Bizom https://bizom.com Leaders in Sales Force Automation Sat, 10 Aug 2024 15:41:14 +0000 en-GB hourly 1 https://bizom.com/wp-content/uploads/2024/02/Final-Favicon.png Bizom https://bizom.com 32 32 179600903 Beyond the Podium: How The Olympics Fuel FMCG Growth https://bizom.com/beyond-the-podium-how-the-olympics-fuel-fmcg-growth/ Thu, 08 Aug 2024 06:55:49 +0000 https://bizom.com/?p=83408

Beyond the Podium: How The Olympics Fuel FMCG Growth

by Janhavi Sawhney

Aug 8 2024 | 03 min read

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As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of sports, particularly the Olympics, on consumer behaviour and market strategies.

The 2024 Paris Olympics isn’t just a global sporting event; it’s a catalyst for change, influencing industries far beyond the realm of athletics. For India’s FMCG sector, the Olympics presents a unique opportunity to capitalise on a wave of consumer enthusiasm, driving growth and innovation across the market.The intersection of sports and FMCG is becoming increasingly pronounced, driving innovation, brand loyalty, and significant shifts in consumer preferences.

Olympics:2024

The 2024 Paris Olympics are expected to significantly impact India’s FMCG sector, catalysing a profound shift towards health and wellness. Manu Bhaker’s double bronze medal win has ignited national pride and driven a surge in athlete endorsements. This Olympic success has not only inspired fellow athletes but also ignited a broader consumer shift towards health and wellness. In India, this growing emphasis on healthier living is projected to transform the health food market into a $30 billion industry by 2026. Notably, 40% of Indian consumers are now willing to invest more in healthier products.
The impact of the Olympics on India’s FMCG sector is a long-standing tradition. Let’s take a nostalgic journey through its previous influence.

Capitalising on Olympic Momentum: A trip down Memory Lane 

In India, the Tokyo 2020 Olympics marked a pivotal moment, especially with Neeraj Chopra‘s historic gold medal win in javelin. This victory not only elevated Chopra’s stature but also sparked a wave of national pride that resonated deeply with consumers. Brands quickly recognised this surge in patriotic sentiment, leveraging it to strengthen their market presence.

Post-Olympics 2020, Indian FMCG brands with strong local roots reported a 10-15% increase in sales, particularly in categories such as dairy, snacks, and beverages, directly resulting from strategic campaigns that aligned with national pride and athletic success. For instance, P&G’s (global sponsor for the Olympics in 2012) ‘Thank You Mom’ campaign during the 2012 London Olympics , PepsiCo’s ‘Change the Game’ campaign during Rio 2016, and Coca-Cola’s ‘I Belong Here’ campaign during Tokyo 2020 all capitalised on the Olympic spirit.

Since the 2020 Olympics, sports marketing budgets have risen by 25-30%, leading to a 20% increase in sponsorship deals. Major brands like Johnson & Johnson (J&J), Amrutanjan, and Venky’s have secured long-term partnerships with high-profile athletes such as PV Sindhu, Bajrang Punia, and Manika Batra.

The Beijing 2008 Games marked a turning point with Abhinav Bindra’s historic gold medal, which sparked a surge in consumer interest in sports products. Hindustan Unilever tapped into the Olympic spirit with promotional activities for its Boost energy drink, while brands like Cadbury embraced the occasion by launching special editions of their products to celebrate India‘s achievements. The success also led to a notable increase in sales for protein supplements and energy boosters, as brands like GNC and Himalaya experienced a rise in demand from consumers inspired to emulate athletic success.

Similarly, the Rio 2016 Games, marked by PV Sindhu’s silver medal, sparked a surge in FMCG brand activity, this impact was visible in her partnership with Gatorade for the ‘Sweat More’ Campaign.

Amul’s collaboration with boxing champion Mary Kom through their ‘Kom’ campaign significantly strengthened the brand’s position within the health-conscious segment. Similarly, Under Armour’s 2024 ‘Zidd for More’ campaign, featuring Olympic gold medalist Neeraj Chopra, led to a significant surge in engagement across the brand’s platforms.

Conclusion: The Road Ahead

As we look ahead, it’s clear that the relationship between sports and the FMCG sector will only grow stronger. The synergy between athletic success and consumer engagement offers a unique opportunity for brands to drive growth and innovation. By aligning with the values of fitness, health, and national pride, FMCG companies can continue to resonate with consumers in meaningful ways.

