Changing consumer habits are rocking the boat for the Consumer Packaged Goods (CPG) industry. In developed markets, including the United States and Great Britain, limited population growth and wage stagnation have diminished revenue opportunities for CPG. In response, Strategy& reports, CGP brands have started splitting consumers into two key groups:
For discount chains, like Aldi and Lidl, and top-end companies, like Nespresso and Jo Malone, business is thriving because of this change in consumer behavior, but between these two extremes exists an entire segment of retailers and their respective CPG suppliers are suffering.
For CPG giants caught in a wave of digital disruption, it is simply not enough to win over a new grocery chain or reduce overhead costs. Instead, a consumer-centric business model is needed that uses location data to identify where CPG products fit within survivalists/selectionist socioeconomic divide, and then locates where to supply CPG products to ensure they appear to the right customers at the right time in the right locations.
Data-driven CPG leaders retain a competitive edge in today’s consumer-centric market by asking targeted questions such as:
These types of questions cannot be answered by past intuition-based strategies for raising brand awareness and loyalty. Many CPG companies do not possess the necessary technologies needed to merge internal and external data in order to answer these questions, but recent examples of companies implementing data-driven practices at various organizational levels suggests changes are in store for the CPG industry.
Here are a few examples of the way location data is transforming different roles within CPG companies.
For trade marketing managers preparing a product launch, understanding which retailers, wholesalers, and distributors reach certain audiences by location is key to the roll-out’s success. In this case, a Trade Marketing Manager needs to analyze which key grocery stores to partner with ahead of launching a new high-end shampoo brand. Using external transaction data (on credit card spending and ATM withdrawals), demographic data from the CARTO Data Observatory, and points of interest data, it is possible to identify which stores would be best suited to reach their target consumer profile: females aged 25 - 34 with a high disposable income.
Increased competition for household brands from “challenger brands” means that identifying optimal Points of Sale is crucial for a Brand Manager’s success. In this case, a Brand Manager is launching a new snack brand and has identified 20 to 29 year olds as their key target segment. In order to identify existing points of sale to flag to Account Managers and pinpoint key areas for them to recruit new ones, they are able to look at Millennial population density, relevant points of interest, and proximity to metro stations to guide their launch strategy.
With the sales area of a CPG business typically accounting for 15 to 30% of the workforce, the way that leaders manage their field sales operations - in an industry which is still heavily focused on offline transactions - is extremely important. A growing number of Sales Managers are starting to use their CRM data in a more sophisticated way, prioritizing accounts based on their location, lifetime value, and growth potential. SalesQuest, which integrates with Salesforce and Einstein Analytics, allows sales leaders to drive strategic Territory Management decisions around resource allocation, expansion strategies, and alignment.
Learn more about boosting field sales productivity with Location intelligence in our upcoming Webinar.Check it out!
Only 6% of CPG companies currently have a dedicated e-commerce supply chain team, and only 3% are able to fully track sales by channel, according to this BCG CPG report. A seismic Amazon-driven shift in consumer expectations means that supply chain network design is critical in keeping CPG distributors and their final customers happy. In this example we can see the potential for Operations Managers to use distribution centers, account locations, and routing technology to drive decisions around delivery assignment - drastically reducing mileage and the number of routes used.
When it comes to location, it’s time for different departments across CPG companies to roll up their sleeves and understand that Location Intelligence shouldn’t be limited to the analytics department. Understanding consumer behavioral data and its location context is critical, and these were just a few examples of the many use cases spread across different CPG verticals.
Want to find out more about the advantages of implementing Location Intelligence solutions across your CPG company? Join us at CARTO Locations.
Since their beginnings in 14th century Turkey, coffee and coffeehouses have had a significant cultural impact, and green, unroasted coffee is one of the most traded agricul...Use Cases
Socio-economic inequalities in the UK have remained persistently high over the last forty years. In the UK, the Gini coefficient, a commonly used measurement of inequality,...Use Cases
Every now and then at CARTO we see incredible maps that tell important stories about cities, organizations, our world and people. We spotted this one from one of our users ...Use Cases
Please fill out the below form and we'll be in touch real soon.