The Consumer Goods Sector is Mature & Realizing Significant Margin Compression

Topics: Analytics

The Consumer Goods Sector is Mature & Realizing Significant Margin Compression

The Industry Dilemma

The Consumer Packaged Goods sector is mature with significant margin erosion over the past 10 to 15 year period. The trade promotion investment has increased over this period of time to represent approximately 23% of gross revenue. The return on investment is eroding and increasingly more difficult to quantify, resulting in significant inefficiency and ineffectiveness of this trade investment.

The T-Pro Solution

By utilizing both the historical data and predictive lift coefficients within the “What If” scenario planner, clients have the ability to accurately plan and predict trade promotion spending. The predictive scenario planning function of T-Pro Analytics takes multiple variables into consideration for an accurate analysis.

 

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