marketing consumer product goods in a shifting supply chain environment sameday delivery and future drone delivery 2168 9601 1000211

Keywords:

Consumer product goods; Omnichannel supply chains; Drone delivery; Showrooming

Introduction

he marketing of consumer product goods (CPG) is changing due to emerging delivery options and modes in the supply chain. hese are emergent delivery solutions and logistical modes such as the same-day delivery service and the developing drone-based delivery models being proposed by retailers such as Amazon. Traditionally, marketing as a business function focused on fundamental elements such as pricing, product, placement and promotion while online marketing considered further elements including communication, community and commerce [1]. While all of these elements are still certainly useful, marketing within the context of contemporary CPG production, distribution and sales has become much more sophisticated in nature. here are major cost eiciencies that now must be gained through supply chain and logistics solutions in order to remain competitive in the CPG marketplace. Basically, if a CPG competitor fails to achieve these eiciencies in the supply chain then, regardless of product quality and demand, it will fail to remain competitive with its peers in whatever segment its product or products compete in.

CPG manufacturers, distributors and retailers work within a highly complex environment. he CPG environment is governed increasingly by the mechanism of globalization in which the supply chain and logistics management govern success or failure of a range of industry competitors. hose CPG irms, whether manufacturers or retailers, that cannot increase eiciencies through transportation and distribution in order to control cost are destined to fail. Typically, CPG manufacturers and retailers then deal with a host of competing factors

within the context of the supply chain and logistics function which might be summarized by the following elements [2,3]:

1. Customer related factors:

a. Order/fulillment cycles

b. Product development pipeline

c. Time it takes to get to market

2. Eiciency related factors:

a. Productivity of workers

b. Cost of transportation

3. Asset related factors:

a. Warehouse and transportation utilization rates

b. Inventory movement

*Corresponding author: Fadye Saud Alfayad, Management and Information Technology Department, Jubail Industrial College, Saudi Arabia, Tel: +966 13 340

2000; E-mail: fayad_s@hotmail.com

Received January 15, 2017; Accepted January 23, 2017; Published January 30, 2017

Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting Supply Chain Environment: Same-Day Delivery and Future Drone Delivery. J

Account Mark 6: 211. doi:10.4172/2168-9601.1000211

Copyright: © 2017 Alfayad FS. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Marketing Consumer Product Goods in a Shifting Supply Chain

Environment: Same-Day Delivery and Future Drone Delivery

Fadye Saud Alfayad*

Management and Information Technology Department, Jubail Industrial College, Saudi Arabia

Abstract

c. Cash reporting cycle on the balance sheet

All of these various elements are important to the overall management and eicient oversight of the supply chain. Logistics tend to determine whether or not a CPG manufacturer, distributor and retailer will be proitable or not.

Within this type of sophisticated milieu, consumers are consistently demanding immediate or near-immediate fulillment. Fulillment is not completed until the product that is ordered is actually received and this has always been one of the main advantages that on-ground retailers had over online retailers. Yet, presently, on-ground retailers are integrating online retailing in order to meet their consumers’ demands vis-à-vis more immediate gratiication. All of these developments have led to increasing pressures on the traditional retail supply chain and logistics networks such that “last mile” delivery modalities now populate both the retail supply chain and the marketing messaging of many retailers [4]. hese issues involving such last-mile delivery modalities such as same-day/next-day delivery services and emerging drone-based delivery services are examined in the context of the marketing function in this report. he result is that the supply chain for most CPG retailers has now expanded beyond the limitations of cross-channel retailing, multi-channel retailing and similar multimodal supply chain models that all end at the retailer. Presently, CPG retailers, both on-ground and online, are attempting to develop modalities that extend to the supply chain directly to the consumer’s front door as it were which is framed in the context of the omnichannel.

Shiting Supply Chain

Traditional supply chain conigurations are rapidly disappearing. Traditional supply chains being deined as those with ixed distribution points moving from a production facility, to distributor, to a retailer or a wholesaler and then inally to the consumer. Instead, the contemporary supply chain is one that now focuses on what is referred to as “all-channel fulillment” in which a purchase by a consumer, whether in the retail location or online, results in CPG fulillment from the most convenient supplier point available which includes in-store stock, direct from warehouse, direct from supplier or even customer pick-up at other locations [5]. In earlier retailing periods, this type of eiciency was achieved through drop-shipments in which a consumer would order some product that was not in stock and the order would

then be placed directly with the manufacturer who would then ship it directly from its own facility to the consumer. his is, conceptually, the same type of concept that is occurring presently with respect to same-day and drone-based delivery modalities except retailers are essentially drop-shipping their own products.

his focus on all-channel fulillment prioritizes the consumer while simultaneously allowing the retailer to lower cost, lower price and reduce inventories. he all-channel concept is essentially embodied in the concept of the omnichannel where product selection, delivery modality, delivery time, delivery area and product returns are all sutured together technologically and conceptually (see Appendix 1). Hence, the omnichannel consists of multiple channels being fully integrated into the retailer’s delivery model. he result being that inventories are moderated for it, marketing relects these new capacities and the consumers are aware of them. he omnichannel environment is, in almost every sense, a response to the pressures placed on the supply chain by online retailing. Speciically, online retailing epitomized by major online retailers such as Amazon have created entirely new dimensions of value propositions for consumers.

Value propositions are equivalent to value-added dimensions in retail sales. hat is, a consumer may by a product and the retailer includes a warranty or a service agreement at no-cost which is a value-added element to the sales transaction. his type of value proposition developed by Amazon in particular is one that is driven by lower price-points, greater product assortment and improved service delivery [6]. hus, one outcome is that the boundaries that previously deined sales and distribution channels have eroded. Much of this channel erosion is apparent in how retailing itself is evolving from on-ground to online evident in the following graph (Figure 1):

he evidence above reveals that even products once thought of as being exclusively limited to the on-ground space have now begun to shit into the online sales space. For instance, where once consumers considered clothing and furniture to be in the realm of on-ground shopping, this paradigm has now expanded to include online considerations. his shit is largely due to the ongoing development of the omnichannel that can meet consumer expectations while simultaneously meeting retailer value propositions.

It is apparent then that sales and distribution channels are no longer

as clear cut and deined in the online space as they have traditionally been for on-ground retailing. So pervasive has been this inluence of online retailing and the value proposition associated with it that even traditional retailers are now inding that sales and distribution channels for them have begun to blur. his blurring of sales and distribution channels for traditional bricks-and-mortar retailers is supported largely by their ability to partner with certain 3rd _{party transportation} and delivery services. hese 3rd _{party providers provide them with the} ability to deliver CPGs to their consumers in a way that has previously been either impossible or, alternatively, inordinately expensive for the retailer or the consumer or both. his access to alternative distribution and delivery channels is epitomized in the increasing use of 1 to 3-day delivery services. his conceptual outcome is demonstrated in the following graph which compares 3-day, 2-day and same day delivery modalities (Figure 2).

he cost associated with these services is increasingly absorbed by retailers as a means to entice their consumers to purchase from them.

In essence, the adoption of and cost-absorption of these services by retailers is recognition of their threat to their retail space by online retailers such as Amazon. Amazon has almost exclusively alone revolutionized the way in which consumers have thought about retail. For Amazon, it seemed to always recognize that there was a point of critical mass in the purchase decision of the consumer. his point of critical mass occurred where the price attractiveness would tip the consumer over the conceptual edge into accepting a delayed delivery as consequence of getting this lower price-point.

Same-Day/Next-Day Delivery Models

he logistics of managing same-day delivery is much simpler to manage than the marketing of same-day delivery. Same-day delivery services are now being ofered by many, if not most, major retailers both on-ground and online. For instance, some writers observe that, “Macy’s…the department store chain now ofers same-day delivery in eight markets, with plans to expand to more cities…” [7]. he point is that traditional retailers have had to ensure that they make many more CPGs available online through their websites in order to facilitate the showrooming phenomenon many consumers now prefer. In order to attract these consumers and placate their need for immediacy,

day delivery is fast becoming an expected option. Without such a same-day delivery option, consumers may not make the purchase decision based on the extremely low price-points that are achievable in the online environment versus the on-ground environment.

