3. the
the
consumer
sumer
e
goods
forum
What is the Consumer Goods Forum?
The Consumer Goods Forum (CGF) is a global, parity-based industry network, driven
by its members. It brings together the CEOs and senior management of over 400
retailers, manufacturers, service providers and other stakeholders across 70
countries and reflects the diversity of the industry in geography, size, product
category and format. Forum member companies have combined sales of EUR 2.5
trillion. Their retailer and manufacturer members directly employ nearly 10 million
people with a further 90 million related jobs estimated along the value chain.
The Forum was created in June 2009 by the merger of CIES - The Food Business Forum, the Global
Commerce Initiative (GCI) and the Global CEO Forum. The Consumer Goods Forum is governed by its Board
of Directors, which includes 50 manufacturer and retailer CEOs and Chairmen.
The Forum provides a unique global platform for knowledge exchange and initiatives around five strategic
priorities – Emerging Trends, Sustainability, Safety & Health, Operational Excellence and Knowledge Sharing
& People Development – which are central to the advancement of today’s consumer goods industry.
The Forum’s vision is: “Better lives through better business”. To fulfil this, its members have given the Forum
a mandate to develop common positions on key strategic and operational issues affecting the consumer
goods business, with a strong focus on non-competitive process improvement. The Forum’s success is
driven by the active participation of the key players in the sector, who together develop and lead the
implementation of best practices along the value chain.
With its headquarters in Paris and its regional offices in Washington, D.C., and Tokyo, the CGF serves its
members throughout the world.
2
4. Executive Summary produced by IGD on behalf of The Consumer Goods Forum
IGD is a leading international research organisation for the consumer goods industry worldwide. We offer
understanding and insight, developed from extensive analysis of global business issues and an ongoing dialogue
with shoppers. We help businesses to identify opportunities, improve performance and create a competitive edge.
Find out more at www.igd.com
Ideas. Content. Communication. Information designed for your business.
Find out more at: www.delevine.co
www.delevine.com
Fabra Davies is an established cloud organisation with a track record in design innovation and social media for
the consumer goods market. With a background in trends, architecture, marketing and contracts completed
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Twenty successful years of consultancy is a reflection of our commitment to inovation, quality and the talent of
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6. The Strategic Pillars & Forum Activities
Ageing
Population
Share our
Health
Supply Chain
Global Social & Wellness
Compliance Information
& Education
Programme
Prepare
Health & Our
people
Carbon Wellness
Measurement Principles
Connect
Deforestation Commitments Business
Refrigeration
Information
Engagement
Global
Food Safety Future
Global
Initiative Leaders
Packaging Focus
on Consumers
Future & Shoppers
Value Chain Summit
THE CONSUMER GOODS FORUM
1 2 3 4 5
OPERATIONAL EXCELLENCE
& PEOPLE DEVELOPMENT
KNOWLEDGE SHARING
EMERGING TRENDS
HEALTH & SAFETY
SUSTAINABILITY
7. Operational Excellence
The key to growth
Creating and implementing change in industry collaboration
Our objective is to enable trading partners and the Consumer Goods Industry to better serve our consumers
and shoppers by driving Operational Excellence. Our aim is to do this through collaborative business practices
of New Ways of Working Together.
This includes four strategic priorities, which are also reflected in the four Operational Excellence Committees:
The objectives will be accomplished through:
retailers and other participants in the extended value chain to drive consumer benefits. This would
include the adoption and implementation of best practices, GS1 Standards and Industry Utilities.
New Ways of Working Together
Eliminate supply chain disruptions, enable growth
Industry Track ( collaborate )
2 Best Practices/
Standards
Documentation,
Education,
Communication
Guiding
Principes and
Frameworks
Share
Results
Consumer & Shopper
OPERATIONAL EXCELLENCE
Satisfaction
Focus
on business
Prepare
people for new world
Share
our
consumer information supply chain
COMMON GOALS & KNOWLEDGE, SKILLS &
STRATEGY ALIGNEMENT MEASURES CAPABILITIES SUSTAINABILITY
JAG FRAMEWORK INFORMATION CROSS INDUSTRY INTEGRATION
INCENTIVES & REWARDS
SHARING* INTEGRATED SUPPLY CHAIN
EPC ORGANIZATION DESIGN
DATA SYNC
Strategic Issues Common Goals, c Measures Other Data
Between & Priorities Sharing
Common Measures Opportunities
Focus Trading Partners
Trading Partner Track ( Competitive Advantage )
*Note: Utilizations of Industry Standards
The Operational Excellence – New Ways of Working Together Core Team is charged with creating and
implementing change in the way our industry collaborates (in bi-lateral trading relationships and on
non-competitive Industry issues) to better serve our consumers and shoppers. It also serves as the Integration
Platform and Steering Group for the pillar and its work.
The Marketing, IT and Supply Chain Knowledge Exchange & Networking Forum
At the annual member event, we bring together our members to focus on the consumer and shopper. In
bringing retailers and manufacturers together, we look at how we can work together to ensure continuous
improvement throughout the value chain by focusing on the needs of the consumer and optimizing processes
and collaborative action along the way. It’s all about excellence in execution … and how Marketing, IT and
Supply Chain can work together to bring operational excellence to their business.
6
8.
9. Highlights
The shopper and consumer at the heart …
The “Shopper & Consumer” is what this gathering was all about. And how we can work together to meet
the needs of today’s empowered consumer.
We brought together our members to exchange knowledge, network with peers, pick up new ideas and
learn from practical experiences.
At this knowledge exchange & networking event, Marketing, IT and Supply Chain executives took a
deep dive at how we can better serve the consumer by concentrating on the following Marketing, IT
and Supply Chain themes:
“Turning Consumer and Shopper Insights into Growth”
“The Consumerism of IT”
“Delighting the Consumer. Acting as One.”
Experience
Hear what the experts have to say about their experience...
“CGF has proven to me to be a fantastic platform to gain valuable insights into how leading industry players
address trends that shape our mid to long term future. Networking with peer executives from
manufacturers, retail partners and strategic vendors opens many doors for collaboration.”
Clyde Pereira, CIO, Coca-Cola Hellenic, Austria
“The Marketing Forum exercises and expands your mind like no other marketing event in the world. It is the
marketing event of the year for me. We stimulate your left and right brain with an intentional mix of
successful case study presentations and relevant experiences, outside of the box, inspirational speakers to
stretch your mind.”
Stephen Smith, Chief Marketing Officer, Asda Stores Ltd, United Kingdom
“Excellent event to get new inputs, to meet inspiring colleagues, to exchange information and to
benchmark own ideas!”
Andreas Münch, Member of the Executive Board, Head of Department Logistics & IT, Migros,
Switzerland
“The store and DC tours also provide great insights on how individuals can improve their own operations
and leverage new technologies.”
John S. Phillips, Senior Vice President, Customer Supply Chain & Logistics, PepsiCo, USA
“The CGF Marketing Forum is an excellent blend of manufacturers, retailers, and select suppliers coming
together to discuss new ways of working together to deliver improved shopping experiences. The speakers
are dynamic and the forum is candid in terms of interaction and discussion – a great mix!”
