#102 Analytics in the FMCG Space

Today, industry experts participate in a discussion around analytics in the Fast-Moving Consumer Goods Space (FMCG). We open with a discussion of how millennial preferences have completely changed the FMCG market. Millennials are not typically drawn to one big brand; rather, they are more drawn to hyper localization; everyone wants a personalized product. Additionally, 40% of Millennials check online before even going into a store. All of this has significant implications for the FMCG field. Strategies will need to be developed to understand what people want before it reaches the market. We will see much more localized and customer-led strategies. Some easy to implement areas where we will undoubtedly see changes are: promotional spin, customer segmentation, and industry forecasting. Next, our guests talk about analytic capabilities. We are moving to do fewer things better because shoppers are expecting personalization, but businesses have to continue to be mindful of scale. There are many opportunities for retailers who are hoping to shift to a more centralized model; however, this is only possible if you have reliable data analytics, which enables you to implement things like automatic ordering and work few skews harder. Right now, our biggest challenge in analytic capabilities is how to tie all the data and tools together; we have tools for manufacturing, customer interest etc., but nothing that really ties all those insights together. The next step is to find ways to use advanced data on consumer opportunities at a localized level without losing the power of a company’s scale actually to bring things to the market. We wrap up the conversation with a discussion on promotional effectiveness. Here, the clunky companies are really at a disadvantage. They need to become more nimble and agile but hold the scale that makes them so profitable. Looking ahead, it's clear that purchasing behaviors will change; everyone will shop online. We need to get sophisticated and to the point where we can use promotional analytics to capture metrics like when are people shopping online the most and when are they really spending money. Enjoy the show! We speak about: [02:25] Introduction to Analytics in the FMCG Space [9:45] Key Learnings in Analytics Capabilities [19:30] Opportunities for Retailers [42:00] Data Analytics and Promotional Effectiveness Quotes: “Data is great, but only if you know what to do with it.” “The data assumes that consumers are rational, I assure you, they are not!” In promotional analysis, the art has to meet the science.” Thank you to our sponsors: Fyrebox - Make Your Own Quiz! RMIT Online Master of Data Science Strategy and Leadership Gain the advanced strategic, leadership and data science capabilities required to influence executive leadership teams and deliver organisation-wide solutions. We are RUBIX. - one of Australia’s leading pure data consulting companies delivering project outcomes for some of the world’s leading brands. Visit online.rmit.edu.au for more information And as always, we appreciate your Reviews, Follows, Likes, Shares and Ratings. Thank you so much for listening. Enjoy the show!