Essentially, same-day and next-day delivery models within the supply chain are a key expression of the emerging omnichannel concept. he traditional distribution center logistics framework within retail simply does not work in the context of emerging consumer demand, fulillment requirements and the omnichannel with its same-day/next-day integration demands. In fact, a fundamental reconceptualization of the distribution channel itself away from distribution centers to in-store fulillment is required.

Omni-channel fulillment has evolved from a primarily DC-based model to one that leverages all inventory nodes across the network, especially the store. For same-day/next-day delivery being demanded by omni-channel, stores oten provide the best fulillment option for retailers [8].

In other words, same-day and next-day fulillment of CPG purchases does not work well in the context of the traditional supply chain.

his requires that retailers who seek to market rapid fulillment of CPGs to consumers must irst invest in their supply chain and logistics operations. his demands an investment in the supply chain and logistics operations that is much more than merely using a 3rd _{party provider for the} same-day/next-day delivery but requires system changes in the logistics design because the products still must be delivered to the carriers in an eicient manner. he omnichannel forces CPG retailers to rethink where inventories are held with retail outlets now seen as distribution centers in some respect. Once retailers are able to make this type of conceptual leap in envisioning their retail spaces both as distribution centers as well as shopping centers, then the extension of the supply chain becomes very achievable. Retail outlets as distribution centers are a key in the establishment of the last-mile extension of the supply chain from the retailer to the consumer’s front door.

Drone-Based Models

he concept of drone-based delivery irst hit mainstream

consciousness when Amazon announced it was developing a drone-delivery system. Amazon has historically been a irst-mover with respect to technology systems and this initiative, while radical at irst blush, is in line with Amazon’s technologically focused innovation. Amazon’s drone-delivery model is referred to by the company as Amazon PrimeAir and is a system designed to deliver packages to consumers in 30 min or less within urban areas served by the system. Rather than purchase a drone delivery platform of the shelf, the company’s research and development division designed a purpose-built drone platform. his particular purpose-purpose-built drone delivery platform is unique to the company and is designed from the ground up to achieve the types of eiciencies and consumer satisfaction outcomes necessary with same-day delivery modalities (Figure 3).

Although relying on established drone technology and design, Amazon’s drone delivery vehicle is bespoke to the company’s unique delivery requirements. As Amazon describes the system, drone delivery will, “deliver packages up to ive pounds in 30 min or less using small drones. Flying under 400 feet and weighing less than 55 pounds, PrimeAir vehicles will take advantage of sophisticated ‘sense and avoid’ technology” [9]. he emphasis on drone delivery then is on speed of delivery, immediate gratiication for the consumer and technology leadership in the retail space.

However, Amazon is not the only major technology driven irm that is developing drone-based delivery models for CPGs. Another potential entrant into the marketplace that has the inancial and technological het to be successful is Google. Google recently applied for a technology patent detailing a complex drone-based delivery system for CPGs: “he drone lies to a local delivery box that is equipped with infrared beacon transmitters that help guide the drone to close proximity. he drone would then place the package into the wheeled box…Customers would then receive a notiication…” [10]. Fundamentally, this is a largely similar drone-based delivery system as Amazon’s. Yet, the business model behind it is remarkably diferent. Where Amazon’s drone-based delivery business model is a direct to consumer model, Google’s envisioned system is direct to warehouse and then to the consumer. In this fashion, Google’s drone-delivery system still retains what amounts to a warehousing layer within the supply chain system although the overall time-to-delivery is reduced through the drone-based technology.

Despite the signiicant inroads into drone-based delivery models for CGPs made by major technology irms such as Amazon and Google, there are diicult impediments to fully executing on this strategy. he technology actually exists to enact this drone-based delivery system in an of-the-shelf platform that can be purchased by any CPG competitor.