Kristen Nostrand, Marketing Director, Procter & Gamble, USA
8
10. The Consumer Goods Forum is your association
By the members, for the members
This year’s conference was developed by the Operational Excellence Committees for the members
of the Forum. Here are the industry experts who have been working behind the scenes throughout
the year.
11. Marketing Committee
Activating Shopper and Consumer Insights
Arnaud de Belloy, Vice President Global Customer & Sales, Nestlé Group, Switzerland (Co-Chairman of the Marketing
Committee - Activating Shopper and Consumer Insights)
Stephen Smith, Chief Marketing Officer, Asda Stores Ltd, United Kingdom (Co-Chairman of the Marketing Committee -
Activating Shopper and Consumer Insights)
Jonathan Ackerman, Customer Director, Pick N Pay Retailers, South Africa
Adam Balon, Founder & International Director, Innocent Drinks, United Kingdom
Carolyn Bradley, UK Marketing Director, Tesco, United Kingdom
Jeff Burt, Group Vice President Perishable Merchandising and Procurement, The Kroger Co., USA
Guy Elewaut, Senior Vice President Strategy, Marketing and Communications, Delhaize, Belgium
Bernard Fevry, Director of Operational Marketing Europe, The Coca-Cola Company, France
Angela Francolini, Vice President, International Marketing & Innovation, Mc Cormick & Co, Inc., USA
Markus Gisiger, Head of Marketing Food, Migros, Switzerland
Sharon Jeske, Director, Operational Excellence, The Consumer Goods Forum
Robert Kitching, Vice President Consumer Marketing Insights Western Europe, Unilever, The Netherlands
Meg Levene, Vice President, Field Sales Organization, Johnson & Johnson, USA
Satoshi Nakashima, General. Manager, Strategic Trade Marketing Department., Marketing Integration Division,
Meiji Co., Ltd.,Japan
Kristen Nostrand, Marketing Director, Procter & Gamble, USA
Simon Potts, Director - Business Development Health & Beauty Division, Alliance Boots, United Kingdom
Patrick Rouvillois, Chief Marketing Officer, Carrefour Group, France
Jean Rubens, Executive Managing Director, Casino Supermarches, France
Yuji Shimizu, Director, Business Planning & Coordination, Global Consumer Product, Kao, Japan
Vanessa Silva, Marketing Director, Jeronimo Martins, Portugal
André Tordjman, Chairman and Founder, Little-Extra & Affiliate Professor, EDHEC, France
Jean-Jacques Vandenheede, Director Retailer Insights Europe, The Nielsen Company, Belgium
Tim Welch, Director International Shopper Marketing, PepsiCo, USA
Paolo Zazzi, Europe and Export Customer Marketing Responsible, Barilla, Italy
10
Russell Zwanka, Senior Vice President Sales, Merchandising, and Marketing, Price Chopper, USA
12. IT Committee
Connecting Businesses for Consumers
August Harder, Chief Information Officer, Coop, Switzerland (Co-Chairman of the IT Committee - Connecting
Businesses for Consumers)
Clyde Pereira, Chief Information Officer, Coca-Cola Hellenic, Austria ( Co-Chairman of the IT Committee -
Connecting Businesses for Consumers)
Masayuki Abe, Vice President, Information System Strategic Planning, Kao Corporation, Japan
João Günther Amaral, Director, Sonae Portugal
Greg Buckley, Senior Director, Customer Supply Chain, PepsiCo, USA
Guy Chambers, Chief Operations Officer (Greater China), Swire Beverages, China
Andrija Derezic, Executive Director of IT and Telecommunications, Mercator Group, Slovenia
Martin Haas, Chief Information Officer, Migros, Switzerland
Rod Hefford, Vice President IT - Global Customer Development and Supply Chain, Unilever, United Kingdom
Sharon Jeske, Director, Operational Excellence, The Consumer Goods Forum
Clinton Keay, Senior Vice President , Chief Information Officer, Sobeys Inc., Canada
Espen Kjonsberg, Chief Information Officer, Norgesgruppen, General Manager, Norgesgruppen Data, Norway
Andreas Kranabitl, Managing Director, Spar, Austria
Kevin Puppe, Senior Director of IT, Johnson and Johnson Consumer Group, USA
Marco Rossi, IT Business Process Support Director, Barilla, Italy
Jens Siebenhaar, Chief Information Officer, Rewe Informations Systeme GmbH, Germany
Franck Suykens, Senior Vice President & Chief Information Officer, Europe and Asia, Delhaize Group, Belgium
Joseph Taylor, Director of IT Strategy and Innovation, Wal-Mart Stores, Inc., USA
Francesco Tinto, Vice President - IS Americas, Kraft Foods, Inc., USA
Milan Turk, Managing Director, Global Customer Business Development, Procter & Gamble, USA
Wim Van Herwijnen, Chief Information Officer – Real-hypermarkets, Metro Group, Germany
Jerry Wolfe, Vice President, Global Supply Chain Strategy and Chief Information Officer, Mc Cormick & Co., Inc, USA
Mike Yorwerth, Group Technology and Architecture Director, Tesco, United Kingdom
13. Supply Chain Commitee
Delighting the Consumer. Acting as One.
John S. Phillips, Senior Vice President, Customer Supply Chain & Logistics, PepsiCo, USA (Co-Chairman of the Supply Chain
Committee - Delighting the Consumer. Acting as One.)
Tony Vendrig, Executive Vice President Business Development, Ahold Europe, The Netherlands (Co-Chairman of the Supply Chain
Committee - Delighting the Consumer. Acting as One.)
Petra Albuschus, Senior Vice President Logistics, ICA Sverige AB, Sweden
Tony Borg, Vice President - Head of Corporate Supply Chain, Nestlé Group, Switzerland
Frank Bruni, Vice President Logistic Operations, The Kroger Co., USA
Roberto Canevari, Group Supply Chain Executive Director, Carrefour, France
Nuno Cardoso, Supply Chain Director, Jeronimo Martins, Portugal
Geoff Fulford, Group Vice President Customer Service Excellence, Unilever, United Kingdom
Martin Gleiss, Supply Chain & Logistics Manager, Spar, Austria
Cenk Gurol, Chief Executive Officer, Æon Global SCM Co. Ltd., Japan
Sharon Jeske, Director, Operational Excellence, The Consumer Goods Forum
David Jones, Supply Chain Director, Waitrose Ltd., United Kingdom
Herbert Kueng, Vice President Customer Service & Logistics CEEMA, Kraft Foods CEEMA GmbH, Austria
Kieron Low, Supply Chain Director, L’Oréal Consumer Product Division, L’Oréal, France
Kerry McNair, Director, Global Supply Chain, Walmart Group, The Coca-Cola Company, USA
Andreas Münch, Member of the Executive Board, Head of Department Logistics & IT, Migros, Switzerland
Stefano Pietroni, Network Design Planning & Sourcing Director, Barilla, Italy
Jim Radin, Vice President – Global Supply Chain Operations, Mc Cormick & Co., Inc., USA
Joze Sadar, Senior Vice President, Mercator D.D., Mercator Operations Slovenia, FMCG Retail, Slovenia
Yannis Skoufalos, Global Product Supply Officer, Procter & Gamble, USA
Xavier Ury, Vice President Procurement Support, Quality and Supply Chain, Delhaize Group, Belgium
Naoto Takahashi, Managing Director, Representative Director, President of Production Division, President of Supply Chain
Management Division, Kirin Brewery, Japan
Special Advisor to the Committee:
Valentin Elistratov, Vice President Business Development International Supply Chain, EMEA, DHL Global Forwarding, France
12
16. Jean-Marc Saubade,
Managing Director,
The Consumer Goods Forum
Opening Plenary
Sessions
Wednesday 12th and Thursday 13th October
The Consumer Goods Forum
Managing Director Jean-Marc
Saubade welcomed 300
delegates from 30 countries
and 130 companies to
Operational Excellence 2011
Saubade stressed that, in an uncertain economic
environment, the basic need for consumer goods
companies to better serve their consumers and
shoppers through enhancing operational capabilities
was greater than ever.
