Predictive analytics isn’t just about product innovation; it’s also about risk mitigation and operational efficiency. In an unpredictable market, companies need to reduce the uncertainty surrounding product launches and improve their overall decision-making processes. According to a 2022 Gartner survey, 86% of FMCG brands that adopted predictive analytics reported improved decision-making and reduced product launch failures.
Moreover, it enables FMCG brands to optimise supply chains and reduce waste. PepsiCo, for example, uses it to anticipate demand for its snack products by analysing sales data, weather conditions, and events. This approach has resulted in a 12% reduction in overproduction since 2020, demonstrating how data-driven insights can streamline operations.
Forecasting demand more accurately also allows brands to respond more swiftly to consumer needs. For perishable goods, this is critical, as poor inventory management can lead to significant financial losses. By predicting demand spikes, companies can better manage stock, ensuring timely delivery and reducing waste.
At its core, predictive analytics enables brands to get closer to their consumers. By mining vast amounts of data, FMCG brands can now understand what consumers are buying and why they are buying it. This granularity opens the door to hyper-personalised marketing and product experiences.
