How CPG Brands Are
Budgeting and Organizing
Around E-Commerce Findings from a Global Study
November 8, 2017
Keith Anderson
SVP, Strategy & Insights
Better Performance Through eCommerce Analytics
What We’ll Cover
1
• The role of strategy & culture in organizational structure
• How brands are budgeting and structuring for ecommerce
• Industry priorities & challenges
• Team size, composition, and talent profiles
• Critical ecommerce roles
• “Dedicated” versus “designated” staff
Better Performance Through eCommerce Analytics
First, Define Success
Define Success
CriteriaRecognize Upside Opportunity
& Downside Risks of Doing
NothingIncrementality
Growth
Share
Profit
Brand equity
Offline influence
Brand advocacy
Retailer/Supplier
Relationship
Hard
Objectives
Soft
Objectives
• eCommerce is not guaranteed to be
incremental
• But brands on offense will grow
exponentially, increasing their category
share
• Even if shoppers do not buy online, they
may be influenced to buy at brick-and-
mortar
Better Performance Through eCommerce Analytics
The Primacy of Culture
3
• 99% of companies focus predominately on organizational structure,
but culture really matters
• Executive-level (Board and C-Suite) endorsement and support is key
• Emerging channels need a clear (and appropriate) definition of
success
• Everyone needs to understand their role in the transformation
• Experimentation must be encouraged, but good experiments prove or
disprove hypotheses
Better Performance Through eCommerce Analytics
In 2017, ~40% Surveyed Said eCommerce will Represent 2-9.9% of Sales
4
22%19%
16%
11%
23%
10%
16%14%
25%
14%
19%
11%
Less than 1% 1 – 1.9% 2 – 4.9% Between 5 and
9.9%
More than 10% I don’t know / I
prefer not to
answer
2016 2017
Q: What percent of your company's 2017 sales is eCommerce expected to represent?
Source: Profitero survey
Better Performance Through eCommerce Analytics
Sales Targets are Getting More Aggressive
5
7%10%
6%
18%
38%
21%
6%
11%
6%
13%
50%
14%
1-5% 6-10% 11-15% 16-25% More than 25% I don't know
2016 2017
Q: What were your company's eCommerce growth targets for 2017?
CPG: 47%All Other: 52%
Source: Profitero survey
Better Performance Through eCommerce Analytics 6
3%
14%10%
29%27%
14%
3%
10%
4% 5%
36%
26%
16%
3%
Attracting,
developing and
retaining digital-savvy
talent
Attribution for online
influence on offline
sales
Building/accessing a
single view of the
consumer from across
all the different touch
points
Establishing a clear
and well-understood
eCommerce strategy
Finding more
effective ways to
partner with retailers
to drive sales
Measuring and
reporting on how
eCommerce is
performing as a
distribution channel
None of the above
2016 2017
Q: What is the single-most important priority for organizing around eCommerce in
2017?
Establishing a Strategy is the #1 Priority…
Source: Profitero survey
Better Performance Through eCommerce Analytics 7
15%
21%
18%
21%
5%
8%7%
3% 3%
27%
23%
19%
10%
6%
4% 4% 4% 3%
Sales (YoY
growth)
Market share Sales (absolute) Increasing brand
awareness
Profitability Linking online
activity/behavior
to offline
purchases
New customer
acquisition
Search position Brand
compliance
2016 2017
Q: Please select the single most critical eCommerce KPI for your organization
…While YoY Sales Growth is the #1 KPI
Source: Profitero survey
Better Performance Through eCommerce Analytics 8
22%
17%16%
14%11%
10% 9%
1%
15%
23% 24%
11%
6% 5%
14%
1%
Measuring and
reporting on how
eCommerce is
performing as a
distribution channel
Finding more
effective ways to
partner with
retailers to drive
sales
Establishing a clear
and well-
understood
eCommerce
strategy
Attribution for
online influence on
offline sales
Getting budget
approval
Attracting,
developing and
retaining digital-
savvy talent
Building/accessing
a single view of the
consumer from
across all the
different touch
points
None of the above
Larger than $500M Smaller than $500M/Not Publicly Available
Q: What are the top challenges that you have around organizing for eCommerce in
2017?