For 2011, the Forum’s Supply Chain, IT and Marketing
conferences had come together for the first time
under one roof. Saubade took the opportunity of the
first plenary session to remind delegates of the
principal areas of focus for the Forum. The Forum’s
five strategic pillars are: sustainability; safety & health;
emerging trends; operational excellence; knowledge
sharing & people development.
18. Robert McDonald
Chairman of the Board,
President & CEO,
The Procter & Gamble Company,
USA
Jim Flannery
Managing Director, Customer
Development, Procter & Gamble
Global Operations, The Procter &
Operational Excellence
Gamble Company, USA
New ways of working together
“The only strategy consumers and shoppers see is our ability to execute,” Jim Flannery told delegates.
Speaking with Robert McDonald, who joined the conference by video, Flannery introduced delegates to the
Forum’s New Ways of Working Together framework, which provides a common language for collaborative
action. A “game-changing enabler,” the common approach leads to consumer-focused business plans and
helps companies create operational synergies
McDonald and Flannery urged delegates to take advantage of the networking facilities offered by the
enlarged conference to share expertise and gain inspiration from one another: “The Operational Excellence
pillar at the Forum is all about making a real difference in the industry and we should all take our work to the
next level,” Flannery said.
19. Erik Wahl
International Keynote
Speaker and Artist
USA
Think big, dream big
The risks and rewards of working together
The corporate world can be risk-averse, artist and motivational speaker Erik Wahl told the conference in his
keynote address. This is logical, since companies have to manage the interests of shareholders and financial
backers. But if innovation is vital in a fast-changing consumer climate, then surely “creativity is the new corporate
capital”.
This kind of capital is abundant and free, but requires a risk and a shift of focus from the logical left side of the
brain to the creative and collaborative right. Wahl encouraged delegates to look for ways to work together, put
fear to one side and embrace new ideas. “See the world through different eyes,” he urged the conference.
To illustrate his point, quite literally, Wahl painted a picture to music and invited a volunteer on stage. He
rewarded the volunteer for taking this potentially humiliating venture into the unknown by making a gift of the
painting: “Sometimes it pays to take a risk.” Wahl also painted a portrait of inspirational footballer Lionel Messi.
18
20. Key
Takeaways
OGILVYACTION
Build brand utility
alongside brand
awareness
Turn content from
social media into data
you can use
Be mindful of this new
empowered consumer
FACEBOOK
Don’t underestimate
importance of online
story telling
Leverage connected
networks
Have “Social by
Design” strategies
21. Matt Gierhart,
Global Head of Social,
Stories from the frontlines of OgilvyAction,
United Kingdom
consumerism
Brands are the new publishers, “facilitating consumers’ own
stories”.
stories”
Social media has increased brand awareness for those that have embraced it. But awareness is not enough: more
utility is needed. Consumers are developing increasingly personal relationships with their favourite brands. In
this context, brands are the new publishers, “facilitating consumers’ own stories”.
“Consumers are taking the brand and making it their own experience,” Gierhart said. The Smirnoff Ice viral
drinking game — in which the victim, presented with a bottle of Smirnoff Ice, must get down on one knee and
down it in one, no matter where they are — encouraged consumers to “ice” their friends and post the evidence
to Facebook. Similarly, Levi Jeans ran a campaign in which consumers hid cameras in their back pockets and
recorded the looks their jeans got from passers by.
Content is the point of entry, but companies need to convert this consumer interaction into sales. US fast food
brand In-N-Out Burger, for example, used social media to propagate a “secret menu” alongside its limited
published menu. Only consumers in the know can access this, via a series of coded keywords. Concluding his
presentation, Gierhart affirmed that consumers are using social media as vast collaborative network to help
them make decisions. Effective strategies for success will take into account this new, empowered consumer.
Matthew Doris
European Market
Development Lead (Global
Customer Marketing),
The new empowered consumer Facebook, United Kingdom
and the “stories” opportunity
Brands need to adopt strategies that are “social by design”
The days of the nameless, faceless web are over, Facebook’s Matthew Doris told delegates. Social media has
played a key role in empowering consumers to tell their own stories online and recommendations among users
are becoming increasingly important. Consumers are now discovering information and knowledge in a different
way, based on who they are and who they are connected with. Brand owners should be aware of this growing
activity: social apps can help people to tell their own stories more easily.
We are also more mobile online, creating “villages” via our connections with multiple social networks. Marketers
need to understand the scope of these linked networks and appreciate that brands are now centre-stage via
social media. Given this, brands need to adopt strategies that are “social by design” and which put people at the
core.
20
22. Arnaud de elloy
ice President Global Customer
& Sales, Nestl , S it erland
Co Chairman of the Marketing
Committee Activating Shopper
and Consumer Insights
Turning Consumer &
Shopper Insights Into
Growth
The importance of social
media, loyalty programmes
and other sources of data on
consumer preferences and
behaviour is not to be
underestimated
As co-chair of the Marketing Committee, Arnaud de
Belloy introduced the start of the event’s individual
stream on marketing. The importance of social media,
loyalty programmes and other sources of data on
consumer preferences and behaviour is not to be
underestimated, he said. But what has been missing is
a clear roadmap for converting such data into
intelligence. Insights are valueless unless we can turn
them into growth. The marketing stream will attempt
to provide this roadmap, de Belloy said.
24. Matthew Doris
European Market Development
Lead (Global Customer Building Brands
Marketing), Facebook,
United Kingdom through Social Networks
Marketing that is Social by Design
Personal recommendations are crucial to driving brand awareness and this now rivals communication by
traditional media. Following from his presentation in the plenary session, Matthew Doris demonstrated the
importance of “fans” and how this valuable group of consumers can advocate on behalf of your brand.
