Procter & Gamble maintained [image-nocss] its No. 1 position among manufacturers, despite a slight decrease in its PoweRanking composite score. Kraft stayed at No. 2, as its overall score remained unchanged since 2009. General Mills moved up to No. 3, surpassing PepsiCo, which dropped to No. 4. Unilever realized the largest point increase of 5.1, which propelled it from No. 6 to the No. 5 spot, switching places with Nestle. Campbell's moved back up into the top 10.
In its 14th year of publication, the Kantar Retail PoweRanking Study identifies manufacturers and retailers that have performed best in the eyes of their trading partners. Entitled "Superior Performance in the New Normal," the just released 2010 PoweRanking study recognizes retailers and manufacturers that have excelled in forming strong relationships in the New Normal environment.
This year's study highlights the drivers for success in the changed economic environment. Kantar Retail points to the ability to execute as the tipping point, with the strategy for execution driven by insights and analytics. The study gives examples of leading retailers and manufacturers that have progressed from the "so what" (insights) to the "now what" (execution). The report points to collaboration as the continued foundation for success along with simplicity, consistency, follow through, creativity and involvement.
The report identifies three drivers of success to move from the "so what" to the "now what": Insights Based: initiatives are relevant and delivered via multiple levels. Analytically Driven: includes shopper-based facts identified by purchase behaviors. Executionally Focused: recognizes that the store is the critical point of contact and customization is the key going forward.
"Insights to action is crucial," said Ken Harris, CEO of Kantar Retail Americas, Wilton, Conn. "Once strategies are aligned, execution is everything. All elements must be in place at retail to positively influence the shopper to purchase."
He added, "This year's PoweRanking demonstrates how vehicles and structures for continuous, proactive communicationboth internally and with trading partners--drive superior performance. Unilever is an example of a leader that has excelled at communication in supply chain and shopper insights and solutions."
Among manufacturers, the top performers:
P&G, 41.7% (-1.2 point change over 2009). Kraft, 33.3% (0). General Mills, 26.3% (-0.2). PepsiCo, 24.0% (-2.9). Unilever, 19.1% (+5.1). Nestle, 13.2% (-4.9). Coca-Cola, 8.6% (-2.1). Kellogg's, 8.6% (-0.9). ConAgra, 7.7% (-0.3). Campbell's, 5.1% (+0.3).Composite scores are based on rankings in eight key areas where manufacturers interface with retailers. The eight metrics are clearest company strategy, most important consumer brands for retailers, best combination of growth and profitability, best sales force/customer teams, most innovative marketing programs, most helpful consumer/shopper insights and category management, best supply chain management, best shopper marketing programs.
"In this economic environment, value is the new hallmark. The retailers that improved in the PoweRanking this year were noted for offering value--Target for its relevant programs and CVS and Walgreens for their smaller store positioning," said Harris.
This year's top 10 retailers are:
The ranking criteria for the retailers include clearest company strategy, best at store branding, projected power retailers, best retailers with which to do business, best category management/buying teams, most innovative consumer marketing/merchandising, best supply chain management and best practice category management/CMAR.
The Kantar Retail PoweRanking study delivers insights into the practices of leading manufacturers and retailers in their working relationships. Each group of manufacturers and retailers ranked the other in eight key areas.
Customized questionnaires were developed for retailers and wholesalers in food, drug, mass merchandiser and convenience channels and manufacturers in food, general merchandise and HBC. Questionnaires have been mailed each spring since 1997 to personnel at all levels of management with the assurance of total confidentiality. To provide trended information over time, the PoweRanking measures are calculated on a rolling two-year basis.
Kantar Retail is a global retail insights and consulting business that works with clients to transform the behavior of consumers, shoppers and retailers. By combining the resources of Cannondale, Glendinning, MVI and Retail Forward, the company solves client issues from tactical to strategic and provides organizations with the skills and capabilities to act. Kantar Retail offers clients better internal alignment and project efficiency, from insight through strategy to activation and across marketing through category management to sales. Kantar Retail is headquartered in London.
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