BPM and Outsourcing Services for CPG Business
One of the most significant changes was the massive and swift adoption of digital. Market research for CPG companies can answer questions such as how your target consumer shops, which types of packaging draw their eye the most and how satisfied they are with your product. Use market research to help your CPG company develop better products, market them more effectively and increase your sales. It’s mostly an apparel company, but they certainty produce some CPG-like products. Instead, it opted to target high-end retailers and athletic stores, but even that is changing. Initially, a branded CPG company like P&G was hesitant to sell products through discount stores—as it believed the stores tarnished their middle-class identity. Many opted to sell smaller pack sizes and value options when dollar stores became a consistent revenue driver for manufacturers.
Is Starbucks a CPG company?
Starbucks is also rapidly extending its presence in consumer packaged goods (CPG). The portfolio now encompasses: 'craft' iced teas, energy drinks, a sparkling refresher range, Nespresso pods, coffee creamers – alongside Teavana tea, and ready to drink Frappuccinos, Lattes, etc.
P&G was a CPG company that manufactured a variety of household products that customers purchased at retail stores. GEP NEXXE is a uniﬁed and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artiﬁcial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage. Another point to consider is that consumers are very likely to turn to search engines, social networks, and individuals they trust for information about products. The posts that consumers see their friends commenting on and sharing on social media can impact their perception of your business’s products. For these reasons, the content you publish should give people something positive to talk about with each other. In fact, 92% of consumers rely on recommendations from family and friends before making a product purchase, according to a Nielsen Trust in Advertising Report.
What are business intelligence (BI) tools?
A vertically integrated CPG company would sell products to retailers and directly to customers via company owned stores or feature a robust direct-to-consumer/catalog model. In the case of Nike, it now has over 1,150 retail locations—each with an average revenue of $34 million. Horizontal integration is simply when a company in one category, expands into another category. In the case of P&G, it started in bath soap, moved to laundry soap, then paper products, coffee, potato chips, and even dog food. Each category may seem different, but the core business processes are the same.
Explore the impact of #brand health measurement including: how poor brand health can harm your company, how brand measurement can be incorporated to support business goals and more #CPG https://t.co/wHMwnLZJSw pic.twitter.com/hlUlnWpcrF
— Hanover Research (@HanoverResearch) November 10, 2022
In simplified terms, TDP is an aggregated measure of your product’s distribution. The truth is, business intelligence has become a catch-all term to refer to a huge variety of things–some more useful than others. And, like cpg accounting any tool, it has to be easy and accessible in order to gain any value from it. Across food and beverage companies, the 2021 Growth Leader rankings reflected themes related to snacking, indulgence, health, and wellness.
Exploring the ROI of PIM and MDM
Multiple legacy systems and the disseminated ownership of item attributes complicate the maintenance of accurate data records. The seeds for success are understanding drivers of revenue performance, allocating investments to influence outcomes, evaluating multiple scenarios in real time, and optimizing and automating revenue performance. These four ingredients yield faster, more fruitful innovation, bigger revenue and profit goals, a rise in operational efficiencies, and shrinking risks and costs. Many CPG companies are rethinking their business planning to address a host of disruptive trends, as they keep seeking more sources of competitive advantage to thrive in the modern market. So the issue has become, with all our advancements in technology and all the data we collect, that many companies–especially small companies–simply can’t use business intelligence tools.
- In fact, 92% of consumers rely on recommendations from family and friends before making a product purchase, according to a Nielsen Trust in Advertising Report.
- Using them properly and consistently leads to an increase in the volume, variety and complexity of data sources.
- While consumer packaged goods companies are evaluating technologies that will provide their businesses with new capabilities, they are also building strategic relationships.
- While ambition is to be lauded, you need to ground your business plan in reality.
Using them properly and consistently leads to an increase in the volume, variety and complexity of data sources. Managing it all to ensure teams are working efficiently by automating and streamlining data processes and workflows will deliver benefits such as improved collaboration and decision making. This will likely continue for the next 12 months as consumers use new apps, sites and social commerce to research and purchase CPG products online. While you can’t change the past, you can learn from it, in order to make the most of trends and opportunities ahead. While those we observed last year are equally relevant for 2022, the differentiator is consumer behavior is evolving faster than ever.
How to Do Market Research for CPG Companies
So that is a good but basic summary of trends and opportunities ahead for companies in the CPG space. Master data management is an excellent way for brands to prepare to capitalize on them. To understand true customer value, identify and mitigate risks and implement effective sales strategies, CPG makers need a single, unified view of their entire indirect and direct customer ecosystem. By creating a thorough understanding of all of these organizational profiles, hierarchies and relationships, MDM enables better, more informed decision making, and more cost-efficient processes and improved B2B CX. This includes product-level data attribution to extract, validate and share environmental, sustainability and origin information. This enables traceability and provides the ability to better measure and share data on corporate social responsibility, reinforcing trust in your company, products and brand. Almost 70% of consumers believe retail branded products are of equal quality to more familiar, comparable consumer brands.
For brands that had taken steps to anticipate and prep for evolving trends and opportunities, the journey was tough but navigable. Identifying where your sales & marketing teams have optimal POS coverage or gaps is critical in order to ensure category performance. Trade marketers use spatial analysis to understand where certain segments of consumers live, work or visit, visualizing shopper insights & shopper missions to understand how to expand & grow. Whether it’s tourists, commuters, soccer fans or families – using new location data to identify behavioural trends can be a competitive differentiator.
Three consumer trends impacting CPG companies in 2022
Data enrichment can alert marketers when needs are changing or expanding, as well as help them identify the right time to offer an additional product or service. This article will cover four key ways that CPG companies can use behavioral data to improve audience engagement and drive revenue. One reason that there’s such a big opportunity for new CPG businesses is that the millennial generation demands customized, personalized products. The big box CPG companies failed to prioritize innovation in their product development. According tomarket research firm IRI, the smallest CPG companies are the fastest growing segment while the largest players find sales lagging.
To find out more about Stibo Systems and how we can help build a trusted data foundation for success, visit stibosystems.com/cpg. A flexible cloud-native solution built on a proven integrated platform supporting industry standards is a good start. Look for an intuitive UX to enable both business and technical users to navigate quickly and easily. Features like best in class search, and the ability to build a multidomain hub for centralized access to all kinds of data will enable the solution to scale to meet constantly growing demand. Master data management’s ability to help resolve these data challenges and set the stage for success may not be as familiar to everyone.
Marketing plays a key role in this objective as CPG companies look to strengthen the association between consumers and their favorite brands. As consumer behavior continues changing, brands need to be able respond proactively and pivot quickly. A single trusted source of data enables businesses to efficiently share information with retailers and partners and meet their aggressive expectations and timelines. A common theme uniting these trends is a growing demand for business and data transparency. Consumers want more detailed information about products they buy (e.g., ingredients, origin, how/where they were made) and the brands and companies behind them.
The rise of e-commerce leaves CPG companies with more customer touchpoints to juggle — and more competition. Rather than only competing for shelf space in a retail store, many brands also have to position themselves against global competitors online. At a high level, a CPG company is a firm that manufacturers products that consumers regularly buy. It then sells those products to retailers, who sell them to the end consumer.