What is retail execution: CPG strategy 101
Retail execution is where your brand strategy comes to life in-store to drive sales. Learn the best methods on how to achieve success.
Companies are in business to sell products. But the best marketing in the world can’t help a brand if there are no products on the shelves. Recent supply chain snafus and labor shortages have taught us that.
Facing these challenges, top consumer products companies are realizing the importance of effective in-store, retail execution strategies. They also want to make the most of in-person sales activities while streamlining store visit logistics and planning.
I spoke with two brands about their global retail execution strategies – and where they’re headed next. Whirlpool Corp. and Colgate-Palmolive Co. are using new technology to achieve multiple benefits, including:
- Optimized sales strategies
- Increased customer loyalty
- Flexibility to adjust to rapidly changing market conditions
- Improved field sales efficiency
Retail execution strategies: Getting in-store right
CPG companies that excel in retail execution can stand out from the crowd. Better insight into product availability and out-of-stock positions helps brands know what they can sell in any location, which products to promote, and how to fix problems.
“If you don’t know what is happening at your point of sales, you are one step behind the game,” says Mauri Gaeta, solution design manager for Whirlpool EMEA. “You need those insights to ensure your brand is represented in the way that meets the needs of your company and your trading partners.”
Colgate-Palmolive deployed a retail execution system that extends across four business divisions: oral care, home care, personal care, and pet nutrition. Each division has different customers (dentists, consumer goods retailers, and veterinarians) and types of field sales reps, requiring flexible technology.
After rolling out the solution one division at a time, the company now uses it across the enterprise to support real-time price checks, availability confirmation, and ordering. Rich sales analytics and finely tuned KPIs help it optimize sales strategies, build commercial plans, and reduce stock levels.
“The in-store execution piece is extremely critical for our brand to be relevant and have good recall value,” says Abhishek Baheti, director of customer development in global IT for Colgate-Palmolive. “All of the loyalty we have is only as good as how we execute on the ground.”
How CPG brands can achieve the perfect store amid retail turbulence
Discover how CPG brands can improve retail execution for a better in-store experience that boosts sales performance.
Adapting on the fly and seeing results
The disruption caused by the pandemic was not all bad news. Some CPG brands ramped up their retail execution strategies to meet customers’ changing demands.
“It was a blessing in disguise,” says Baheti. “Deployments we would have done over three or four years were completed in six to eight months.”
Having a flexible, single platform for retail execution helped Colgate-Palmolive when in-person visits weren’t possible. Field reps met virtually with retailers and relied on the new technology to create innovative approaches minus geographic concerns.
“We had an opportunity to improve coverage because reps were able to go further than ever before with their visits,” says Aravind Tula, global senior management in information technology customer development. “The flexibility of our solution helped us better adjust and adapt to change.”
At Whirlpool, lockdowns created trade difficulties early on. Once retailers began reopening, the company had an unexpected boom in sales. But not all shops accepted in-person visits, so field reps relied on virtual visits to support customer relationships while protecting everyone’s safety.
Over two years, the company extended its retail execution system across the organization.
“Having a cloud solution where everyone could get into the system easily was helpful in keeping the system live and moving on with our project,” says Gaeta.
CPG industry trends: 2022 requires agility and adaptability
Consumer products companies need to get ready for more change as consumer preferences continue to shift and the market becomes even more competitive.
Offline access matters for in-store success
Mobile offline capabilities have become core to an effective retail execution strategy.
Three years ago, online capabilities were the central focus. “Back then, we thought everybody should be online,” says Tula. “But we very quickly realized how wrong that was.”
Even in developed nations, many facilities lack reliable internet connectivity. In other areas of the world, online access is even more dicey for field reps. Sometimes a retailer’s network is not available to vendors or certain corners of the store offer spotty network connectivity. Reps can be in the middle of ordering products when they lose connectivity – and all of their work.
Now, Whirlpool’s reps can switch their connection offline while entering order data. “Once they’re finished, they come back online and upload the data,” says Gaeta. “They really appreciate that capability.”
Colgate-Palmolive developed a variety of offline capabilities, including visit execution surveys, tasks, and order entry. Real-time pricing is another favorite.
“Reps can be completely offline and take an order in front of a customer,” says Tula. “They can be 100% sure that the pricing they give customers is the pricing that will appear on the order.”
Win the retail shelf with a stellar mobile sales experience
Retailers are doing all they can to reach consumers on their cell phones. Learn how to create a mobile sales experience that will boost bottom lines.
Strategizing for the future of retail execution
Looking ahead, CPG brands are investigating new intelligent technologies, such as artificial intelligence and machine learning, to support advances like dynamic route planning, dynamic route optimization, image recognition, and smart selling.
It’s all about helping field reps focus more on satisfying customers and less on parsing data.
“Anything that helps our field team be more empowered with less time or effort spent on the system is worthwhile,” says Baheti. “Having the ability to connect with the right customers at the right time – in a way that maximizes productivity and output – is essential.”
