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The store shelf is the last chance to make a sale. During the 10 seconds it takes for a consumer to scan the shelf, justify the purchase and put the product into their cart is a key timeframe the supply chain would benefit from exploring further. While eye-tracking technology is not new, seeing the shelf Read more »
You’ve heard the buzz, so here’s your chance to see the powerful AFS Technologies Solutions Suite in action! Join us for a demo of the industry-leading Food & Beverage business solutions that are generating big results and a quick ROI for Consumer Packaged Goods Manufacturers, Distributors and Sales Agencies. Take a tour of a new Read more »
Was your last new product launch a hit or a miss? New products are the lifeblood of the CPG industry and a sure way to attract retail buyers and gain attention from new consumers. According to the 2012 new products survey by Information Resources, Inc. (IRI), 20 percent of consumers are “always” looking for new Read more »
Major retailers and fast food organizations including Ikea, Burger King, Taco Bell, and Tesco were found to have been selling products advertised as 100% beef, but also containing horse meat. While the European Union (EU) has standards, rules, and regulations in place that are as stringent of those of the US-based Food and Drug Administration Read more »
Phoenix, AZ, April 15, 2013 – Method, the leading innovator in premium, environmentally-conscious household and personal care products, is partnering with AFS Technologies, Inc. to strengthen its daily Trade Promotion Management (TPM) strategies. The San Francisco-based company will implement the AFS TradePro™ Retail TPM solution to automate its trade-related business processes, optimize trade promotions, enhance Read more »
This case is officially closed! The great Sherlock Holmes inspired the Investigate Emerging Technologies theme at this year’s AFS Technologies Industry Conference. More than 230 Food & Beverage industry professionals (aka detectives-in-training) were in attendance, making the 2013 event the best turnout in Conference history. The spectacular Montelucia Resort & Spa in Paradise Valley, Arizona, Read more »
Can Greek yogurt be categorized as a dessert or a healthy snack? Is it a viable breakfast food, meat alternative and cooking substitute? The answer is ‘yes’ and ‘yes.’ Greek yogurt (yogurt strained to remove the whey) fits into almost every category seamlessly and consumers are devouring the not-so-new product by the spoonful. While strained Read more »
To all detectives in training…AFS Technologies recently announced its 2013 Industry Conference will take place March 24-26 at the stunning Montelucia Resort & Spa in Paradise Valley, Arizona. This year’s Sherlock Holmes-inspired event affords manufacturers, distributors, sales agencies, logistics providers, and operations personnel the opportunity to investigate a variety of emerging technology solutions and gather insights Read more »
Traditionally, trade publications, news outlets and analysts make industry predictions for the New Year — and the Consumer Packaged Goods (CPG) industry is no different. Everyone wants to know what the hot new trend will be. Is there a product category consumers will embrace and push to the top? And what technology advancements will be Read more »
Making a “list” is a common go-to planning strategy for many people, especially during the hectic holiday season. There are gift lists to compose and a grocery list a mile long to cover holiday meals and baking. Even Santa Claus makes a ‘naughty and nice list’ to stay organized. With everyone’s noses buried in pre-made Read more »
For CPG manufacturers, invoice deductions and chargebacks are part of doing business with Retailers. These deductions can include everything from temporary price reductions (TPR) and slotting allowances to damaged cases or short shipments. Such costs come directly out of the manufacturers’ trade spend budget, so it’s vital to monitor deductions closely and settle them in Read more »
California voters rejected Proposition 37 last week – a measure that would have required the labeling of genetically modified foods in the Golden State. The final tally resulted in 53 percent of voters opposing the issue. If the grassroots ballot initiative would have passed, supporters believe it could have served as a step towards a Read more »
When is the last time you shopped at a dollar store? The days of rummaging through obsolete or discontinued merchandise in a cluttered store are a thing of the past. The dollar store channel has significantly matured over the years. The improved format offers an expanded assortment of SKUs made up of both national brands Read more »
The Halloween season reminds us that mankind faces fear every day. In the Consumer Packaged Goods industry, manufacturers of all sizes and categories share a single, common nightmare. It is a frightful task that can paralyze business growth, and here’s the worst part, it’s a fear that must be encountered day after day after day. Read more »
Just last week, I blogged about looking ahead to 2013 and the difficult chore of sorting and understanding the combinations of environment and business factors that may impact the CPG industry. That blog summarized a few of the points that I believe work against companies and consumers. This week, let’s look at the forces that Read more »
