How small CPG businesses can build a data-driven growth strategy - NIQ

How small CPG businesses can build a data-driven growth strategy


How small CPG businesses can build a data-driven growth strategy

As an emerging CPG manufacturer, there are a few advantages you hold over bigger companies. Small companies are often the driving force behind industry innovation. This is due to their openness to new ideas and ability to act quickly to make those ideas a reality. But, what does your growth strategy look like?

Succeeding in today’s market means understanding the impact of assortment, space, pricing and promotions. Then, identifying which retailers can help you become a category leader, and stay that way. That’s easier said than done for most SMBs.

(Spoiler alert: investment in data and analytics make all the difference.)

But read on to see exactly how investing in data and analytics empowers small and medium-sized CPG manufacturers to innovate smarter and grow faster.

SMB CPG Data-Driven Growth Strategies

As an emerging CPG company, growth is always on your mind. But, what exactly do you want to grow, and how do you plan on doing it?

The latter question is important, but it won’t help if you can’t answer the first. Maybe you want to gain new distribution. Maybe you want to gain shelf space with your current retailers. It’s important before you create your growth strategy to know exactly what your goals are, so you can measure and optimize the impact.

Here are three ways to maximize the impact of your growth strategy:

1. Set a Holistic Data-driven Growth Strategy

Members of high-performing organizations identify setting a data and analytics strategy as their number one key to success. And the proof is in the comparison to lower-performing companies. High-performing businesses are 57% more likely than their peers to report altering their long-term strategy in response to data and analytics. It’s this agility and reaction to data and trends that makes them high performers.

“In 2022, insights-driven firms will be three times more likely to outperform their competitors.”

(Source: Forrester) 

2. Build a “Data-first” Culture

Data is the most powerful tool for any CPG company. One of the biggest gaps between high-performing companies and the rest is that they incorporate daily data practices from the top all the way down.

“CPG companies must become fully insights-led in the next 5-10 years in order to maintain—let alone grow—market share. 89% of CPG executives agree that advanced analytics are critical.” 

(Source: Accenture).

Companies looking to emulate this model not only have to support their employees in becoming comfortable with data. But, perhaps even more importantly, they need to simplify and streamline the data and analytics tools offered to employees. Building data into your decision-making throughout your entire growth strategy will let you act early and intelligently to shifts in consumer demand.

3. Bring Data to Category Reviews

Growing an emerging CPG brand means convincing retailers to carry your products. This is made 10x easier when you have accurate data to back your claims.

Are you selling more products in a category than the competition? Maybe you deserve more shelf space. Is your sales velocity higher in one market than the competition? Maybe you should be in more stores in that market. With the right retail data analytics backing you, you can drive the narrative. This lets you turn the review into a showcase about how successful your brand is for the retailer.

To make this process easier, Byzzer recently introduced the Stories tool. This AI-powered tool will pull pertinent data and assemble a presentation for you. In just a few moments, you can have 95% of your retailer review presentation done using accurate data.

Treat Data and Analytics as an Investment

Building an effective growth plan hinges on your ability to access up-to-date and accurate data. That’s why it’s vital to understand how CPG data can help your business grow and dedicate a budget to investing in a good data platform.

Think NielsenIQ retailer data is beyond your reach? Think again. 

Talk to our experts about new options custom-built for emerging and growing brands alike. Don’t miss out on crafting a powerful retail-driven expansion strategy!