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2014 IRI Summit | March 10-12
Gaylord Palms Resort | Orlando, Florida
IRI’s 2014 Summit Explodes with Technological Innovation
WHAT’S INSIDE:
1 GENERAL SESSIONS
Andrew Appel leads
the keynoters
7 WAYS TO GROW
Growth Sessions have
more ideas for growth
8 SOCIAL
NETWORKING
Unwinding with friends,
new and old
10 WAYS TO GROW
Continued
11 INNOVATION
UP CLOSE
IRI’s Technology
Showcase
11 TWEETS FROM THE
SUMMIT
Social media
on the scene
12 10 BIG IDEAS
FROM THE SUMMIT
Putting ideas into
practice
www.cpgsummit.com
“Today’s data is 24/7,” said Andrew Appel, president and CEO of IRI, who got IRI’s 2014
Summit off to an ambitious start. “We’re building a data-unified, personalized user experience that is mobile, global, app-driven, and provided a day earlier than the industry standard.” He further described his vision of how “always on” data will revolutionize
the future of data collection and analysis for IRI clients.
A record 1,100 retailers, manufacturers and analysts gathered for the 2014 Summit
at the Gaylord Palms Resort in Orlando from March10-12 to learn how IRI’s disruptive
technology and innovation will help users find “pockets of growth” by pinpointing what
matters to clients, and illuminating how it can impact their businesses across sales and
marketing. This is especially important when consumers’ path to purchase is more difficult to follow than ever before.
“Consumer complexity is challenging, but it’s also cool,” said Appel.
Disruptive innovation also means that “one size fits
no one.” New IRI applications allow clients to customize desktops, providing a constant view of data–
when, how, and where they want it. IRI’s app store will
provide bespoke micro tools, like the Market Growth
Opportunity Finder, which maps regions where unmet demands exist.
For instance, a cluster of red lights could indicate
a demand for more beer supplies around a baseball field when a game lets out. Clients set “wakeup” alarms to sound when preset markers indicate a
supply need. These new tools are poised to explode
worldwide, as IRI continues to strengthen retail partnerships with major players, such as Walmart, Target,
CVS, Tesco in the UK, and Casino in France.
Appel showcased IRI’s final growth-driving effort by
announcing its new partnership with comScore and
Rentrak, which combines the data assets of these
three firms to make the crucial connections between
media consumption and product sales. To illustrate
the impact of this initiative, called Cross Media 1:1
Marketing, Appel asked the two leaders of the partnering companies on stage. Gian Fulgoni, chairman
emeritus and co-founder of comScore Inc., explained
Andrew Appel kicked off the 2014
Summit with his vision for growth.
“Understanding the
market, the consumer,
and the data is a matter of
asking the right questions.”
- Brian Cornell, CEO of
PepsiCo America Foods
how his company measures peoples’ navigation of the
digital world, and turns that information into insights and
actions. Also joining Appel was Bill Livek, CEO of Rentrak,
who described how Rentrak will provide IRI access to box
office results, movie rentals, and on-demand viewing.
Combined with IRI’s constantly advancing data gathering
and mobile technologies, this new partnership will provide unprecedented connections between media experiences and product consumption. The alliance with comScore and Rentrak will also bridge the divide between
digital and traditional media, noted Appel. In its place will
be granular, census-based access to consumers. “We are
on the edge of knowing the most about consumer patterns ever. It’s disruptive technology, and it changes everything,” Appel concluded.
BETTER TOGETHER
Brian Cornell, CEO of PepsiCo Americas Foods, showed
how his company is driving growth when consumers are
poised to embrace more interaction in this new digital
world. He detailed a new playbook at PepsiCo based on
brand building, innovation, productivity, and execution.
Recent efforts in brand building have shown that taking a
complementary approach to consumer needs drives 65
percent of sales. The company’s “Better Together” marketing efforts point to pairings like oatmeal and orange juice,
sodas and salty snacks, or more specifically, Doritos and
Mountain Dew, as food and beverage pairings that have
lifted PepsiCo’s visibility and bottom line. The company
is also looking beyond basic demographics to carve out
“demand spaces” for eating occasions, such as “Prepare–
Jumpstart the Day with Breakfast,” “Connect–Fun & Social
Snack Times,” and “Perform–Office and School Breaks.”
Brian Cornell described how PepsiCo
makes the most of growth opportunities.