As 2012 winds its way towards the end, we all find ourselves thinking about and trying to predict what’s ahead for the CPG Industry in 2013. The sales planning process is in full gear and companies have to take all these procrastinations and translate them into sales gains and losses. To be honest, I wouldn’t Read more »
I recently attended a webinar hosted by Natural Foods Merchandiser titled 2012 Natural Products Market Overview. It was primarily presented from the perspective of a retailer, but the presentation included some interesting findings and useful nuggets of information. For example, the total dollar retail market for natural products is estimated to be about $73 million, Read more »
When is it time for a Consumer Packaged Goods manufacturer to upgrade to a Trade Promotion Management (TPM) system? This is a popular question among growing manufacturers, especially those in the natural and organic space. While there are many variables to consider, here are five true-tale signs that the time is right: 1. You have Read more »
We all have heard it a hundred times over. It’s the mantra of every management consultant that goes back many years: if you want to improve your business, one needs to develop, measure and manage by the metrics. There are many pseudonyms for this concept, including key performance indicators (KPIs), critical success factors and key Read more »
In case you weren’t aware, this year marks the 50th anniversary of Walmart. The retailer opened its very first store July 2, 1962 in Rogers, Arkansas. Today, more than 140 million Americans shop at Walmart EACH WEEK. Four thousand four hundred stores later, the world’s largest retailer has reshaped the retail industry, influenced how consumers Read more »
With much of North America experiencing record-breaking heat and near-drought conditions, many are concerned with Mother Nature’s impact on the Consumer Packaged Goods (CPG) industry. Most agree on one very likely outcome: expect higher grain and food prices across the board. Historically, CPG manufacturers have preferred to pass such increases along to the consumer. But Read more »
Millennials, the 50+ million consumers currently between the ages of 18 and 34, are predicted to spend $56 billion on Consumer Packaged Goods (CPG) products over the next decade. Industry research shows Millennials buy differently from the Baby Boomer generation which presents both a challenge and an opportunity for manufacturers to create new and profitable Read more »
In my last blog I discussed how one should be weary of all the spam in the marketplace regarding Trade Promotion Optimization (TPO.) Many make it out to be much simpler than it really is. When your company is truly ready and you do venture down the TPO route (and eventually you should) it will Read more »
For those in the Consumer Packaged Goods (CPG) industry keeping an eye on ‘what’s hot’ and topical, you have certainly come across all the talk about big data initiatives and Trade Promotion Optimization (TPO). And the talk is valid. But CPG manufacturers can’t simply keep throwing more money into the trade promotion budget. The social Read more »
Nearly four in 10 Trade Promotions Management (TPM) implementations fail. It’s no wonder Consumer Goods companies of all sizes get sweaty palms whenever the “I” word is mentioned. But what is the real reason behind a failed implementation? We posed this question to the Professional Services Team here at AFS Technologies to find the answer. Read more »
Improving the effectiveness of trade spend dollars continues to be the leading challenge for Consumer Packaged Goods (CPG) companies, according to a May 2012 research survey conducted by Consumer Goods Technology (CGT) Magazine. Successfully managing trade promotion activities (and budgets) are crucial for long-term profits, steady growth and increased shelf space. Interestingly, the approach to Read more »
In 1983, the film “Mr. Mom” starred Michael Keaton as a stay-at-home dad. The movie comically shed light on the differences between men and women (dad versus mom) running a household, hitting the grocery store and getting dinner on the table. Fast forward nearly 30 years and the fictional movie plot is now a reality Read more »
In-store consumer marketing has and will continue to be an effective tool for both Retailers and CPG manufacturers. No matter how large or small a campaign, these activities need to be a win for the shopper, the manufacturer, the brand and the retailer. From end cap displays and samplings to loyalty programs, Retailers and Manufacturers Read more »
After working as a bagger at Giant Eagle, I was lucky enough to be chosen to work in the Produce Department. Back in the day, the produce aisle was the key to a supermarket’s overall success. Grocery stores were configured so shoppers were required to walk through the produce section first. Whenever possible, produce was Read more »
During a recent shopping trip at Giant Eagle, I couldn’t help but be impressed with just how far the private label segment has come. The packaging, the messaging and even the displays have the same look and feel as a leading national brand. The private labels today even have a prominent presence in print, on-air Read more »
Not once. Not twice. But a dozen times, I’ve watched customers come to a horrible realization about their trade spending. Once they understand where they are spending money and find where all the bodies are buried—they get the real numbers for everyone to see. All too often, the cold hard facts prove that the company Read more »
