Highlights of the Case Study:
|Client||Our client, a leading player in the Asia Pacific region’s food and beverage industry, needed to identify target customers for its varied product portfolio.|
|Business Challenge||The client wanted to gain a detailed understanding of different consumer personalities to ramp up their marketing initiatives.|
|Impact||Quantzig leveraged its advanced analytics solutions to provide the client with a database system that had two separate categories – market data and customer data. With these inputs, the client could make informed decisions and identify the target audience suited to specific product offerings.|
Game-Changing Solutions for Food & Beverage Manufacturers with Artificial Intelligence:
With AI in the mix, the food and beverage industry are evolving rapidly, with consumers’ tastes and preferences changing quickly. This leads to an invisible shift in the target audience for individual products. The challenge lies in identifying this shift faster than the competitors. Brands are constantly monitoring consumer behavior trends to place the correct product in front of the right customer. This mandates the ability to identify the audience whose interest aligns with the available product offerings or services and invest accordingly.
Quantzig’s comprehensive customer analytics and sales analytics solutions provide real-time, data-based insights into profitable and reliable customer groups by analyzing purchase behavior. These insights can help businesses identify the highly individualized needs of customers and create a focused strategy for planning and executing targeted promotions, ensuring customer retention, and thus, achieving customer brand advocacy.
The food retail industry includes franchised restaurants and food chains which encompasses fast food outlets, eateries, retail outlets, grocery stores, and supermarkets. It also includes all businesses that sell food products to consumers. Key growth factors in the food retail industry include increasing health awareness among the global population, a rise in the consumer spending, and a surge in the price of agriculture.
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However, over the past few years, the global food retail space has greatly benefitted from the rise in disposable incomes and the growth in the domestic economy. In addition, the growing demand for natural and organic products has helped in the industry’s growth. As a result, leading food retailers are now focusing on adapting to the changing consumer needs to enhance their market share. Capitalizing on the valuable insights obtained from customer datasets is another potential area where food retailers are increasingly focusing on driving business value.
The food service sector is greatly affected by altering consumer preferences, economic volatility, and market dynamism. Consequently, leading food service companies are exploring ways to meet the relentless demands of their customers and improve the bottom line. The food service industry comprises of restaurants and leading food chains that aim at expanding their consumer base by offering low-cost options to the customers to replace home-cooked meals. Although the rising number of food chains contributes to the overall growth of the food and beverage industry, several factors may hinder its growth market in the coming years.
The global ready-to-eat food products market is segmented into three types based on the packaging, distribution channel, and product type. The high demand for ready-to-eat food products can be attributed to several factors such as the rise in urban population, busy work schedules, and on-the-go consumption habits. The rise in disposable income in emerging countries along with consumer preferences for healthy and convenient food are the other factors that are fueling the market growth.
However, unhealthy substitutes and low quality and taste along with a growing shift towards a healthier lifestyle are likely to hinder the growth of the global ready-to-eat food products market in the coming years.
Leading organizations are implementing customer analytics to monitor and decode consumer tastes and preferences. Also, organizations in the beverage industry are shifting toward fast, accurate, and reliable data to make informed decisions. In the beverage industry, customer analytics helps leading businesses reduce campaign costs by targeting the right customers and decrease attrition levels by accurately predicting customer behavior. Furthermore, leading businesses in the beverage industry can maximize the use of customer analytics to develop proactive campaigns to retain the right potential customers.
To drive loyalty, profitability and sustainable growth, companies in the beverage industry are approaching organizations like Quantzig. With years of expertise in offering a plethora of solutions, Quantzig’s customer analytics solution helps businesses segment the customers effectively and better understand the target populations. Also, Quantzig’s customer analytics helps companies create highly accurate predictive and descriptive models to identify the target customers that are most likely to respond.
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Customer Analytics Challenges Faced by F&B Manufacturer
A major manufacturer in the food and beverage industry located in the Asia Pacific partnered with Quantzig to find target customers for its varied product portfolio. The client wanted to understand the different consumer personalities to ramp up its marketing initiatives. The client approached Quantzig for support in analyzing consumer behavior and preferences and matching it to its existing product portfolio.
The growth of the wellness segment: Consumer preferences and attitudes are undergoing a major shift due to which the demand for the organic foods has increased considerably across industries. Also, factors such as increasing disposable incomes, changes in lifestyle, multi-cultural exposure, and a rise in the number of working women have significantly impacted the food retail industry.
Growing focus on private labels: With the rapid growth of competition in the retail industry, promotions and discounts are expected to play a crucial role in generating footfalls. Leading industry players, therefore, find it more beneficial to promote private labels and store brands to counter the impact of profitability. It is also essential for food retail industry players to innovate and adopt new business models to cater to the accelerating demand from various industrial segments.
The client wanted to include customer analytics as a part of their business strategy to outperform their competitors on the basis of key performance metrics, sales growth, and return on investment. With the customers becoming more informed than ever before, the client wanted to identify, attract, and retain the most profitable customers. The primary aim of the engagement was to utilize predictive analytics to analyze customers’ interaction with the brands.
The client was looking at refining their business strategies to optimize their marketing efforts and improve ROI. They also wanted to strategically plan their policies so as to improve customer satisfaction and boost profitability.
With the help of Quantzig’s customer analytics solution, the ready-to-eat food products manufacturer wanted to enhance their reach by expanding their customer base and by offering relevant services. Moreover, the client also wanted to streamline their campaigns and reduce the overall marketing costs. Some of the pain points of our client were as follows:
- Volatile supply chain
- Changes in consumption pattern
- Lack of structured data on target customers
- Identifying the target customers for specific products
- Changing market trends
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Revolutionary Customer Analytics Solutions for F&B Industry
Quantzig’s food & beverage analytics solution helped the client position its extensive range of product offerings in such a way that it covers audiences from 5-year-olds to working-class professionals. Big data analytics solutions can strengthen players in the food industry by providing them with critical decision-making information for product promotion, pricing, product development, and demand forecasting.
Other benefits include improved sales effectiveness, targeting the right customers, enhanced product innovation, higher margins and profitability levels, prolonged customer reach, enhanced marketing ROI, and improved loyalty and customer satisfaction. The Quantzig solution examined product portfolio databases and combined them with marketing and sales data to recommend customer preferences based on demographics.
Quantzig’s customer analytics solution enabled the food retail client to uncover major opportunities for market expansion. Our customer analytics solutions also assisted the client to sharpen their decision-making skills. It even led to a number of tangible benefits such as improvements in profit margins, identification of a competitive pricing strategy, and improvements in conversion rates.
Leveraging Quantzig’s customer analytics solution assisted the ready-to-eat food products manufacturing company in enhancing their service and product offerings to suit the needs of their customers. The solution offered also helped them garner insights that led to the development of a strategic plan that had the highest probability of engaging customers in relevant ways.
The solution also offered the following benefits:
- Reduction in customer acquisition and retention costs
- Enhanced sales force effectiveness by targeting qualified prospects
- Delivered higher returns on marketing and promotions investments
- Increased sales to new and existing customers
Key Takeaways of AI in Food and Beverage Industry
Quantzig’s artificial intelligence advanced analytics solutions helped analyze food consumption patterns, consumer spending history, and buying habits. All these inputs helped the client to arrive at detailed customer profiles that could be targeted for specific product segments. The F&B client could use these artificial intelligence data-driven insights to plan and execute its marketing and sales initiatives and spearhead its new product development (NPD) program.
- Identify target customers
- Enhance customer loyalty by offering suitable products
- Increase margins
- Generate insights for NPD
- Identify and cater to market trends
- Categorize market segments with the highest profit potential
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