By digging deep into consumer data and gleaning insights about their shopper behavior, CPG companies can develop new strategies for product announcements and marketing tactics and work more closely with retailers to enact their plans. In this way, both producers and sellers can highlight new pockets of growth in the marketplace.
This is particularly important at times when price competition is fierce. Brands need to understand how shoppers will react to their pricing in relation to that of their competition, whether they are launching a new product or trying to revitalize an existing one.
For example, the grocery market has proven to be a particular challenge of late. This past September, Bloomberg reported that food prices had been falling across the U.S. throughout the year, amounting to levels of food deflation not seen since the 1960s.
The drop continued, and by November a report by the American Farm Bureau Federation found that the average cost of a Thanksgiving dinner for ten people was $49.87 – down 24 cents from 2015.
The lower cost of food commodities allows CPG companies to offer competitive promotions for their packaged for and beverage products. But to do this right, they need to work with retailers to determine which price point offers the best performance levels.
Interactive Edge offers a number of creative ways to get the most out of your data and meet the many challenges that your business will face when it comes to commercializing insights across your customer base. Check out the rest of our website to learn more about the services we offer to our clients.