Applying Analytics to Consumer Packaged Goods
For CPG brands, a rapid response may be needed to adapt to market changes. According to Ixpantia’s article, “Advanced Data Analytics in Consumer Packaged Goods Companies,” there are substantial use cases and scenarios where CPG needs to adapt to changing consumer needs and expectations.
“With the rise of digital channels and shifting consumer preferences, analytics provides the agility to respond to these changes effectively and in real-time,” observes Ixpantia. “This industry features a very high ‘transactional intensity’ across its operating model, from production to sales to distribution. Saving even fractions of a cent on costs, optimizing prices, or streamlining logistics—when multiplied by millions or billions of instances—can accumulate and have a significant impact. This creates a prolific environment for data-driven insights that lead to decisions and actions at scale.”
Use cases in CPG can include a broad focus on market segmentation and personalization. Ixpantia notes that advanced use cases can include integrated business planning, portfolio planning, revenue growth management, precision pricing, promotional effectiveness, assortment and channel optimization, suggestions and recommendations, commercial execution, supply chain transparency, and production efficiency.
The Intersection of Analytics & Insights
All Things Insights explored this topic further in, “Driving Analytics & Insights Action.” At this year’s TMRE @ Home virtual event, Shivani Shah, National Category & Shopper Insights Manager, H&WB, Church & Dwight Co., Inc., presented the session, “Data Analytics and Insights in Action.” The presentation was part of the Intersection of Insights & Analytics Summit during the event. Shah discusses the nature and power of the intersection of analytics and insights, its impact on organizational results, and delves into a few specific retail use cases that leverage analytics and insights to drive action.
Looking forward to TMRE 2024? The conference, which will be held October 8 to 10, will feature the session, “Data Analytics and Insights in Action for CPG,” also presented by Shah. Corporations are investing in data, analytics and insights capabilities at staggering levels. The rate of spend is likely to accelerate going forward, keeping pace with advancements in AI and other tech capabilities, as Big Data and CPG worlds intersect. Unlocking the value of data, analytics and insights lies in actionability that drives growth. In this session, we will explore this and look at some use cases of their intersection to inform action. Register for TMRE 2024 here.
Fueling Action
Data analytics and insights have become indispensable tools for CPG companies, providing the foundation for informed decision-making and driving strategic initiatives. We asked Gemini how these insights can be leveraged to fuel action:
1. Understanding Consumer Behavior
- Predicting Trends: Analyzing consumer purchase data can help identify emerging trends and anticipate future preferences.
- Segmenting Customers: By segmenting customers based on demographics, behaviors, and preferences, CPG companies can tailor their marketing and product offerings.
- Measuring Brand Health: Tracking metrics like brand awareness, loyalty, and satisfaction can help assess brand performance and identify areas for improvement.
2. Optimizing Product Development and Launch
- Identifying Market Gaps: Analyzing market data can reveal unmet consumer needs, allowing CPG companies to develop innovative products.
- Testing Concepts: Using data to test product concepts and prototypes can help refine product offerings before launch.
- Predicting Sales: Forecasting sales can inform production planning and inventory management.
3. Enhancing Supply Chain Efficiency
- Demand Forecasting: Accurate demand forecasting can optimize inventory levels and reduce costs.
- Identifying Supply Chain Bottlenecks: Analyzing supply chain data can help identify inefficiencies and improve operations.
- Optimizing Distribution: Data-driven insights can inform distribution strategies and ensure products reach the right markets.
4. Improving Marketing Effectiveness
- Targeting Campaigns: Understanding consumer preferences and behaviors allows for more targeted marketing campaigns.
- Measuring ROI: Tracking the performance of marketing initiatives can help measure ROI and optimize marketing spend.
- Personalizing Customer Experiences: Leveraging data to personalize marketing messages can enhance customer engagement and loyalty.
5. Pricing Optimization
- Dynamic Pricing: Analyzing market data and consumer behavior can enable dynamic pricing strategies that maximize revenue.
- Competitive Analysis: Understanding competitor pricing can inform pricing decisions and maintain market competitiveness.
The Power of Data-Driven Decisions
By harnessing the power of data analytics and insights, CPG companies can make data-driven decisions that improve product development, optimize supply chains, enhance marketing effectiveness, and ultimately drive business growth.
In the fast pace and modern business ecosystem, CPG companies cannot afford to be left behind. As Ixpantia puts it, “The use of advanced analytics in the consumer-goods sector is not just about adopting new technologies; it’s about ingraining data into the DNA of business processes to steer companies toward a future of growth, resilience, and adaptability.”
That call to action is to either fully tap into the power of analytics with actionable insights or get left behind, relates Church & Dwight’s Shah. “Just a quick glance at the power of data and analytics, and what unleashes it, is when insights drive revenue. For insights to drive revenue, they must be diagnostic and predictive in nature and have actionability and agility.”