The 2024 Paris Olympics is poised to be another milestone, offering fresh opportunities for brands to leverage the power of sports. As the excitement builds, FMCG companies must stay attuned to these trends, ensuring they remain at the forefront of this dynamic and evolving market. At Bizom, we are eagerly anticipating the new industry trends and impactful campaigns that will emerge from this global event.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

Not just another newsletter about AI in your inbox

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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Understanding FMCG- The Indonesian Way https://bizom.com/understanding-fmcg-the-indonesian-way/ Thu, 01 Aug 2024 07:27:58 +0000 https://bizom.com/?p=83201

Understanding FMCG- The Indonesian Way

by Mehak Jaggi

Aug 1 2024 | 02 min read

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From sipping tea in India to brewing coffee in Indonesia over a chat, we present another edition of our round table discussion. A room full of industry leaders sharing their insights on the future of real intelligence.

We began by exploring how intelligence can enhance route-to-market (RTM) strategies and help brands flourish in new regions. The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal point. Increased consumer confidence has been evident, though post-pandemic challenges like rising living costs have affected purchasing power. Consumers are prioritising spending on utilities and transportation while cutting back on vacation, fashion, and durables—a trend seen across all economic classes. Households continue to spend on FMCG and fresh goods but are adjusting their spending patterns based on individual needs.

Consumer behaviour varies by sector. For in-home purchases, there’s a trend towards downsizing in Home Care and Personal Care (e.g., soaps, shower gels, shampoos, deodorants, and oral hygiene products), but a willingness to spend more in Beauty Care (e.g., makeup, skincare, haircare, and fragrances), presenting opportunities for premiumisation. In Pantry Essentials, value growth stems from price increases as shoppers cope with inflation. In the Baby Care segment, shoppers are upsizing to larger pack sizes for better value.

One of the notable discussions was that brands must recognise that simply offering lower prices isn’t enough. They also need to clearly communicate product benefits, deliver quality, and provide optimal usage benefits to justify premium prices. For instance, when consumers demanded sunscreen, the brand added extended benefits like protection and moisturising. This deep understanding of consumer behaviour drove their success.
Balancing innovation with consumer needs is crucial, given the plethora of market options. For Out-of-House (OOH) consumption, volume growth is driven by snacks and non-dairy beverages, thanks to increased post-pandemic mobility and school activities. Brands must offer affordability and practicality to boost consumption.
Looking ahead, brands should focus on evolving demographics to understand buying patterns. In Indonesia, a slowing population and the rising influence of Next-Gen (GenZ and Millennials) as household decision-makers open up new opportunities. Next-Gen consumers are willing to spend for a higher quality of life and want convenience and availability across channels, including online and speciality stores.
Lastly, we discussed leveraging tech and digital spaces to amplify brand awareness. With 90% of Next-Gen shoppers using YouTube and more than half of FMCG shoppers on TikTok, digital platforms present significant promotional opportunities.

As the 2024 elections approach, the Indonesian macroeconomic situation will be pivotal to consumer spending. Optimism about the economy and cost of living could boost consumer confidence, with projections indicating a modest 5% value growth for the Indonesian FMCG industry, aligning with expected GDP increases.
After formal discussions, we enjoyed an informal networking session over dinner and cocktails. The event was a great success, fostering genuine conversations and meaningful insights.

Stay tuned for our next event in another city. Check the Chai with the CPG Leaders page for details of our upcoming meet.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

Not just another newsletter about AI in your inbox

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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Not just another newsletter about AI in your inbox https://bizom.com/not-just-another-newsletter-about-ai-in-your-inbox/ Thu, 18 Jul 2024 07:06:13 +0000 https://bizom.com/?p=82958

Not just another newsletter about AI in your inbox

by Mansi Srivastava

July 18 2024 | 02 min read

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A story of fulfilling KPIs Vs. Creating a REAL impact

A confectionery brand in South India faced a familiar challenge: low sales at a key retail outlet. While this issue was not unique, but what happened during the course of solving this issue is really interesting. The brand strategically placed a visi cooler at the store’s entrance and introduced an AI-driven tool to ensure planogram compliance. The salesman visiting the store was required to regularly verify compliance using this tool, resulting in a significant sales surge within weeks.

However, sales eventually declined. Despite the tool indicating consistent compliance, the real issue emerged only when a new salesman took over the store. He discovered that the store owner had moved the visi cooler to the back due to rain, causing the sales to drop. Unlike his predecessor, who followed KPIs without question, the new salesman used his intuition, diligence and REAL intelligence to uncover the root cause.

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence. Without the keen insight and proactive problem-solving of individuals, even the most advanced AI tools can fall short, reducing their impact to mere KPI fulfillment.

