This Day On The Street
Continue to site
ADVERTISEMENT
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs