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• Key market insight• Balancing Risk vs. Reward• Understanding Challenge and Resolution• Leveraging established ROI models
HOW CAN SE GROCERS’S DRIVE CONSUMER TRUST THROUGH:
BRAND NEWSyour
A Private Brand Business Case Study
INCREASING SE GROCERS BRAND LOYALTY
Southeastern Grocers is poised to raise its visibility of unique, high-margin private brand items to more effectively compete within the industry. As Southeastern Grocers capitalizes on its deep understanding of current customer needs, additional focus will be placed on attracting new customers in the face of a rapidly expanding marketplace.
Issue 12
Private brand is a key driver of our growth Trace One has provided a system and solution for our needs.Jack Pestello, Senior Vice President Walmart
In a recent Trace One survey of over 3,000 global consumers, it was found that 23% of U.S. consumers buy private brands because of trust in product quality. While Southeastern products are low-cost, the company will need to continue to increase its private brand share to match the U.S. market share of just over 20%. Critical to this growth, is to focus on new ways to innovate, increase quality and offer more value to their existing and new customers.
An Evolving MarketAs the private brand market adapts to growing regulation changes and a more connected shopper, retailers need to prepare for the risks and rewards of a greater private brand impact.
45% 4,300 375,000
of consumers could recall a negative social media post
about a business in the past six months
views of a product recall notice posted on social media in less than one week
consumer views of a product issue posted and shared on social media 5 years after
it has happened
46.5%18% X%
U.K. / France United States SE Grocers
FINANCIAL OPPORTUNITYTHE SMARTER SHOPPERLEGISLATION AND RISK• Challenging economy• Growing private brand demand• Pressure on cost
• More diverse product set• Full ingredient transparency• Connected consumers
• Continual law change• Costlier crisis management (recalls) • Greater reputational risk
Social Media Impact Private Brand Market Share81% of PR professionals consider that social media has a more rapid impact on consumers than traditional media - A connected consumer can break years of trust in minutes via Social Media.
As they have for nearly a decade, private brands continued to be the principal growth engine in the U.S. rising to 21% market share in 2014 and are predicted to hit 35% in the next 6 to 8 years.
Pressure of legislation, increase of consumer demands and the opportunity to drive private brand revenue is creating a ‘perfect storm’ in the U.S. market.
There is a clear objective for U.S. retailers to grow private brand share to be more in line with the mature European market.
Risk Reward
How do I balance out
business risks?
Evolving LegislationRecalls/Withdrawals
Consumer AwarenessNon Collaborative Suppliers
Team InefficiencySlow to Market
Competitive Threat
Keep up-to-date with Regulation Improve Efficiency & Reduce Errors
Drive Consumer TrustB2B Engagement
Cross Functional Team InvolvementIncrease Speed to Market
Decrease Cost of Sale
Risk vs. Reward
On April 13, 2015 Blue Bell recalled all of their products on the market made at all of their facilities. The Blue Bell Creameries recall cost over $200 million; 1,450 employees laid off; 1,400 employees furloughed. Blue Bell needs up
to $125 million to overcome the earlier recall crisis or be forced to shut down.
Consumer Reports survey names Wegmans best grocery store. Wegmans customers are provided with improved private brand quality, development of premium private brands,
emergence of new channels and the creation of new categories which has
added to the Wegmans brand strength.
As consumers demand more choice and retailers look to differentiate themselves, there is more risk than ever coming into the private brand business.
The challenge is to understand and manage the risks. Private brands have become increasingly innovative, with complex ingredients coming from new
sources. With these changes come inherent risks. Growing private brands will require using solutions to help retailers manage these risks and achieve greater financial returns.
In a connected world, it is more important than ever to understand and then mitigate risk.
With a growing private brand market and the potential to increase consumer loyalty, business rewards are greater than ever.
Trace One is our best solution to prevent risk and keep control over cost. Today, it takes us only 1 hour to manage an alert on an ingredient.
Hervé Gomichon, Quality Director, Carrefour
Increases vulnerability
to crisis
Introduces new levels / types of risk
Affects speed to market Ability to manage
process & cost
Increasing size of supply
chain
Growinglevels of
sophistication
Challenges vs. Business Resolution
• From ‘me-too’, to 3 and 5-tier programs
• Low levels of product knowledge
• Reputation starts to be a key issue
• Customers start to focus on issues
• Ad-hoc, silo and manual processes start to break
• Labelling errors and QA failures begin
• Strategies are needed for both pro-active and re-active crisis management
Private brands continue to represent outstanding value to the shopper. However, as retailers become more innovative with their private brands, the greater the risk and challenges. Despite these increased risks and challenges, rewards to the retailer are also increasing.
For every challenge there’s a resolution, and the hurdles of product development are no different. Business leaders can overcome these challenges by simply providing one clear vision to all stakeholders as well as making sure internal/external teams work efficiently and effectively.
SaaS Platform:• Provide real time information, to make better business decisions• Grow to meet the needs of the business, utilizing flexible scalability
Consistent Process:• Manage key steps throughout product development to mitigate
business risk• Increase speed, accuracy and drive standardization through
proven process
Clear Visibility:• Respond quickly to crisis and manage complaints by leveraging
one version of the truth• Proactive business and impact analysis enables faster identification
of issues and resolution, faster
Improved Collaboration:• Ensure internal teams work more effectively through collaborative
business planning• One centralized solution and knowledge base enhances
partnerships, strategy and innovation
Data Accuracy:• Manage ingredient statement, allergens and nutrition through
proven industry specification templates • Cut down on costly packaging labeling mistakes by utilizing
data directly from the source
Only through a combination of solutions process and collaboration is it possible to execute business resolution.