Measurement & Reporting Are Key Challenges
Source: Profitero survey
Better Performance Through eCommerce Analytics 9
2%
46%
22%
30%
5%
13%
18%
64%
I don't know
No
Not now,
however we are likely to add one in the next 12
months
Yes
Larger than $500M Smaller than $500M/Not Publicly Available
Q: Do you currently work with a provider of eCommerce analytics to measure your eCommerce
performance?54% of the companies working with an
eCommerce analytics provider consider
themselves as Advanced when organizing
around eCommerce
62% of the companies NOT working
with an eCommerce analytics provider
consider themselves Novice/Amateur
when organizing around eCommerce
Industry Leaders Investing in Measurement & Analytics
Source: Profitero survey
Better Performance Through eCommerce Analytics 10
16%
26%
44%
7%3% 3%
30%
24%
28%
10%
0%
8%
Novice — we are just
beginning to organize
around eCommerce
Amateur — we are
engaging retailers in joint
business planning that
includes eCommerce
Advanced — all of the
above plus dedicated
eCommerce resources
Expert — all of the above
plus clear objectives for
eCommerce as a
distribution &
marketing/influence
channel
Leader —all of the above
plus we believe we set the
digital standard among
our peers/competitors
Don’t know / prefer not to
answer
Larger than $500M Smaller than $500M/Not Publicly Available
Q: Please describe the maturity level of your company in terms of organizing around
eCommerce
Larger Companies Self-Identify as Increasingly
Sophisticated
Source: Profitero survey
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32% 29% 24%
28%24%
21%
22%26%
24%
13% 13%21%
3% 6% 9%
Bottom 2 Box (Novice/Amateur) Advance Top 2 Box (Expert/Leader)
Marketing Sales eCommerce
Shopper marketing Category management Other (please specify)
Q: Which budget(s) is the company using to support online retail?
Marketing Budgets Are the Largest Source of Funds
Source: Profitero survey
Better Performance Through eCommerce Analytics
Marketing
VP/GM
eCommerce
Sales
Key Customer Team
Team Lead
Analyst
Content Analyst
Marketing
Supply Chain“Brick and
Mortar.com 1”
“Brick and
Mortar.com 2”
“Brick and
Mortar.com 3”
Center of Excellence
Digital
Acceleration
Content Analyst
Search
Supply Chain
Digital
Merchandiser
Finance
Evolving Organizational Structures
MarketingSales/Distribution
In-direct reporting
direct reporting
Commonly outsourced
to agencies and
brokers
Key Customer
Team“Brick & Mortar.com 1”
designated
Better Performance Through eCommerce Analytics
Attributes of Successful Digital Commerce Leaders
13
• Comfortable with ambiguity
• Prior experience in pioneering roles
• Internally credible and able to translate cross-functionally and
represent the brand externally
• Strong commercial acumen with an eagerness to learn and a passion
for problem-solving
• Ability to lead and set direction versus singular focus on execution
Better Performance Through eCommerce Analytics 14
47%
26%
Percent who said they have a dedicated dotcom lead(s) for:
18%
58%
28%
17%
2016 2017+11 PP
+2 PP
-1 PP
Amazon Gets the Most Dedicated Support
Source: Profitero survey
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18%4%4%
35%
4%2%8%8%
16%
Supply Chain & OperationsStrategyMarketing & MediaDigital Acceleration & InnovationData AnalyticsChannel ManagementCategory ManagementCapability ManagementAccount Management
US Companies That Have Hired From Amazon
15
17%
83%
% of Companies That Hired from Amazon
Did Not Hire from Amazon
Hired from Amazon
18%
4%4%
35%
4%2%8%
8%
16%
Employees Hired from Amazon by Role
35% of employees hired
from Amazon work in
channel management roles;
18% in account
management
16% in supply chain
17% of US companies have
hired an employee who has
worked at Amazon
83% of US companies have
not hired an employee who
has worked at Amazon
Source: LinkedIn and public job postings
Better Performance Through eCommerce Analytics
Account Management – HQ vs. Field, WMT vs. Amazon
