Through a special arrangement, presented here for discussion is a summary of a current article from The Journal of Trading Partner Practices (JTPP), the official online publication of the Vendor Compliance Federation (VCF), Trade Promotion Management Associates (TPMA), and the Federation of Credit and Financial Professionals (FCFP).
A survey earlier this year done by AT Kearney found that, in dealing with changing dynamics and market complexities, retailers are looking to CPG manufacturers for "help in transforming consumer data into usable insights across thousands of products and categories. Unfortunately, many CPG salespeople lack these skills and cannot deliver the analytical, financial, cross-functional and strategic abilities that retailers need."
The survey of 164 executives and customer-facing salespeople from 34 CPG manufacturers and eight retailers in the U.S. revealed that salespeople now must act as "marketers, merchandisers, strategists, branding experts, general managers, creative thinkers and collaborators."
"Just as consumers increasingly expect grocery retailers to provide meal solutions rather than [just] meal ingredients, retailers are turning to CPG sales forces to deliver comprehensive product, brand and category strategies," the report said. Companies that don't conduct a "talent triage," to improve their sales force performance "risk losing market share, brand strength, sales force productivity, top talent and importantly, having their products 'rationalized' right off of retail shelves."
Some of the key challenges in establishing an effective and comprehensive sales force talent management program cited by CPG manufacturers include:
- Identifying Sales Talent: Nearly 60 percent of executive respondents said this is the most challenging part of the talent management lifecycle, followed by developing talent (25 percent) and retaining talent (17 percent). This is also a task that becomes more difficult as competition for top talent intensifies.
- Aligning Talent With Customer Needs: When asked to rate the importance of aligning the right sales talent with the right customer accounts to optimize service and sales, 65 percent of respondents said it is the highest priority.
- Measuring Performance: Respondents generally gave themselves high marks in their ability to evaluate sales force performance. However, they say they are less successful in mentoring salespeople and recruiting more diverse people. They add that they are less successful in using new metrics and measurement tools, innovative retention tools and developing programs that help differentiate talent from the competition.
- Addressing Diversity: At a time when retailers are stepping up their efforts to appeal to a diversity of shoppers through their marketing efforts, sales forces at CPG companies are significantly less diverse than the national workforce averages. CPG sales organizations have 28 percent more male employees, 57 percent more middle-aged employees (45 to 54 years old), and 13 percent more Caucasian employees than the 2008 U.S. working population.
Discussion Questions: Do CPG salespeople lack the skill sets needed to truly collaborate with retailers? What skill sets do today's CPG sales reps need that haven't traditionally been required?