In today’s market, granular consumer targeting can mean the difference between a company’s long-term growth and stagnation in the marketplace. In recent months, GMA has partnered with Deloitte to complete a comprehensive study of how ‘Big Data’ and growth analytics can be used by CPG companies to make faster, smarter decisions in everything from marketing and merchandising to out-of-stock replenishment.
Big Data, defined as data that appears in high volume, velocity or variety, encompasses the billions of data points generated every hour from Facebook likes, shopper loyalty cards and other digital activity. These data points can be analyzed and allow for corporations to microtarget marketing to specific groups and demographics based on their individual, documented buying patterns.
The goal of GMA’s Big Data project was to identify Big Data opportunities in the CPG industry, while simultaneously assisting companies in improving their analytical capabilities to facilitate more sound decision making to improve their bottom line. In May, an interactive report summarizing the Big Data project was published on the GMA website. The five specific conclusions and recommendations identified in the research are:
1. Few Have the Required Analytical Foundation in Place
Over the last decade, most CPG industry firms have not expanded beyond localized analytics; however the companies that have improved their analytical companies have the foundation required to harness the new sources of Big Data.
2. Rapid-Fire Pace of Innovation Requires Data and Analytics Competency
The rapid-fire pace of technological and digital innovation has the potential to define winners and losers in the CPG industry. Big Data analytics is a requirement for future winners.
3. Industry is moving from linear change to exponential disruption
In the past, a CPG company’s competitive advantage had little to do with analytical maturity. However, navigating the current landscape of exponential innovation facing companies today will require the effective and efficient use of Big Data analytics.
4. Business Context Required – Integrated and Cross-Functional Business Planning & Execution
The “Formula for Growth” has the greatest impact when applied in the context of cross-functional and integrated business planning and execution. Both big and small data can be used to facilitate better decision making and allowing companies to achieve their top-and-bottom line growth objectives.
5. Cultural Shift - The Characteristics and Traits of the New Industry “Winners”
The current pace of innovation has lead to a culture of experimentation. Data and analytical maturity is one of the key differentiators between a CPG company that effectively navigates this new era of innovation and those who are unable to keep pace with the “exponential” rate of change facing organizations today.
For more information on Big Data, click hereto view the full interactive report.