Cornell detailed PepsiCo’s enormous success using social
and traditional media to incorporate consumer feedback
into product development. Frito-Lay’s groundbreaking
“Do Us a Flavor” campaign creates a “crowd-sourced”
strategy to customize chip flavors. More than a marketing
campaign, this effort combined consumer input, flavor
research, media buzz, newsmaking and free publicity to
create a cultural phenomenon. The company plans to go
even bigger in 2014, with a new “Yummy as a Chip” campaign to elicit more consumer-created flavor possibilities.
PepsiCo’s marketing proves that growth is key, and omnichannel marketing gives the company maximum mileage
out of its successes. Backing the success up even further,
Cornell noted how consumer insights help the company
find the growth, while new sources of data find the insights, for a pairing as powerful as chips and soda.
KEEPING THE “C” IN CPG
“Digital has the power to make business personal again,”
said Facebook’s Erin Hunter.
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Erin Hunter, global head of CPG Marketing at Facebook,
noted how it’s easy to be dazzled by all the digital potential in our modern world, but we must “keep the consumer
in CPG.” Hunter said, “They move much more quickly than
the goods.” Instead of thinking of new data in terms of just
numbers, Hunter noted, “digital has the power to make
business personal again. Leveraging big data will help
marketing to send personal messages and push media to
new places.”
GROWTH SECRETS
If you want to learn how some of
the most successful companies
find growth, you can sift through
222,000 companies, study the top
50,000, interview 11,000 CEOs,
transcribe 500,000 pages of notes,
and look for common themes. If
you attended IRI’s 2014 Summit,
you were lucky enough to hear
author and consultant Jason Jennings’ fascinating perspective on
conducting all that research and
distilling it into “The Five Shared
Growth Secrets of the World’s Best
Performing Companies and Leaders” [see sidebar].
Author, consultant, and speaker Jason
Jennings encouraged growth through
unconventional wisdom.
THE FIVE SECRETS
OF HIGHLY
SUCCESSFUL
LEADERS
1. Build a culture based on
a big noble purpose
2. Keep growth as a
guiding principle
3. Be able to let go of ego
and old ideas
4. Make many small bets,
as opposed to making
one big bet
5. Be a good steward:
share information and
keep your hands dirty
Jason Jennings,
author and consultant
Perhaps the most surprising secret
was that most businesses are
founded on solving a problem.
Profit is often the unintended
consequence of a good idea.
Businesses built on unconventional wisdom exist to grow, and in
putting growth as the top priority,
their leaders see long-term service
over short-term growth. These
companies attract the right people,
shed the wrong people, improve
lives, create strong vendor partnerships, care for their communities,
attract investors, and make everyone involved feel like part of a
winning team.
“The best way to
provide value for ‘her’
is to know her, create
brand trust; know
how to enhance her
shopping experience;
know how to innovate
for her; know her local
community, and be
community-minded.”
– Jocelyn Wong of
Family Dollar
MARKETING FOR HER
Jocelyn Wong, CMO of Family
Dollar, discussed how value is an
evolving concept that looks different to every consumer. Increasingly, value is about convenience
and helping consumers make wise
use of their time, especially among
busy two-income families. Family
Dollar consumers are overwhelmingly female and attach emotional
properties to values. Price is still
important, as the median income
has been declining since 1999.
The economy has pushed saving
back into vogue, and digital media
allows consumers to do more
research and price comparisons.
At the same time, fewer people
think of themselves as low income,
and this income bracket includes
extremely savvy shoppers who are
brand loyal and seek the best of
what their budget allows, because
they can’t afford to make mistakes
with bad purchases.
One of Wong’s goals is to collaborate with manufacturers to provide
exclusive packaging and value-focused versions of best-selling
products at Family Dollar. Wong
concluded by saying that the best
way to provide value for “her” is to
know her, create brand trust; know
how to enhance her shopping
experience; know how to innovate
for her; know her local community,
and be community-minded.
Family Dollar’s Jocelyn Wong.
3
LEADING GROWTH
“We are living in a time when the Dow Jones Industrial
Average is in transition from the Industrial Age to a techand retail-driven economy,” said Rick Lenny, IRI’s chairman
of the Board. Transition brings challenges, like the anemic
volume growth in the CPG industry, up only 0.3 percent in
2013. Innovating around new product launches is vital, said
Lenny, noting that launches were up 17 percent in 2012,
but that very few products reached critical mass.
“Innovate like you mean it,” he urged, “with a capital I.”
Lunchables was Lenny’s example of a capital idea. “The
packaging and labor on this product cost more than
the food, but it fulfilled the goal of reimagining lunch. It
brought financial success and changed the industry.”
