Bridging Offline and Online Retail: Lessons from Kraft Heinz and Newell Brands

Episode Release Date: December 31, 2024
Podcast: BRAVE COMMERCE
Hosts: Rachel Tippograf (MikMak Founder & CEO) and Sarah Hofstetter (Profitero’s President)
Guests: Ashley Becker (VP of Global E-Commerce Capabilities at Kraft Heinz) and Mike Geller (President of E-Commerce and Digital at Newell Brands)

Introduction

In this episode of Brave Commerce, hosts Rachel Tippograf and Sarah Hofstetter delve into the intricate dynamics of integrating offline and online retail strategies with insights from industry leaders Ashley Becker of Kraft Heinz and Mike Geller of Newell Brands. The discussion centers around overcoming organizational silos, adopting an omnichannel approach, and tailoring strategies to diverse product portfolios.

The Omnichannel Imperative

Sarah Hofstetter opens the conversation by emphasizing the necessity of dissolving organizational silos to foster a cohesive omnichannel strategy:

"The consumer is not operating in a silo, so neither should we." (02:02)

Both guests agree that a unified approach across online and offline channels is crucial for modern retail success. They highlight that consumers seamlessly transition between physical stores and digital platforms, necessitating consistent and integrated brand experiences.

Diverse Portfolios, Distinct Challenges

Ashley Becker and Mike Geller introduce their respective companies and the breadth of their brand portfolios:

• Ashley Becker (Kraft Heinz): Oversees globally recognized brands like Kraft Mac & Cheese, Heinz Ketchup, and Lunchables, achieving a 98% household penetration.
• Mike Geller (Newell Brands): Manages 50 to 80 brands including Sharpie, Graco, Rubbermaid, and Coleman.

Rachel cleverly notes the diverse nature of their portfolios, pointing out how different product categories—such as frozen foods versus durable goods like car seats—pose unique e-commerce challenges.

"Even if it's within food, the way people shop and the way they convert is going to be very different." (04:03)

Overcoming E-Commerce Constraints in Food Retail

Ashley Becker discusses how Kraft Heinz has leveraged online channels to transcend traditional retail constraints, particularly in the food sector:

"Online has been quite a big unlock from us from a solutions perspective because we don't have the constraints of temperature state." (04:58)

Key strategies include:

• Shoppable Recipes: Combining frozen and shelf-stable items to enhance consumer convenience.
• Third-Party Delivery Optimizations: Expanding product assortment through platforms like Dollar General, enabling higher sales for items like Bagel Bites.

This multifaceted approach allows Kraft Heinz to innovate beyond in-store limitations, offering consumers a seamless online shopping experience.

High-Consideration Products and the Extended Consumer Journey

Mike Geller elaborates on the complexities of selling high-consideration products such as car seats and tents:

"A lot of our products... tend to be a little bit higher consideration, lower impulse and candidly, not repeat purchases." (05:50)

He emphasizes the importance of a holistic omnichannel journey, where multiple touchpoints—online ads, in-store experiences, reviews—contribute to the consumer's decision-making process over extended periods.

"Omnichannel journey is so diverse. A lot of our products... takes sometimes eight or ten interactions with the product... to make a decision." (05:59)

Mike advocates for minimizing distinctions between e-commerce and brick-and-mortar operations, integrating them to support a unified customer experience.

Educating and Influencing Within Organizations

Both leaders address the challenges of fostering an omnichannel mindset within their organizations:

Mike Geller highlights the use of familiar retail terminology to bridge understanding:

"Using some of the old language that they understand about a perfect shelf in the store... we've got to interact with them where they are." (07:02)

Ashley Becker shares Kraft Heinz's strategic shift to empower brand teams:

"We've shifted that control back into the brand teams... The channel strategy, the end-to-end path of purchase needs to be in the brief from the beginning." (15:48)

Their approaches focus on enabling local markets and integrating channel strategies from the outset of product development, ensuring that digital considerations are embedded in every stage.

Structuring Organizations for Omnichannel Success

The conversation delves into organizational restructuring to support omnichannel strategies:

Mike Geller breaks down the consumer interaction into three distinct but interconnected areas:

1. Interaction Points: How consumers engage with the brand (e.g., digital ads, in-store visits).
2. Transaction Points: Where and how purchases are made (e.g., online platforms, physical stores).
3. Delivery Methods: The logistics of product delivery (e.g., in-store pickup, warehouse dispatch).

"Splitting that up has been helpful in terms of getting people to think differently." (13:36)

This framework aids in addressing each component systematically, ensuring a seamless consumer experience across all touchpoints.

Leadership and Organizational Integration

Mike Geller emphasizes the evolving role of leadership in an omnichannel environment:

"What is the overall experience of our product, of our brand, of our go-to-market and start finding the areas where we have defects." (15:48)

He advocates for brand leaders to oversee all functional areas, ensuring that sales, marketing, supply chain, and pricing strategies are cohesively aligned to enhance the consumer experience.

Ashley Becker concurs, noting the importance of integrating functional expertise within brand teams:

"Shifting that back into the brands... is helping in that process." (15:48)

This integration fosters accountability and ensures that channel strategies are integral to brand development from inception.

Bravery in Leadership: Personal Insights

To conclude the episode, the hosts invite Ashley Becker and Mike Geller to share their personal definitions of bravery in leadership:

• Ashley Becker speaks to living consistently with her values and championing diversity:

  "The bravest thing that I do every day is living in a way that's consistent with my values... daring to do better and championing great people, particularly diverse talent." (16:23)

• Mike Geller recounts his entrepreneurial courage:

  "Right after college... I bought a one-way ticket overseas... started a company and we ended up growing the company and selling the company." (17:00)

These anecdotes underscore the personal courage required to lead transformative changes within large organizations.

Conclusion

This episode of Brave Commerce offers valuable insights into the strategic integration of online and offline retail channels. Through the experiences of Kraft Heinz and Newell Brands, listeners gain a comprehensive understanding of the challenges and solutions in crafting a unified omnichannel strategy. The discussion highlights the importance of organizational restructuring, leadership bravery, and a consumer-centric approach in navigating the evolving landscape of e-commerce.

For those looking to implement similar strategies, the lessons shared by Ashley Becker and Mike Geller provide actionable frameworks and inspiring examples of successful omnichannel integration.

Note: Timestamps correspond to the podcast transcript and are provided for contextual reference.