Consumer goods companies face increasing amounts of data, especially if they have access to transaction logs through syndicated data arrangements with retailers. This data can be a unique asset to generate value by way of more targeted product development, pricing, promotions, and marketing.
Our analytical experts have the knowledge and the practical experience to work with disparate data sources, generate relevant insights, and derive a rich fact base to support all key business decisions in the consumer goods industry.
What we do
Projects for clients often touch on the following topics:
Insights-driven category strategy and assortment
Based on transaction or loyalty data, we conduct targeted data mining to help consumer goods companies make informed decisions about assortment management. Teams often leverage the proprietary Market Structures approach in collaboration with our wholly-owned analytics subsidiary Henry Rak Consulting Partners (HRCP). HRCP specializes in data-driven profitable revenue growth.
Insights-driven pricing and promotions
To optimize shelf prices for profit and to get the most out of promotions, we offer our clients our proprietary Periscope Suite of tools, combining econometric modeling with heuristics and process management.
Insights-driven marketing
To enable clients to make marketing investments where they really matter, we help them apply advanced analytics to marketing mix modeling and media planning.
Who we are
Our experts are linked through a global network, the Consumer and Marketing Analytics Center (CMAC). CMAC is anchored by a growing number of regional hubs and can be accessed by teams in any of McKinsey’s 100 offices worldwide.
Our growing global team of dedicated CMAC affiliates has successfully brought CMAC methodology to consumer goods clients in food & beverage, detergents, OTC, and cosmetics, covering topics from category strategy to pricing and promotions.
Tools and solutions
Market Structures
For category strategy and assortment optimization, we offer our clients a proprietary econometric approach to identify regional and local market structures. This can be deployed to pinpoint category growth opportunities as well as to optimize the existing product portfolio across countries.
Periscope Suite
The Periscope Suite includes tools for data transparency creation, price setting, promotions optimization, and capability building. Because of its modular nature and inherent flexibility, it can be adapted to a client’s specific environment and data interfaces.
Further concepts we use to help clients make the most of the data they own include the CMAC Heatmap and a six-step improvement program. The Heatmap enables clients to gauge their performance at all intersections of relevant data sources, such as online buzz, and business levers (e.g., promotion mechanics). Based on these diagnostic insights, we use a tiered Improvement Program to guide clients on their way from product centricity to consumer centricity, advancing the sophistication of big data leverage one step at a time.
We develop and refine our tools in close cooperation with clients, and we create tailor-made solutions to address new business functions, data sources, and challenges.