“Be a leader, not just a marketer. Ask yourself
what motivates you,” challenged Rick Lenny.
INNOVATION IN THE DNA
When Hillshire brands spun off from Sara Lee, the company took a focused portfolio of quality meat products and
created a distinct brand for each. From hearty comfort
food (Jimmy Dean) to “guy food for guy times” (Ball Park
Franks), each Hillshire line has a clear brand position, and
data clustering helps the company match brands to customers. Andy Callahan, president of Retail, Hillshire Brands,
explained, “Our vision was to become the most innovative
branded food company in the U.S.” A finance person came
up with Hillshire’s American Craft Beer sausages during a
“snow day,” when everyone stops their daily tasks and plays
in the Research and Development area. “Hillshire has a
heritage of handcrafting,” noted Callahan, and innovation
keeps that heritage alive.
4
Hillshire’s Andy Callahan discussed recent product development
and branding successes.
THINK IN MULTIPLE CHANNELS
Mike Walsh, founder and CEO, Tomorrow, also spoke to innovation, and saw Hillshire’s “snow days” as a great example of how to carve out time and space for staying innovative on a large company scale. No two customers are alike,
and each one “thinks in multiple channels,” said Walsh.
One way to replicate this variety in your innovation is to
bring all channels–sales, IT, marketing, research–of your
company together. Engaging your workforce in new ways
also helps you know your customers in new ways. “Don’t let
the future surprise you,” said Walsh. “Disruptive times call
for new models of decision-making.”
Futurist Mike Walsh wants the industry to train
for the future, not fear it.
PATH TO PURCHASE
“Don’t try to solve for the many or the
most,” warned Judy Strauss Sansone
of CVS Caremark.
One clear theme to emerge from this year’s IRI Summit is
“one size does not fit all.” Judy Strauss Sansone, SVP for
Merchandising and Retail Pricing, CVS Caremark, described how her company leverages its loyalty program
to personalize marketing messages, service, and special
values. Knowing her customers and personalizing for each
one dictates everything from store design to pharmacy
counseling and personalized, digital circulars at CVS. It’s
worth all the work; CVS has the largest loyalty program in
the world with 70 million customers. “Our personalized
digital fliers speak to what our customers buy most, what
information they need, and what deals will appeal to them,”
explained Sansone. “Speaking to the masses is a profit
killer; personalization equals profit.”
5
CHANGING STATISTICS FOR
WOMEN
Actor and Olympic athlete Geena
Davis ended the general sessions by
sharing how she is using her talent and
tenacity to change how we see women in society. She sifted through some
national statistics to help with this
mission. With a lot of data digging, she
found women are:
• 17 percent of movie characters
• 22 percent of journalists
• 19 percent of Congressional seats
“If girls see it, they
want to be it,”
said Davis.
As we move from broadcasting to
customizing media messages, it will
be important to move the needle on
these numbers, and remember that
women are more than 50 percent of
consumers.
Geena Davis gave a lesson on tenacity:
“I always had an exaggerated confidence and an idiotic,
unshakeable faith that I could do whatever I wanted.
I thought, if a person can do it, I can do it.”
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WAYS TO GROW
The Summit’s breakout “Growth Sessions” provided a closer
look at the innovations and partnerships that are strengthening
IRI’s commitment to helping clients grow.
Smarter Supply Chains: Limiting Can’t-Find-It Losses
“Can’t-find-it losses” account for $160 billion a year and mean
there’s a 17 percent chance promoted items will be out of stock
when shoppers want them. This supply-side blind spot was the
subject of a session led by Mike Ray, product manager, Europe
Technical Solution Group, IRI, and Andrew Mitchell, director,
International Commercial, IRI. Ray and Mitchell described IRI’s
In-Store Execution system, which loads transaction data from
retailers, processes data to raise alerts, identifies overlooked
opportunities, and implements an action plan. One case study
of a large global manufacturer showed the system increased
product availability by 4 percent and added $336 million to the
bottom line.
Henry Giddins Jr., director of Consumer Strategy
and Insights, Müller Quaker Dairy LLC
2013 CPG Growth Leaders Last year, IRI and Boston Consulting Group (BCG) generated
the first industry study to rank more than 400 U.S. CPG manufacturers based on dollar sales growth, volume sales growth,
and market share gains. Some common strategies driving
growth show that expanding companies kept an eye on base
business and innovated to complement their base business, not
replace it. Large companies use multiple tactics to drive volume
growth, explained Dr. Krishnakumar (KK) Davey, president of
Analytics and Consulting at IRI. Small company leaders notice
new pockets of growth within mature categories. Davey emphasized it’s imperative for all companies to spot trends quickly and
capitalize on them.
