You may have noticed the word CPG over here and would have thought about what this means. Well, it is certainly always the first thought of people reading this abbreviation who aren’t into CPG handling. To understand how CPG analytics companies work there is a dire need to understand what is CPG and why CPG analytics is required. Now let’s get started.
CPG stands for consumer packaged goods. To shed a little more light on we’ll take examples of some CPG companies and their brands and products. There is a very high possibility that you won’t be able to name the companies of the brands mentioned below at your first attempt. So, can you guess the company of Gillette? Tropicana? Sunsilk? Sprite? Knorr? Doritos? No?
Well, normally people don’t pay attention to the parent companies but they do remember their brands and products efficiently. Even when they know the companies it is hard to guess it instantly. Just like now, you would have heard about the companies of the above-mentioned brands let’s see.
- P&G ( Procter and Gamble): Gillette
- PepsiCo: Tropicana, Doritos
- Unilever: Knorr, Sunsilk
- Coca-Cola: Sprite
These CPG companies manufacture and sell their products to the retailers and these retailers sell them to their customers. Their main aim is to always sell as much as they can manufacture. Products in public demand need to be manufactured at a larger rate and distributed at a faster rate as well. These are the products which are mostly the ones which are needed daily their rate of consumption is high as well. It becomes the crucial duty of the company to manage this supply.
Companies that produce a variety of products and own numerous brands find it difficult to manage such a large chain of manufacturing, supplying, and working on new formulas or products for their customers in the future. This is the place where CPG analytics companies come into the picture. These companies monitor the growth and possible losses of the company and come up with strategies to overcome difficulties that will help their clients to earn accordingly.
The possibility of a company facing losses after a planned strategy with a good CPG analytics company is nil in most cases. Identifying the potential future losses in time gives any company to act upon it on time by reducing the revenue loss. No company can run successfully if it does not know how to manage once it is set up and is running at its maximum capacity.
An external source of help is always required to gain an additional necessary upper hand if things do not turn out the way a company planned. Even a good businessman requires a strategist by his side to look out for anything which he may have overlooked while planning for his company. Not only large businesses but small businesses need proper planning to work efficiently at its full course. It is always advised to consult business analytics companies while working on a business project to avoid failures.