Understanding CPG data analytics, or consumer packaged goods analytics, can transform how you approach the consumer goods industry. CPG data refers to information gathered from the sales and distribution of everyday products like food and beverages.
In this blog, we’ll explain the basics of CPG data analytics, its key concepts, and how Brizo FoodMetrics can help with it through predictive analytics.
Let’s get started.
CPG data analytics is the process of examining and interpreting data related to Consumer Packaged Goods (CPG). This data comes from various sources, such as sales transactions, customer feedback, and market trends. The goal is to gain insights to help companies make better decisions, improve products, and enhance customer experiences. By analyzing this data, businesses can spot trends, understand consumer behavior, and predict future sales.
This helps companies improve their marketing strategies and boost sales. In short, CPG data analytics is a powerful predictive tool for any business in the consumer goods industry.
To gain a competitive edge, you need to understand key concepts in CPG data analytics concepts. Let’s explore these concepts, like predictive analytics, and see how Brizo FoodMetrics can help.
Descriptive analytics is the first step in understanding your data. It involves summarizing past data to identify patterns and trends.
This type of analysis answers the question, “What happened?”
For example, historical sales data can show which products performed well during specific periods. This information helps you make informed decisions about inventory and marketing strategies.
While descriptive analytics tells you what happened, diagnostic analytics explains why it happened. This involves drilling down into data to uncover the reasons behind past outcomes.
For instance, if sales of a particular product dropped, diagnostic analytics can help identify whether it was due to a supply issue, a marketing problem, or changing consumer preferences. Understanding the “why” behind your data enables you to make more accurate business decisions.
Predictive analytics is all about forecasting future outcomes based on historical data. It uses machine learning techniques and statistical models to predict trends and behaviors.
In the CPG industry, this can mean predicting which products will be popular in the next season or identifying potential supply chain disruptions before they occur. This foresight allows companies to stay ahead of the curve and plan more effectively.
With Brizo FoodMetrics, CPG can get better predictive analytics. Brizo provides valuable insights based on its extensive food industry database of over 1.9 million food service establishments in the US, Canada, UK, and Ireland. Through regular data updates, Brizo ensures businesses use the latest information, enabling them to make better predictions and plans.
For example, Brizo’s data can help identify emerging trends in consumer preferences.
If a particular type of cuisine is gaining popularity in certain regions, businesses can adjust their product offerings and marketing efforts accordingly. This proactive approach can increase sales and a more substantial market presence.
Prescriptive analytics goes a step further by predicting future outcomes and recommending actions to achieve desired results.
It answers the question, “What should we do?”
For instance, if predictive analytics forecasts a spike in demand for a particular product, prescriptive analytics might suggest increasing production or launching a targeted marketing campaign. This helps businesses not only anticipate changes but also take steps to optimize their responses.
Real-time analytics involves analyzing data as it is collected to provide immediate insights. For CPG companies, real-time analytics can help monitor sales trends, track inventory levels, and manage supply chains more effectively.
With up-to-the-minute information, businesses can respond quickly to changing market conditions and avoid potential issues.
Big data analytics involves processing and analyzing large volumes of data to uncover patterns and insights.
This can mean analyzing data from various sources, including sales transactions, social media interactions, and customer feedback in the CPG industry. Big data analytics helps businesses understand complex behaviors and trends, enabling them to make data-driven decisions.
Brizo FoodMetrics excels in big data analytics by aggregating information from over 500,000 sources.
This includes establishment websites, social media platforms, and delivery marketplaces like DoorDash and UberEats. Brizo provides a comprehensive view of the foodservice market by integrating such diverse data points. This allows businesses to identify opportunities and challenges that might not be apparent from a single data source.
For instance, if Brizo’s data shows an increase in online orders for vegan dishes in a particular area, a CPG company can consider launching a new vegan product line there. This targeted approach is made possible by the deep insights provided by big data analytics.
Data accuracy is crucial for any analytics effort. Brizo FoodMetrics ensures high data quality by standardizing and validating information from multiple sources. Their data is updated weekly and refreshed fully every 30 days.
This commitment to data quality means businesses can trust the insights derived from Brizo’s platform, leading to better decision-making and improved outcomes.
Customer segmentation is the process of dividing a market into distinct groups of consumers with similar needs or behaviors.
This can involve segmenting customers based on demographics, purchasing habits, or preferences in the CPG industry. Businesses can tailor their marketing strategies and product offerings to meet specific needs by understanding different customer segments.
For example, Brizo FoodMetrics provides detailed profiles of foodservice establishments, which can be used for effective customer segmentation.
Whether targeting independent cafes or large restaurant chains, Brizo’s data allows you to segment the market precisely. This helps you craft personalized marketing campaigns and improve customer engagement.
Competitive analysis involves monitoring competitors’ activities, strengths, and weaknesses. This can provide valuable insights into market trends and help identify areas where you can differentiate your offerings.
You can get extensive market coverage with Brizo FoodMetrics, including data on various types of foodservice establishments. This comprehensive view allows businesses to compare their performance against competitors and identify areas for improvement.
For example, if Brizo’s data shows that a competitor is gaining market share with a new product line, your business can analyze the factors contributing to its success and adjust your strategies accordingly.
By now, you clearly understand what CPG data is and its key concepts.Each type of analytics helps businesses make better decisions, whether it’s descriptive, diagnostic, predictive, or prescriptive.
Leveraging these analytics is even more powerful when using a market intelligence platform like Brizo FoodMetrics. With Brizo’s extensive data, regular updates, and detailed insights, you can stay ahead of the competition.
Ready to take CPG data analytics to the next level? Let Brizo FoodMetrics help you.