Blueprint for Growth
Another Growth Session showed how IRI’s Category Blueprint
capability addresses consumer needs, directs the right assortment and the right amount of product, at the right price, and is
supported by the right promotion and the right innovation. For
market newcomer Müller yogurt, a product brought to the U.S.
by PepsiCo’s Quaker division, Category Blueprint provided the
complete overview of the yogurt category and led the way for
this brand to create its story for the U.S. market. Henry Giddins
Jr., director of Consumer Strategy and Insights at Müller Quaker
Dairy LLC, said that Category Blueprint’s 360-degree view of the
market led to an unprecedentedly successful market launch.
Little Brands, Big Growth
Often, small, nimble companies move most quickly to find
elusive pockets of growth. Evan Shaver, senior director, Frito-Lay
Growth Ventures, and Emre Sucu, partner, IRI Consulting, examined how “discovery brands” represent 30 percent of growth in
all but two of the largest food and beverage CPG categories.
They bring something new, different, and exclusive to the market, and are fueled by three strategies: target incubation and
distribution to specific regions; position with unique messaging, such as health benefits or ethnic specialties; and establish
bookend pricing that focuses on the premium or value sides.
Vikki Scales, director of Trade Marketing,
Lactalis Deli Branded Division
Evan Shaver, senior director of Strategy,
Frito-Lay Growth Ventures
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SOCIAL
NETWORKING,
THE OLD-FASHIONED WAY
The 2014 Summit packed a lot
of information into 36 hours,
but the schedule made room
for social time. On opening day, attendees filled the
two-story Wrecker’s Sports Bar
for a kickoff party. Old friends,
new acquaintances, customers,
and clients networked, and enjoyed appetizers, and cocktails.
On day two, all the innovation
talk called for a little reggae.
The general session space
transformed into a Caribbean oasis for the Island Energy
Networking Event. Complete
with waterfalls, tropical drinks,
fresh food, and the classic reggae sounds of Ziggy Marley.
Just off a Grammy win for his
live album, Marley got people
moving with “Justice, “Tomorrow People,” and others.
8
now
Completely
disconnected
television,
mobile,
and
digital
screens
next
All media will
be digital,
mobile
mobile,with
witha
360-degree
a 360-degree
view of
purchase
behavior
9
The Summit’s Growth Sessions provided more ways to find growth in a data-driven industry.
WAYS TO GROW “Growth Sessions” continued
New Product Pacesetters: Fuel for Growth Engines
E-Commerce: Ready, Set, Sell
The yearly IRI Summit brings the release of the list of
most successful CPG brands in the New Product Pacesetters report. Larry Levin, EVP and practice leader at
IRI, and co-presenter, Susan Viamari, editor of Thought
Leadership at IRI, highlighted 2013’s leaders in food and
beverage, which were big on health, variety, and convenience, and include Special K Pastry Crisps and Flatbreads, TOSTITAS Cantina Tortilla Chips, Dannon Light &
Fit Greek yogurt, and Pepsi NEXT.
Tim Dorgan, managing director, Peapod Interactive,
and Carl Boraca, VP, Content Product Management at
IRI, looked at the history of e-commerce and CPGs and
used Peapod as a case study of how a CPG e-commerce
strategy can work. Peapod’s goals were to change grocery through technology, and to use that technology and
consumer interaction for research. Peapod depends on a
sophisticated picking/packing and transportation facility that processes 3 million orders, making it the largest
local delivery e-grocer in the U.S. It has 400,000 active
users and more than 25 million orders delivering 1 billion
products. E-commerce grocery success requires timeless
qualities, like a good assortment of quality products and
service at all touch points, as well as allowing consumers
to shop anytime, anywhere, supported by state-of-the-art
fulfillment logistics.
Non-food winners hit a trifecta of results, experiences,
and value. Three home care products achieved top10
status, including Tide Pods, Ajax Triple Action, and
Downy Infusions. Top-selling convenience store launches
reinforce the value of alcohol, tobacco, and immediate
consumption products to the market, and also underscore how “extreme” products strike a chord in the form
of energy boosts (Neuro Drinks, Monster Energy Ultra,
and Red Bull Zero), and extra spikes of flavor (DORITOS
JACKED, and Bud Lite Lime Lime-A-Rita).