16
30%
70%
HQ vs. Field
HQ Field
65%
35%
Amazon vs. Walmart
Walmart Amazon
65% of Account Managers
in the field are associated
with Amazon
35% of Account Managers
in the field are associated
with Walmart
30% of Account Managers
work in the field
70% of Account Managers
work at HQ
Source: LinkedIn and public job postings
Better Performance Through eCommerce Analytics
Global, Total Dedicated eCommerce Headcount by
Segment
17Source: LinkedIn and public job postings
EVP 5 6 3 2 2
VP 3 12 13 1 12 3 13
Director 17 39 216 12 131 4 9 17 52 40
Manager 76 95 649 43 335 7 20 44 172 169
Senior 23 7 120 67 1 4 4 1 15
Staff 34 35 319 11 120 2 18 7 42 130
Alcohol
Beauty &
Cosmetics CPG/FMCG Electronics Food & Beverage Home Goods Office Supplies Pet Supplies
Pharmacy,
Health &
Wellness Toys & Games
Number of Companies 10 5 14 3 15 1 1 1 4 3
Revenue / Headcount $104M $103M $3,853M $411M $32M $161M $149M $327M $112M $10M
Total Headcount 149 193 1308 67 667 14 49 75 279 367
Channel Management 68 96 335 23 212 7 11 19 53 105
Account Management 15 43 256 9 70 4 11 20 25 17
Marketing & Media 25 5 127 1 118 1 4 1 14 53
Content & Digital Merchandising 5 7 63 9 29 2 13 5 48 88
Digital Acceleration & Innovation 5 7 66 3 42 4 3 26 63
Capability Management 6 88 3 40 1 39
Strategy 4 5 56 8 25 2 39 4
Data Analytics 4 9 52 3 32 4 9 12 8
Brand Management 2 4 91 1 11 6 7
Supply Chain & Operations 9 8 53 3 28 5 3 6
Category Management 3 40 1 16 1 5 2
Finance 2 1 30 11 4 2
Insights 1 22 12 1 1 3 4
Shopper Marketing 3 2 13 12 4 1 2
Trade Promotion 8 3 2 1 1 4
HR 3 4 5 1
Legal 4 1 4
Retail Search Optimization 2
Better Performance Through eCommerce Analytics
Summary
21
• Structure follows strategy
• You can’t manage what you don’t measure
• Culture counts
• Dedicated > designated
• With increasing stakes and commitment comes
specialization
Better Performance Through eCommerce Analytics
30-Day Free Trial
23
• Measure sales and share performance for all your products on Amazon and v.s. competitors
• See your sales breakout by 1st party and 3rd party sellers to see when you’re winning and when you’re losing the Buy Box
• Detect and fix sales losses caused by poor performance across Content, Ratings & Reviews, Search Placement, Product Availability and more,
Includes FREE hands on support
from our eCommerce Experts who will help you uncover
sales opportunities across your business
All we need is your ARA
access to get started
Better Performance Through eCommerce Analytics
LinkedIn Study Scope & Methodology
25
Objective Determine the structure and distribution of companies’ eCommerce staff
Process 1. Identified key global and “tier 1” and ”tier 2” brands in diverse
categories
2. Collected information on eCommerce employees at identified
companies via Linkedin
3. Aligned company data with full 2016 revenue where available
4. Analyzed the full dataset
Result A clearer idea of how companies prioritize and structure their
eCommerce team
Better Performance Through eCommerce Analytics 26
• Online survey conducted from July 2017 through September 2017
• Responses from 134 brands across +10 industries globally
• Includes eCommerce, sales/business development, marketing, account management and
other roles
• Responses from current Profitero customers and non-customers
Survey Scope & Methodology
Better Performance Through eCommerce Analytics
Dedicated eCommerce Roles Overview
27Source: LinkedIn and public job postings
Role Description
Yrs
Experienc
e
Yrs
eCom
Experienc
e
Tech AmazonConsultin
g
Channel
Management
• Responsible for overall eCommerce channel sales, performance, and P&L
• Plan and implement digital and eCommerce strategies for new and existing
online channels to drive sales
• Overall responsibility for establishing strategy, organization, and capabilities
13 5 3% 3% 4%
Account
Management• Responsible for business (sales, business growth strategies, KPIs,
capabilities) with one or more customers 10 3 1% 3% 1%