Taking advantage of financial rewards introduces a new set of challenges into the business.
Solution and Industry Leading Process
Specification Management
Proven knowledge from working with the world’s leading retailers and manufacturers, over the last 14 years.
Product Development Management (PDM) solutions have been specifically designed for fast-moving consumer goods retailers looking to manage or grow their current private brand programs.
PDM Consists of:• Product Lifecycle Manager (PLM),
an information management system that will integrate processes and data across the full product lifecycle.
In today’s fast growing consumer goods industry, high-quality and productive product lifecycle management requires the perfect control of product file management. Private brand PLM product specification manager centralizes all data related to product development and commercialization.A wide range of templates makes it possible to cover all product categories and accelerate the work of each party involved; reducing time-to-market by reaching the final specification more quickly.
Strategy & Planning
Supplier Selection
Specification Packaging Quality Management
Supply Chain Management
Food Supplement HPC Cosmetics OTC
• Specification Manager that will allow management of private brand product specifications efficiently and cost-effectively.
Project scopedefined
Manufacturer(s)selected
Specificationtemplate issuedfor completion
Iterative
New range
identified
Specificationcompleted
Specificationvalidated
Communication issued to
manufacturers
Productaudited Product
launched
Manufacturersidentified
Increase volume & efficiencyProactive search / react to issuesDrive consumer trust / reputationIncrease product quality
Private brand PLM is specifically designed for the retail/CPG industry to support the process of product development for formulated package goods. Combined with proven business process and a common collaborative platform, it allows for improving private brand strategies when required.
Industry tested and enhanced by retailers, for retailers.
A Proven ApproachTo drive high levels of user adoption, it is imperative to install an underlying support and management platform.
Business Socialization and Collaborative Engagement It’s no secret that collaboration comes with great benefits. These benefits have been well-documented and are linked to reducing complexity and costs of product development, reducing the need for input from wide and varied areas of expertise, as well as increasing the time to market.
Educate: Tailored training sessions based on user role, business process and configuration
Support: Dedicated support team available for user, technical and training support
Evolve: Continued program enhancement, knowledge updates and collaboration improvement
Manage:Account and program management, enabling ongoing planning
Food Service buyers & Product
development
Marketing &packaging
Auditing &testing bodies
Manufacturerfinished goods
Consumer Complaints
Product issuetracking
Collaboration Networkin the cloud
A Proven ApproachA tailored supplier collaboration program to drive business benefits for all parties.
LaunchCollaborative program that is tailored to retailer’s objectives
EducateSupport the suppliers with the required level of knowledge needed to succeed
MaintainPro-active and re-active support combined with a centralized knowledge base and dedicated program management
Improved collaboration can affect every interaction between a retailer and supplier. The higher their level of collaboration, the more efficient, cost-effective, responsive and innovative the product development process will be.PLM facilities can streamline this relationship through an easy to use, highly visual collaborative experience. Engaging within the network results in greater efficiency of every interaction between retailers and supplier partners.
Connecting all stakeholders in the product development process in a collaborative, scalable model.
Retailers and suppliers achieve private brand success when they share one version of the truth.
Scalability when needed• Phase based ROI approach• Proven implementation model for
Specification Management in 2-3 months• Scale when you need it and adaptation to
your business growth• Future proof
Depending on your private brand sophistication and need, the solution is designed to scale quickly, while maximizing ROI along the way.
Product Development Management
Tra
nsp
are
nc
y-O
ne
Onboarding / Collaboration / Program
SpecificationManagement
Product Life CycleManagement
2-3 months 3-4 months
Engage
Va
lida
tion
an
d N
ee
ds
An
aly
sis
Business Process
N N
Specification PLM Transparency
Scale, Vision and Return on Investment
Increase in suppliers’ engagement &
efficiency
Decrease in costs associated with finished
goods/raw materials
Improvement in crisis management &
recall reaction time
Current ROI figures based on $1B in private brand and current Trace One customer rate of return
What would it mean if your business could achieve the following goals ?Q Double your Private brand business. How
much would that add to your bottom-line? 3M
Minimize the time it takes to react to an issue. What would you save? 500k
Reduce your product purchasing price by 1%. What is that worth? 1.5M
Reduce product recalls by 50%. What impact would that have on customers? 750k
Average:
75% 0.5-1.5% 95%
Understanding risk and overcoming key business challenges results in the ability to maximize continual return on investment.
The Trace One application allows us to deliver on our consumer satisfaction promise. Alain Turenne, Senior Director, Product Integrity Walgreens
Clear execution and adoption ensures that theoretical ROI become actual business profit.
Growing sophistication is a continual process, ensure your business can scale when needed.
The World Leader in PLM Solutions
Recognition
Over 20,000 companies connected using
Trace One
100+ countries users presence
+$300B in Private brand revenue
managed
Customer Snapshot
Trace One leadership has a compelling vision and well-crafted strategy to further infuse PLM into the Private brand market.
Solution Footprint OverviewProduct Development
Product
Project Workflow
Workflow
Incidents Tests Audits
SpecSpec Management in PDM
Product Lifecycle Management in PDM
Pack Copy
Community
Packaging
Artwork
Analytics
Business Intelligence and Reporting
Collaboration with business partners
Supply Chain Visibility
Engage
Transparency-One
Benefits
SaaS Platform
Data Accuracy
Consistent Process
Improved Collaboration
Clear VisibilityDrive global consumer trust with Trace One
www.traceone.com
Contact For more information please visit: www.traceone.com
Email: [email protected]