Supporting CPG Growth through Price Pack Architecture | marketing analytics company
The modern consumer’s dilemma
In today’s highly competitive marketplace, consumers are becoming increasingly discerning. Because there are so many choices, we often compare price and quantity when evaluating similar products. For nutrition labels, products can provide information for standard quantities (e.g. soda) or individual pieces (e.g. chocolate bars) to allow for easy product comparison. So why do modern consumers take the time to compare products before making a choice?
Shift focus to product-centric analytics
The answer is simple. it’s possible. After all, it’s their hard-earned money and they want to spend it on products that provide value and satisfaction. Recently, consumer packaged goods (CPG) companies have realized that their brand power and marketing strategies are limited. As a result, the focus has shifted to a deeper understanding of products and consumers. Companies are investing millions of dollars to understand what works, what doesn’t work, and most importantly, why it doesn’t work. CPG companies seek unrivaled data insights to drive revenue growth in competitive low-price item markets through detailed analytical models and forecasts. In this effort, LatentView plays a critical role by providing a variety of predictive models that consider different perspectives and areas of focus to better understand consumer trends.
Price Pack Architecture: A Cost-Effective Strategy
Pricing Pack Architecture CPG companies offer effective strategies to penetrate markets once dominated by local brands without breaking the bank. By adjusting the physical characteristics and prices of existing products to suit specific markets, consumer products companies can increase profits without having to resort to costly methods such as launching new products, spending large marketing dollars, or importing new products.
Beyond market share: the far-reaching impact of PPAs
Executives monitoring new PPA initiatives typically focus on market share and revenue growth, but it is important to consider the broader implications of these initiatives. Adapting products to meet the needs of specific consumer segments is a significant responsibility for manufacturing. This includes sourcing different quantities and sizes of molds, packaging and products, frequently changing and configuring manufacturing line equipment to produce new SKUs, and streamlining production schedules and changeovers to minimize unplanned downtime. It’s possible. Monitoring these aspects is important not only for cost savings, but also for employee satisfaction and resource efficiency.
Sustainability Analytics: An Increasingly Important Essential
In an era where sustainability is a key industry concern, the need for sustainability-focused analytics has never been more urgent. In 2021, nearly half (48%) of all new products offered sustainability benefits, a 20 percentage point increase from 2017. Companies are sourcing recycled materials for packaging, reducing waste, and switching to renewable energy sources. While these steps contribute to a greener future, we must also ask the following questions: Are these sustainability measures themselves sustainable? Sustainable products will grow over time, but maintaining that growth requires valuing the manufacturing process.
Leverage price pack architecture for sustainable growth
Price Pack Architecture can foster sustainable growth in a variety of ways, all of which require significant market research. If you reduce the number of items in a pack of Pringles or charge extra for an extra 0.2 L (6.7 ounces) of Coke, the cost will be borne by the manufacturer or consumer. However, improving the processes behind these adjustments can help offset these problems.
Data from various points in the sustainability enhancement pipeline must be analyzed as thoroughly as consumer market data. These sustainability measures will continue to sustain and grow, and companies will need to anticipate and build scalable infrastructure to track data, diagnose issues, predict problems, and prescribe solutions. CPG companies have recognized this and have integrated an array of sensors into various aspects of the manufacturing process, but the effective utilization of this data remains questionable.
Bridging the data gap for sustainable profits
LatentView Analytics seeks to bridge this gap and maximize available data. From the factory floor to the CEO’s office, we help companies unlock insights that enable employees to make informed decisions that sustainably benefit the overall bottom line.