But the largest impediment is the regulatory and the safety factors that are associated with drone technology and use. One company, Matternet, which is a drone manufacturing company, explains that, “technical hurdles including short battery life…US regulators…prohibit drone lights beyond eyeshot of the operator if the devices lack collision-avoidance technology” [11] both place considerable constraints on full drone adoption by CPG irms. While Amazon and Google are both advocating US regulatory agencies to develop the regulatory policy relating to drone use, there is still substantial pushback against full implementation by regulators.

he use of drones within the logistics ield directly impacts how consumer goods are managed and distributed. Drones are providing supply chain managers with entirely new sets of tools that were previously not possible or, alternatively, cost prohibitive. For instance, researchers have found that manufacturing facilities, storage facilities with large yards and other outdoor logistics operations can beneit from the use of RFID sensor-equipped drones that are able to navigate these immense spaces eiciently and quickly [12]. Drones have the potential to become an invaluable tool in the management of supply chains and logistics operations. heir capacity to be operated remotely and, in the future, autonomously ensures that logistics will only become much more consumer product friendly. hese beneits to outdoor supply chain nodes can even be gained at large indoor facilities since drones are oten physically small, easy to operate and can hover in the fashion of helicopters [12]. Simply put, many indoor supply chain and logistics facilities are large, expansive areas in which products are stacked on multiple layer shelves to great height which means that some sort of automation and machinery must be utilized to retrieve it. Yet, drones can be designed to lit products from elevated spaces, deliver them to other supply chain event points and determine if product is where it is supposed to be.

Marketing Adaptations

Retailers, both on-ground and online, have long attempted to enhance CPG delivery to the consumer. For on-ground retailers, this was a mandate necessary in order to expand retail services required to maintain sales in the face of online retailers. For online retailers, CPG delivery was an added expense that either the retailer or the consumer had to cover and added to the cost of goods sold (COGS). herefore, many retailers in both formats began to sell and market their products with free shipping services either included outright or ofered ater a certain sale threshold was reached. Companies such as Amazon managed to achieve this free shipping threshold through sophisticated technology applications and strategies that utilized established delivery services. hese are solutions like “postal injection” in which Amazon developed: “It also ramped up a system called ‘postal injection’ in which it uses prediction algorithms and complicated network analysis to igure out how to deliver every package to the United States postal facility nearest a customer’s house” [9]. his type of postal injection works to realize eiciencies that actually require no real or tangible investment in supply chain or logistics related equipment. By simply delivering products to the nearest post oice the retailer can save what amounts to days to the overall delivery process. hese types of strategies enhance a retailer’s marketing strategy because the free shipping label on its CPG WebPages woos consumers who otherwise might have purchased on-ground due to cost-avoidance.

delivery process is expected to be. Much of this awareness involves speed of delivery, the convenience factor as well as the gratiication related to certain types (sizes) of products. In this regard, the table below positions consumer experience within the omnichannel framework from a marketing perspective. his juxtaposition between the consumer experience and the omnichannel framework can then be utilized to develop what amounts to a CPG’s marketing collateral which informs the consumer of the retailers’ series of core product delivery capabilities (Table 1).

As the information in this table would indicate, consumers may experience higher level of gratiication with alternative delivery modalities depending on the form factor of the CPGs they order. hese types of considerations must be taken into account when formulating the marketing messaging that accompanies a CPG retailers marketing collateral.

Showrooming

For some types of retailers such as furniture retailers, developing a showroom has been considered to be an essential part of their retail market space. Yet, for others that have not traditionally needed to develop and maintain an actual showroom, having one would be considered a liability. he term showrooming has emerged in the sphere of CPG retailing over the past decade or so. Showrooming involves the use of an on-ground retailer as a kind of display store for products that can be found online by consumers interested in them. In efect, showrooming has been deined in the research in the following manner: “consumers using a retailer as a showroom to view products in-person before buying them from an online retailer” [13]. In this regard, consumers who are viewing and researching some CPG online are hesitant to make the purchase without fully knowing what it is like.

Hence, there exists a dilemma in these consumers about whether

to make the commitment to purchase the product online or not. hen, in order to resolve this dilemma, the consumer goes to a suitable on-ground retailer in order to touch, feel and utilize the CPG in advance of the online purchase. hese types of consumers are noted for carrying their mobile devices directly into an on-ground, traditional retailer and, ater investigating the product, making the purchase online while still in-store. hese types of consumers have been termed “mobile-assisted shoppers” and are categorized into a series of ive groups (Figure 4).