Brand Management• Develop brand strategy and execute digital plans in support of key brands
• Responsible for driving marketing and business growth through the
eCommerce channel for assigned brands10 3 1% 0% 4%
Capability
Management
• Select and implement digital capabilities that drive business results
• Develop, deliver, and provide IT support for Digital and eCommerce
applications, platforms, and portal14 4 13% 1% 6%
Category
Management
• Work with retailer partners to improve category trees to improve shopper
journey and category profiles
• Identify market and category share trends for sales projects11 3 4% 4% 1%
Content & Digital
Merchandising
• Develop, syndicate, audit, and analyze digital product information and content
for brand and retailer websites
• Responsible for developing expertise in content sourcing and driving digital
usability and conversion
12 5 4% 1% 1%
Better Performance Through eCommerce Analytics
Dedicated eCommerce Roles Overview – Cont.
28
Role DescriptionYrs
Experience
Yrs
eCom
Experience
Tech Amazon Consulting
Data
Analytics
• Track market and organizational sales data to measure digital performance
• Translate data analysis and research into actionable strategies that drive sales, conversion,
and growth9 3 4% 2% 7%
Digital
Acceleration
& Innovation
• Develop and implement innovative digital solutions, delivering sales growth and new
customer acquisition across the eCommerce channel
• Lead the digital transformation internally across organizational systems and externally with
retailer partners
• Implement and share digital best practices throughout the organization
15 5 5% 1% 5%
Finance
• Lead eCommerce financial assessment to make investment decisions and drive future
growth
• Develop financial projections for organizational digital strategies, platforms, and brands
• Manage the financial go-to market development for new eCommerce channels
12 2 0% 0% 8%
HR• Set and drive recruitment strategies to build new teams across all eCommerce divisions
• Develop and implement organizational eCommerce infrastructure
• Manage internal requests and requisitions across the eCommerce team11 1 0% 0% 6%
Insights
• Apply analytics tools and techniques to increase shopper understanding and optimize
operations
• Develop and implement research plans to improve eCommerce performance
• Establish organizational research approach and methodology
12 4 2% 0% 2%
Legal• Ensure internal and external legal compliance across all platforms and processes
• Develop organizational processes that support digital compliance
• Support all company employees responsible for key areas of compliance15 5 0% 0% 0%
Source: LinkedIn and public job postings
Better Performance Through eCommerce Analytics
Role DescriptionYrs
Experience
Yrs
eCom
Experience
Tech Amazon Consulting
Marketing &
Media
• Plan and execute digital marketing campaigns and strategies in support of the
eCommerce channel
• Align eCommerce marketing plans with overall brand marketing goals
• Determine media investment for key brands
12 5 2% 2% 5%
Retail Search
Optimization• Develop expertise on retailer search algorithms
• Optimize products' performance on retailer websites 10 4 25% 0% 0%
Shopper
Marketing
• Design and execute shopper marketing events and promotions for retailer
customers
• Drive customer engagement via shopper marketing plans that contribute to
organizational, category, and channel growth strategies
12 3 0% 0% 2%
Strategy• Develop measurement and KPIs for key digital initiatives
• Define short-term and long-term strategic goals for the eCommerce channel
• Create new organizational eCommerce teams and divisions14 4 3% 3% 10%
Supply Chain
& Operations• Responsible for eCommerce channel stock management, supply chain logistics
• Prioritize, identify, and resolve daily customer and retailer partner issues 12 3 3% 5% 3%
Dedicated eCommerce Roles Overview – Cont.
29Source: LinkedIn and public job postings