Situation
Our client, a global consumer packaged goods (CPG) company, faced the challenge of gaining visibility into future growth opportunities. Their existing analytical capabilities were primarily backward-looking and did not effectively model the future drivers of growth. To inform their "Where-to-play" and "How-to-win" decisions, the client needed a Decision Intelligence solution that could provide foresight into potential growth areas and the ability to simulate scenarios and collaborate with cross-functional stakeholders to come to a decision. The specific decision to be made was where to focus their efforts within each market category. To address this situation, Cloverpop developed a comprehensive solution that included a foresight model, a collaborative simulator, and due-to decomposition.
Complication
The customer's existing approach to new product forecasting and launch decision-making was cumbersome and lacked the necessary accuracy and efficiency. Deciding which product formula to launch was a complex task that involved multiple stakeholders and often relied on subjective judgments. This resulted in a high level of new product failures, leading to low success rates and missed market innovation performance targets. The customer needed a streamlined and data-driven solution to address these complications and make informed launch decisions.
Solution
To address the client's challenges, