Consumers are feeling the stress
The world is facing unprecedented challenges from inflation to climate change—and consumers are feeling the stress. It’s on brands and retailers to understand the needs of consumers as quickly as possible. Any delay could be catastrophic for your business.
To put it simply, the margins matter. If you can find that one insight that separates you from your competitor, that could make all the difference.
Consider inflation. NielsenIQ survey data on consumers in the U.S. shows that there are five distinct segments of consumers based on how they intend to respond to inflation, as the chart below explains:
While 27% of consumers surveyed don’t intend to change their shopping behavior, a whopping 73% are looking for savings and are willing to switch stores, brands, you name it to cut costs during this difficult time. And this is just in the U.S.
Consumers around the world are feeling this pain. CPG companies need to know how they can grab the attention of consumers and hold it before that shopper pivots to a competitor’s product or opts for a store’s private label alternative.
Inefficiencies in the CPG industry
Inflation is the concern right now. But there will be more challenges as the world continues to change, making the ability to quickly pivot to adapt to market dynamics essential.
Through the strategic employment of advanced CPG analytics, CPG companies can become more flexible, cooperative, and innovative, allowing you to grow revenue and defend shares.
Just look at some of the stressors in the market:
- Valuable data in the market and profit pools between retailers and manufacturers are under pressure.
- Only one in four annual plans manage to create value for both CPG companies and their retail customers.
- Close to 60% of all promotions deliver no incremental value.
- New items are released every day, but only 30% manage to get sufficient distribution and rotation to survive. Product innovation is paramount for brands in times of crisis, but it needs to be carefully considered and backed up by data.
How advanced analytics can help
So how can advanced analytics help you resolve some of these issues? Analytics provides more evidence and data that can help you make the best possible decisions for your organization. NielsenIQ’s Advanced Analytics are designed in particular to diagnose what happened, predict what will happen, and prescribe what you can do about it.
For example, an assortment optimization program can deliver up to 20% in incremental sales and profit for both suppliers and retailers by reducing item cannibalization. A robust trade promotion analytic program can improve trade efficiency from the same promotion spending by 1% and improve operating profit by up to 7%.
Using our tools, you can:
- Identify and implement a product mix that meets the needs of your diverse market. No more guessing or throwing darts against the wall, hoping one will stick.
- Translate shopper and assortment strategy onto the shelf to ensure you maintain optimal share of space and positioning to increase sales.
- Drive incremental sales and better meet shopper’s needs with immersive reality tools to understand shopper behavior—which is more important than ever before in today’s inflationary climate.
This is the information you need to succeed in today’s climate. Consumers expect you to respond to them, but ask yourself, are you sure you’re really listening?