CPG Analytics refers to the specialized application of data analysis within the Consumer Packaged Goods industry. CPG companies (e.g., food, beverages, household products) face a unique challenge: they typically sell their products through retail partners rather than directly to consumers. Therefore, their analytics focus heavily on retail execution and syndicated data. Key areas include: Retail Sales & Share Analytics: Measuring sales velocity, market share, and share of shelf within specific retailers and across the total market using data from providers like NielsenIQ and IRI. Distribution & Availability: Tracking whether products are in stock and on the shelf at target stores, as out-of-stocks directly result in lost sales. Promotion Effectiveness: Analyzing the lift in sales from promotional activities (e.g., discounts, displays) to calculate return on investment (ROI) and optimize future trade spend. Price & Price Gap Analysis: Monitoring your pricing versus competitor pricing to understand price elasticity and optimal positioning. Shopper Insights: Combining point-of-sale data with panel data to understand who is buying the product, when, and in what combination with other items. For modern CPG brands, especially DTC ones, this also includes all standard e-commerce analytics. CPG analytics is crucial for securing and maintaining shelf space, negotiating with retailers, optimizing the marketing mix, and ultimately driving growth in a highly competitive, low-margin industry.