Heavyweight brands such as TicketMaster, Nike and Diageo are using social apps, sponsored stories, and
check-in deals to create excitement and drive awareness of their brands in highly competitive categories.
These activities can help marketers to better understand their consumer segments and drive growth. Doris
argued that, when measured through Facebook’s analytics, these activities can also help brands raise
shoppers’ intent to purchase.
Because of this, brands must make sure the consumer experience online is as authentic as “in real life”.
Consumers don’t recognise any intrinsic difference between the way a brand’s physical business is operated
and its activities online. Increasingly, online is real life.
Jean-Jac ues andenheede
Director etail Insights Europe,
The Nielsen Company,
Belgium
Building Brands for Brand
Equity Growth
Word of mouth is the new advertising
“Socialomics” is here! Word of mouth and user recommendations are the new advertising. Social media
is all about users sharing their experiences and “likes” and allowing them to be amplified across their
networks, according to Nielsen Director of Retail Insights Europe Jean-Jacques Vandenheede.
He coined the term “socialomics” to refer to the growing trend. Building your brand via social media is
now an essential driver of equity growth. But because social is about sharing, the old megaphone
technique is no longer valid: the spray gun approach to advertising fails in this environment.
Vandenheede stressed that marketers need to prepare strategies that genuinely engage consumers, to
ensure they can connect with users and consumers online in a meaningful way.
25. Key
Takeaways
FACEBOOK
Build brands through
social networks
Ensure user experience
is as authentic on line
as in real life
Use social apps to gain
social insight
THE NIELSEN COMPANY
Build brands for equity
growth
Use social media to
harness growth
24
26. Key Takeaways
JC PENNEY
Be customer centric
Become a resource for your shopper
Understand the true insights
Implement tailored rewards for your
loyalty programme
MICHEL & AUGUSTIN
Build your brand through
collaboration with consumers
Innovative packaging makes a
difference
Build your brand from the “inside
out”
Ruby Anik
Chief Marketing Officer,
JCPenney, USA
The Customer Centric Retailer
Turning Shopper and Consumer Insights into Growth
Shopping is not just about shopping, Ruby Anik said. “It’s about discovery and being a partner to your
customers.” Retailers need to become a genuine resource to their shoppers, instead of just a store.
Generating growth in your brand equity relies on this.
“Shoppers shop the brand and not the channel,” Anik continued. It is therefore critical to have an integrated
multi-channel strategy. JCPenney has recently invested heavily in its digital marketing plans and plans to
develop its mobile channel. Social media is hugely important to the retailer: “It’s about generating viral, fluid
conversations and targeting audiences that JCPenney doesn’t naturally have,” she said.
JCPenney’s multi-channel plan uses digital marketing to build loyalty and trust amongst its shoppers. Being
relevant to shoppers provides a point of difference with competitors, Anik argued.
In order to achieve this, though, a retailer must first understand its customers. JCPenney’s own data has
revealed a cultural shift with its shopper base, from which three main trends emerge:
The New Savvy – People are shopping more judiciously, mixing new clothing purchases with existing
wardrobe items. JCPenney is effectively competing against its customers’ wardrobes.
A Sense of Discovery – Consumers are looking for creativity, innovation and fun despite working with a
small amount of time and money. They will respond positively to the unexpected.
Younger Oldsters – Today’s over-60s are the first generation to see old age as a time of opportunity, renewal
and self actualisation.
However, not all customers want the same from their loyalty programme, Anik said. “Tailoring rewards is
essential in making these programmes meaningful.”
27. Building a Brand through Michel de Rovira
Co founder and CEO,
Collaboration with Consumers Michel & Augustin, rance
Taste is the first promise to your consumers
Michel de Rovira built up French food brand Michel & Augustin over six years, along with childhood friend
Augustin Paluel-Marmont. Building on the idea of complicity with customers seen with Ben & Jerry’s or
Innocent Drinks, the brand now has such a strong following that it is promoted by its consumers, who have
become “fans”.
Building your brand through collaboration with consumers is essential, de Rovira said. The Michel & Augustin
brand aims to create a special connection with its customer base on a daily basis. “Tell, share and build. It’s a
daily real-time adventure using all media, but with packaging as the number one means through which to
do this,” de Rovira told the conference. “People connect with innovative packaging and this is key to
engaging with your consumers.”
Branding “from the inside out” is also an integral part of the Michel & Augustin strategy. But to make this
work, you must get the fundamentals right. “Taste is the first promise to your consumers,” de Rovira said. “You
have to get this right.” But it doesn’t end there: you must also keep your brand current and relevant to
consumers. At the end of each day, review what you have really shared with your consumer.
26
28. uc Demeulenaere
Senior Advisor,
Emnos,
Belgium
Dieter Ebbers
The Consumer & Shopper Journey
Director Market esearch
and Media est Europe, Customer Centric Value Creation
enkel, Germany
between Retailers and Manufacturers
Successful retailers and consumer businesses ultimately create more value for shareholders and drive growth
by taking a customer-centric approach, Luc Demeulenaere argued. He added that the industry is currently
challenged to bring more focus to what the consumer and shopper really wants. Given the impact of digital
media, online retailing and the rise of a new generation of consumers, the scope for winning new business is
no longer limited to the store.
But finding out what your customers really want just got simpler. The Consumer and Shopper Journey
Framework merges traditional insights into manufacturers and retailers with a 360° shopper and consumer
view, allowing the industry to build stronger value propositions and more effective marketing plans.
Developed for ECR, it is a practical set of tools and processes, designed to allow retailers and manufacturers to
gain a better understanding of consumer and shopper journeys.
The framework offers a platform from which to develop commercial innovation, Demeulenaere said. The idea is
to help companies to evolve from selling products to selling solutions and move from category management
to shopper-driven marketing.
Dieter Ebbers explained how Henkel’s “GLOCAL Shoppers’ Perspective” study had applied the framework. The
study identified three distinct international shopper clusters: economiser, value-seeker and carefree, all of
which show different behavioural characteristics. “Shopper-centric activities are not a story for the future
only,”Ebbers said. “They can be implemented today and we should seek to harness this approach as soon as
possible.”
29. A Revolution in Service atsuhiko Umetsu
Senior Manager Global Business
Dpt, amato Transport Co. td.,
Building a Brand that Symbolises Trust apan
& Excellence
Building a Brand the last centimetre hasisbeenlastcrucial factorExcellence Japan’s number
The most important part of any delivery journey the
Focusing on the quality of
that SymbolisesaTrust & according to Katsuhiko Umetsu.
that centimetre,
in making Yamato
one parcel delivery service, he claimed. The company based its business model on the belief that high
quality service as a starting point will drive volume, leading to profitability and reinvestment in service
quality.
Yamato’s corporate philosophy is based on understanding the power of gemba, meaning “frontline”. If your
company is only as good as the person who makes contact with your customer then this makes frontline
employees the most powerful in the business. The company underpins this strategy by describing its staff
as “employees of the customer”.
The “revolution in service” is based on the idea that it is your quality of service that generates revenue, not
your business activity. Everybody needs to send parcels. But they choose Yamato more often because of the
service they receive, Umetsu argued.