How many times have you heard the phrase “my job is to sell” come from a member of your Sales Team? For many years, this attitude was not just widespread, but very valid. But as times have changed, so have roles and responsibilities of sales professionals. It’s an evolution that can be the difference between Read more »
The New York Times Magazine made people nervous with its February 19th cover story by author Charles Duhigg. Its chilling headline, “How Companies Learn Your Secrets,” seems to have compelled readership as a matter of personal protection. I make this inference from the number of acquaintances who asked me about it. “Creepy” was the adjective Read more »
Let me pose a question. Do you believe Trade Promotion Management (TPM) systems are just for big Consumer Packaged Goods (CPG) companies and everyone else is relegated to Excel® to manage trade spend? There are many manufacturers that have this perspective. The truth is, if your company invests more than $1MM in trade spend annually Read more »
It could be said that the Expo floor at the NRF Big Show in New York channels a mass retail environment: wares presented in vibrant displays; sales people eager to engage; swarms of prospects stalking the aisles. According to the National Retail Federation, some 25,500 people packed the January event. It was the best turnout Read more »
Recently I had the pleasure of hosting a webinar entitled “Winning with Shopper Marketing.” The presentation featured Mary Georgio, a shopper marketing expert with a wealth of experience from both the Manufacturer and Agency sides. I was particularly impressed with Mary’s viewpoints regarding the relationship between Retailer and Manufacturer and how it could be greatly Read more »
Manufacturers know a first-rate Broker network is the key to success. Good Brokers can be the difference between being a market leader or follower. Brokers are much more than a simple conduit between Manufacturer, Distributor and Retailer. In addition to getting and keeping a Manufacturer’s product on the shelf, they serve as the eyes and Read more »
As a long-time optimist, I believe 2012 will be a very successful year — with or without significant improvements in the economy. Businesses and consumers have proven to be both resilient and smart. They are doing the best they can under the current circumstances and will continue to position themselves for great success when the Read more »
Several months ago I spoke at an industry conference regarding best practices in trade promotion management. I discussed the nature of collaboration between Manufacturers and Retailers and proposed that the goal of such collaboration was to create a “win-win” scenario between both parties. One of the audience members challenged me during this point of the Read more »
As 2011 winds down, it is always interesting to look back and decipher how shopper behavior has changed. Economic conditions certainly didn’t get any better and buyers felt the impact on their wallets and lifestyle. As we head into 2012, most pundits are predicting more of the same. So how can we expect consumers to Read more »
On a gorgeous, crisp autumn morning there is nothing more exhilarating than a trip down to the Farmers Market. Because winter will soon be setting in here in the eastern United States, I only have a few more chances to visit my favorite outdoor venues. What the commentators and analysts are saying about people wanting Read more »
Trade Promotion Optimization (TPO) and Trade Promotion Management (TPM) may be in the same genus but they clearly are two very different types of animals. TPM is the management of the entire cycle of trade promotions and related spending between CPG manufacturers and their customers including annual planning, creation of events, implementation, post-event analysis and Read more »
With the price of peanuts on the rise and the announcement by major manufacturers that peanut butter – an American staple of families and singles — will cost more for consumers, one has to wonder if households will be spreading the peanut butter thinner. We think not! Consumers have entered into the era of ‘smart shopping’ and Read more »
Let’s face it, time is money. Think about your working calendar for a second. There are five days a week, 52 weeks a year. Take out 20 days for vacation and 11 days for holidays. That suggests there are roughly 229 working days per year. For most selling organizations, employees must take out one day Read more »
Stop struggling with trade promotion deductions and reduce your post audits!! Companies do not have to spend so much time and energy validating and approving deductions for trade promotions and other sales related programs. Third party auditors say that that the most common reasons for post audit claims are for things that can be avoided Read more »
I call it the Paradox of Scale: Grocery chains keep getting bigger, but industry profit performance remains stagnant. It’s been a doggedly persistent trend. Between 1992 and 2009, the top 20 U.S. grocery retailers increased their cumulative market share from 39 percent to 64percent, according to the U.S. Economic Research Service. Meanwhile from 1996 to Read more »
It’s that time again…the Natural Products Expo East show will be held at the Baltimore Convention Center, on September 22 – 24, 2011. Whether you are a manufacturer presenting or you are a buyer for a distributor or retailer, one of the most important considerations of show preparation necessary to ensure that the show experience Read more »
While Excel™ may seem “free,” it could actually be costing your company a lot more than you know. Consumer Goods (CG) manufacturers typically spend between 10 and 20 percent of their gross sales on trade promotions with wholesalers, distributors and retailers. Trade spending represents the best lever a CG firm has to effectively shape demand Read more »
