Quantzig’s Digital Analytics Engagement for a Renowned Client in the CPG Industry

Dec 25, 2017

The client: A leading client in the CPG industry

Area of engagement: Digital analytics

The consumer goods industry is witnessing a paradigm shift towards a more digitally empowered environment with a considerable number of consumers interacting with brands or products online. The consumer packed goods (CPG) industry comprises of commodities such as food, beverages, cosmetics, and cleaning products and the market is subject to rapid fluctuations in the demand for various products. Consequently, companies in the CPG industry have been compelled to focus on market expansion by targeting niche market segments with high growth potential. Although the CPG industry is anticipated to witness promising growth, certain factors may hamper the growth of the CPG industry. 

To learn more about the role of digital analytics in the CPG industry, get in touch with our experts.

  • Political and economic uncertainty: The recent economic unrest across the globe has had an adverse effect on the customers’ spending patterns. The customers have become more informed and are greatly reducing their spending on commodities. Globally, the economy is stagnating and is giving rise to uncertainties such as increased income bifurcation, the middle level of customer confidence, and struggling middle class. 

  • Compliance and regulatory pressures: In this competitive environment, it becomes vital for companies to mitigate operational risks and manage nonconformances. With the shrinking operating margins, manufacturers are facing additional pressures to meet international compliance and regulations.

  • Changing consumer’s demands: In this ever-increasing competitive market landscape, companies need to be customer-focused and with the recent shift toward healthier and sustainable options, leading companies in the CPG space have started facing the need to introduce new products that are more customer-focused.

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To address these challenges and enhance operational efficiency, prominent organizations are leveraging digital analytics solutions. Digital analytics is all about identifying the most relevant data and creating meaningful insights to make informed business decisions. It can be further defined as the collection, measurement, and analysis of digital data through websites, mobile sites, and mobile applications.

The Business Challenge

In 2013, online retail accounted for less than 1 percent of total sales in packaged goods.

A renowned client in the CPG industry wanted to understand the current environment and find cost-effective ways to manage operations. The client wanted to improve the quality of the products offered and differentiate products based on customer preferences. With the help of our digital analytics solution, the client wanted to seek ways to meet the shifting tastes and uncertain demand for the products. Moreover, through digital analytics engagement, the client wanted to gain actionable insights into the current online landscape and optimize their marketing efforts to improve ROI and enhance their offerings.

cpg industry

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The Solution and the Business Impact

Strategies that we recommended based on our analysis to drive customer loyalty.

The digital analytics solution offered by Quantzig helped the client gain actionable insights into the data and the performance of the website. The engagement also offered the marketers understand the impact of marketing effectiveness on conversion rates. Moreover, the engagement further sought ways to measure relative business metrics such as traffic, leads, and sales through effective sources such as email, social media, and online PR. Beyond measuring the effectiveness of their marketing, using digital analytics can help the CPG industry client understand the effectiveness of their website.

The Future

The future of the CPG industry is dynamic and is subject to changes in consumers’ preferences and spending pattern. Also, with the growth of private labels and the use of big data, the CPG industry is set to witness a huge change in the way businesses are being conducted. 

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