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Consumer-packaged-goods (CPG) companies today are dealing with a lot of challenges, Most CPG companies are facing increasing complex environments that make it extremely difficult for them to construct business plans for the future. Challenges, faced by consumer packaged goods includes:
- Political and economic uncertainty
- Value-conscious consumers with fast-changing needs
- Intensified cost pressure due to retailer consolidation
- And the rise of hard discounters.
Against this backdrop, growth has been particularly elusive for the largest CPG players. During last four to five years large foods and other beverage manufacturer companies which account for about half of total category sales have remained stagnant, growing only 0.3 percent on average per year. On the other side, average size manufacturing companies have extended their sales by 2.9 to 3.8 percent and the small organizations increased their productivity by 10.2 percent.
It’s not surprising that many Consumer Packaged Goods companies focus on historical trends to make their decisions for their organization and most of them failed to run a successful organization due to those decisions based on outdated data information’s, but the worlds top-class companies look past yesterday and today are turning their vision to the future and making their decisions based on updated information through the use of Predictive Analytics.
The combination of Consumer Packaged Goods analytics and big data solutions offers retail and CPG companies a number of different opportunities to increase their productivity in an efficient manner. For example In portfolio strategy and product development, companies can get a more detailed understanding of consumer needs and attitudes and more precisely identify consumer segments, improving their ability to target the highest-value opportunities. By the use of consumer packaged goods analytics they can get more and more effective ways to measure the ROI for marketing spend for both traditional and the modern ways of marketing, and this is allowing them to shift marketing dollars to the most effective channels e.g. by using web resources a new way to understand the online customer. Through detailed analysis of products that are in the stocks of retailer can reduce out stocks and can provide better shopping experience to their customers and can easily increase their sales.