This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

More Than Half The Senior Executives Of Consumer Packaged Goods Companies Believe They Have The Technology But Lack The Talent To Convert Data Into A Business Asset, Accenture Survey Finds

Consumer packaged goods (CPG) companies have invested heavily in technology platforms to improve their trade promotion performance but many lack the talent or business processes to capitalize on these investments, a new study from Accenture (NYSE: ACN) finds.

According to Accenture’s Perfect Promotion Study, based on interviews with 350 senior executives at large CPG companies, 61 percent believe their technology investments have produced a wealth of data that can help improve their trade promotion performance but they lack the talent needed to put the data to its most effective use and boost the return on their analytics investment. In fact, one in five executives – 21 percent – admit that they trust their intuition more than the available data to make trade promotion-related decisions.

The study also reveals that CPG companies have changed their trade promotion investments since the start of the economic downturn in 2008. According to the study, 71 percent of CPG companies have increased their trade promotion spending in response to the economic downturn - 23 percent by more than one. Many executives participating in the study believe the additional investment has delivered additional value: 27 percent believe their return on investment (ROI) has increased by more than a quarter since the downturn, while 16 percent believe that their ROI has declined.

Slightly more than half – 53 percent – believe their company’s trade promotion performance is good, but could be improved. However, 28 percent believe it to be either “totally ineffective” or in need of significant improvement, and only 19 percent view their trade promotion performance as industry leading.

“The right approach to trade promotions is to blend leading edge technology with outstanding talent and make better use of predictive analytics and greater process integration across the business,” said Ed Stark, a managing director in Accenture’s Consumer Goods & Services practice. “In many cases the heroic efforts of individuals in CPG companies can hide many of the failings of their trade promotion efforts, and the successes that are achieved often occur in spite of, not because of, the tools, talent and processes at their disposal.”

“Our study indicates that most CPG companies are looking at the right areas in order to extract an improved return on their trade promotion investment. This holistic approach is the basis for Accenture Perfect Promotion, designed to help clients increase their trade promotion volume and effectiveness with less investment.”

The volatile marketplace is reflected in the areas where CPG companies believe they can improve the ROI of their trade promotions. Two-thirds of the executives – 65 percent – identify the establishment of more cost effective processes as a key method of improving their trade promotions performance. Additionally, 57 percent say they prefer to contract for outsourced talent in the promotions area rather than hiring talent directly. And, 29 percent – indicate both a need for greater flexibility in terms of resourcing and a difficulty in attracting the right calibre of talent.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs