Channel & Account Strategic Growth Bets

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Seismic Shift in CPG E-Commerce Growth

Seismic shift is occurring in CPG industry —but manufacturers are not keeping pace. Online sales grew rapidly from 2013 to 2018—19% annually versus the anaemic 1% growth rate of in-store sales. E-commerce now accounts for 40% of the growth in CPG retail sales.The explosive growth of e-commerce is transforming the retail world—and changing the sources of competitive advantage for CPG companies. To survive and thrive, CPG players need to embrace the disruption.

Channel & Account Growth

To maximise total growth potential, CPG companies need to leverage different channel partners and business models to get most of the e-commerce growth. They must develop strategies that are tailored to the myriad of online retail environments in which they will compete and the models they will face.

Strategic Growth Bets Uncertainty

To achieve their directly dependant e-commerce category growth targets, CPG professionals need to place different strategic bets with different partners. To meet their growth targets, while having a portfolio of partners, they can strategize for materialisation of multiple scenarios. But, with limited information availability, in a very dynamic and unpredictable industry, making CPG e-commerce growth bets is like making chess moves in a fog.

Time Based Competition Lens

Looking at CPG e-commerce market players competition through the lens of time based competitive strategy, we can isolate the basis of competition to identify current and future source of growth. According to this view, those CPG e-commerce players who perform better along the line of time competition - faster and more convenient deliveries to customers are those who are poised for growth.

Optimize Strategic Channel and Account Growth Bets

By leveraging insights of e-commerce deliveries development and broader post-purchase experience, CPG professionals can place more accurate strategic growth bets with those e-commerce and channel partners that structurally perform better in dimension of delivery or time-to-consumer.

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SO DIGITAL GLOBAL E-COMMERCE OPERATIONS EXCELLENCE PLATFORM is a management tool that helps CPG companies formulate, evaluate, and improve their e-commerce strategic growth bets by providing a systematic assessment of competitive performance of post-purchase and delivery performance of channel partners across markets.

Who is it for?

CPG brands and professionals who want to take full advantage of e-commerce growth potential. Those who are tasked with strategic decision making in terms of organisational focus and investments and selection of retailer - brand category match. eCommerce leaders who oversee channel execution within a single or across multiple markets and who have direct responsibility for overall channel performance.

Business and e-commerce strategists and e-commerce team leaders who are in charge of designing, planning and executing competitive growth strategies. Those involved in negotiation and relationship building with individual CPG e-commerce retailers and marketing investments distribution.

When is it needed?

While many focus on selling through Amazon, there are other e-commerce players where CPG companies must capture share to maximise total growth potential. With an extensive portfolio of brands and complex web of potential e-commerce partners, discerning where to place your long-term focus and organisational investments becomes increasingly ambiguous.

Within a highly dynamic and competitive e-retail environment best bet is Amazon, however, dependency on a single growth partner can be very dangerous and even short-lived. Many companies learned the hard way that Amazon will lock you in with the growth and then start squeezing you on profitability of each SKU.

How is it done?

Trained researches in target countries perform actual purchase of products from target e-commerce market players, recording their every step, while answering standardised scale based scorecard with average 200+ data points to provide insight into comparative performance on market competition defining elements of post-purchase experience : tracking, delivery, packaging (out-of-box), returns & refunds.

With yearly subscription, clients get access to benchmarked country data sets, while also being able to create reports on the platform itself to drive focused learning insights. Reporting module enables comparison of markets, retailers, data points and across completed benchmarks to discover trends.

How do you benefit?

Whether you're entering a completely new market or category, predicting future performance of potential partners is almost impossible. Given that those who structurally perform better along dimension of time-to-consumer, are poised for stronger e-commerce growth, having a comparative overview of e-commerce delivery performance will help you optimize your strategic growth bets.

CPG professionals are able to optimize their decisions on cost / profit elements such as packaging and pack sizes. These insights can have an immediate and structural effect on profitability. Larger pack sizes can encourage stock-up behavior, push the transaction up to $10 to $15—when shipping economics often improve for any given individual item

How long does it take?

Depending on the number of countries researched and whether it is a standardized or individual client tailored benchmark research average duration of the project lasts up to 3 months. During this time client is able to actively participate and track research progress in the platform. In case markets of your interest have been benchmarked within last 6-12 months you can gain access to this right away.

Once you gain access to the platform through subscription packages, you can use it during the period of one calendar year, after which your subscription and access to the refreshed dataset will have to be renewed. During this period client designated users have an unlimited access to the data and are able to continuously create reports of their choosing.

How much does it cost?

Standard benchmarking contains research results of 20+ leading e-commerce players from a single market. Cross-industry sample usually contains all e-commerce models (marketplaces, pure-players, brands, e-retailers, omni-channel). Access to the standard country research that details into delivery, tracking, packaging, returns & refunds with omni-channel reporting starts at 5000 EUR / year.

In case a client wants to tailor the research so it is more focused on his particular industry and contain additional question sets, standard pricing will be augmented depending on the size and the scope of changes and markets that are researched just for this client. On average tailoring of research criteria (scorecard or industry) entails +30% per each segment.

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Time-based competition as a competitive strategy for online grocery retailers

The element of time management as a competitive strategy has become the focus of many research studies. One such study was done in January 2016 by Alicia Neva Weber-Snyman and Johanna A. Badenhorst-Weiss from University of South Africa.

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Flagship clients

(EMEA) 14 markets

brand digital wholesale. com team / brand creative team / digital supply chain team

(EMEA) 47 markets

in-house marketing / creative agency

(EMEA) 17 markets

in-house creative agency / HBO Max EMEA CS / marketing department teams (11 teams) / WarnerBros IT team

(WHQ)

CRM / Internal Comms team

(Europe) 10 markets

media / integrated marketing / UGC / creative / local marketing team

WHQ

European D2C eCommerce Team

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"Having your brand represented well on a big retailer such as Foot Locker is a key priority. To deliver such a project, we needed a partner who would understand the needs both of the consumer and the brand. We’ve achieved a great end result: a brand page that serves as the authentic sport destination for the consumer, on and off the field of play, aligned with both Nike and Foot Locker business visions."

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WE Digital Brand Manager Nike EMEA