As the igure above reveals, consumers engaged in showrooming come in all varieties. However, they are all united in their intent to make online purchases ater investigating the CPG on-ground.

3

rd

_{Party Retailer to Door}

he use of 3rd _{party providers to build out a retailer’s CPG} distribution network is well-established. Retailers specialize in the marketing of CPGs rather than the actual transportation and delivery of CPGs. hat is, retailers are not leet vehicle operators or intermodal transportation specialists nor should they be. A retailer is focused on managing the inventory, shelving and transaction processes related to selling the products that it sells and markets. However, retailers in today’s environment ind that they have certain advantages that retailers in prior eras did not have. hus, the current retail environment has witnessed the emergence of what are referred to as channel intermediaries which perform the following tasks [4,14].

1. Placement utility: ensure that a CPG is delivered to a consumer in a convenient manner

2. Time-based utility: ensure that a CPG is received by the consumer when desired

3. Form-based utility: ensure that the CPG is in a form that is usable (no need to be assembled, etc…)

4. Knowledge utility: ensure that information about CPG use, quality, return and maintenance is on-hand

5. Consequently, it is apparent that such channel intermediaries perform many of the traditional functions of supply chain participants. However, it is also evident that they also perform many of the services traditionally expected of the retailer and post-sales service providers as well.

Evolving Marketing Messages

Presently, it is diicult for major CPG retailers such as Amazon and Wal-Mart to fully beneit, marketing-wise, from emerging logistics

Cost Factor Performance

Inventory Higher than distributor storage with package carrier delivery

Transportation Very high cost given minimal scale economies. Higher that any other distribution option

Facilities and Handling Facility costs higher than manufacturer storage or distributor storage with package carrier delivery, but lowers than a chain of retail store.

Information Similar to distributor storage with package carrier delivery

Service Factor Performance

Response time Very quick. Same day to next day delivery

Product variety Somewhat less than distributor storage with package carrier delivery but larger than retail stores.

Product availability More expensive to provide availability than any other option except retail stores.

Customer experience Very good, particularly for bulky items.

Time to market Slightly higher than distributor storage with package carrier delivery.

Order traceability Less of an issue and easier to implement than manufacturer storage or distributor storage with package carrier delivery.

Return ability Easer to implement than other options. Harder and more expensive than a retail network

channels such as drone-based delivery. Drone-based delivery ofers a remarkable opportunity not only from the logistical perspective of the delivery channel direct-to-consumer but also from the marketing message itself. It seems fairly evident that, at least in the early stages of the model, consumers would be inclined to purchase CPGs just to experience the drone light and delivery [15]. Beneiting from this type of consumer stimulus in the marketing message is currently diicult because of the regulatory barriers that exist. Drone-based delivery involves unmanned vehicles operating in what is highly regulated airspace above urban areas. he problem with adoption of this type of delivery channel is, as previously observed, not so much technological as it is regulatory: “government regulators have still not established a framework for unmanned drones to be integrated into the national airspace” [16]. he management of airspace and particularly airspace over residential areas is an extremely sensitive topic. he issue has security as well as privacy implications that all must be dealt with prior to any sort of wide-scale adoption of the technology. Test markets may eventually be allowed but until then, the primary beneit of drone-based delivery models from a marketing perspective is the anticipatory nature of the service.

Social Media Channels

Social media has come to afect the retail environment in dramatic ways. Additionally, social media inluences the retail environment from all perspectives including the consumer side, the retailer/wholesaler side, the producer side and inally from the logistics side. For instance, public social networks such as Facebook, LinkedIn and Twitter have all been integrated into some intra-company and intra-industry supply chains as a means to share critical information among relevant parties and nodes along the supply chain such as product warnings, recalls and supplier/vendor updates and so forth [17]. hese public social media platforms provide a level of transparency and immediacy that is diicult to mimic in traditional IT infrastructures.

here are several other very tangible applications that can be immediately integrated into any supply chain management platform other than the ones mentioned above. hese alternative solutions for social media use in the supply chain and logistics ield do not require extensive resource commitment. his is resource commitment in the form of technology redesign or upgrading because of social media’s inherently cross-platform features that are designed into them from their inception. Chiely, several inexpensive and decidedly non-resource demanding solutions for supply chain management that integrates social media solutions are the following [18].

