Summary:
• Client: Our recent client is a leading consumer good manufacturing company, headquartered in the USA with an annual revenue of $1Bn+.
• Challenges: The decision-makers of this FMCG company were unable to get a comprehensive view of their organization’s performance that could lead to faster decision-making and improved overall business performance. The client was facing challenges from static reports and standalone insights that resulted in outdated data, delays in informed decision-making, missed opportunities, and a lack of understanding of consumer preferences.
• Solutions: Our engagement with the client was focused on improving their data analysis and visualization capabilities. We helped them design and implement a dashboarding solution through cannibalization analysis that would allow them to track key performance indicators (KPIs) across their supply chain and sales operations.
Impact Delivered:
Our innovative solutions helped the client in
- 30% reduction in ad hoc analysis time
- Near real-time reporting
- Centralized view of portfolio
Industry Overview:
- The FMCG industry is a massive market with a global value of approximately $8.8 trillion in 2021, and it is projected to grow at a CAGR of 5.3% from 2021 to 2028.
- In this globally competitive business environment, the FMCG industry is a rapidly growing and dynamic sector that encompasses a wide range of goods, and much more.
- Consumers of FMCG sector have become more conscious of the products they purchase, leading to a significant shift in preferences towards products that are healthier, sustainable, and eco-friendly.
- Emerging markets are crucial to the growth of the FMCG industry, and companies need to invest in branding, sustainability, and digital transformation to succeed in this competitive market.
- With the expert team of Quantzig, the FMCG sector can harness the power of data to optimize their supply chain, improve sales forecasting, and enhance customer engagement.
About the Client:
- The client is a leading consumer good manufacturing company, headquartered in the USA with an annual revenue of $1Bn+.
- The company has a strong reputation for producing a wide range of consumer goods in this global competitive marketplace.
- The client has recently launched an oral care product in the global competitive FMCG market, and the commercial team of this company was working on cannibalization analysis to identify the market uptake and stay ahead of the competition.
- The client was looking for a data analytics company that could help them increase transparency and accountability among the stakeholders, get actionable real-time insights into business operations, optimize their supply chain and improve their sales forecasting.
- They found us through a referral form a colleague who has previously worked with us and was impressed with our design thinking approach.
Top Challenges Faced by the Client:
The client was facing a number of challenges including:
- Reports from the commercial team were exhaustive and threw a lot of information at the users.
- Reports were static and users had to reach out to the commercial team for scenario-based analysis.
- Insights were mostly standalone and did not provide complete on-ground picture and potential action items. Identifying actions items was very time-consuming.
- Report refresh involved manual effort and took weeks to turn around which impacted timely decision making.
Solutions Offered and Value Delivered:
- Through our intervention, the client achieved a significant 30% reduction in revenue loss attributed to cannibalization. This achievement was made possible by implementing an accurate measurement system that precisely quantified the impact of marketing efforts, accounting for the cannibalization effect. By incorporating this correction into the marketing ROI calculation, they gained a comprehensive understanding of the true effectiveness of their marketing campaigns. It became apparent that their previous marketing spending failed to capture the market adequately, especially when compared to competitors with similar marketing budgets. Armed with this knowledge, they can now make informed decisions to optimize their marketing strategies and allocate resources more efficiently.
- The client formulated a hypothesis suggesting that their marketing plan was inducing cannibalization within their product portfolio. Specifically, they observed that promotional discounts offered on dishwasher detergents, particularly on the powder variant, were causing a shift in demand from the liquid variant to powder, resulting in cannibalization. To measure the extent of this cannibalization, a robust measurement framework was implemented. It revealed that approximately 3-4% of the marketing budget was being lost due to cannibalization, and the cannibalization impact was measured at a product-to-product level weekly. This granular analysis enabled the identification of specific campaigns that contributed to cannibalization and allowed for coordinated orchestration to minimize its impact.
- To facilitate better understanding and decision-making, a user-friendly dashboard was developed. This dashboard provided a comprehensive view of cannibalization occurrences, offered recommendations to mitigate its effects, and showcased potential impact of implementing these recommendations. Overall, this solution enhanced the client’s ability to comprehend and address cannibalization challenges through data-driven insights and actionable information.
- Quantzig identified the top 3 business questions for the stakeholder using a design thinking dashboarding approach. Our innovative design thinking, a human-centered approach to problem-solving, combining with a dashboarding solution based on cannibalization analysis, helped the client to unlock insights and make data-driven decisions that drive growth and increase customer satisfaction.
- We optimized their supply chain by providing real-time data on inventory levels, production output, and shipping status. This enabled them to identify bottlenecks, streamline processes and reduce costs.
- With the help of a well-designed dashboard, the FMCG sector was able to better forecast sales by analyzing historical data and identifying trends. It allowed the company to adjust its production level, allocate resources, and ensure sufficient inventory levels to meet demand.
- The company tailored their marketing strategies and product offerings to fulfill the needs of their customers. By automating data collection and analysis, Quantzig’s design thinking dashboarding approach helped the FMCG client identify high-priority tasks, such as product development and innovation, that drive business growth and stay ahead of the competition.
- The storyboarding and information flow in dashboards enabled us to get answers to key business questions in couple of clicks. First, the storytelling and information flow dashboard helped the client to save time and improve decision-making by providing real-time access to critical information. By prioritizing information and presenting it in a clear and concise manner, decision-makers in this company can quickly identify trends and opportunities that will lead to better strategic decisions.
- Quantzig’s well-designed dashboard developed based on cannibalization analysis helped the client to increase transparency and collaboration among the business team. By providing access to the same data, stakeholders can work collaboratively to analyze data and make informed decisions. Besides, stakeholders could slice the data across various levers to see the granular impact which expedited the decision making resulting in improved operations.