Key
Takeaways
EMNOS & HENKEL
Insights driven
Segmentation based
Building co-equity in
"sweet spots"
Continuous
engagement
Enabled organisations
YAMOTO TRANSPORT
Build trust and
excellence in customer
service: First comes
service, profit later.
Fulfill responsibilities
as members of society:
safety first, then profit.
28
30. Clyde Pereira
CIO, Coca-Cola Hellenic,
Austria and Co Chairman of
the IT Committee Connecting
Businesses for Consumers
The Consumerism of IT
The importance of social
media, loyalty programmes
and other sources of data on
consumer preferences and
behaviour is not to be
underestimated
Information Technology is no longer just a back-office
function. Increasingly, IT has a strategic and
consumer-facing role to play in business and CIOs
need to be aware of this trend. Introducing the
individual stream on IT, Clyde Pereira encouraged
delegates to think about what they can do collectively
to help shape the industry and anticipate the latest
trends. The Consumer Goods Forum IT Committee, he
said, is currently working on five strategic priorities:
32. Matthias er og,
Director Information
Systems, ra t Foods On-The-Go Snacking
Europe, S it erland
meets digital innovation with
Kraft Foods
When Kraft Foods Europe looked for ways to increase sales by capitalising on in-store vending, it was
presented with three innovative digital schemes, Matthias Herzog said.
Facebook on their mobile device, to obtain a free sample and post a photo of themselves trying it. This
and download the recommendations to their phone. A sampling facility is also provided, while the
While the schemes are still being piloted, they show how social media and in-store activity can be
trials. The touch-screen enabled vending machine was so successful that restocking to meet demand
became a daily logistical challenge. Herzog said some useful learning points had emerged too — not
least that innovation is a process and not a technology. He also admitted the need for “guerrilla tactics”
at times to overcome internal bureaucracy and barriers.
33. Key
Takeaways
KRAFT FOODS
Innovation is a process not a
technology
Innovative digital solutions help
drive sales
“Guerilla” tactics can help
overcome internal bureaucracy and
barriers
SONAE
Understand business problems &
position yourself in the future
Use an interoperable
protect your investments
Find your business’ killer app
pilot in less than 2 months
Be prepared for the pull: users
will be demanding new
functionality
Measure everything usage,
speed, problems
From assisted service to Jo o G nther Amaral
customer self service Director,
Sonae, Portugal
mobile technology, improves customer
experience at Sonae Nuno Almeida,
E Commerce Director,
Back-office accuracy is essential to running a tight ship in retail, but Sonae, Portugal
too much time on back-office processes and struggling to meet customer service needs on the shop floor.
The solution was to bring the back-office onto the shop floor, by putting it in the store associates’ pocket. The
printer technology where appropriate.
customer. However, by incorporating feedback from users and adding additional functionality such as label
have also started to add up, such as improved customer service, the ability to solve problems in front of the
client and fewer stock-outs.
The system’s architecture was based on interoperability, including mobile-ready components. This has been
online picking and an internal mobile app to increase the information available to store managers. Future
developments may include a consumer-facing app, but for now, the key learning points were the need to use
an interoperable architecture and to be prepared for demands for increased functionality.
2
34. Matthew Doris
European Market Development
Lead (Global Customer
Marketing), Facebook,
United Kingdom
Connect with your Consumers
Build your business through social networks
Build
The new internet is based on identity. The connected consumer takes her identity with her across different
sites and platforms. The starting point for this is the Facebook ‘like’ button, one of the building blocks of an
using their Facebook identity.
serves up live musical content, are just two sites that contain Facebook feeds, allowing users to make
purchases based on recommendations and endorsements from friends — or friends of friends.
35. 20
Key
Takeaways
FACEBOOK
Use personal identity to provide
GOOGLE
Cloud computing is not the future,
it’s already here
Didier Goibert
Mid Market Director, EMEA,
Google Enterprise,
The Future of IT – 100% Web United Kingdom
Cloud computing is not the model of the future – it is already here.
a scalable and secure shared subscription model. Users only pay for what they use, they can access the cloud
According to Goibert, more than one million businesses, including grocery retailers, have already switched
to Google’s cloud computing services. The cloud offers “new capabilities in terms of mobility and
collaboration,” Goibert told delegates, all of which he said would help lower costs for businesses and provide
a more reliable and secure solution.
Google’s own cloud strategy relies on three main elements:
video, Google cloud connect and Google Postini
Google apps engine: A service through which businesses can run their own web applications on Google’s
Google market place: A “new way of consuming IT for corporations”, providing apps for businesses which
can be subscribed to and are immediately available 4
36. Freiko aeyens IT Breakout Session
IT Director Infrastructure
Centre of E cellence,
Delhai e Group, Belgium
Paul French
ice President, product and
Solution Marketing,
Axway, USA
Integrated IT
Delivers Superior Brick and Mortar Store Customer Experience
De
late or incomplete under the company’s “home-made” tool and this was hurting sales and supply chain functions.
This in turn led to poor strategic decisions and unhappy customers.
controlled using this system and, crucially, alerts were delivered in the event of failure. Following a pilot in four
challenges, such as how to manage installation, rollout and maintenance across 800 stores. Ultimately, though, the
far more rapidly than would have been possible under the old system.
delivery of a file once it had been created. The retailer is now considering the feasibility of consolidating its data
Milan Turk IT Breakout Session
Managing Director, Global
Customer Business Development,
Procter & Gamble, USA
Joe orwood
GS1 Mobile Com Manager,
Data Integrity
GS1,Belgium The Key to Connecting Business for the Consumer
business-to-business functions.
Pr
American business. By standardising the process, the company was able to reduce 220 distinct tasks to just 10.
imilarly, P&G’s eContent project looked at making improvements to content found on eCommerce websites
like Amazon.com and Walmart.com.
"Ba
eCommerce websites.” He added: “For consumers this is a digital first moment of truth and it's critical to get it
right."
By
In the past 12 months, more than 31 million items of eContent have been delivered via the solution for new
37. Key
Takeaways
DELHAIZE & AXWAY
Optimize file transfer
between store and
head office operations
for improved reliability,
visibility and
manageability of data
Back to basics - IT
drives efficiency in the
back office
PROCTER & GAMBLE
GS1
Improving data
e-commerce websites
is critical
service model helps
brands fully own their
product information
on line
6
38. Key
Takeaways
TESCO
GS1
By making product
information as rich as
possible products are
brought to life for
customers in the
virtual world of online
shopping
MICROSOFT
Improving data
e-commerce websites
is critical
Business benefits can
trump cost-saving
benefits in the cloud
39. 20
IT Breakout Session
Richard Copperthwaite
IT Director, Tesco com,
Tesco, UK
Beyond the Label Malcolm owden
President Global Solutions,
Providing Digital Product Information to Build Consumers Trust GS1
How does a company the size of Tesco manage an ever increasing array of digital product information for
its stores, websites and mobile apps?
consumer is on a website, they cannot pick up a product, feel it in their hands and read the packaging. By
making the product information as rich as possible we bring products to life for customers in the virtual
world of online shopping."
