 6

online t h i s m o n t h o n c o n s u m e r g o o d s . c o m

ad index1WorldSync 21 www.1worldsync.com

mindtree Ltd 23-24 www.mindtree.com

Quofore 22 www.quofore.com

SAP 17 www.sap.com

SCA Technologies LLC 17 www.scatech.com

Selerant Corp 19 www.selerant.com

Shiloh Technologies 18 www.shilohtech.com

Silvon Software, Inc 20 www.silvon.com

Sopheon 18 www.sopheon.com

vistaar Technologies, Inc 20 www.vistaar.com

f e at u r e d w e b s e m i n a r

Going Deeper with Data Sharingthe results of the joint CGT and RIS News data sharing study are in, and both retailers and sup-pliers are seeing benefits, including expanded usage into different departments by suppliers and solid roi from retailers.

this unique web seminar, featuring both re-tailer and consumer packaged goods manufac-turer perspectives, explores data sharing initia-tives that are truly collaborative.

Whether you have been working with downstream data for a while or are new to the effort, this discussion will provide you valuable insights on how trading partners are leveraging insights for mutual benefit.

go to http://consumergoods.edgl.com/web-events and listen on demand today!

research reports•TPM:TheHavesandtheHave-Nots

•GoingDeeperwithDataSharing

•NPDITechnology

•2012ProductInnovation Solutions

www.consumergoods.com/research_reports

Web seminars on demand•HowtoEffectivelyManageYour Product Portfolio to HitLaunchWindows

•RegulationsRecallsand Responsiveness:TheThreer’s of Traceability

http://consumergoods.edgl.com/web-events

25.26.Online_v6.indd 26 11/7/12 11:44 AM

between the lines

Client-vendor relationships are as old as free enterprise itself. The first com-panies of feudal England relied on each other even in pursuit of independent objectives. In fact, Wikipedia defines a company as “an association or collection of individual real persons and/or other companies, who each provide some form of capital”. Consumer packaged goods (CPG) companies for decades have de-veloped relationships across the demand chain — from knowledge workers in India to retailers in Indiana. Now, more than ever, the “company we keep” often determines success in the marketplace. Surprisingly, this goes for vendors also! This month, Werner Graf, CPG general manager at Tata Consultancy Services (TCS), reflects on leveraging client-vendor relationships for success.

What vendor management trends are driving successful relationships?Graf: We see a clear progression from two traditional vendor management strategies to a singular strategy of “Vendor Ecosystems”. Historically, CPG companies either: 1) consolidated spend with one strategic partner to generate leverage, or 2) employed a “best of breed” approach with multiple vendors. The former model drove efficiency through partner familiarity, but required constant vigilance against complacency. The second model kept vendors hungry, but suf-fered from learning curves and transient talent. Today, clients are “empaneling” a shortlist of global partners with the skills and attitude to succeed.

What skills and attitudes are essential in “vendor ecosystems?”Graf: Vendors in the “ecosystem” earn their place through recognized com-petence, favorable pricing and commitments to partnership. They keep it by exceeding client expectations without prompting. This requires a dedication to excellence and an ability to play nice in the sandbox. Wise clients understand what is important to their vendors to get the best from them. The goal isn’t to

The Company You Keep ExPlorING THE NEW aGE of ClIENT-VENdor rElaTIoNSHIPSby Werner Graf

have one company work in servitude to the other, yielding only Sla table stakes, but rather, two companies jointly attack a common purpose, in-novate together and drive competitive advantage for each other.

Provide an example of effective joint marketing. Graf: To ignite innovation and drive competi-tive advantage, both companies must be vested in each other. “Client reference Marketing” is an easy way to do this. SaP does this beautifully and its differentiated campaign does two things for clients: 1) it provides them with free positive press, and 2) it secures an implied commitment from SaP to quickly resolve any dissatisfaction. I did the same thing as an IBM Client Executive for Campbell Soup Company years ago. after Camp-bell’s bought Websphere, IBM ran Websphere ads in Forbes, Fortune, the Wall Street Journal, etc., with a pyramid of soup cans as a backdrop. Very rarely had Campbell’s lent its name to a vendor’s product. However, CIo doreen Wright under-stood that not only was she getting free soup ads, IBM would never, ever let Websphere fail in her shop after running national ads. It was a win for Big Blue and a win for Campbell’s. Conagra and Tata recently presented at oracle’s open World, underscoring our great partnership with both companies. again, this is today’s world: an eco-system of partners driving competitive advantage for each other. The company you keep is more and more a determinant of market success.

Werner Graf, CPG General Manager, Tata Consultancy Services (TCS)

“The goal isn’t to have one com-pany work in servi-tude to the other…but rather, two companies jointly attack a common purpose, innovate together and drive a competitive advantage for each other.”

