1.2 Predictive Analytics In Tesco
2.1.2 Predictive Analytics
Consumer-goods companies have traditionally used historical performance, channel demands, and gut feel to determine price, promotions, assortment, and replenishment. Now companies should start to turn to predictive analytics to refine this decision making. One CPG company mines a massive database of historical point-of-sale and promotions data, integrated with real-time data from social media and weather forecasts, to predict daily demand by store and optimize assortments and promotions in order to maximize sales and profitability.
Tesco systematically integrates analytics and consumer insights to build a sustainable competitive advantage. By analyzing data from its Club card loyalty program (which comprises more …show more content…
Adopting this approach has required companies to develop new algorithms to integrate near-real-time demand data with traditional forecasts and develop new IT systems to facilitate data sharing with customers and …show more content…
As CPG Companies increase spends on digital marketing, measuring the value gained from the initiative can be a challenge. Operating in multiple geographies and dealing with multiple brands, CPG Companies traditionally work in silos. There is a proliferation of digital assets that are high on creativity, but lacking in discipline, centralization and efficiency. Most CMOs struggle to gather the ROMI numbers in such a disjointed setup. CPG companies require a unified customer database and a secure, robust platform that captures all consumer interactions across channels.
The platform must also drive usability and speed. As digital marketing becomes more prominent, a company needs to tap into past assets and reusable components. This provides CMOs with the speed and agility they require to lower time to market and cut costs, ensuring that the CPG Company is extremely competitive and effective. A leading CPG company with global brands and 70+ creative agencies embarked on a transformational journey to deploy a digital marketing platform two years ago and were able to lower costs by 25-30%, and reduce speed to market from months to weeks to days. It now has a unified view of the consumer, allowing micro-personalization, and it has been able to introduce new tools that allow further
Consumer-goods companies have traditionally used historical performance, channel demands, and gut feel to determine price, promotions, assortment, and replenishment. Now companies should start to turn to predictive analytics to refine this decision making. One CPG company mines a massive database of historical point-of-sale and promotions data, integrated with real-time data from social media and weather forecasts, to predict daily demand by store and optimize assortments and promotions in order to maximize sales and profitability.
Tesco systematically integrates analytics and consumer insights to build a sustainable competitive advantage. By analyzing data from its Club card loyalty program (which comprises more …show more content…
Adopting this approach has required companies to develop new algorithms to integrate near-real-time demand data with traditional forecasts and develop new IT systems to facilitate data sharing with customers and …show more content…
As CPG Companies increase spends on digital marketing, measuring the value gained from the initiative can be a challenge. Operating in multiple geographies and dealing with multiple brands, CPG Companies traditionally work in silos. There is a proliferation of digital assets that are high on creativity, but lacking in discipline, centralization and efficiency. Most CMOs struggle to gather the ROMI numbers in such a disjointed setup. CPG companies require a unified customer database and a secure, robust platform that captures all consumer interactions across channels.
The platform must also drive usability and speed. As digital marketing becomes more prominent, a company needs to tap into past assets and reusable components. This provides CMOs with the speed and agility they require to lower time to market and cut costs, ensuring that the CPG Company is extremely competitive and effective. A leading CPG company with global brands and 70+ creative agencies embarked on a transformational journey to deploy a digital marketing platform two years ago and were able to lower costs by 25-30%, and reduce speed to market from months to weeks to days. It now has a unified view of the consumer, allowing micro-personalization, and it has been able to introduce new tools that allow further