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    Opportunities for Creating a Competitive Edge through Data Analytics

    Accenture’s “Building an Analytics-Driven Organization” study underscores the ability for data analytics to represent a competitive advantage for consumer packaged goods (CPG) companies.  The study indicates that only 9 percent of CPG companies prioritize predictive analysis, signifying that companies may be overlooking potential long-term ramifications of the data they are currently collecting.

    Key figures from the study include:

    • 54 percent of CPG executives indicate that their companies have a fully defined analytics operating model
    • 9 percent of CPS executives state their companies have fully implemented an analytics operating model in its entirety (40 percent have partially done so)
    • 47 percent of executives described their companies as either “analytical leaders” or having “ingrained analytics”

    This data suggests that many companies are not using data to provide insight or to drive future decisions.  Bob Berkey, managing director in Accenture’s Consumer Goods & Service’s practice, suggests “CPG companies need to focus more on implementing an analytics operating model that puts analytics-driven insights at the heart of their decision-making process.”

    The disconnect between CPG executive’s perceptions and reality indicate that CPG companies can gain an advantage through prioritizing and further developing their data analytics team and capabilities.  To read more about the Accenture study and its impact read Meg Major’s article on Progressive Shopper.


    Planet Retail’s 5 Retail Trends


    Planet Retail released a report, “US Grocery Retailing: Top trends shaping tomorrow’s landscape,” that outlines 5 trends that the organization believes will provide insight into the direction of the retail grocery landscape.
    The 5 trends are:
    1- Small footprints make big move
    • CityTarget/TargetExpress and Walmart’s small formats demonstrate large retailer’s commitment to a new retail format. Sandy Skyrovan, Planter Retail’s U.S. research director, notes that after years of larger and larger stores a smaller store model has merit as sales are to grow at an average of 18% a year through 2018 in this format as opposed to 4% annual growth for the grocery industry collectively.
    2- Growth of good-for-me retail
    • Skyrovan believes retailers are shifting to “wellness advocates,” and says “the door is open for a lot of innovative and distinctive products.”
    3- Sea-change for Walmart
    • Skyrovan sees Walmart’s Drive concept as “the next-gen Site-to-Store model.”
    4- Grocery-to-go grows up
    • Planet Retail views AmazonFresh as a “huge game-changer” and expects this model to disrupt current grocery models.
    5- Digital disrupts shopper journey
    • Planet Retail’s online shopper survey indicated two-fifths of online shoppers seek real-time offers through their smartphones while shopping and one-third would like to use their phones to navigate the store and find items.  Skyrovan predicts “these types of functionalities will become ubiquitous in just a few years.”
    To read the full article, originally posted on Progressive Grocer, click here.



    Individual “Buyergraphics”

    Catalina’s research of 32 million U.S. shoppers’ purchases totaling $55 billion in 9,968 supermarkets nationwide has provided valuable insight into individual’s “buyergraphics.”  The comprehensive research indicates that shoppers buy only 1 percent of what we see in supermarkets.  While these rates differ by segment (see chart below), overall shoppers purchase just 260 different items (0.7 percent of the 35,372 UPC’s the store average). 

    While retailers and brands long attempted to provide personalized shopping experiences, this research suggests that retailers and brands can do even more to message to customers and encourage more trips, purchases, and trials.  Retailers can sues insights from this research to improve shelf allocation, targeted marketing efforts, and improved product launches.

    To read more about Catalina’s research and its potential impact(s) click here.


    General Mills Committed to Fully Traceable Palm Oil by end of 2015

    General Mills recently announced it remains committed to sourcing 100% of fully traceable palm oil by the end of 2015.

    General Mills is "concerned about the role palm oil expansion played in threatening the world's rainforest and the impact this had on biodiversity, endangered species, and the broader environment such as climate change and global greenhouse gas emissions.

    "Transparency relative to palm oil production and expansion," is important to General Mills and in doing so will, "regularly update (their) progress," and the manufacturer will, "encourage (their) suppliers to do the same."

     To read the full article on General Mills' commitment to full traceable palm oil by 2015, click here.

    Interested in reducing your own palm oil consumption and the potential negative impact on the environment, check out the Palm Oil Scan Guide & Scanner in the iTunes App Store.



    Harmons Grocery Implements Dietitians Choice Label

    Harmons Grocery, based in Utah, took steps recently to make reading and understanding the label on food products easier. A new green label, titled Dietitians Choice Program, covers 29 food categories and is meant to direct shoppers towards products maximizing fruits, vegetables and whole grains while minimizing saturated fats, sodium and added sugars.

    It took the 4 dietitians of Harmons over a year to come up with the criteria and implement the new program that is based off of 2010 USDA Dietary Guidelines, "labels are confusing," admits Harmons' dietitian Laura Holtrop Kohl.

    Although relatively new to Harmons' stores, store employees have already started to notice that products with the Dietitians Choice Green Label seem to be selling faster than their competitors- store executives are in the process of understanding the correlation between point-of-sales data and the Dietitians Choice products to verify their employees beliefs.


    To read more about the new Dietitians Choice program, please click here.