When it comes to implementing e-commerce on a wide scale, Mondelez International Inc. chief growth officer Mark Clouse puts into practice what he likes to preach. As an executive vice president and the executive in charge of e-commerce at Mondelez, the consumer brand manufacturer that makes such well-known food and snack brands as Oreo, Ritz, Triscuit and Trident, Clouse has ambitious plans to generate $1 billion in B2B web revenue in the next decade and transform Mondelez into a company that conducts much of its sales and marketing online.
“By 2020 between 3% and 10% of total consumer packaged goods sales will come from e-commerce,” Clouse says. “Our goal is to develop and build an industry-leading e-commerce snacks business.”
In 2015 Mondelez generated B2B e-commerce revenue of about $100 million, less than 1% of the company’s annual sales of about $34.24 billion. But Mondelez has ambitious plans to become a $1 billion web sales company by taking several steps to make e-commerce more of a strategic priority. “We’ve set up a dedicated cross-functional team responsible for the strategies and execution of our e-commerce plan,” Clouse says. “E-commerce can become one of the fastest growing platforms within our company.”
Next year, the company expects to double its B2B e-commerce revenue to about $200 million, he adds.
To generate more online business Mondelez is actively hiring at least seven full-time e-commerce managers with expertise in data analytics, digital marketing and other expertise. Mondelez also is using social media to generate more e-commerce sales among consumers and, in turn, develop closer ties to the distributors and retailers that sell its snack brands.
In May, Mondelez began working with digital advertising and marketing agency ChannelSight to install “Buy Now” buttons on Mondelez online posts, videos, and other content that appear on social media outlets including Facebook, Instagram, Pinterest and YouTube. For example if a viewer is watching a video on YouTube about the various ways to eat an Oreo cookie whole or to take the cookie apart and lick the filling, the viewer will see at the end of the video a “Buy Now” button that lets her select a list of three or four online retailers such as Walmart.com that stock Oreos. Viewers then have the option of buying the cookies online at Walmart.com.
By combining social media and e-commerce, Modelez is trying to generate more impulse buying online, drive more web sales for the retailers and others that sell its snack foods and generate bigger orders from sellers that buy online through the company’s B2B e-commerce site, Clouse says. Mondelez isn’t saying how much e-commerce revenue its social media initiative is generating. But so far Mondelez has worked with ChannelSight to place “Buy Now” buttons on content posted on social media outlets and various other related web sites in 25 major U.S. digital advertising markets. About 130 retailers have signed up to participate in the campaign.Favorite