The client: A leading animal feed manufacturer,
Area of engagement: Merchandising Analytics
The consumption of animal products and livestock raising make a crucial contribution to the economy as well as the nutritional well-being of millions of people around the world. Animal feed plays a pivotal role in the global food and beverage industry and is also the most substantial and essential component in ensuring the supply of abundant, safe, and affordable animal proteins.
The animal feed manufacturing sector is expected to reach an estimated 1 billion tonnes annually. The production and sale of manufactured animal feed products takes place in more than 130 countries and involves several skilled workers, technicians, managers, and other such professionals.
The Business Challenge
Company Description- A leading food and beverage industry client specializing in the manufacture and distribution of animal feed.
The animal feed manufacturer approached our team of merchandising analytics experts to help them leverage category planning-based solutions. The client was looking at developing a customer-centric merchandising strategy for pricing, promotion, assortment, and many such factors. Also, the animal feed manufacturer wanted to harmonize difficult and disparate data sources to create a unified view of the business units.
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The Solution and the Business Impact
Leveraging Quantzig’s merchandising analytics solution assisted the animal feed manufacturer 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 merchandising plan that had the highest probability of engaging customers in relevant ways.
Merchandising Analytics Predictive Insights
In today’s competitive business scenario, leading players in the food and beverage industry are continuously exposed to unlimited customer data and are pressurized to make decisions based on that data. Quantzig’s merchandising analytics provides actionable insights that help animal feed manufacturers manage their ‘on-the-shelf’ performance and enhance their overall merchandising effectiveness. Moreover, it also enables them to work smarter by making better-informed decisions as they are in a better position to understand their global business processes.
Animal feed industry challenges:
- Demand for local proteins- For major players within the animal feed manufacturing space, there is an increasing pressure to replace common protein sources like soybeans with less globalized ones. Also, the easy availability of local protein sources further fuels the demand.
- Use of GMO- Another factor affecting the growth of the animal feed manufacturing sector is the use of GMO. The worldwide acceptance of GMO will be a major factor in determining the growth of the market.
- Methods of feed production- About 300 million tonnes of animal feed is produced directly by using farm mixing techniques. This poses a major challenge as food safety authorities do not regularly audit mixing by farmers unless there is an issue.
Every animal feed manufacturer has a plethora of concerns that are focused on production, cost, and competition. Those who engage in preparing feed for the animals have an ever-increasing burden of issues that are largely beyond their reach. Therefore, it is essential to adopt specific practices that will help them enhance their overall business efficiency. Merchandising analytics is one such solution that will go a long way in assisting firms to improve their overall performance.