Attaining Placement On The Virtual Shelf

Companies producing consumer goods are figuring out how to return to normal operations and planning new product launches to keep growing in the grocery space. Both, brands and retailers are doubling down by committing to extensive promotion cycles and extra resource planning to launch new products, as well as keep up with trends in innovation and consumer shopping behaviors. 

This week, Kroger Co. announced the plans of getting into the online marketplace space. The company plans to go live this fall with a digital marketplace of third-party sellers through partnership with ecommerce provider Mirakl, which specializes in B2C and B2B e-marketplaces. Its Kroger Ship direct-to-customer platform will extend its ship-to-home assortment beyond groceries to a number of other categories including natural and organic products, international food, specialty items, housewares, and toys. Initially, more than 50,000 items will be available to customers, the Cincinnati-based retailer said.  

To keep up with the growing trend of shopping for groceries online, H-E-B looked to re-platform their general commerce experience and simultaneously make new technology available to its subsidiary in Mexico. The system needed to communicate with enterprise-grade event processing systems, a custom payment gateway, and also support many physical locations worth of products and promotions online. 

RMG worked with several departments at H-E-B to perform a gap analysis for new feature development as well as functionality that would work in unity with the original system. The RMG team helped H-E-B architect proper event processing workflows, order lifecycles, and touchpoints with the custom payment gateway. The teams also worked together to identify proper data structures for advanced promotional mechanics including a full product substitution system and a curbside delivery and pickup scheduling system. 

In May 2020, PepsiCo launched two new direct-to-consumer websites offering to deliver food and beverage products to meet demand during the pandemic. The company is leveraging its ecommerce investments and digital talent to take advantage of this channel. As consumers increasingly continue to shop online to meet their food and beverage needs, the launches of PantryShop.com and Snacks.com allow shoppers to order many of the company’s trusted and loved products. 

“Over the last few years, PepsiCo has been working to be a faster, stronger, better company, one that is laser focused on meeting consumer needs and winning in the marketplace. Investing in eCommerce and digital capabilities and talent has been – and will continue to be – a big part of that effort,” said Gibu Thomas, Senior Vice President & Head of eCommerce. “In these uncertain times, as more and more consumers are using eCommerce channels to purchase food and beverage products, PantryShop.com and Snacks.com offer shoppers another alternative for easy and fast access to products they love.” 

Being heard above the noise, creating need around a new product, and motivating retailers to accelerate distribution is an omnichannel commitment. Brands face the choice of investing in technology and backend talent or partnering with an agency to help them with the heavy lifting. In order to get new products in front of customers at the increasing pace of commerce, CPG companies will need a multi-channel promotion plan. 

Companies that are first to market with a product that meets shopper demand are usually able to capture a greater share of the product category. Getting priority shelf placement and becoming an established name before the competition is long-term competitive advantage for any product. Many CPG companies will start to see significant growth with the right approach to new consumer adoption. Shopping behavior is constantly shifting, but direct-to-consumer channels will ensure that CPG brands remain relevant now and post pandemic.