Podcast Summary: The CPG Guys – "Customer First Decisions with Kellanova CCO Carrie Sander"

Podcast Information:

• Title: The CPG Guys
• Hosts: Peter V.S. Bond & Sri Rajagopalan
• Episode: Customer First Decisions with Kellanova CCO Carrie Sander
• Release Date: March 5, 2025
• Description: Sri Rajagopalan, a CPG & FMCG eCommerce industry icon, and Peter V.S. Bond, a consumer loyalty guru, delve into the intricacies of how brands and retailers engage with consumers both in-store and online. In this episode, they host Carrie Sander, Chief Customer Officer at Kellanova, to discuss customer-first strategies in the evolving retail landscape.

1. Introduction to Retail Media Strategy

Peter V.S. Bond opens the episode by emphasizing the rising importance of retail media as a primary channel for brands to engage consumers with measurable performance metrics along the purchase path. He highlights the collaboration between Cornell University and The CPG Guys to launch the inaugural Retail Media Strategy Executive Education Program at Cornell Tech (May 5-8, 2025). This four-day immersive program aims to equip industry leaders with best practices for building effective retail media platforms, leveraging AI-driven campaign design, and fostering robust brand-retailer partnerships ([00:00]).

2. Personal Updates and Philanthropy

Before delving into the main discussion, Carrie Sander shares personal updates, including her recent travels to Japan and Australia. She also underscores the importance of supporting local fire departments in Woodland Hills following significant fire-related challenges in LA. Carrie urges listeners to contribute through local initiatives or organizations like the Red Cross Disaster Relief Fund ([03:10]).

3. Introducing Carrie Sander and Kellanova

Peter introduces Carrie Sander, detailing her extensive career at Target and Kellogg Company, culminating in her current role as Chief Customer Officer at Kellanova—a $13 billion snacking powerhouse spun off from Kellogg in October 2023. Kellanova oversees beloved brands such as Pringles, Pop-Tarts, Eggo, and Morningstar Farms ([09:07]).

Notable Quote:

"Kellanova is the snacking side of what we were at Kellogg, and our ambition is to be a focused snacking powerhouse." — Carrie Sander ([09:49])

4. Customer-First Business Strategy

Carrie elaborates on Kellanova's customer-first approach, encapsulated in the acronym SCALE:

• Solving customer problems
• Creating satisfying experiences
• Accelerating capabilities
• Leading with insights and innovation
• Elevating corporate responsibility and ESG commitments ([23:15])

This strategy ensures that customer needs are central to all business decisions, fostering mutual benefits for both Kellanova and its customers.

5. Joint Value Creation (JVC) in CPG

The conversation shifts to Joint Value Creation (JVC), a critical component for successful partnerships between CPG brands and retailers. Carrie outlines the essential elements of JVC:

• Aligned Vision and Objectives: Clear mutual goals and pathways to achieve them.
• Mutual Commitment: Shared dedication to the partnership's success.
• Measures and Milestones: Defined metrics to track progress.
• Agility: Ability to adapt and pivot based on learnings and market changes ([25:44]).

Notable Quote:

"Understanding that mutuality has to be there... if you're not able to provide that, then maybe you're not the right solution for what their need is." — Carrie Sander ([28:37])

6. The Current State of Retail Media Networks (RMNs)

Peter raises a pivotal question about the viability of RMNs beyond giants like Amazon and Walmart, noting that other RMNs collectively command only 15% of retail media dollars. Carrie responds by emphasizing four key areas RMNs must excel in to become strategic investment plans for national brands:

1. Scale: Adequate reach to attract significant brand investment.
2. Brand Protection: Ensuring consistent and resonant brand messaging.
3. Cost of Media: Balancing higher CPMs with effective targeting and reach.
4. Transparent Measurement: Real-time analytics for data-driven decisions ([32:32]).

7. The Role of Data, AI, and Insights in CPG

The discussion delves into the integration of Data Clean Rooms and AI-driven insights as essential tools for building effective audiences and personalizing marketing efforts. Carrie highlights Kellanova's structured process for leveraging data:

• Asking the Right Questions: Foundation for meaningful insights.
• Collaborative Analysis: Cross-functional teamwork to interpret data.
• Execution and Scaling: Implementing insights into market strategies.
• Continuous Measurement and Retooling: Iterative learning and adaptation ([36:10]).

Notable Quote:

"Insights always start with the right question or observation... making sure that we understand all the parts and pieces fit together." — Carrie Sander ([23:15], [36:10])

8. Future Trends and Strategic Focus

Looking ahead, Carrie identifies key trends that will shape the CPG industry in the next three years:

• Scaling of AI and Modeling: Enhancing personalization and value creation.
• Potential Integration with Mars: Kellanova's anticipated partnership to bolster its snacking portfolio.
• Economic and Administrative Changes: Monitoring how new administrations' policies may impact the industry ([38:40]).

She advises focusing on:

• Execution Excellence: Maintaining high standards post-pandemic.
• Critical Thinking and Problem Solving: Adapting to industry consolidations and evolving consumer behaviors.
• Data Analysis and Storytelling: Building compelling narratives around data-driven insights.
• Understanding RMNs: Developing expertise beyond conversion metrics to harness full funnel capabilities ([38:40]).

Notable Quote:

"We have to make sure that we're doing critical thinking and problem solving... understanding that and being able to be agile is critically important." — Carrie Sander ([38:40])

9. Closing Remarks and Call to Action

Peter and Sree express their gratitude to Carrie for her insightful contributions and reiterate the importance of customer-first strategies in driving growth and shareholder value. They encourage listeners to explore more content on cpgguys.com and engage with their community through various channels.

Closing Quote:

"We're looking forward to becoming part of Mars and furthering our journey of being a world snacking powerhouse... and ultimately value creation." — Carrie Sander ([41:12])

Key Takeaways:

• Retail Media's Growing Significance: Brands must integrate retail media into their omnichannel strategies to effectively engage consumers.
• Customer-First Strategies: Prioritizing customer needs through structured approaches like SCALE ensures mutual benefits and sustained growth.
• Joint Value Creation: Successful CPG-retailer partnerships hinge on aligned visions, mutual commitments, and adaptable strategies.
• Essential Role of Data and AI: Leveraging advanced data analytics and AI-driven insights is crucial for personalized marketing and effective audience targeting.
• Future Preparedness: Emphasizing execution excellence, critical thinking, and adaptability will equip teams to navigate the evolving CPG landscape.

Notable Quotes:

• "Retail media is rapidly becoming the go-to channel for brands, aiming to engage consumers with measurable performance along the path to purchase." — Peter V.S. Bond ([00:00])
• "Kellanova is not a bystander as an organization; they're taking action." — Host Commentary on Carrie's Philanthropy ([12:24])
• "We do not want to just be a bystander... If those aren't the ones for you, I'm sure you can find your own. But do something." — Peter V.S. Bond on Philanthropy ([22:24])

This episode offers a comprehensive exploration of customer-first business strategies within the CPG industry, emphasizing the critical role of retail media, data-driven insights, and collaborative partnerships in driving growth and adapting to market challenges.