CPGmatters: Philip Morris USA Thrives with Unique Retail Program
Through a special arrangement, presented here for discussion is an excerpt of a current article from the monthly e-zine, CPGmatters.
One of the boldest and broadest efforts around category management is Insights C3M, a multi-pronged program from Altria's Philip Morris USA - the category's unit share leader at 51 percent - to communicate directly with 250,000 domestic retailers that sell its tobacco brands to adult consumers.
The primary component of Insights C3M is an interactive, retailer-accessible, password-protected website. The site, www.insightsc3m.com, gives merchants near-real-time data on category performance in their individual stores, promotional allowances due to them, shopper insights and other essential business details that enable quick, accurate fact-based decisions about what to stock in each store. In addition, PM USA issues a quarterly eight-page newsletter to its retailers and wholesalers, filled with content meant to refine their skills in consumer-centered category management.
Some of the flavor of articles from recent issues of the newsletter: Unlocking the Potential of the High-Growth Cigar Category; Attracting and Retaining Good People; Preventing Under-Age Tobacco Use; Inventory Management and Product Promotion Best Practices; Do Brands Really Matter; plus guest columns by consultants and futurists.
"Insights C3M replicates the way our sales force works to foster a culture of retailer success," said Altria spokesman Greg Mathe. "They educate, merchandise and help retailers to better manage the category and connect with adult tobacco users."
Tobacco sales occur through distributors - yet largely through the PM USA sales force and Insights C3M, retailers gain a deeper understanding of shoppers, their purchase behaviors and consumption habits, product and display preferences and demand levels.
Though retailers can't buy products on the website, all the information they can assimilate at the site "creates more efficient communications with the PM USA sales force," explained Rich Trimarco, manager of sales communications, PM USA.
Mr. Trimarco noted further that the website has allowed PM USA to transition to a paperless communications system with its retailers, some of whom have raved anecdotally by voicing such comments as "the site saves me a couple of hours per week" and "all details are right at my fingertips."
He placed the category management effort within the context of the total store, noting: "There's more at stake with adult cigarette consumers than many merchants realize. Usually when smokers come to the store, they buy other products as well. They're so brand-loyal, that most of the time a store is out of stock of a preferred brand, they'll leave the store."
Discussion Questions: What do you think of Philip Morris USA's Insights C3M program and the extent that they're working with retailers around category management? Are other brands and categories sharing category performance data, shopper insights and selling tips with their retail customers to this level?