Harness The Power Of Business Intelligence & Analytics In The FMCG Industry

The advancements in Business Intelligence (BI) technology drive up and change every industry, including the world of Fast-Moving Consumer Goods (FMCG). Not only does this data-driven technology evolve and become more user-friendly and but also the tools to measure business performance across departments are getting more sophisticated. It analyses data and delivers actionable information to executives, managers, and workers to make informed business decisions and strategies.

The increasing applications of BI in FMCG Business reflect its incredible impact on the business. With their data integration process-Extract, Transform, and Load (ETL), BI tools give a single platform to Consumer Packaged Goods (FMCG) enterprises to connect their multiple sources of data and format that data into interactive data visualizations and reports. You can scrutinize these results in a variety of dimensions thoroughly to get crucial business insights.

Why Business Intelligence For FMCG Business Is Needed?

Consumer Packaged Goods business faces the constant challenge of juggling through building competent product portfolios, managing multifaceted supply chain networks, and ensuring compliance with increasing regulations and reporting requirements. Enterprises need to be reliant on accurate, in-depth market research, customized, targeted marketing campaigns, cost optimization, growth opportunities, a robust distribution network, and a sales force to drive the enterprise strategies and sales plans. These requirements demand extensive data mining and business analysis. Here, comes the vital role of BI Tools. They help FMCG enterprises to leverage immersive business insights with advanced analysis resulting in increased customer retention and loyalty, and hence business performance.

Let’s look at how Business Intelligence Solutions play a crucial role in solving the challenges encountered by FMCG companies.

Trade Promotion Optimization

FMCG or retail enterprises need to identify the right price and discount point to optimize sales promotions that maximize sales performance and return on investment (ROI) of newly launched products. BI Analytics Solution provides a model to understand the impact of demand drivers on historical sales volume by calculating base volume, ROI for historical promo events, and the ‘true’ cost of promotions. Enterprises can gain insights into the profitability of promotions across stores, regions, and products and enhance the ability to benchmark scheme performance.

Marketing Campaigns Analysis

In Consumer Packaged Goods business, prioritizing advertisements and promotions in favour of marketing channels that provide better ROI needs to calculate the ROI of historical advertisements spent across various digital channels (television, social media, Google ads), and print media, and understand consumer behaviour concerning advertising. With historical and predictive data analysis capabilities, the BI system helps to measure the impact of various marketing campaigns on sales and evaluate media effectiveness, ROI, consumer trends, and simulate what if scenarios.

Sales Forecasting

BI Tools allow you to predict sales volumes for different products and improve decision-making through aggregation and statistical scenarios analysis of data. It helps in identifying current market conditions and their impact on customer sales.

Store Segmentation Analysis

FMCG firms need to create propositions aligned to the geographical location, customer demographics, and preferences for identifying and segmenting stores based on traffic. By detecting market opportunities and trends through BI analysis, you can develop the right product mix, and improve store experiences and resource utilization across all stores.

Inventory Optimization

FMCG manufacturers and distributors can optimize inventory levels by taking into account all supply and demand variables by obtaining insights from vast volumes of data at the SKU location on a weekly/daily level. Power BI Applications help enterprises to align and transform different sources of data in standard and easy-to-use formats at a single platform thus improving inventory planning, forecasting, and execution capabilities across the organization.

How does ESS help FMCG Enterprises?

Eastern Software Systems (ESS) provides BI Services and Solutions designed on the best technology platform-Power BI helping FMCG clients to retain a competitive edge by seeking proactive ways to use new and comprehensive data sources in innovative ways. BI dashboards and reports for FMCG firms help you gain a better knowledge of your consumer data and provide insights that may change your product portfolio, customer segmentation, store planning, and revamp pricing structure.

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