AI is the need of the hour; but real intelligence makes every minute count

AI has undeniably numerous use cases in the FMCG industry. These use cases significantly reduce human workload while ensuring up to 99% accuracy in the results. Some key areas where AI is extensively utilised include:
  1. Predictive Analytics: Companies use AI to analyse vast amounts of data to predict trends, customer preferences, and buying patterns. This helps in making informed decisions about inventory management, marketing strategies, and product launches.
  2. Supply Chain Optimisation: AI-driven solutions optimise supply chain processes by predicting demand accurately and automating inventory management. This reduces operational costs and enhance overall efficiency.
  3. Personalized Marketing: AI algorithms analyse consumer data to create personalised marketing campaigns, enhancing customer engagement and driving sales.
Despite the emerging use cases, Elad Gil, a notable entrepreneur, investor, and advisor in the tech industry who co-founded Mixer Labs (later acquired by Twitter, where he served as a Vice President), recently stated that 99% of AI companies are unlikely to succeed, but the 1% that do could become quite significant. You can read the full article on Elad Gill’s insights here.

Currently, everyone is racing to integrate AI, but experts observe that only 1% of companies will thrive, and those will be the ones utilising RI with AI, and not purely AI.
Embracing Real Intelligence
Real Intelligence emphasises the importance of human skills and judgement in areas where AI falls short. Here are some ways FMCG companies are integrating Real Intelligence into their operations:
  1. Consumer Insights: While AI can process data, understanding the deeper motivations behind consumer behaviour often requires human intuition. FMCG companies are investing in qualitative research methods, such as focus groups and ethnographic studies, to gain richer insights into consumer needs and preferences.
    Example:Procter & Gamble (P&G) has a dedicated consumer insights team that conducts in-depth interviews and home visits to understand how people use their products. In an article celebrating their 100 years of delivering breakthrough results with data, P&G highlights their culture of home visits to understand customers’ consumption patterns.
  2. Problem-Solving and Adaptability: Humans are better equipped to handle unexpected challenges and adapt to changing circumstances. Real Intelligence is critical for navigating complex, unstructured problems that AI might struggle with.
    Example: During the COVID-19 pandemic, many FMCG companies had to pivot quickly. People at these companies made plans, reallocated resources, and developed new strategies to cope with unprecedented disruptions. This is real intelligence.
  3. Product Suggestion: Many beauty brands have incorporated AI and VR technologies to allow customers to visualise how makeup will look on their faces. However, these AI tools do not account for specific skin conditions or problems. In contrast, beauty advisors in stores can examine your skin and provide personalised product recommendations.
    Example: L’Oréal uses AI on its online platforms to offer customised product suggestions and virtual try-on experiences. Yet, they also maintain beauty advisors at various outlets and shopping malls who can recommend products tailored to your skin type. According to an article by L’Oréal, they have trained over 8k women to become beauty advisors at their stores or start their own beauty business.
The Synergy of AI and RI

The future of the FMCG industry lies in the synergy between AI and RI. By combining the analytical power of AI with human creativity, experience, and judgment, brands can achieve a more holistic approach to innovation and customer engagement.
While AI will continue to play a critical role in driving efficiency and innovation, the irreplaceable value of human intelligence is being recognized and integrated into business strategies. This harmonious blend promises a future where technology and humanity work together to create more meaningful and impactful outcomes in the FMCG sector.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

Not just another newsletter about AI in your inbox

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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Back of the Pack is the New Front https://bizom.com/back-of-the-pack-is-the-new-front/ Mon, 08 Jul 2024 11:50:37 +0000 https://bizom.com/?p=82788

Back of the Pack is the New Front

by Mehak Jaggi

July 11 2024 | 02 min read

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Years ago, consumers were all about taste—the flavour was king, and the ingredients list was an afterthought. People would pick up a product, take a bite, and decide its worth based solely on the taste experience. But times are changing. Today, the back of the pack is becoming more and more relevant. Shoppers are flipping packages around, eager to read the labels and uncover the story behind the ingredients. It’s no longer just about a delicious bite; it’s about understanding what we put into our bodies.

Snacking hasn’t always been the healthiest habit, with most quick bites being deep-fried or heavily sweetened. In the ever-changing food industry of India, increasing health awareness is bringing a noticeable change: the rise of healthy snacking. India’s healthy snack market is flourishing with various flavours and creative offerings, catering to the growing consumer interest in a healthier lifestyle.

Thus, the healthy snacking market may continue gaining momentum in tier 1 and now in tier 2 and other regions as well in 2024.

