One View

Making data available where decisions are made

Overview and Essential Knowledge in a Complicated FMCG World

How would you like to be able to truly answer the following 2 questions?

What are the key variables for success in relation to the company’s goals and objectives?
How should we as a company prioritize resources and efforts with respect to categories, products, retailers, channels, regions, offline (stores), and online sales?

What if you could answer the questions as easy as they are asked. Just think about it – How must time and frustration would be saved if you and the rest of all the key decision makers in your organisation shared the same view.

The moment of truth – First Major Challenge

As an FMCG supplier, one has very little or no influence over “the moment of truth.” This is the moment that occurs during the purchase situation when a shopper decides to buy one product over another. Different channels with different sales strategies (hypermarkets, supermarkets, mini markets, discount stores, specialty stores, etc.) do
not make it easier to decide and organize products, prices, and promotions for an FMCG supplier, knowing that it is the retailers who control “the moment of truth.”

Mastering different channels and banners – Second Major Challenge

How does one organize an optimal omnichannel strategy? Which products, prices, and promotions should be utilized where and how? – Supermarkets, Hypermarkets, Convenience, Discounters, Foodservice, and even the online opportunities for some FMCG suppliers. All things being equal, the online market is often a Business to
Consumer market, while the offline market is a Business to Business to Consumer market.

Decisions in the B2C market are generally driven by functionality and taste, while decisions in the B2B2C market are business-driven, determining distribution and promotions and thus which products can be exposed and, not least, how they are exposed (point of purchase POP).

Help is on the Way look for One View

There are certainly other challenges beyond those I mention here. However, the two types of challenges I outline are applicable to all FMCG suppliers across categories.

To respond effectively and optimally to the initial and crucial questions, it is necessary to have relevant and accurate information distributed to those making decisions within the organization.

Top management, Marketing management, Sales management, Production and supply chain management, Salespeople etc.

We do all have the knowledge, unfortunately it is not always the same knowledge at the same time – creating frustration and ineffectiveness.

Proper use of Microsoft technology combined with sufficient data understanding and an efficient master data setup is a good step forward.

The FMCG world is very dynamic. And constantly affected by both efforts and daily
results.

At a strategic and tactical level, we must manage efforts in relation to “the moment of truth”—products, prices, distribution, space & place, and promotions.

At an operational level (we recommend daily measurement where possible), we need to measure results based on external data.

At the end, all decisions will be connected whether they are strategic, tactical, or operational. To be effective the must build on the same knowledge and understanding.

One View – Knowledge of Results

Today, we can combine all types of data from the necessary sources in the FMCG world to ensure real knowledge of the outcomes of efforts. Perhaps most importantly, we can help manage data and report results in a way that ensures coherence in knowledge at all crucial levels among decision-makers daily. We call this the democratization of data.

Necessary Types of Data

Most FMCG suppliers today have access to the four key different types of external data necessary to create a “One View.” If access to all four types of data is not available, one can start by combining the available types of data and potentially add other types later.

The key types of data include:

Shopper Data
Market Data
Promotion Data
Retailer Data

We continuously encounter FMCG suppliers who wish to combine external data with internal data from their own ERP systems or their trade promotion management setups.

based on four types of external data combined with own internal data.

Possible KPIs in “One View”

The management team

The management team, distributed across functions such as CEO, Marketing, Finance, Production, Sales, etc., can establish their own “One View” based on the same data. Below is an example of questions that might be relevant for management to get answers to continuously, quickly, and efficiently in a Power BI solution.

Overall Business Performance:
- How is the company performing against its strategic goals?
- What are the key performance indicators (KPIs) for each department?
Financial Health:
- What is our current revenue, profit margins, and cash flow?
- How do our financial metrics compare to our budgets and forecasts?
Market Position:
- How is our market share evolving in key segments?
- What are the emerging market trends that could impact our business?
Operational Efficiency:
- How efficient are our production processes?
- Are there bottlenecks or areas for cost reduction in our operations?
Sales Performance:
- How are our sales teams performing against their targets?
- Which products and regions are driving the most sales growth?
Customer Satisfaction:
- What is the current level of customer satisfaction and loyalty?
- How are customer feedback and complaints being addressed?
Innovation and Product Development:
- What is the status of our new product development projects?
- How are our new products performing in the market?
Marketing Effectiveness:
- How effective are our marketing campaigns in driving brand awareness and sales?
- What is the return on investment (ROI) for our marketing spend?
Risk Management:
- What are the current risks facing our business?
- How are we mitigating and managing these risks?
Human Resources:
- What is our employee turnover rate and engagement level?
- Are there gaps in skills or areas needing development among our workforces?
Sustainability and CSR:
- How are we performing against our sustainability goals?
- What impact are our corporate social responsibility (CSR) initiatives having?
Strategic Initiatives:
- What is the progress of our key strategic initiatives?
- How are these initiatives contributing to our overall business objectives?