Curious about whether or not the increased food prices are impacting the manufacturers, retailers, and consumers equitably? We’re hearing that cost of goods have increased for the manufacturers, the retailers are offering more and more private label brand options, and consumers are definitely searching out the “deals”. Collectively, these variables/challenges are affecting margins and opportunity Read more »
Businesses are scrambling…on all levels. This is a notably challenging economy, and has been for the past three years or so! However, spirits are high…and from all that I’ve been reading and discussing with colleagues and friends, management teams and one-man shows alike will weather the storm if they are paying attention to some VERY Read more »
The economic downturn has not spared consumer products companies. Part of the challenge lies with the new cost-conscious consumer and the rise of the private label. Thirty-five percent of shoppers are trying private label brands for the first time, enticed by the lower prices and perceived high quality. Thus far, most consumer products suppliers have Read more »
While researching charitable companies in the food industry, I came across the Global FoodBanking Network. The mission and intention is VERY inspiring and one that appears to have a continuous, proven impact across different cultures, geographies, and economies. GFN contends that food banks are an essential part of the solution for alleviating hunger and improving Read more »
David Cleveland, professor of environmental studies at UC Santa Barbara, reported recently that “the global, centralized agrifood system is highly productive but creates a disconnect between production and consumption, with associated social and environmental impacts.” His contention is that “local production may not be enough to tackle these problems.” The example that was described in Read more »
Let’s say you think getting a Continuous Improvement (CI) program started at your company makes a lot of sense. You see that there’s lots of opportunity to improve…so how do you get started? For any successful CI Program, there are Six Key Success Factors: 1 Strategy-Objectives, Project Identification 2 Structure 3 Training/Expertise 4 Pilot Projects Read more »
CPG companies work in one of the most competitive environments in the world – differentiating their brands in the mind of price and brand-savvy consumers, working with and often competing with retailers to get their products on shelf, and fending off competitive threats. Amidst this pressure on the top-line, CPG’s need to deliver bottom line Read more »
According to data sources, the average American’s diet is comprised of 65 percent processed foods. Obesity afflicts a third of all Americans. Various researchers have estimated that 3-16 percent of the general population in the United States and Canada is insulin-resistant; another figure that is sometimes given is 70-80 million Americans. Insulin-resistance is a precursor Read more »
This week is full of buzz coming out of Symphony IRI’s Summit in Miami, FL and one of the key messages delivered early in the Summit from keynote speakers was a call for manufactures to reinvest in their brands. I fully agree. Branding has been in decline, advertising budgets the first to be pulled when Read more »
Let’s face it …we can’t deny it anymore. The cloud and SaaS (Software-as-a-Service) applications are having a major impact on all our lives. In the enterprise, many applications now live in the cloud, and it’s only the beginning. More and more companies are now ready to turn their IT around, and minimize in-house hosting for Read more »
I picked up a recent back issue of Harvard Business review and read a column by Lynda Gratton entitled “The End of the Middle Manager.” The column speaks to how systems and shifts in corporate culture are pushing the traditional middle manager role into redundancy. The classic middle manager, a general manager, tracks performance, monitors output and ensures Read more »
I’ve recently done a bit of work analyzing the ways food and beverage makers use Excel™ in their businesses. While it’s rare to find a company that hasn’t installed some kind of financial system or enterprise resource planning (ERP) engine, over half are still using Excel to track and manage trade promotions and related spending. Read more »
When I was discussing the hot issues facing marketers in the food and beverage industry, one reoccurring topic kept popping up – pricing, and more specifically the battle that suppliers and retailers are facing due to upcoming price increases. Commodity prices are increasing almost across the board, putting pressure on suppliers; meanwhile, consumers are continuing Read more »
The process of building an annual plan can be a very taxing exercise in an organization. Practiced in a variety of degrees of sophistication and detail, most organizations generally build a financial plan and define tactical priorities/action plans of some sort to achieve their corporate financial targets. Your best people put on their strategic thinking caps, assess Read more »
I felt I would be remiss if I didn’t join in the rest of the crowd in making my own predictions for the coming year. It almost seems a rite of passage for any respectable blog. That being said, I do believe 2011 will be a significant one in the history of consumer products. So Read more »