Podcast Summary: The CPG Guys – Omnichannel Success in Fresh & Baked with Bimbo Bakeries’ Omar Haque

Episode Details:

• Title: Omnichannel Success in Fresh & Baked with Bimbo Bakeries’ Omar Haque
• Hosts: Peter V.S. Bond & Sri Rajagopalan
• Guest: Omar Haque, VP and GM of Omnichannel at Bimbo Bakeries USA
• Release Date: January 11, 2025

1. Introduction to Omar Haque and Bimbo Bakeries USA

The episode features Omar Haque, a seasoned expert in eCommerce and digital strategies with over two decades of experience. As the Vice President and General Manager of Omnichannel at Bimbo Bakeries USA, Omar oversees all aspects of shopper marketing and online eCommerce for the company, which is a subsidiary of Grupo Bimbo—the world's largest baking goods company.

Notable Quote:

Sri Rajagopalan ([01:08]): "Omar Haq is a deep, deep, deep expert... he leads E Commerce at Accelerator, a newly created standalone business unit of Bimbo Bakeries Group."

2. Evolution of Bimbo’s Omnichannel Strategy

Omar discusses the transformation of Bimbo Bakeries USA’s omnichannel approach. Initially part of the disruptive Accelerator group focusing on channel disruption, eCommerce growth led to the creation of a dedicated Omnichannel function two years prior. This strategic shift consolidated shopper and eCommerce functions to better cater to the modern shopper who interacts with both online and in-store environments.

Notable Quote:

Omar Haque ([06:07]): "We combined the shopper function and the E commerce function because we said, hey listen, the shopper is a shopper. The shopper shops online, shops in store."

3. E-commerce Performance in 2024

Reflecting on 2024, Omar shares that Bimbo Bakeries USA not only met but exceeded their aggressive eCommerce growth plans. While acknowledging that growth was not at the extraordinary levels seen during the COVID-19 pandemic, the company continued to outperform expectations. The fastest-growing segment was the click and collect model, where customers order online and pick up their purchases in-store.

Notable Quote:

Omar Haque ([08:33]): "The fastest growing modality has been click and collect for us... we are still above our plan."

4. Retail Media Networks (RMNs): Strategic Prioritization

Omar emphasizes the importance of strategically prioritizing investments in Retail Media Networks (RMNs). With numerous RMNs available, Bimbo Bakeries USA focuses on those that offer the highest growth potential and align with their budget constraints. The approach involves evaluating each RMN’s effectiveness and integrating their investments with overall marketing strategies to ensure optimal Return on Ad Spend (ROAS).

Notable Quotes:

Omar Haque ([11:36]): "Retail media is the most growing, as far as any investment. But we just need to be careful in how we spend."

Omar Haque ([12:07]): "We have to look at our total investment level per customer... see what makes sense."

5. Inventory Management in Omnichannel Operations

Addressing the challenges of managing inventory across multiple channels, Omar explains the implementation of a tentpole calendar to prioritize key promotional periods. This strategy ensures that inventory is allocated efficiently, avoiding overextension while maximizing synergy between different product categories and retailer partnerships.

Notable Quote:

Omar Haque ([13:52]): "We form the 10 pull calendar... then we look at what kind of activations we need to do either online or in store."

6. Retail Joint Business Plans (JBP) and Shadow P&L

Omar introduces the concept of Retail Joint Business Plans (JBP), where Bimbo Bakeries USA collaborates closely with retailers to align eCommerce strategies. To enhance accountability, the company employs a shadow Profit and Loss (P&L) system that integrates with the retailer’s P&L. This ensures that both parties recognize their contributions to growth, fostering a cooperative environment.

Notable Quote:

Omar Haque ([23:08]): "The shadow P and L works... it removes any unnecessary friction or politics within companies."

7. Strategies in Click and Collect

The click and collect model has been a significant growth driver for Bimbo Bakeries USA. Omar outlines tactics to enhance this experience, such as strategic partnerships with complementary CPG brands (e.g., pairing bagels with cream cheese and eggs) and optimizing in-store placement to facilitate easy and efficient pickup for consumers.

Notable Quote:

Omar Haque ([29:33]): "We need to look at all of that thing and what she's looking for to drive conversion to drive basket building."

8. Product and Technology Innovation

Omar highlights the dual focus on product innovation and technological advancements. Bimbo Bakeries USA leverages global insights to introduce successful products across markets and invests in technologies like AI-driven search platforms to enhance shopper experiences. Emphasizing loyalty and data analytics, the company seeks to refine its strategies continuously.

Notable Quote:

Omar Haque ([35:39]): "Loyalty and data are the two biggest tech areas I'm looking at."

9. Direct-to-Consumer (D2C) Initiatives

While D2C remains a smaller aspect of Bimbo Bakeries USA’s operations, Omar discusses past efforts and future aspirations. Initiatives like Sweetsnacking.com were explored to sell product bundles directly to consumers, though some were sunsetted due to operational challenges. Nonetheless, existing D2C channels, particularly in the salty snacks segment, continue to provide valuable first-party data and customer insights.

Notable Quote:

Omar Haq ([39:46]): "Direct to consumer excites me because I'm getting real data. I know who my consumer is."

10. The Role of Artificial Intelligence (AI) in Omnichannel

AI plays a critical role in Bimbo Bakeries USA’s omnichannel strategy. Omar discusses the use of machine learning for order management and explores the potential of generative AI (Gen AI) in content creation and shopper analytics. He remains optimistic about AI’s ability to enhance efficiency, optimize content, and provide deeper consumer insights, despite recognizing it as a current industry buzzword.

Notable Quotes:

Omar Haq ([40:53]): "I don't think it's a buzzword. I think it is the right tool to make sure that we can find efficiencies in the system."

Omar Haq ([41:17]): "I think we have just scratched the surface and I am very optimistic about the future and how my team can employ that or deploy that."

11. Conclusion and Wrap-Up

The episode concludes with expressions of gratitude towards Omar for sharing his expertise and insights. Hosts encourage listeners to engage with the podcast through various platforms and highlight upcoming events and educational programs in partnership with Cornell Tech.

Notable Quote:

Sri Rajagopalan ([44:38]): "Happy holidays to everybody. And to you too, Omar and that's the wrap of this episode of the CPG Guys."

Key Takeaways:

• Strategic Prioritization: Effective management of Retail Media Networks through strategic investment and prioritization is crucial for maximizing growth.
• Integrated Omnichannel Approach: Combining online and in-store strategies provides a seamless shopper experience and drives conversion.
• Data-Driven Decisions: Leveraging data analytics and shadow P&L systems enhances accountability and aligns business objectives with retailer partners.
• Innovation Focus: Continuous product and technology innovation, including the integration of AI, is essential for staying competitive in the evolving CPG landscape.
• Consumer-Centric Strategies: Emphasizing shopper needs and behaviors ensures that marketing efforts are aligned with consumer expectations and drives basket building.

This episode offers a comprehensive look into the omnichannel strategies that drive success in the fresh and baked goods sector, providing valuable insights for CPG professionals aiming to enhance their eCommerce and retail media initiatives.