Navigating Growth in the New Media World
New media forms have been around long enough to
prove they can drive marketing productivity. The goal in
a modern CPG marketing plan, said Srishti Gupta, EVP
and general manager, Media & Testing Solutions at IRI,
and Patrick Moriarty, executive, Advanced Analytics at IRI,
is to leverage big data and combine it with a traditional
Marketing Mix Modeling. The two provided some guidelines for diving into the ocean of big data. They cautioned that if a communication strategy doesn’t work for
mobile, it probably won’t work for anything else. Also, the
likelihood that consumers will make a purchase based on
a piece of content is five times higher if that content has
been shared among social networks.
10
Shopper Marketing + Small Companies = Big Growth
Experts compare retailers’ lack of shopper marketing
data to being the only competitive football team without
a playbook. Yet, not all companies can afford data and
insights. IRI’s Paul Lianis, SVP of Consumer and Shopper
Marketing, argues that there are affordable shopper
marketing tools to help any company target consumers
and influence purchases. “Bringing thought leadership
to the retailer is the key value,” says Bala Gurumoorthy,
director of Marketing Intelligence for Ferrero USA, maker
of Nutella chocolate-hazelnut spread. The company took
a three-pronged approach to its thought leadership: It
gathered information on Nutella users, developed a strategy focusing on key consumers and their chief needs,
and activated the strategy in terms of format, equity,
flavor, and visibility. By demonstrating its success to a
key retailer, its portable dip, Nutella Go, has become a
top-selling, front-end offering.
Innovation Up Close
The Summit delivered plenty of news about IRI’s latest analytic capabilities, and the Technology Showcase let attendees interact with these
solutions. From displaying Rentrak’s 25-million-strong TV screen intelligence, to a closer look at the Retail Trade Desk’s comparative powers
and the IRI Retail Advantage Loyalty Edition, the showcase provided
plenty of ways to find pockets of growth.
Some highlights:
IRI’s Segmentation Solutions is one of the most comprehensive tools
for targeting shopper attitudes and behaviors related to the latest
trends, from polar vortexes to the newest diets. This year, IRI added
another new partnership, bringing Technomic’s restaurant expertise
on board, which will allow IRI to expand restaurant-to-retail insights for
CPG clients.
SPINS recently joined with IRI and used the Showcase as a chance to
reveal how services like SPINscan Conventional and SPINS NaturaLink
will make sure the right natural and organic products, labels, and messages are reaching the right natural products customers.
IRI’s New Media Activation Solutions help users see the impact of
digital marketing campaigns, and increase the effectiveness of target
messages quickly and effectively.
Both the Unify Visualization and Unify Mobile displays showed how
IRI’s cutting-edge analytics can be delivered wherever and whenever
users need them, via mobile devices. IRI’s E-commerce Suite showed
how retailers can harness the ever-growing power of online buying by
tracking, researching, and finding patterns in Internet commerce.
Dave Mann and Cheryl Ong Seng were on hand from Aztec, one of
IRI’s recent acquisitions. Their desktop demo showed how this company’s marketing information, analytic capabilities, and leading technologies will combine with IRI’s to make a global powerhouse in covering
the CPG retail world across North America, Australia, New Zealand,
Hong Kong, South Africa, and the UK.
TWEETS FROM THE SUMMIT:
“Excited to learn more about the Hispanic consumer
at the Winning the Hearts and Minds of Hispanic
Consumers session.” – Heather K.
“Shopper Marketing + Small Companies = Big Growth:
great session with very engaged audience!” – Kurian T.
“Full house for Cris Gravitt’s Consumer and
Shopper Training!” – Jenny M.
11
PUTTING
WHAT’S NEXT
INTO PRACTICE
10 BIG IDEAS
FROM THE IRI
2014 SUMMIT
•
Examine every touch-point
along new paths to purchase
•
Get real-time consumer and
market feedback to improve
marketing efforts
•
12
Know that one size fits no
one: Clients need customized
data, and consumers need
customized marketing
•
Innovate like you mean it:
Improve consumers’ lives with
fun, ease, wellness, and quality
•
Use customer loyalty to simplify
customers’ lives: offer value,
convenience, and rewards
•
Make time for “snow days,” and
encourage all employees to
innovate together
•
Create an e-commerce plan
based on channel-agnostic
shopping patterns
•
Grow your base and innovate
to complement, and not
replace, your base
•
Let go of yesterday’s thinking
•
Exist to grow!
www.cpgsummit.com

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