Dr. Shilpa Vora, Chief R&D Officer at Marico Ltd, said, “Conscious snacking that strikes a balance between health and taste has been one of the priorities amongst today’s contemporary consumers. The industry is being driven by the working population’s increased inclination for convenience food that is high in nutritional value. Thus, there has been a growing demand for on-the-go snacking options that are ready-to-eat and ready-to-cook, offering flavour, health and ease.”

Similarly, Abhishek Agrawal, Co-Founder of Farmley said, “With the increasing awareness around health and wellness, the trend of healthy snacking is here to stay.”

Along similar lines, we at Bizom did a podcast with Balram Bhattacharjee, Chief Sales Officer (CSO) – India Offline & International Business at Yoga Bar (Sprout Life Foods) where he explains the growth of the healthy snacking segment in India and the rising awareness of consumers about health and wellness.

He reveals how the brand creatively uses readily available kitchen ingredients to produce snacks that are all-natural, preservative-free, and gluten-free without compromising on taste. In an era where consumers are increasingly mindful of their food choices and calorie intake, this approach resonates deeply.

Additionally, he shares how Yoga Bar as a brand is transparent and committed to quality which sets the brand apart in a crowded market. Also, this comes at a time when other legacy brands in the same category resort to deceptive marketing tactics, misleading consumers about the ingredients they use.

Check out our latest podcast to know more about it-

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Beyond the Podium: How The Olympics Fuel FMCG Growth

As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

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This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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Rooting back to the Volume > Value era: 2024 CPG trends https://bizom.com/rooting-back-to-the-volume-value-era-2024-cpg-trends/ Fri, 28 Jun 2024 08:50:50 +0000 https://bizom.com/?p=82657

Rooting back to the Volume > Value era: 2024 CPG trends

by Mohit Prajapati

Jun 28 2024 | 02 min read

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In an industry where costs are rising and supply chains are unpredictable, CPG companies are facing tough challenges. With commodity prices expected to stay high, between 20–40 percent above 2019 levels, until at least 2025 food commodities are especially at risk due to more frequent droughts, causing lower yields and more failures. CPG companies must embrace significant changes to stay competitive and win back investor trust. 

Bain & Company estimates that global retail sales value (RSV) has grown by nearly 10%. This continues a similar rise from 2022 and is almost double the 10-year average growth rate. However, about three-quarters of the growth in 2023 likely came from price increases rather than volume gains, as companies passed higher input costs to consumers. In the US and Europe, price increases made up 95% of RSV growth. This imbalance isn’t sustainable.

Emerging markets saw most of the global growth in volume. India stood out with nearly 15% growth in RSV since 2022, thanks to consumers choosing bigger, international brands over local or unbranded ones. In China, both volume and pricing were hit by low consumer confidence. 

These trends underscore the imperative for today’s CPG leaders to prioritize returning to profitable, volume-driven growth and accelerating next-generation capabilities to address such diverse market dynamics and seize opportunities. The key question is how to achieve these goals and what specific actions should be taken. Through our secondary research, we have identified the following strategies that CPG leaders are employing to drive sustainable growth.

Big Moves for a Big Impact

To stay ahead, each CPG company must make significant strides in at least one of six major areas:

  1. Innovative Premiumisation: Capitalise on consumer-centric product design and rapid market activation.
  2. Advanced Commercial Capabilities: Develop new market channels and excel in key account partnerships.
  3. Operational Efficiency: Apply automation to drive substantial savings across supply chain, back-office, and commercial functions.
  4. Digital Marketing Revolution: Embrace technology to optimize media campaigns and accelerate innovation.
  5. Sustainable Practices: Shift to climate-resilient growing practices and decarbonize operations without sacrificing consumer appeal.
  6. Global Expansion: Leverage low-cost hubs and remote collaboration tools to expand market presence efficiently.

In the future, successful CPG companies will be those that truly understand their consumers’ needs and use this understanding to make strategic decisions. This means not only choosing the right locations and sales channels but also focusing on product categories and offerings that resonate with their audience. The best brands will integrate this consumer knowledge into every aspect of their operations, ensuring memorable products, innovative ideas, and widespread availability.

