Situation

Our client is a US-based multinational CPG leader whose portfolio includes several iconic brands. But it was missing targets, inventory costs were high, and no one knew which drivers to push.

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This multinational CPG needed better forecasting and a clearer picture of impact to plan smarter marketing moves.

The company needed to improve consumption forecasting and get a clear picture of the impact, and then plan smarter marketing moves.


Action

Our client’s forecasting process had to work across countries, include a wealth of data, and be highly accurate.

We used the NAVIK AI Platform and the experience of our business experts to build an Integrated Decision Planning Framework (IDPF) to create more accurate sales forecasts.

An essential part of the IDPF dealt with huge amounts of data from marketing plans, category movements, internal and cross-team data, macro and micro factors, competition data, marketing strategy, and other sources.

We sorted the data inputs and prepared models to forecast consumption-based sales. We incorporated ways for the tool to monitor growth and validate monthly and quarterly forecasts to see if any calibration was required. We also developed marketing mix models for each of the client’s brands, allowing them to measure the contribution and effectiveness of marketing activities.

Results

Now our client can access various types of data inputs and generate consumption forecasts (using causal, time-series, or ensemble forecasting techniques) or demand forecasts (with the option to specify coverage adjustment, inventory adjustment, reconciled demand forecasts, or volume comparisons).

Our client also has highly reliable forecasts that enable it to approach strategy sessions with greater clarity and a stronger idea of how to nurture each brand’s growth. By capturing information from multiple sources and making it available in a single location, teams could more quickly and easily access high-quality forecasts.

The client has since extended the IDPF to 10 additional countries.

  • 41%

    better forecast quality
  • 2%

    forecast bias now down to
  • 11

    countries now use the solution