1. Create social media accounts for all vendors and suppliers on Twitter or Twitter-like services which logistics workers use to post all delivery arrivals and departures in real-time.

2. Provide all transportation employees with the appropriate social media account necessary for them to post updates on road closures, accidents and traic issues on a real-time basis with photographs.

3. Review and update performance related posts for all vendors, suppliers and 3rd _{party service providers across the supply chain on} social media applications.

hese types of actionable social media solutions provide a sustainable competitive advantage to supply chain and logistics operators. his competitive advantage comes with little cost but great reward because of the capacity to essentially benchmark best practices and isolate data that might interfere with supply chain eiciencies.

Furthermore, there are emerging social media channels which are still in development that can improve supply chain and logistics operations. hese are social media solutions that cater speciically to the supply chain and logistics industry such as Sourcemap. Sourcemap is an enterprise social network which supports conceptual mapping of supply chains that integrate not only 1st _{tier but also 2}nd _{and 3}rd _tier suppliers/vendors, producers and manufacturers [19]. his conceptual mapping goes much further than merely building a graphical representation of a supply chain. Rather, Sourcemap and similar applications facilitates collaboration among the supply chain nodes, use of local language sotware, tutorial integration, real-time discussion, worklow management and live-messaging in addition to the graphical representation of the supply chain [19]. his type of enterprise social media application combined with public social media applications has led to the rapid open-sourcing of supply chain management away from the closed-source enterprise resource planning (ERP) platform.

Upon initial examination, it might thought that social media and the supply chain and logistics ield are two completely diferent ields. However, social media and the supply chain environment tend to overlap in several important areas which mean that the potential utility for social media within the supply chain environment is immense. It must be understood from the outset that the sheer scale of social media use throughout the world makes it an attractive utility for supply chain and logistics management. According to a recent report by Pew Media, some 67% of the global population utilizes some aspect of the Internet and of these individuals it is reported that an estimated 76% of this group make use of some sort of social media service or application [20]. herefore, given this degree of social media use among the general population and its adoption by most irms, large and small, the potential integration into supply chain management processes is signiicant.

he elements that make social media so attractive for the general population are in fact the same elements that make social media so beneicial for supply chain and logistics operators. For instance, it is estimated that some 70% of businesses report utilizing social media in one respect or another although this is primarily for marketing and public relations purposes [20]. In efect, social media is both pervasive and readily integrated into a irm’s technology platform and operations that are already fully established. Of course, achieving full and efective integration of social media into existing supply chain and logistics operations requires a great deal of organizational discipline.

via social media platforms in an unobtrusive way that promotes supply chain eiciencies.

Conclusions and Observations

his report attempts to characterize the way in which the contemporary retail environment is privileging the omnichannel supply chain. Traditional and even more recent supply chain conigurations such as multi-channel supply chains all integrate the established use of distribution center and hub mentalities in the logistics ield. However, as the research has indicated, CPG retailers are developing emergent supply chain conigurations that integrate diferent modalities and are extending the supply chain directly to the consumer’s front door. hese developing supply chain conigurations are referred to as omnichannel supply chains and they depend upon both in-house and 3rd _{party providers to institute same-day and next-day delivery services} for CPGs. Additionally, some major retailers such as Amazon are developing drone delivery modalities and technology companies like Google are not far behind. Of course, one of the major impediments to emergent delivery strategies like drone-based delivery lies not in the technology but rather in the regulatory policies that currently constrain its implementation.