In conclusion, the Consumer Packaged Goods (CPG) industry faces significant challenges with rising costs and unpredictable supply chains. Despite these obstacles, companies must make bold moves to stay competitive and regain investor confidence. By focusing on innovative premiumization, advanced commercial capabilities, operational efficiency, digital marketing, sustainable practices, and global expansion, CPG leaders can drive sustainable growth. Understanding and integrating consumer needs into strategic decisions is crucial for future success. Let’s leverage these insights to transform the CPG landscape and lead the charge in creating a resilient and thriving industry.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

Not just another newsletter about AI in your inbox

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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Is AI Ready to Rule? https://bizom.com/is-ai-ready-to-rule/ Fri, 21 Jun 2024 08:28:21 +0000 https://bizom.com/?p=82170

Is AI Ready to Rule?

by Mehak Jaggi

Jun 21 2024 | 02 min read

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Imagine a day in the life of a sales rep in the scorching summer, starting his day at 9 am. He navigates the crowded streets of bustling markets, aiming to visit 30-40 outlets on average. With minimal training, he pitches products to every retailer he meets. The pressure to meet an endless list of KPIs at each outlet feels like climbing Mount Everest daily. After facing multiple rejections, he finally reports his performance to his manager, justifying his efforts. Disheartening, isn’t it?

What can be done in such scenarios?

CPG brands recognise these challenges and strive to assist their downstream users with technology that not only provides insights but also guides them on what steps to take next.

As the world evolves, brands experiment with artificial intelligence (AI) and generative artificial intelligence (GenAI) to automate repetitive processes and enhance efficiency, such as:

Measuring Use Cases of AI:
  1. Supply Chain Automation: Forecasting demand by analysing current inventory, historical data, seasonality, and sales numbers.
  2. Finance: Generate code to analyse credit data and assess customer risk profiles to estimate default and loss probabilities.
  3. Route Optimisation: Reducing logistics costs by planning better routes for sales reps.
  4. Manufacturing: Predicting market demand and increasing order management systems’ overall effectiveness.
  5. IT Systems: Automating IT support ticketing for incident management with chatbots.
As businesses begin to see the benefits of GenAI, they also recognise the diverse risks associated with the technology. In the recent study by McKinsey & Company, these can range from data management risks such as data privacy, bias, or intellectual property (IP) infringement to model management risks, which tend to focus on inaccurate output or lack of explainability. A third big risk category is security and incorrect use. Conversely, respondents are less likely than last year to say their organisations consider workforce and labour displacement to be relevant risks and are not increasing efforts to mitigate them. Infact, inaccuracy—which can affect use cases across the GenAI value chain, ranging from customer journeys and summarisation to coding and creative content—is the only risk that respondents are significantly more likely than last year to say their organisations are actively working to mitigate.

However, the question remains: are users ready to accept this technology, or is there dissatisfaction?

In a recent interview by Ashish Pandey, Global CIO, Dabur India Limited at ETCIO Annual Conclave 2024 mentioned that “only 3 out of 100 CPG stakeholders believe AI is a scalable model. There has been considerable buzz around GenAI since last year, driven by the involvement of OpenAI and Microsoft. Despite this, deploying and scaling AI remains challenging for the industry. While advanced technology is available, its effective use depends on the real intelligence- the users’ ability to adapt and integrate it.” 

Even Ruma Kishore, Director of Digital Transformation, HUL at ETCIO Annual Conclave 2024 mentioned that “there are four ingredients to digital transformation- process, technology, data and people. Looking at the proportion it is 10% digital and 90% people. Hence, it is very important to have people aligned for digital transformation’s success.”

GenAI should not only drive efficiency but also provide insights that change how people view data and make decisions using real intelligence. Insights must guide actionable steps; without a clear next-best action, advanced technology offers limited value.

Understanding technology is secondary but understanding people is the real art. Knowing what works, the organisational cycle and the DNA of success is paramount. When people succeed, the organisation thrives. Hence, AI helps derive insights and corresponding actions from data. However, if the data is flawed, AI cannot function effectively. Ensuring well-defined data collection rules and high data quality is crucial for successful AI and GenAI implementation.

Moreover, AI has more challenges too in the landscape such as:
  1. High Investment: Significant funds are required for infrastructure and computing power to process vast amounts of data.
  2. Bias and Discrimination: AI can produce biased or harmful outcomes based on the data inputs.
  3. Data Privacy and Violation: Ensuring data privacy and preventing violations are critical.
  4. Business Case for AI: A clear business case is essential for AI implementation. Often, prerequisites like clean data are lacking, leading to unsatisfactory results.

