Shopper dynamics are changing rapidly, given omnichannel options and an ever-changing economic environment. Today's consumers shop across multiple channels based on their purchase intents. CPG organizations can effectively target these consumers with optimized price, promotion, and sales plans and do so quickly with the help of generative AI.
Gen AI is the umbrella term for the subset of AI that can use patterns in existing data to create new, seemingly original content. It can produce text, images, audio, synthetic data, and more. In the context of assortment, price, and promotion planning, it accumulates very robust and relevant datasets and delivers predictive and prescriptive plans with an explanation of why the plan is optimal. This technology improves plans by factoring in internal constraints as well as the external market environment and both global and local considerations. Tapping into this enormous amount of data could take humans years to sort through, but gen AI can sift through it and provide predictions in minutes or seconds.
Gen AI also provides more context to scenario planning, providing explanations for its suggestions so you can understand the rationale behind its recommendations. Additionally, you can compare your own scenarios against what gen-AI technology suggests, and it will compare each plan's performance drivers and their statistical likelihood of succeeding in the market.
This next-generation data and analytics technology also unlocks an opportunity for CPG companies and retailers to collaborate on joint business plans to increase both parties' revenues and profit contributions. To achieve this, CPG and retail partners must agree to share their data with a third party that can keep confidential information private while using datasets from both organizations to produce market plans that maximize shopper satisfaction while improving manufacturer and retailer revenues and profit performance. By joining forces, you can increase performance across digital and physical shelves.