How AI and Big Data Can Help Consumer Goods Companies Run Profitable Trade Promotions?
February 06, 2019 / insideBIGDATA
The Consumer Goods industry( CPG) is both diverse and complex, making profitable trade promotion optimization a herculean task for CPG companies. The 5Ps of marketing involved in the CPG industry are varied and complicated, making it virtually impossible to drive 360-degree data driven decision making. A report by Nielsen Holdings confirms that 40% of CPG trade promotion spending doesn’t drive the desired results while 59% of trade promotions globally don’t break even. Yet another study by Booz Allen Hamilton reveals that most manufacturers lose nearly one-third of the money they put into trade promotions. However, optimizing trade promotions can be game changers for the CPG industry. Economic Times Retail reveals that a 15% improvement on Trade Promotion ROI will improve the top line by 10% and operating margins by 3-5%. Organizations want to run profitable trade promotions, but aren’t quite sure how to get the momentum going.