Conclusion:

The FMCG industry stands on the brink of a technological revolution with GenAI and other emerging technologies. The potential for increased ROI and operational efficiency is vast. However, technology’s power lies in the hands of those who use it. RI drives successful technology adoption. By prioritising upskilling, ensuring data quality, and viewing technology as an enabler, not a goal. FMCG brands should unlock AI’s full potential, achieving sustainable growth and innovation by giving importance to real intelligence.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

Not just another newsletter about AI in your inbox

This story underscores a vital lesson: artificial intelligence must be complemented by real intelligence.
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Eid Impact: Product Trends in Indian Retail https://bizom.com/eid-impact-product-trends-in-indian-retail/ Thu, 13 Jun 2024 06:43:14 +0000 https://bizom.com/?p=81944

Eid Impact: Product Trends in Indian Retail

by Animesh Bajpai

Jun 13 2024 | 02 min read

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The retail market serves as a reflection of the social and economic fabric of our nation. With festivals like Eid, brands, distributors and retailers plan their inventory and marketing schemes to utilise the increased demand.

This quick read is a short data backed analysis about how Eid contributes to the demand in certain product categories.

Celebrating Diversity: The Significance of Eid

Eid, one of the most cherished festivals in India, brings communities together in joyous celebration. As India prepares to commemorate this auspicious occasion on 17th June, the retail landscape prepares itself for a surge in demand as per the traditions of the festival.

Hotspots of Demand

Cities like Mumbai, Hyderabad, Lucknow, Kolkata, Ahmedabad, Bengaluru, Srinagar, Aligarh, etc are likely to witness a higher concentrated demand for various product categories as families prepare for festive gatherings and feasts.

Product Categories that might see a bump:

During Eid festivities, few product categories see a rise in demand.

  • Packaged foods: Delightful treats like Seviyan (vermicelli) become staples for sweet indulgence. Srinagar, Lucknow, Kolkata, Delhi and Aligarh, saw a jump in demand, both last year and this year for the months of April & May.
  • Commodities: Consumption of rice generally sees a spike during this time, specially the premium Basmati category. Last year Delhi NCR and Lucknow increased their rice consumption by an average of over 20%. Ahmedabad also saw a surge in essentials like edible oils in the Eid month last year by almost 40%.
  • Spices: Essential spices and masalas add flavour and aroma to traditional Eid dishes. Last year, Kolkata saw a high growth rate of around 25%, however in absolute amounts, no city could beat Hyderabad this year.
  • Apparel and Footwear: Traditional attire and fashionable footwear witnessed a surge in sales as people dressed themselves up for the occasion to meet and greet.
  • Cutlery: Elegant cutlery sets complement the dining experience, adding a touch of sophistication to Eid gatherings. Inevitably products like Knives, dishes, ladles, etc become a go to product category for homemakers to buy.
  • Cosmetics: Fragrances and cosmetics enhance personal grooming and elevate the festive spirit. Mumbai saw a major hike in the sales of perfumes this year in May compared to April.

As we celebrate the diversity of our culture, we would like to acknowledge the efforts taken up by brands and retailers to ensure a happy & joyous mood.

Wishing you and your loved ones a joyous Eid filled with love, prosperity, and togetherness.

* All the numbers reported above are a result of an internal research done on the sales of the specific product categories in a few cities. The sales numbers of April, and May were compared to arrive at the above pointers. Eid might be a major contributor to the surge.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

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From Push to Pull: Unveiling the Evolution of Route to Market (RTM) model https://bizom.com/from-push-to-pull-unveiling-the-evolution-of-route-to-market-rtm-model/ Mon, 03 Jun 2024 06:55:28 +0000 https://bizom.com/?p=81551

From Push to Pull: Unveiling the Evolution of Route to Market (RTM) model

by Anish Tamang

June 03 2024 | 04 min read

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In a rapidly digitising world, the traditional Route to Market (RTM) is undergoing a profound shift towards a more consumer-centric approach. As discussed in our recent webinar featuring industry experts Godson Nkeokilonye, Kasim Olusegun, and Akshat Kush, the emergence of digitisation is reshaping the way brands engage with consumers in Nigeria and beyond, and the evolution of Route to Consumer (RTC) models through digitisation. Here, we encapsulate the key insights shared by our panel experts, shedding light on the transformation of traditional Route to Market (RTM) to RTC and its impact on Nigerian consumers.

The Impact of Digitisation on Consumer Behavior:

Kasim Olusegun highlighted the profound impact of digitisation on Nigerian consumers. With over 122 million internet users, the landscape has shifted towards digital engagement with brands. Concepts like buy now pay later and pay on delivery have reshaped consumer interactions, providing convenience and access to a plethora of product choices. Moreover, increased internet penetration has led to enhanced consumer education, influencing their purchasing decisions.

Leveraging Technology for Efficiency:

Akshat emphasised the role of technology in streamlining supply chains and empowering sales teams. By digitising processes and providing real-time insights, businesses can optimise decision-making and enhance sales effectiveness. Bizom offers comprehensive solutions for store enumeration and authenticity verification, ensuring a clean and reliable store directory. With the integration of generative AI, businesses can anticipate consumer demand, optimise shelf visibility, thus driving brand loyalty.

