Food Beverages And Hospitality October 2018

Retailers are using vertical space for driving “2-fer”
bulk purchases, thereby maximizing sales per
square foot of vertical space.
faddish?
Sustainability is starting to mature as a mainstream
thought process. However, corporate initiatives
must be backed by senior management, otherwise
these initiatives tend to scatter and eventually die.
From supplier selection to compliance, from product
design to packaging materials, from energy and
emission standards to environmental responsibility,
there are several issues that need to be understood
by multiple stakeholders. This is why sustainability
should ascend to a strategic entity in corporate
planning.
What is the next shift in packaging as the food and
beverage industry redefines itself?
Packaging is a business function and it deserves a
seat at the management table. But the first step has
to be in the reeducation of packaging engineers and
designers. They must expand their operating canvas
from technology of packaging to the business of
packaging. They must understand supply chains,
how costs build up, how customer segmentation
occurs, sustainability concepts and how packaging
impacts the business bottom line. Senior packaging
executives must appreciate how education can add
systemically to the success of the business. While
technical skills are necessary, analytical skills are
critical.
What are some of the shifts occurring in the
grocery store?
While they are resorting to the strategy of selling to
the customer from many location spots in the store,
they are aiming at the customer from multiple
volume and price points as well. Essentially, retailers
are moving to the portfolio model to drive buying
behavior. They’re offering linear choices, lateral
choices and cross-product choices from the same
manufacturer.
The next evolution we will see will be the growth of
scanning technologies, predictive algorithms and
creating likely-to-buy assortments. The predictive
analytics of point-of-sale data will become more
sophisticated.
What is the next evolution for human capital and
people excellence?
Given the nature of problems, linear thinking will no
longer suffice. Silo mentalities must be eliminated.
Functional expertise alone cannot solve the full
range of business problems that brew every day. A
marketer who does not understand the operational
limitations of a new product launch is liable to make
spotty decisions. Likewise, a packaging designer
who does not grasp the changing dynamics of
customers is likely to make myopic missteps.
Companies must create a new paradigm called
“Correlational Intelligence.” That means creating a
common ground for everyone in the company to
understand the business and all its key aspects.
Without this cultural shift, corporate productivity
will be sacrificed daily, due to opacity, black space
and discontinuities. Eventually this leads to loss of
moral and vitality.
There has to be a new base line for learning and
performance. Mandatory job rotation will go a long
way in building Correlational Intelligence.
The aisle is the new shelf. Retailers are now using the
horizontal space for driving impulse purchases.
They are employing square vats and stacks, spread
throughout the grocery store to impel low-cost, highvolume
purchases. An example is Nabisco products,
such as Chips Ahoy!, Cheez-It and Vanilla Wafers
sold in small containers but from many locations
within the store.
30 Focus Food Beverages & Hospitality | October - 2018 | www.kingsinfomedia.com