CoNSuMErGoodS.CoM | november 2012 | CGT 2 7

27.BTL_v6.indd 27 11/5/12 1:59 PM

consumergoods.com | november 2012 | cgt 2 8

masthead c g t a d v i s o r y b o a r d s

Editorial

Karen Alber CIO MillerCoors

Ram Balasubramanian Director of COE, Enterprise Applications Management PepsiCo Business Solutions Group

Kevin Barnes VP, Business Application Solutions E. & J. Gallo Winery

C.J. (Jake) Barr Global Director – Supply Network Operations P&G

Tony Bender Global CIO Energizer

Rick Brindle Customer VP, E-sales & Industry Affairs Kraft Foods

Barbara Carlini Senior VP & CIO Dean Foods Company

Ann Dozier VP, Fresh Dairy Direct IT Dean Foods Company

Geoff Eccles Sr. IT Director, Americas & Leadership Center Mars Inc.

Michael Ferrara EVP, Sales & Marketing Fusion Brands

Paul Gross SVP & CIO The Schwan Food Company

Jon Harding CIO Conair Corporation

Peter Hatch Sr. Director, Information Management - Demand Reynolds American Inc. Service Co.

Chris Hobson VP Business Systems VF Corp.

Justin Honaman VP, National Specialty Retail Coca-Cola Refreshments

E. Jeffrey Hutchinson CIO Maple Leaf Foods

Timothy A. McCreery VP Sales & Marketing - Retail Precision Foods

Doug Rammel Chief Strategy Officer SEETtek

Carol Schillat Sr. Director, Information Technology Heineken USA Incorporated

Pieter Schoehuijs CIO AkzoNobel

Steve Sigrist VP Supply Chain & Sales Operations, Wal-Mart Division Newell Rubbermaid

Jerry Wolfe CIO McCormick & Co.

Dan Woo Director of E-Business Nestlé USA

Filiz Yavuz VP Business Process Engineering Perry Ellis International

Mansour Zadeh CIO Smithfield Foods

rEsEarch

Gene Alvarez Gartner

Lora Cecere Supply Chain Insights

Werner Graf TCS

Brian Girouard Capgemini

Kimberly Knickle IDC

Alan Langhals Deloitte

Michael Liard ABI Research

Cheryl Perkins Innovationedge LLC

Steve Rosenstock Clarkston Consulting

John Rossi Wipro Technologies

Scott Russell Perficient

Sanjay Saigal Infosys

Renee Sang Accenture

Johan Sauer Cognizant

Mark Smith Ventana Research

Hans Kristan Van Delden Booz & Company

David Wechsler Hitachi Consulting

Andrew White Gartner

Financial

Kaumil Gajrawala UBS

Nik Modi UBS

William Schmitz Deutsche Bank

Erin Smith Argus Research Company

publisher Albert Guffanti aguffanti@edgellmail.com

editorial Executive Editor: Kara Romanow kromanow@edgellmail.com

Editor: Alliston Ackerman aackerman@edgellmail.com

Assistant Editor: Alarice Padilla apadilla@edgellmail.com

sales Associate Publisher: Diana Masurack Mann dmann@edgellmail.com

Senior Account Manager: Bill Little blittle@edgellmail.com

Assistant to Publisher: Jen Johnson jjohnson@edgellmail.com

art and production Creative Director: Colette Magliaro cmagliaro@edgellmail.com

Art Director: Pamela C. Ravetier pravetier@edgellmail.com

Production Manager: Pat Wisser pwisser@edgellmail.com

online media Vice President of Media Integration: Rob Keenan rkeenan@edgellmail.com

Director of Lead Generation & Audience Development: Jason Ward jward@edgellmail.com

Web Development Manager: Scott Ernst sernst@edgellmail.com

Online Project Manager: Sara Gould SGould@edgellmail.com

marketing/events/ circulation Director, Event Planning: Patricia Benkner pbenkner@edgellmail.com

Director, Event Content: John Hall jhall@edgellmail.com

Circulation Manager: Jeffrey Zabe jzabe@edgellmail.com

Subscriptions: 978-671-0449

Reprints: edgellreprints@parsintl.com, 212-221-9595

corporate CEO/Chairman: Gabriele A. Edgell gedgell@edgellmail.com

President: Gerald C. Ryerson gryerson@edgellmail.com

Vice President: John Chiego jchiego@edgellmail.com

Founder: Douglas C. Edgell, 1951-1998

corporate office 4 Middlebury Boulevard Randolph, NJ 07869-1111 Phone (973) 607-1300 Fax (973) 607-1395 www.consumergoods.com

TECHNOLOGY GROUP

www.edgellcommunications.com

MEMBER

MEMBER

28.Masthead_v3.indd 28 11/5/12 1:59 PM