Understanding RTC vs. RTM:

Akshat Kush delved into the transition from RTM to RTC, emphasising the shift from a supply-based model to a demand-based one. While RTM focused on pushing products through trade promotions and incentives, RTC entails a more consumer-centric approach. With the aid of technology, manufacturers can now understand consumer preferences in real-time, enabling a pull-based model. This evolution is driving innovations like quick commerce and just-in-time inventory management, redefining the retail landscape in Nigeria.

Local Patterns and Emerging Technologies:

Kasim also elaborated on local patterns and emerging technologies shaping RTC in Nigeria. Quick commerce, direct-to-customer business models, and digital-led hub-and-spoke systems are revolutionising how brands reach consumers, particularly in rural areas. Traditional e-commerce is evolving, with global players like Amazon making inroads into the Nigerian market. Additionally, fintech companies are disrupting traditional distribution models, emphasising the need for businesses to embrace digitisation for future success.

Steps to Embrace Digitisation:

For businesses embarking on the digitisation journey, Akshat outlined key steps for success. Establishing a stable channel for information capture is paramount, ensuring seamless integration across all levels of the supply chain. Furthermore, businesses must empower sales teams with data-driven insights and real-time rewards, fostering engagement and motivation. Embracing cultural nuances and leveraging technology for decision-making will be instrumental in navigating the evolving RTC landscape.

Don’t miss out on the insightful discussions from our recent webinar featuring industry experts. Click here to watch the full webinar on YouTube now and unlock the secrets to transforming your business in the digital age. Seize the opportunity to stay ahead of the curve and drive success in today’s dynamic market landscape. As we navigate the digital transformation journey, the imperative for businesses is clear: embrace digitisation or risk being left behind. By leveraging technologies like Bizom, companies can gain actionable insights, optimise their routes to consumers, and drive sustainable growth in an increasingly competitive landscape.

Ready to revolutionise your route to consumers? Take the first step towards digital transformation today with Bizom.

Let me know if you need anything else!

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Real or Artificial: Defining True Intelligence https://bizom.com/real-or-artificial-defining-true-intelligence/ Thu, 30 May 2024 07:38:07 +0000 https://bizom.com/?p=81429

Real or Artificial: Defining True Intelligence

by Mehak Jaggi

May 30 2024 | 02 min read

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With over 100+ retail enthusiasts from 7 cities and gathering a plethora of insights in our past events, we wanted to do another edition of Chai with CPG Leaders in the City of Joy- Kolkata. This time we wanted to do something different. With hours of brainstorming internally, on whether the theme should be around FMCG trends or strategies for route-to-market (RTM) or optimising operations. Since Artificial Intelligence (AI) is the talk of the town, we thought why not go forward with it? But does intelligence really have to be artificial? We believe that Real Intelligence (RI) is the true intelligence which holds significant importance in the market and hence we ended up in a room full of industry leaders where intelligence was not artificial.

With this in mind, our roundtable discussion began, focusing on why brands eagerly embrace AI and experiment with it to stay ahead. Some brands, however, emphasised the importance of aligning stakeholders before diving into AI implementation. The key question was whether the market is ready for AI disruption or needs more preparation time and effort.

Brands discussed that the most crucial step is to investigate AI’s role in sales by incorporating users’ inputs through vernacular language in apps, utilising algorithms for recommendations, and addressing business problems for scalability. Additionally, AI should be able to measure KPIs based on individual capabilities.

There’s been a noticeable shift in the roles of sales officers (SOs) and area sales managers (ASMs), who can now measure their team’s KPIs with a click of a button and provide timely nudges. However, this technological advancement also brings fear that AI might eventually replace their jobs. Field users, in particular, are reluctant to integrate such tech into their daily operations. Brands need to communicate effectively, reassuring users that AI will serve as an assistant to enhance their sales efforts, not replace them.

Despite AI’s remarkable advancements and potential, it’s crucial to recognise its limitations. AI’s performance is inherently tied to the quality of the data it is trained on. The AI system will reflect those biases and limitations if the data is biased or incomplete. Moreover, AI lacks true creativity or innovation. While it can generate new ideas and solutions based on existing data, it cannot think outside the box or create original concepts. This is because AI relies on algorithms and patterns, whereas real creativity stems from intuition, inspiration, and imagination. Consequently, AI can enhance real ingenuity but can never replace it.