It is clear that CPG irms beneit greatly from their ability to sale and market their products under the provision of enhanced delivery modalities. hese same-day and drone delivery modalities are a relection of the value-added approach achieved by the evolving supply chain and logistics environment. One of the most important but overlooked recommendations that can be made is that improved delivery modalities actually reduce the product lifecycle in some sense. his is the product lifecycle from production to delivery which means that CPG irms can book the sale faster than would otherwise be the case. his seems like a minor detail but over the course of a iscal reporting year on a irm’s balance sheet, the implications for free cash low are immense.

herefore, CPG retailers must now identify ways in which their marketing initiatives respond to the omnichannel attributes. hese marketing initiatives involve considerations made for how products might be packaged, product designs in which considerations are made for weight and form factor, and inally messaging directed at the consumer. Consumer messaging in particular must relect the purchase-advantages gained by the omnichannel for the consumer such as convenience, free-shipping when ofered and originality or irst-mover status of the delivery modality. In the end, all of these factors afect not necessarily whether or not a CPG retailer chooses to develop omnichannel distribution but whether or not the retailer beneits from it operationally and cost-wise. hus, as developments in retailing continue to evolve like showrooming and social media integration, CPG retailers must identify ways in which the omnichannel supply chain can be integrated with these emergent consumer behaviors and shopping patterns. Showrooming in particular can be integrated into the concept of last-mile delivery by the CPG retailer which enhances the immediacy of purchases made in-store but when inventory is not onsite.

Recommendations

One recommendation for developing marketing messages for CPGs that relect emerging supply chain and logistics developments relates to the delivery interaction itself. Many online and on-ground retailers do not give much thought to the actual moment of delivery of a CPG to a consumer who has purchased a product set for delivery. his moment

of delivery is one that occurs regardless of the delivery mode be it same-day/next-day delivery via traditional delivery modalities or emergent modalities via drone-based delivery. his moment of delivery actually provides a great deal of opportunity to strengthen the relationship with the consumer, lose the consumer’s trust or interfere with receipt of the CPG. his moment of delivery is described in the literature as one researcher discusses it in relation to the delivery of groceries: “Unattended home delivery enables grocers to deliver online orders regardless of whether the customer is at home or not. he shopping basket is placed in front of the customer’s home to be collected upon arrival” [22]. As this statement indicates, some consideration must be made by the CPG on if the consumer has to be home or not [23].

he CPG retailer has to give some consideration to the actual moment that the product is delivered. he value-added beneit of same-day delivery and emergent delivery modes such as drone-based delivery models is lost if no thought is given to the actual way in which this delivery occurs. hat is, the CPG irm must give some thought to what kind of moment should the retailer envision at the moment that this purchase transaction is inally completed. Ater all, the use of same-day delivery and drone-based delivery implies that the purchase portion of the transaction took place at an earlier period whether it be earlier on the same day or perhaps late in the day on the previous day. A lot can take place during the interim between when the transaction was initiated and when the transaction is inally completed at delivery. Hence, the CPG irm must recognize on how the delivery will occur if the consumer is not at home or at the place of delivery. If a signature is required for example then the entire convenience factor in the same-day and drone-based delivery is lost. he consumer might as well have gone to the store and picked up the product rather than wait for it only to be taken back to the delivery company’s warehouse for the night.

his is a question of understanding if the consumer needs to sign for the package or, in the case of drone-delivery, does the consumer have to facilitate the drone’s landing or drop-of of the product in some fashion. Ater all, if the CPG retailer enacts an ineicient omnichannel fulillment strategy, it loses the marketing message beneit of the service. In essence, the convenience advantage marketed by the same-day/next-day and drone-based delivery modalities is lost if the consumer is inconvenienced by the methodology. Consequently, the recommendation is that irms intent on implementing omnichannel supply chain and logistics technologies enhance these solutions through both technological and policy means. Same-day and next-day delivery of CPGs has been in place for some time with some deliveries requiring signatures and others not.

In the future, convenience can be enhanced by notifying the consumer of a delivery through the use of image or video conirmation of the delivery and in the case of future drone deliveries, integrating satellite imagery and GPS mapping in order to conirm the practicality of drone drop-ofs at a given consumer residence. It is clear that some consumer residences simply cannot facilitate drone CPG delivery. For these consumers the marketing of same-day drone delivery would result in frustration as they discover at the point of purchase that this is not possible at their residences.

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Submit your manuscript at: http://www.omicsonline.org/submission Citation: Alfayad FS (2017) Marketing Consumer Product Goods in a Shifting

Supply Chain Environment: Same-Day Delivery and Future Drone Delivery. J