By answering these questions, management can have a comprehensive and real-time overview of the company’s performance, enabling data-driven decision-making to drive growth and efficiency.

The Sales Department

For those working in the sales department, such as sales directors, sales managers, key account managers, sales coordinators, business analysts, regional managers, sales consultants, etc., we can provide an overview and continuously ensure answers to the following questions:

Sales Performance:
- How are our sales performing against targets?
- What are the sales trends over time?
Market Share:
- How is our market share changing in different segments?
- Which products are gaining or losing market share?
Promotion Effectiveness:
- How effective are our promotions in driving sales?
- What is the ROI of our promotional campaigns?
Product Performance:
- Which products are performing well or underperforming?
- What is the top-selling products in each category?
Customer Insights:
- Who are our top customers?
- What are the buying patterns and preferences of our customers?
Distribution and Coverage:
- How effective is our distribution network?
- Are there gaps in our market coverage?
Pricing Strategy:
- How do our prices compare to competitors?
- Are we pricing our products optimally for different channels?
Stock Levels:
- Do we have optimal stock levels to meet demand?
- Are there any risks of stockouts or overstock?
Regional Performance:
- How are different regions performing in terms of sales and market penetration?
- Are there regional trends that require specific attention?
Sales Team Performance:
- How is each sales team member performing against their targets?
- Are there areas where additional training or support is needed?

By answering these questions, the sales department can make data-driven decisions to improve performance and optimize strategies.

The Marketing Department

For those working in the marketing department, such as marketing directors, product managers, category managers, business developers, business analysts, etc., we can provide an overview and continuously ensure answers to the following questions:

Brand Performance:
- How is our brand performing in the market?
- What is the brand’s market share and brand equity?
Campaign Effectiveness:
- How effective are our marketing campaigns?
- What is the ROI of our marketing activities?
Customer Segmentation:
- Who are our key customer segments?
- How are different customer segments responding to our marketing efforts?
Product Positioning:
- How are our products perceived in the market?
- Are our products positioned effectively against competitors?
Market Trends:
- What are the current trends in the market?
- How can we leverage emerging trends to our advantage?
New Product Development:
- How successful are our new product launches?
- What are the sales and adoption rates of new products?
Promotional Activities:
- Which promotional activities are driving the most engagement and sales?
- How do our promotions compare to those of our competitors?
Customer Insights:
- What are the needs and preferences of our customers?
- How satisfied are our customers with our products and services?
Digital Marketing Performance:
- How are our digital marketing campaigns performing?
- What is the traffic, engagement, and conversion rate of our online channels?
Category Management:
- How are different product categories performing?
- Are there opportunities to optimize our product mix within categories?

By answering these questions, the marketing department can make informed decisions to enhance marketing strategies, improve customer engagement, and drive brand growth.

The product development team

For those working in product development, such as product development directors, product managers, category managers, business developers, plant managers, etc., we can provide an overview and continuously ensure answers to the following questions:

Market Needs:
- What are the current needs and demands in the market?
- How can we identify gaps that our new products can fill?
Innovation Pipeline:
- What new products are in the development pipeline?
- What are the timelines for launching new products?
Product Performance:
- How are our existing products performing in the market?
- Which products need improvement or potential discontinuation?
Customer Feedback:
- What feedback are we receiving from customers about our products?
- How can we incorporate customer feedback into product development?
Competitive Analysis:
- How do our products compare to those of our competitors?
- What are the strengths and weaknesses of competing products?
Cost Management:
- What are the costs associated with developing and producing our products?
- How can we optimize costs without compromising quality?
Quality Control:
- Are our products meeting quality standards?
- How can we improve the quality and reliability of our products?
Regulatory Compliance:
- Are our products compliant with relevant regulations and standards?
- What upcoming regulatory changes might impact our products?
Sustainability:
- How sustainable are our products and production processes?
- What steps can we take to improve the environmental impact of our products?
Product Lifecycle Management:
- What is the lifecycle stage of each product?
- How can we manage the product lifecycle to maximize profitability?
Cross-Functional Collaboration:
- How effectively are we collaborating with other departments (e.g., marketing, sales, production) in product development?
- What improvements can be made to enhance cross-functional teamwork?

By answering these questions, the product development team can make data-driven decisions to innovate effectively, meet market demands, and maintain a competitive edge.