Thus, RI should be used for planning, and AI for execution. RI will always be the master, with AI as the assistant. AI will likely continue to advance and become more sophisticated, enabling it to perform an even wider range of tasks. However, there will always be tasks and problems that require real input and creativity. Brands need to understand this evolution and educate users on its benefits for scaling up.

After the formal discussions, we gathered for an informal networking session over dinner and cocktails. The event was a resounding success, with real people discussing real ideas to get real insights.

This was a small excerpt from the discussion, though there were also talks about how brands rely on analytics, move towards using integrated platforms, the right time for AI inception, get rural visibility and the era of GPT-powered chatbots.

Stay tuned for our next event in another city. Check the Chai with the CPG Leaders page for details of our upcoming meet. For any queries, write to marketing@bizom.com.

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Restructuring the Operational Framework with Retail Intelligence https://bizom.com/restructuring-the-operational-framework-with-retail-intelligence/ Wed, 22 May 2024 07:24:51 +0000 https://bizom.com/?p=80240

Restructuring the Operational Framework with Retail Intelligence

by Diogo Victoria

May 22 2024 | 03 min read

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Restructuring the Operational Framework with Retail Intelligence

The relentless pace of modern business demands a new standard of agility, invoking a call for a transformative operational framework, using technology as an enabler.

Boost your business’s profitability with Retail Intelligence & RTM Technology – the dynamic duo that helps you conduct business with precision. Keep it simple and effective to achieve success.

But it’s more than just about performance; it’s a narrative of satisfaction, where every satisfied customer becomes a protagonist in the tale of success. If you want to improve your business’s profitability, you should consider leveraging Retail Intelligence and RTM Technology. These two solutions work together to help you conduct your business operations with precision and simplicity, leading to greater success. With Retail Intelligence and RTM Technology, you can streamline your business processes and achieve better results.

The convergence of data analytics and advanced RTM technology has brought a paradigm shift: Retail Intelligence. Through meticulous analysis of diverse data streams—including purchase history and browsing customer behaviour — businesses gain invaluable insights into what the market wants and needs.

Sophisticated machine learning algorithms and predictive analytics empower consumer goods businesses to forecast with remarkable accuracy the products that will resonate with customers in future orders. By proactively aligning their offerings with evolving customer demands, organizations transcend mere reaction, to proactively align their replenishment strategies with customer needs.

The result? Enhanced operational efficiency, elevated customer satisfaction, and ultimately, reinforced bottom line. This symbiotic relationship between predictive insights and responsive action not only drives immediate sales growth but also becomes an instrument for operational efficiency and customer-centricity.

Enhanced sales figures merely scratch the surface; the true treasure lies in the cultivation of enduring customer loyalty. In this era of Retail Intelligence, businesses not only need to meet but also anticipate consumer needs, laying the groundwork for sustained growth and enduring brand affinity.

At SADAFCO, our relentless commitment revolves around elevating customer satisfaction while harnessing our cost-to-serve efficiencies. Retail Intelligence stands as a pivotal instrument in our digital journey. From amplifying productivity and streamlining efficiencies to optimizing resources and fuelling business growth, it’s integral to our pursuit of distribution excellence and consumer delight. We’re not merely chasing performance metrics but are also committed to continually expanding our teams’ capabilities to adapt to the evolving landscape of our industry.

We recognize that to excel in customer experience and drive satisfaction, a profound understanding of our customers and product dynamics at the shelf level is paramount.

That’s why we employ Bizom’s advanced machine learning algorithms, to shift through this wealth of information to discern patterns and correlations, forecasting the products likely to feature in future orders. By factoring in variables such as seasonality, emerging trends, and individual preferences, Retail Intelligence generates precise, tailored recommendations.

By leveraging the Retail Intelligence platform, we are fine-tuning delivery operations, optimizing routes, allocating vehicles strategically, and refining scheduling processes. This not only decreases fuel consumption and optimises delivery times but also supports overall operational effectiveness.

Moreover, with the ability to accurately predict customer preferences and demand trends, SADAFCO can strategically position inventory, mitigating stockouts and minimizing holding costs. This synchronized operational approach culminates in a streamlined last-mile delivery process, ultimately reducing the cost-to-serve and amplifying profitability for the business.

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Beyond the Podium: How The Olympics Fuel FMCG Growth

As we reflect on the evolving dynamics of the Fast-Moving Consumer Goods (FMCG) sector, one of the most intriguing trends is the growing influence of ...

Understanding FMCG- The Indonesian Way

The Indonesian market, with its steady year-on-year growth surpassing 5% over the past five quarters and inflation settling at 2-3%, stood out as a focal ...

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