In the ever-evolving retail landscape, a dynamic collaboration between retail media and merchandising is changing the game for how CPGs approach connected commerce.
While retail media is equal parts retail and media, it’s more than just coexistence. When these elements converge and harmonize, they bring out the best in each other, creating a unique partnership that’s at the core of their combined success.
Navigate the shopping journey
The shopping journey has undergone a significant transformation. No longer is there a straightforward path to purchase. Today, customers encounter myriad touchpoints across digital channels like search, display and social, as well as in-store elements like signage, shelf tags and sampling.
Also, the post-Covid retail environment presents challenges as pre-pandemic shopping habits resume. Gone are the days of fewer, bigger shopping trips at one store. This shift back to old habits is leading to a loss in market share and smaller basket sizes.
Therefore, teaming up with retail media networks becomes crucial for CPGs in this landscape. Leveraging the expertise and first-party customer data of a retail media network, and partnering closely with merchandising, enables the creation of in-store and digital experiences rooted in strategy that truly resonate with the right customers wherever they shop.
Prioritize planning for success
At a minimum, CPGs should strive to develop and implement an annual omnichannel plan, especially as retail media continues to evolve and play a significant role in the retail landscape. This strategic approach, closely coordinated with merchandising, is the secret sauce to success. It seamlessly aligns brand and retailer objectives, showcasing the CPG’s commitment to driving growth not only for their brands but also for the respective categories. This expedites short-term growth and ensures the long-term success of brands with each retailer.
While retail media is equal parts retail and media, it’s more than just coexistence—they bring out the best in each other, creating a unique partnership.
It’s true that CPGs that engage in joint business planning—involving leadership, merchandising and retail media partners early and often—experience heightened levels of collaboration and partnership. This presents an opportunity for CPGs to articulate their vision to the retailer for the upcoming fiscal year.
Retail media networks should work with CPGs at least eight to 12 months in advance of the fiscal year to develop end-to-end plans encompassing digital channel mix, offers/promotions, ecommerce, sustainability efforts, in-store activations and target audience strategies. All for the purpose of amplifying category and merchandising priorities, as well as complementing national brand objectives. Regular meetings with merchandising ensure a deep understanding of trends and priorities, fostering a successful partnership.
Further, CPGs—in their annual ask to retailers for increased shelf space and display—should showcase how they plan to support efforts through their retail media network partner. This ensures collaboration and success with merchandising.
Craft a winning strategy together
At the core of this partnership lies the art of crafting a winning strategy that enables a shopping experience seamlessly spanning both digital and in-store. It’s not just about boosting performance; it’s about creating moments of inspiration for customers. And when that happens, the results are remarkable for brands and retailers alike. Retailers and CPGs who take advantage of this approach will be at the forefront of the next evolution of retail media and advertising.
