There is no question that today’s CPG manufacturers are inundated with data telling them almost everything they wanted to know about their customers. The data comes in and organizations try to decipher whether their past trade promotions worked. However, most CPG organizations do not tap into the full potential of this information by using it to optimize their next trade promotions.
According to the December 8 post, “Kroger’s Improved Analytic Capabilities Powers Merchandising Decisions” at RIS (Retail Info Systems News), the supermarket giant is rethinking the way analytics is used as a filter to make future decisions. In this way, Kroger is hoping to gain a competitive advantage by incorporating an in-house analytics team in promotional and demand planning.
The article quotes, Kroger EVP and CFO J. Michael Schlotman as saying, “’We certainly do a lot of predictive analytics with data we see not just inside our stores but overall in the economy, trying to figure out where the consumer is going’.”
It is a company’s ability to use their data in a timely fashion to break the internal focus on what they did that allows them to see a bigger picture of what is possible and what can be improved. When data is used only to assess what was done, it becomes stale; its purpose becomes to label success or failure. Instead, an organization’s data needs to be treated as a catalyst to spark thought and action that drives trade promotion optimization to increase revenue.
Kroger is harnessing its data as a foundational element in establishing itself as both a brand and retail leader. As such, their internal team becomes the voice of the customer. Competitors who are still flipping between spreadsheets trying to decipher whether last quarter’s trade promotions met the predicted return are missing out on valuable opportunities to make informed trade promotions decisions, maximize future returns and be leaders in their industry.
T-Pro Solutions wants to help CPG Manufacturers avoid stagnant and underutilized data. With our cloud-based trade promotion optimization predictive analytics tool, T-Pro Solutions empowers CPG Manufacturers to optimize their trade promotions spending through integrating data silos for real-time KPI analysis and applying predictive analytics for accurate calendar-based scenario planning. Furthermore, the elimination of disparate data sets is the catalyst for true joint business planning between manufacturer and retailer by creating a single version of true performance metrics.
See more about how T-Pro Solutions can help your organization optimize their trade promotions using predictive analytics by contacting Wayne – firstname.lastname@example.org - 484.241.0883
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