How Big Data Analytics solutions can help the FMCG industry achieve scalable architecture
Increasing awareness, easy accessibility, higher disposable incomes, changing lifestyles, digital intimacy, better infrastructure, high internet penetration, and affordable data-usage packages are key contributors to the growth of the FMCG sector in India.
Having said that, this industry is today dynamic, where customer demand fluctuates with disruptive trends and evolving tastes. The mass production and generalised marketing concepts of the past are slowly fading into the background.
The millennial population and the digital natives prefer new and innovative brands and customised products, and take informed decisions with research and peer recommendations before making any purchase.
The demand for omnichannel shopping experience is driving targeted digital marketing and fast innovation to cater to the changing business dynamics. FMCG companies are increasingly leveraging Big Data and Analytics solution as it plays an important role in value creation and achieving scalability of business operations and higher production in the dynamic marketplace.
It is important to mention that the Covid-19 pandemic has also accelerated the deployment of Big Data and Analytics along with other new-age technologies to address the unprecedented impact it triggered in consumers. The pandemic induced significant changes include, shifting patterns in purchases and consumptions, disruptions in supply chain, logistics and compliance.
The FMCG industry requires the flexibility to scale up and down with such market changes. To successfully cater to these shifts, data is the key!
Data provides insights into customer preference patterns, enables smooth functioning of supply chains, delivers the right product at the right time to the right customer at the right place, thus enhancing the purchase value and attracting new customers.
Big Data and Analytics is leveraged by FMCG companies and retailers to deliver data-driven insights for higher profits.
Data-driven decision making and operational efficiency
Data from customer activities and events are analysed with cloud technology and tools for accurate business decisions. It provides a comprehensive view of customer behaviour, enabling planning of targeted marketing campaigns.
Discounts and other offers can be effectively planned based on customer history and usage of specific products. Customer insights enable designing of products that positively impact customer experiences to gain the much-needed competitive edge.
Real-time customer engagement can be enhanced leading to customer loyalty. Yes, it is important to value customer data as a strategic one.
A McKinsey research report, prior to the pandemic, reveals that businesses using consumer behaviour insights outperform their peers by 85 percent in sales growth and more than 25 percent in gross margin. This is applicable even in the post-pandemic era.
Real-time visibility across supply chains
Lack of visibility into the supply chain operations and inventory lead to poor utilisation of the capacity, which is inefficient and cost consuming. A detailed, timely view of the operations can deliver dramatic improvements in business operations.
Predictive intelligence that is delivered with real-time visibility improves supply chain planning, enables dynamic routing, provides reduction in cost, improves downstream scheduling accuracy and enhances customer experience. Improvement in overall inventory management adds to the operational efficiency of the organisation.
A daily review of inventory levels, sales at retail or online platforms, cost of the products to get an understanding on fast selling and profitable goods, in addition measure the effectiveness of promotional campaigns can be accomplished with the solutions.
Effective brand positioning and messaging
Marketing campaigns and brand building exercises aim at improving conversions, productivity, and marketing ROI. Data duplication from multiple sources, delay in data availability, filtering, and retrieval issues prevent organisations from planning a robust marketing and branding strategy while facing the challenge of identifying the prospective target audience for campaigns.
Data lakes help integrate data from various sources, de-duplicate data, and interlink it to various applications for multiple purposes. The aggregated data drives effective marketing campaigns and performance metrics enable insights for more effective business planning through data visualization and analytics.
Analysis of trends and customer patterns help accelerate sales and cross-selling opportunities. Data analysis also reduces time to market for new products.
Big Data and Analytics capabilities should be built on business priorities where outcomes can be monitored and measured in addition to gaining insights on future market conditions. Today’s empowered consumers leverage data and technology to take control of their shopping experiences.
Consumer data that is not flawed is the lifeblood of any business and delivers valuable insights for better business outcomes and higher revenues. Adoption of Big Data and Analytics is promising as it powers FMCG companies to transform themselves from product-driven to customer-centric businesses.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)