Summary of the Sales Forecasting Case Study
|Client||A leading F&B organization|
|Business Challenge||To understand changing demand patterns devise an effective sales strategy|
|Business Impact of Solution||22% increase in sales; increased performance|
As a result of the need for consistent branding across all touchpoints and growing consumer price sensitivity, F&B organizations are deploying advanced analytics solutions across their processes. Data-driven insights enable them to understand consumers better and optimize their offerings and increase end-to-end organizational efficiency. Sales analytics enables F&B organizations to improve sales forecasting, optimize inventory management, create better pricing strategies, and improve profitability while reducing unnecessary expenses.
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Food and beverage organizations are constantly faced with challenges amid today’s evolving market space. An explosion of consumer-facing channels, increasing competition, and a saturated consumer space have prompted leading F&B organizations to adopt data-driven strategies that drive positive outcomes across all critical areas, including product innovation, operations, sales, marketing, and customer satisfaction.
A global ingredients, consumer foods, and agribusiness company wanted to adopt data-backed smart and innovative sales strategies to increase its bottom line, in the changing global macroeconomic environment, amidst the COVID-19 pandemic. The organization partnered with Quantzig to forecast sales and devise effective pricing strategies by analyzing current and emerging category trends.
The client was grappling with reduced sales on account of changing consumer tastes, which made demand patterns unclear, thus making it challenging for the client to devise an effective sales strategy. Artificial food flavors were witnessing a downward demand trend due to the growing demand for a nutrient-rich diet. Further, the volatility of raw material prices driven by seasonality and the geopolitical situation also challenged production and sales plans.
Quantzig’s advanced sales forecasting solutions enabled the client to accurately determine demand, cost estimates, and revenue and predict overall performance. Our advanced analytics solutions helped the F&B organization identify growth areas in their product mix, devising product-specific strategies to drive segment sales. In addition, our pricing analytics solutions helped our partner analyze competitor and market pricing and optimize the pricing of their key products accordingly to increase sales.
Outcomes and Business Impact
- Achieved a 22% surge in sales of international flavors segment via accurate determination of growth areas, amidst Covid-19 pandemic
- Implemented data-backed pricing strategies resulting in better sales and returns
- Deployed sales forecasting solutions to accurately determine demand, sales, and revenues, thereby enabling the client to allocate resources efficiently and enhance overall performance
- Concluded that while a lower price strategy for organic flavors could drive the category through repeat purchase, a higher price plan could lead to supplier differentiation and successfully promote cross-purchasing across ranges.
- Enabled the client to test various strategies across the sale of products, pricing, and store operations and understand their impact before an organization roll out
- Sales forecasting solutions enabled the client to accurately determine demand, cost estimates, and revenue and predict overall performance.
- Predictive sales analytics enables organizations to identify growth areas in their product mix, devising product-specific strategies to drive segment sales.
- Predictive sales analytics also enables organizations to study pricing trends and implement data-backed pricing strategies to improve sales.
Make use of predictive sales analytics to effectively allocate budgets, enhance sales performance, increase profitability, improve inventory management, and reduce costs. To leverage our solution, request a free dashboard demo today!
We have already covered the topic of sales forecasting methods that accelerate the sales process. If you want to know more about opportunity forecasting, regression analysis, and sales cycle length, we recommend you to take a look at our post.