Tesco manages product data centrally, with information feeding its various platforms. However, the system
product information and nutritional data available to power third-party internet and mobile applications
Copperthwaite urged companies to go beyond the label and take the same care with digital product
information as they do with information that is printed on the packaging.
IT Breakout Session irk Carver
Senior Strategist, Enterprise
Strategy & Architecture,
Beyond the Hype Microso t Corporation,USA
Pragmatic Pursuit of Cloud Computing Opportunities
Everybody is talking about “the cloud” — but beyond the buzz-word, cloud computing offers five concrete
benefits, Kirk Carver said. These are: billing based on measurable usage; on-demand self-service; broad
network access; resource pooling and rapid elasticity.
Bey
on-premises “private cloud” (where the service is fully managed by the client) to software as a service
(where the data is fully managed by the service provider).
The cloud is also elastic, to suit varied workload patterns. “Off and on” service suits processes that happen
peak.
Th
Many services have been operating within the cloud for years, while others are coming online through
and General Mills had already successfully tapped into the benefits of the cloud, Carver pointed out.
considering migration to the cloud should evaluate cloud investment opportunities alongside the rest of
their IT investment opportunities. 8
40. John S. Phillips
Senior ice President,
Customer Supply Chain &
Logistics, PepsiCo USA
Tony endrig
E ecutive ice President
Business Development,
Ahold, Europe
Delighting The Consumer
Acting As One.
Help businesses collaborate in
new ways to delight the
consumer at the shelf, each and
every day.
Welcoming delegates to the individual stream on supply
chain, John Phillips said that, in line with the wider goals
of The Consumer Goods Forum, this year’s event was
designed to “help businesses collaborate in new ways to
delight the consumer at the shelf, each and every day”.
The Supply Chain Committee is currently driving three
core projects, he said. These are:
* define future supply chain best practices;
* use the global scorecard to improve performance;
* help upstream integration of raw materials
ingredients and packaging.
42. Key
Takeaways
LEAN ENTERPRISE ACADEMY
Define value back from
the customer, not
forward from assets or
targets
Look at the whole
value stream, rather
than optimising points
along it
Focus on time: creating
flow makes waste
visible
Waste is a symptom of
forecast errors,
batching systems and
poor cooperation
along the stream
KRAFT FOODS
Multi modal transport
sharing platform - by
January 2013 creation of
an Independant Logistic
Optimiser to liaise
between manufacturers
and retailers for
collaboration
opportunities
43. Pro . Daniel T. Jones
Collaborative Lean Supply ounding Chairman of
ean Enterprise Academy,
Chains for the Web Era United Kingdom
Working Together with Informed and Impatient Consumers
tient Consumers
n
Daniel Jones introduced the concept of “lean” to the grocery industry in 1999 with a pilot project for Tesco. “Lean
thinking,” he said, “can be used to fundamentally rethink supply chains to make them more competitive.”
The key to making lean work, Jones argued, is to look at the whole supply chain rather than optimising parts of it.
“You need to dig down to root causes and look at the supply chain as a whole.”
While IT solutions can help resolve such issues when implementing lean, making the plan visible and establishing
good root-cause problem-solving are the only ways to optimise the horizontal value chain, Jones said.
Manufacturers need to “think differently about SKUs” in order to manage capacity more efficiently, he said.
Inventories, rather than production, should cover variation in demand.
Stressing that “there is no one way,” Jones said lean was not just a tool box for eliminating waste. It is more
properly the capability to respond to and solve problems. Lean solutions are particularly relevant today, since “we
are now in a world of multi-channel — even for a single customer”.
Jochen Rackebrandt
Director Customer Service
EMEA, ra t Foods,
Germany
Multi-Modal Transport Sharing
Dennis Wereldsma
Initiative for Consumer Goods and Global Sector Leader
Distribution & Transportation,
Retail Companies Capgemini, The etherlands
Road transport used to be cheap, Jochen Rackebrandt said. No longer. Increasing congestion, coupled
Increasing congestion coupled
asing congestion, coupled
with a shortage of drivers and road capacity is beginning to make a strong case f t t h i
for transport sharing or
alternative modes. Indeed, optimising a shared supply chain is one of the four objectives of the
Consumer Goods Forum 2020 Future Supply Chain.
The Multi-Modal Transport Sharing Initiative is a trial collaboration between Kraft, Nestlé, Colgate,
Ahold, Tesco, SC Johnson and Bacardi. Opportunities for collaboration had been identified and a legal
entity is to be set up to perform the role of independent logistics optimiser (ILO) to liaise between the
manufacturers and logistics service providers. Among the key performance measures identified for the
trial were the decision to include KPIs such as being cost-neutral, ensuring cost-transparency, facilitating
carbon reduction and the decision to make no compromise in service levels.
Denis Wereldsma said the ILO would be created in 2012 and a start-up plan will be agreed by January
2013.
In an interactive poll, the audience identified the two best collaboration opportunities as the east-west
corridors within Europe (62%) and in-bound from China into Europe (40%).
42
44. Key
Takeaways
PROCTER & GAMBLE
IBM
Use GS1 standards to
deliver better results
Scorecard data helps you
set priorities
The scorecard is of no use
if you do not have data in
it
BARILLA
Healthy food drives
sustainability
Reduce carbon emissions
& energy consumptions
Optimising transport &
distribution
Sustainable sourcing
More environmentally
friendly products
Customer communication
Reducing packaging and
waste
Jim Flannery
Managing Director, Customer
Business Development,
The Procter & Gamble Company,
USA
How to Create Value for You and
Cre
Steve rown
Comp
Your Company Using the Global
General Manager,
Global Consumer Products
Industry, I M, USA
Scorecard
Using the Global Scorecard across businesses brings concrete benefits, Jim Flannery said. The Consumer
b b
Goods Forum’s Annual Compliance Survey has run since 2000, trac
tracking the implementation of GS1 standards
“Us
and processes (like GDSN) and the resulting business benefits. “Using data standards is beneficial,” Flannery
said, adding: “There is a positive correlation between the u usage of GS1 standards and improved
performance ”
performance.”
Among the benefits revealed by the Compliance Survey were: 61 hours reduction in lead time; 5.8% points
of reduced out-of-stocks; 5.2% points saving of distribution costs and invoice accuracy was up 1.5%.
Procter & Gamble had used the Global Scorecard effectively to compare performance of different clusters
and countries and to establish priorities and choices, Flannery told the conference. In addition, using the
scorecard with trading partners had helped P&G improve the opportunity gap for specific customers and
provided a chance for them to further their relationship. “If you have a benchmark, you can begin making
choices on what to improve, and help understand the cost of investment,” Flannery said.
45. *
Ste ano Pietroni
et ork Design, Planning &
Food that’s Good for You, is Sourcing Director, arilla Group,
Italy
Good for the Planet!
