The CPG industry has been having its issues with decreasing sales and profits. A good number of enterprises have been finding it hard to stabilize their business and find ways to survive in the market. The need for the latest technologies has made enterprises look at artificial intelligence and ponder.
AI has, after all, helped various brands and businesses in different industries. It has changed the business model, the perspective, the outlook, and the results for some of the most famous multinational organizations in the world. This led to small businesses trying new technologies and processes to focus on customer satisfaction and brand loyalty. The enterprises are using data analytics to understand what customers want and provide them with it.
However, large scale enterprises are being tentative in adopting AI. Some of them did end up with adverse results due to wrong AI implementation in the past. They want to be sure if AI is worth the investment in the short term and long term. That said, the trends strongly suggest that the Use of Ai for Consumer Packaged Goods is only going to increase as the days pass by. The current AI tools are far better and accurate than what they were when AI entered the scene a few years ago.
In this blog, let us take a look at how AI can help the CPG industry and areas where AI can be implemented to get good results for the enterprise.
For enterprises to understand exactly how AI can be used, they should start by studying the various use cases shared by different enterprises. It is important to know what worked and what did not. The management should also see the reasons for the success or failure of a project to get a clear picture of how they should approach the process. Most of the areas that needed AI to help streamline the business system have been classified and categorized into three major streams of the supply chain, marketing, and customer support.
Areas to Focus
Pricing and Promotion
How does an enterprise decide the price of a product? How does the marketing team come up with an innovative campaign? It is hardly surprising to say that the decisions are based on the data available. The average market price is calculated using data. The various marketing strategies followed by competitors are tracked and analyzed, which is again data in different forms. Artificial intelligence takes a step ahead and uses real-time data sourced from the market and customers to analyze the trends and provide accurate insights for the enterprise.
Market and Consumer Intelligence
Creating customer profiles based on their past purchases and search history, taking insights from social media and search engines to see what’s in demand, looking for new sources of information, and understanding how the market, the target audience, and the customers react to new products, etc. can be gathered by using AI-powered tools, data analytics, and machine learning algorithm. This data helps in planning the product’s movement through the supply chain and also picking the right time to introduce the product to the right audiences.
Sales and Customer Care
It is important to motivate the sales force to attract more customers and take the brand to wider into the market. An active sales force will bring more results when armed with the required tools to support their work. Right from choosing the channels for marketing to fixing the timeline for promotions, aligning individual perspectives to overall market perceptions, determining the ways to increase the visibility of the product online and offline (in stores, traditional marketing, and digital marketing), and most importantly, using customer feedback to improve the product and always being available to customers (via webchat, social media, etc.).
Manufacturing a product requires a lot of research and planning. The enterprise will need to know the sizes in which the product has to be produced, the variants, the locations or markets where each variant or size would be more in demand, and any other specific customizations which the customers would prefer. AI helps in improving the efforts of R&D by providing reports with accurate and real-time analysis.
While there are quite a few ways to Use Of Ai For Consumer Packaged Goods, the top management and the CEO should start by understanding the current position of the brand in the market, the overall market condition, the limitations of the business (including finance and human resources), and the areas that need immediate attention.
The management should also check for AI companies that provide the best and customized AI tools based on the specific requirements of the enterprise. Taking the help of the software provider will ensure that the entire AI adoption process is well-planned and executed by the enterprise.