In today’s fast-paced and evolving grocery landscape, there’s little margin for error when it comes to pricing and promoting products. In a recent Nielsen study of manufacturers, 68% of respondents said that they face more competitive price pressure than ever, creating new demands for them to be agile and adaptive in setting price and promotion plans for the year. Not only is competition high, but consumers are increasingly choosy and cost conscious. And that means they may opt away from a familiar brand if they’re enticed by a competitor’s promotion or new pricing strategy.
While the world of big data has given retailers and manufacturers insight into the underpinnings of the fast-moving consumer goods (FMCG) arena, analyzing and interpreting data in real time and getting these insights into the hands of everyday decision makers, like sales, is no easy feat. It’s also a topic that’s bubbled to the top of mind for many in the industry, as evidenced by a recent workshop at the 2017 Retail and Consumer Goods Analytics Summit. During the workshop, Matt Krepsik, global head of analytics at Nielsen, and Carly Phillips, category information manager at Land O’Frost Inc., dove into the topic of how brands can effectively use complex analytics for everyday decision-making.
Phillips was a natural fit for the workshop, as she uses Nielsen’s Price Explorer tool and analytic models, a core element of Nielsen’s Everyday Analytics offerings to drive Land O’Frost’s price and promotion strategies. With these analytics, Phillips says she and her sales teams are able to detect price gaps and competitive pricing threats much more quickly than if they weren’t in place. She also runs “what if” scenarios to find the best price and promotion tactics for the company’s retailers.
“The tool has changed the way our sales teams communicate with retailers,” she says. “It helps them share their knowledge with retailers to establish or build credibility, changing the focus from short to long-term growth.”
But it’s not just about communication. During the workshop at the recent summit, Phillips says that Land O’Frost has already seen a 30% increase in pricing forecast accuracy by using Nielsen’s analytics to connect supply and demand patterns. She also said the company has gained $1 million in sales by using Nielsen’s assortment analytics in conjunction with Nielsen’s pricing and promotion tool.
Following the workshop, Krepsik and Phillips spoke with Joseph Skorupa from Retail Info Systems News about the importance of analytic modeling and how Land O’Frost is using Nielsen’s Everyday Price and Promotion Analytics to drive pricing efficiencies and sales.