Tweaks in packaging of an FMCG Company results rise in sales by 25 percent
A lot of data analysis is done pre and post-launch of FMCG products, most of which is concentrated on product quality and consumer behavior. Changes are made by companies in these domains to offer better experience and garner more profitability. But surprisingly very less study is done regarding the phases related to distribution as neither manufacturing company nor the third party analytics firm has expertise in that domain and the data collection is a bit fragmented. This leaves behind a big grey area of profitability which companies can encash but neglect just due to lack of appropriate analysis channels.
One of our FMCG clients approached us with a problem where all their so-called ‘4P’s were strong but still they were not able to do better.
Company witnessed stagnant revenue over past couple of months. They were not able to ‘diagnose’ the actual problem even after having positive results from customer surveys.
Major FMCG Company in India
We helped to enhance sales of the company by suggesting important tweaks in packaging of the products based on Data analytics.
This case was a bit complex as we had to first spot the problem and then develop solution for it. It required an extensive survey of whole process beginning right from market research, production process to distribution, sales and post-sales customer experience. A strong analytics algorithm was needed for this backed with a well-equipped and organized data management system:
• Benchmarking, Competitor Analysis.
• Advanced Gap Analysis and R&D Optimizations.
• 360 Degree co-ordination of Sales figures across product assortments.
• Visually mapped revenues area-wise, product-wise and value, weight-wise.
• Our prediction was confirmed after on-field survey of sample Modern trades, general trade outlets across the nation.
• Despite having all 4Ps in place, company was lacking synchronization amongst these. The packaging though attractive, did not match the perception that company created about its product through promotions.
• We thus suggested introduction of slight change in logo, color and also recommended introduction of certain LPUs (Low price Units) for some of their products based on our survey and analysis.
• Revenues increased by 25% just 13 months after implementation of model.
• Profitability increased significantly.
• No. of units sold increased despite increase in price / unit Volume.
• Number of outlets as well as sales / outlet increased across nation.
• Company gathered sufficient liquid assets last year for further expansion in South-India.