How consumers' diet choices drive planet sustainability & products
supply chain
Sustainability initiatives and credentials are no longer an optional extra, Stefano Pietroni said. They are a
“must-have” for retailers and shoppers alike.
“Shoppers’ choice of healthy food is driving sustainability,” Pietroni said. The Barilla Center for Food &
Nutrition (BCFN) has developed a double pyramid (food and environmental), using a life cycle assessment
(LCA) to consider the water, carbon and ecological footprint of different food groups. This has driven supply
chain action in the field, in production, packaging, planning and logistics as well as in how shoppers cook
their products, Pietroni said.
In addition to identifying key food and nutrition priorities, BCFN aims to collect and analyse advanced
experience and knowledge from around the world and develop proposals and recommendations for opinion
leaders and decision makers. Green growth, food security, food for health and food for culture are among the
top priorities for BCFN, Pietroni told the conference. BCFN’s work has also helped businesses set
manufacturing KPIs in energy use, waste, recycling and water consumption.
44
46. Midori amaguchi
General Manager, Supply Chain
e engineering Department,
Supply Chain Division,
AEON Global SCM Co Ltd apan H
How Aeon Rebuilt its Supply Chain
People giving more of themselves
In March 2011, Japan suffered a devastating earthquake and tsunami, both of which left a litany of
destruction in their wake. For those that survived the double disaster, access to food and supplies was
critical. But Aeon, Japan’s leading retailer, had also been drawn into the chaos.
Of the 443 Aeon stores in Tohoku, northern Japan, that were affected, 65% could not operate at all, Midori
Yamaguchi told the conference. But Aeon had prepared. Its business recovery process ensured that 95% of
these stores could reopen within two weeks.
With 30% of total supply chain capacity gone, Aeon’s network had to move up a gear: by the second week,
130% of regular capacity was being shipped. In this first stage of recovery, DCs in western Japan were
supporting the effort by operating at more than twice their capacity. Supply chain and logistics, private
brand supply networks and product sourcing were three important elements of the recovery. In addition,
close collaboration with business partners was an essential factor.
Technology and the ability to get real time information from the field were important to the success of the
recovery, Yamaguchi said. But above all it was down to people giving more of themselves. Yamaguchi
commended his colleagues’ resourcefulness and teamwork.
Alberto Madariaga
Supply Chain Director,
Grupo Eroski, Spain
Collaboration, Innovation and
Imanol Alberdi
Logistics Operations Director, Sustainability Means More
Grupo Eroski, Spain
Profitability
Spanish consumer co-operative Eros reduced costs by 20% and CO2 emissions by 18 tons by centralising
Eroski
its supply chain management in partnership with Europol Systems. The change in flow strategy also allowed
the retailer to reduce inventory, since the new system required on 0.3 days of stock. The rethink also included
the installation of an automated order-picking system, which improved quality and freshness as well as
shaving off cost.
Alberto Madariaga said logistics professionals were like midfielders in a football match: “Our role as a
midfielder means having a wide operational vision and we must play an active part in the value chain
processes.”
Imanol Alberdi led a live opinion poll among delegates, with 78% agreeing with the statement: “We talk a lot
about collaboration, but we have difficulty in making it a reality.”
47. Key Takeaways
AEON
Recovery would have been
impossible without:
Partnership
Responsibility
Leadership
People power
EROSKI
Simplification, innovation and
sustainability improve quality
and profits
Optimizing transport across
“logistics platforms” resulted in
20% reduction of costs and 18
tons less of CO2 emissions
ICA
Open dialogue with customers
Improvement became part of
everyone’s responsibility
Worth investing in automation
competence
Michael Johansson
How Change Management Turned Head of Logistics Operations,
arehouse and Transport
Management, ICA, S eden
ICA’s Warehouse Operation &
Automation from Disruption to Best
in the Class
ICA had experienced poor service levels to store, following the implementation of an automation process
at its Helsingborg warehouse. The poor service had been caused by a lack of automation experience,
non-standard demands, everyday “fire fighting” and a lack of leadership attention, Johannes Åverling said.
Lack of clear priorities and responsibilities created internal challenges, while a complex structure, differing
cultures and frustration among employees had mixed with varying perceptions of IT priorities among
colleagues to contribute to the problem.
Effective change management, then, was the key to the project’s success. ICA identified the need to have
open dialogues with customers, involve local teams and set up cross-functional teams to make the change
happen. Furthermore, “improvements became part of everyone’s responsibility,” Åverling said. Following
the change management programme the automation system began to deliver measurable benefits to the
business.
Åverling advised delegates that the investment in automation competence is well worth making, but
recommended that businesses start working on managing the change at least two years before the
automation.
46
48. Key
Takeaways
IGD
Get started on collaboration
Be aware of the supply chain
initiatives coming up in your
market
Walk the chain with your
supply chain partner to
challenge the status quo
Execute on the basics to
sustain momentum in your
collaboration journey
COCA-COLA
Define the brand and pack
set – keep it simple and
standard
Disconnect product supply
from daily operations to
reduce the risk
Deal with every eventuality in
such an event
Build speed and capacity
Tarun Patel
Head of Supply Chain,
IGD,
United Kingdom
Taking a Supply Chain Gamble
Collaboration has a key role to play
The message of collaboration is not new, Tarun Patel told the conference. Indeed our industry is already one
of the most progressively transparent, he argued. However, the need to secure competitive advantages via
collaboration is more urgent today than ever, since the pressures and challenges we face due to a changing
world are far greater than they used to be.
The UN Index of food commodity prices is up by 39% on last year, Patel said. Meanwhile, an increase in
temperature for grain of a single degree Celsius can reduce the yield by much as 10%. “With an increasingly
volatile environment, companies must navigate their way through fluctuating supply,” Patel said.
With the current economic climate, companies are seeking levers to drive growth. Patel said that recent
research from IGD had identified that one in three manufacturers globally say promotions account for 50%
or more of their sales. It is therefore no surprise that understanding price and promotions, the shopper, and
supply chain have been the clearest commercial priorities for the past three years. “The resulting volatility in
demand and supply means that there is an even greater need to build responsiveness. Collaboration has a
key role to play here.”
IGD has defined six levels of collaboration and measures performance against 15 criteria. Internationally,
21% of suppliers now have a strategic supply chain partnership with their key customers, a significant
increase on last year.
It’s never too late to begin. “Get started on collaboration,” Patel told delegates. “Be aware of the supply chain
initiatives coming into your market, walk the chain with your supply chain partner to challenge the status
quo, develop the skills of your people and execute on the basics to sustain momentum in your collaboration
journey.”
49. Frank van der ei den
Commercial Director,
Delivering the “Perfect Serve” Coca-Cola ellenic,
Austria
The Coca-Cola Company’s Supply Chain
Peter atham
Learnings from FIFA World Cup and London ice President Logistics,
Coca-Cola Enterprises,
Olympics United Kingdom
When it comes to managing supply during special events such as the FIFA World Cup, the oppo tunity to
orld Cup, the opportunity to
d Cup, ppor ity
excel is just 15 minutes during the half-time break, Frank van der Heijden of Coca-Cola Hellenic said.
