Estimated reading time: 7 min

The rapidly evolving world of retail can be daunting, but there are steps Consumer Packaged Goods (CPG) businesses can take to ensure they’re always one step ahead. Branchfood interviewed Georgios Tzafis, VP of Sales at Trax Retail, to gain insights into key tactics that can drive growth for CPG companies. Georgios discusses the critical role of data, the art of balancing cross-channel sales, and how shifts in consumer behavior are affecting retail merchandising and activation strategies. 

Tell us about Trax Retail and your role at the organization. What motivated you to pursue a career in this field?

Trax Retail operates in over 80 countries and has offices in 10 countries. We provide solutions that help retailers and CPG companies improve their in-store performance and optimize shelf management. Our technology allows for the automatic monitoring and analysis of product placement, availability, and pricing on store shelves.

I serve as Trax’s VP of Sales, specializing in Midcaps and Emerging Brands, a role that aligns with my passion for helping brands grow. It’s an exciting space to work in, and I’m always energized to contribute to the growth of emerging brands.

In 2019, Trax acquired Shopkick – the leading shopping rewards app in the U.S. – to provide enhanced shopper insights, increase omnichannel engagement, and boost product visibility. 

Trax’s work revolves around three main pillars:

What are the key trends and shifts in consumer behavior that CPG businesses should be aware of when developing retail merchandising and activation strategies?

Today’s retail space is marked by a growing demand for e-commerce, convenience and flexibility, which means that CPG businesses must build an omnichannel strategy while harnessing the power of technology to drive sales both in-store and online. Previous generations would make regular (but less frequent) trips to the grocery store and leave with a cart full of purchases, while consumers today tend to make frequent, as-needed trips to purchase a few items. 

CPG businesses should thus be mindful of distinct consumer needs that are met through e-commerce versus bricks and mortar shopping. A cross-channel strategy is crucial: some brands begin with direct-to-consumer (D2C) models to understand their customer base and then leverage this data to align with retailers that share a similar customer profile, creating a mutually beneficial partnership.

How can CPG business owners effectively bridge the gap between their online and offline retail strategies and provide a seamless customer experience?

As online grocery in the U.S. is expected to be the largest source of growth for food and beverages, CPG businesses should take a holistic approach that considers their consumers' purchasing behaviors and aims to create a unique and appealing value proposition for both channels. CPG businesses must first profile the consumer in segments, understand what drives them to shop online vs. in brick-and-mortar stores, and learn which groups can be targeted via only one of the two channels. I recommend that CPG businesses ensure that their retail partners are on board with their online strategy.

A holistic approach is crucial because the same customers who buy in brick-and-mortar stores will also buy on your website. You should inform your retailer how you intend to drive new customers to the category, and demonstrate why customers will return to the store. You can introduce different or exclusive stock-keeping units (SKUs) in different retailers, or you might want to adjust the price or packaging depending on the retailers or channels. Ultimately, you need to have a strategy that will convince the retailer that your product offers something unique and will attract new customers. 

“Every new innovative product should rely on data to measure and understand market acceptance and consumer behavior early. Data will unveil how consumers react within certain retailers and categories, and then prescribe the right in-store actions.”

In the competitive CPG market, how can effective retail merchandising and activation strategies help businesses stand out and capture the attention of consumers?

The rapid growth of e-commerce has not only impacted consumer behavior but also influenced the evolution of the retail landscape, impacting product pricing, assortment, and visibility. The formula for effective retail and merchandising strategies is simple yet difficult to achieve.

You can’t sell your product from the backroom. The key to capturing consumer attention is to ensure that your product is always available, secure and maintains supplementary placements within the store. If you launch a promotion, you want everything done correctly from the beginning in 100% of stores. For example, if you are launching a two-month promotion across Whole Foods, you want to ensure that every Whole Foods store that carries your product has launched that promotion on their shelves from day one. As brands grow, this can become more difficult to keep track of, which is where Trax Retail comes into play. 

What role do data and analytics play in modern retail merchandising and activation for CPG products, and how can businesses leverage these insights to make informed decisions?

Data is key for brands of all sizes and stages. To accelerate sales, CPG businesses should begin by understanding distribution, product availability, and velocity data. This comprehensive view allows teams to focus on consumer purchasing behavior and operational challenges. Additionally, analyzing the impact of product trials and pricing strategies helps brands align with their target audience's preferences and needs.

What advice do you have for CPG businesses looking to optimize their product placement and visibility on retail shelves, both in physical stores and online marketplaces?

Follow the data! You first need to understand what works, and then implement this “perfect store” approach in as many stores as you can. Integrating your sales data with your placement data will reveal the placement, assortment, and category that works best for you. Fortunately, online marketplaces such as Amazon offer insightful analytics which provide a sense of your customer’s journey and highlight optimization for more granular factors.

What kind of data should CPG brands focus on to understand what’s working, make necessary adjustments, and implement this “perfect store” approach to achieve their sales objectives?

In the world of data-driven decision-making, a comprehensive picture of your business performance is vital. To get this full picture, you need three main datasets:

Sales data is only part of the picture. Examining product availability, for instance, can reveal that a spike in blueberry yogurt sales may be due to the unavailability of the strawberry flavor rather than a preference for blueberry. If your product is consistently available on the shelf, correctly categorized with the right facings, and purchased frequently, you can gain insights into its potential. Aligning these three datasets (distribution, placement, scan) allows you to draw informed conclusions about optimal placement, assortment, and retail partners.

What are some best practices that CPG businesses should consider when developing their retail merchandising and activation plans to drive growth?

If you can't measure it, you can't improve it. To drive growth and success in retail merchandising and activation plans, CPG businesses should prioritize measurable outcomes. Return on Investment (ROI) remains central and necessitates a clear strategy for recouping merchandising investments through sales. It’s important to focus on quantifiable metrics and scalable strategies instead of anecdotes and buzzwords. 

It’s also key to recognize that retailers have a data-driven approach, so be prepared to talk data with them, even at the store level. Link every merchandising objective to sales lift, whether it involves adding product facings, addressing out-of-stock issues, securing secondary placements, or introducing new SKUs.

Don’t wait: take steps to stay ahead to today’s competitive retail landscape!

Interested in leveraging cutting-edge solutions in retail optimization? Trax Retail's services offer invaluable tools to enhance performance, streamline operations, and stay ahead in the competitive marketplace. Discover how Trax Retail can empower your retail journey today: https://disruptors.traxretail.com/. 

Looking for support accelerating your retail and merchandising efforts? Reach out to Georgios via LinkedIn.