Business Intelligence

Widespread acceptance of big data, predictive analytics influences CPG manufacturers, retailers

By February 23, 2017 No Comments

Consumer packaged goods are a staple of the overall market, filling a number of roles in terms of convenience of use, easy access for purchase, shelf stability and many other consumer desires. The ubiquity of CPGs doesn't make the companies that produce or sell them immune to the pressure of change. The preferences of shoppers constantly shift, and the industry is moving through a period full of technological advancements. Solutions like business intelligence software and data warehousing services have a major impact on the operations of CPG companies, helping them stay in sync with changing consumer habits and take advantage of the benefits new technology has to offer.

"More effective product marketing is one of the most immediately visible advantages of predictive analytics."

Kroger buys into predictive analytics
Midwestern grocery giant Kroger recently merged its internal consumer insights division with an outside predictive analytics firm, Progressive Grocer pointed out. This move allows the grocer, which produces about 40 percent of its CPGs in house in addition to its retail operations, according to the Cincinnati Enquirer, to develop a clearer, more actionable picture of supply, demand and a host of other short- and long-term metrics. A single source of data for a wide variety of operational needs, from stocking to marketing and product development, was another major benefit of the deal.

One of the most practical benefits
The IBM Big Data & Analytics Hub highlighted one of the most practical advantages of of predictive analytics for companies connected to both production and end-user sales of CPGs: more effective product marketing. The article cited Ahold USA, a Northeast-based supermarket group, for its ability to utilize recommendation engines and suggest additional relevant products to consumers, an effort made possible through predictive analytics. The company tapped into the same sort of data and automated workflows that allow e-commerce retail giants like Amazon to offer eye-catching items and can now make recommendations in the present while stockpiling related data for future efforts.

Aviana knows what it takes for businesses in the CPG industry – from the businesses that manufacture them to the companies that sell them to individual consumers – to make the most of current predictive analytics solutions. Our experience in working specifically with CPG organizations means we understand the unique facets of this market and can help businesses develop useful, reliable, far-reaching predictive analytics solutions. To learn more about how predictive analytics and big data can help your business, visit our dedicated CPG industry page.

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