Building speed and capacity is essential to success, as is reducing risk by disconnecting supply from
everyday operations.
When it comes to an event on the scale of the Olympics, effective preparation is critical, Peter Latham said.
In addition to managing all aspects of operations in the venues for the 2012 games, collaboration, building
the in-store experience and developing shared supply chain concepts were very important considerations.
Latham emphasised the importance of gaining credentials in sustainable supply. “Doing so can put supply
chains in the top tier,” he told delegates
48
50. OPERATIONA
E CE ENCE
REA FAST
SESSIONS
Key
Takeaways
MONOPRIX
TRACE ONE
Innovative product
packaging brings value to
brands
Set up of a collaborative
workspace to accelerate
product development
Private workplace in the
cloud for everybody
Secured collaborative
architecture allows
certain activities to be
performed in real time
Get started on
collaboration
Be aware of the supply
chain initiatives coming
up in your market
51. Stephane Ma uaire
CEO, Monoprix,
rance
Packaging Innovation Beyond ubert mard
Deputy Chief E ecutive,
Monoprix, rance
Customer Expectation
French retailer Monoprix used innovative product packaging to bring value J r me Malavoy
CEO,
to its brands, creating a more satisfying shopper experience. Faced with the Trace One, rance
challenge of designing new packaging that stood out, the business used an
Andy Warhol style design and plenty of colours on 2,000 Monoprix products.
Implementing such a change within the private label management process, however, was and
operational challenge. To manage the project, Monoprix set up a collaborative workspace to
accelerate product development, which could be shared by printers, designers, laboratories and
auditors in real time.
Everybody using the system had a private workspace in the cloud and, with the help of a secured
collaborative architecture, activities such as document management and web proofing could be
performed in real time. This created time savings of between 20% and 30% in new product
development, a process which would normally take between six and twelve months.
0
52. Key
Takeaways
DELOITTE
Look for growth
opportunities in markets
with changing
demographics
Brands need to harness
connections with
consumers to drive
growth
Find creative, relevant
and legitimate ways to
interact
Link bricks and mortar
businesses with online
opportunities
awrence utter
Global Leader Consumer Business,
Deloitte, United Kingdom
The Mobile Consumer 2020+:
Communicating, Connecting,
Fernando Sou a
Director, Deloitte Spain Socializing, and Shopping
Economic and demographic change are changing shopper preferences, according to Lawrence Hutter and
changes
Fernando Souza. Markets undergoing demographic change offer important growth opportunities.
underg
Consumers’ changing menus and the sustainability imperative also play their part in changing shopping
habits.
At the same time, mobile technology is revolutionising the way we access and share information. Deloitte’s
report “Consumer 2020 - Reading The Signs” highlights the increasingly “obsessive” nature of
communication and socialising online. Brands must harness this to nurture connections with consumers, as
online influencers drive growth. But consumer engagement is not a given. Marketers must earn their
dialogues with consumers by finding creative, relevant and legitimate ways to interact in a positive and
visible way. As digital behaviour becomes mainstream, it is critical to link bricks and mortar businesses with
online opportunities.
53. Key
Takeaways
IBM
Start using information
across the business
Prioritise investment far
more towards digital
Plan and prepare now for
the five year horizon
The Future of Marketing Patrick Medley
Consumer Product Industry
Leader, I M, Australia
The Global Chief Marketing Officer
Study 2011
“Stop telling and start talking,” Patrick Medley warned. The “omni-consumer” is coming. These
technology-enabled consumers will see everything and know everything — and the future of marketing
depends on establishing a true dialogue with them.
While devices such as the smart phone, kiosks, gaming and interactive outdoor advertising, can help, the
digital era will also see new challenges emerge for CMOs. There will be more data and more clarity when it
comes to analysing real results from campaigns, so senior marketers are likely to be increasingly held to
account.
Medley’s remarks drew on the findings of IBM’s Global Chief Marketing Officer Study 2011, which brings
together conversations with more than 1000 CMOs. “CMOs have just three to four years to get ready,” Medley
said. Many are unprepared for the data explosion, however. Some 85% are concerned about this, the study
shows.
But there is a roadmap, Medley claimed. The solution to solving such data problems lies in closer internal
collaboration between IT and marketing functions, rather than relying on marketing agencies for support.
“CMOs will also need to foster lasting connections with consumers if they are to empower them.” Many are
currently using traditional sources of insight to achieve this, but it will be new sources of insight in the future
that make a difference. Now is the time to experiment, Medley advised the conference, to ensure CMOs get
the best out of consumer relationships in the future.
2
54. John S. Phillips
Senior ice President, Customer
Supply Chain and Logistics,
PepsiCo, USA
Future Value Chain 2020
“Plan now for a radically different world,” John Phillips told the closing plenary session. Twelve mega trends
will shape our supply chains, systems and brands in the future, according to the findings of the Consumer
Goods Forum’s “2020 Future Value Chain” report. While some of these trends point to a greater need for
efficiency, Phillips said that others would mean changes to entire business models and “new ways of
working, both within companies and with trading partners”. Transparency and collaboration with shoppers
and other businesses will become increasingly important too.
The trends are: increased urbanisation; aging population; increasing middle class; adoption of consumer
technology; increased consumer service demands; increased importance of health and wellbeing; growing
concern about sustainability; shift of economic power; scarcity of natural resources; increase in regulatory
pressures; rapid adoption of supply chain capabilities; the impact of next generation technologies.
The aims of the Future Value Chain project are to make the consumer goods business more sustainable, to
optimise a shared supply chain, to engage with technology-enabled consumers and to serve the health and
wellbeing of consumers.
A full copy of the report can be accessed at www.futurevaluechain.com.
55. Caroline Mc ugh
Chief IDologist,
IDology, United Kingdom
Cherry on the Cake
The Art of Being You – Releasing Human Potential to its Fullest
Who are you really? What is the message of your life? These are the basic questions Caroline McHugh
suggests we ask ourselves. “People who are truly successful have a signature, a voice – one true note they are
destined to sing,” McHugh said. “Each one of us is different and none of us knows how long we have on this
planet – so we need to be clear on what we as individuals expect from life.”
Learning to be the authentic version of ourselves is the key to manifesting our expectations, McHugh said,
although we are generally better at being authentic when we are children than in adulthood. This is partly
due to the need to manage the way we are perceived: as a parent, an executive and so on. “But why let
someone else decide who you are?” McHugh asked. “You cannot master others until you have mastered
yourself,” she argued. The key here is to understand your own “interiority”. According to the IDology model, a
personality is made up for four elements, expressed as concentric circles: perception, persona, ego and id,
the centre of your subconscious universe. The trick is to “pick one thing that you know you want to find in
yourself” and focus on that.
One thing is certain for McHugh: a life without risk is a life that will never reach its true potential. “You have
to live life on the edge.” Or, at the very least, we owe ourselves a serious reflection on why we have made the
choices we have so far in life and what comes next.
4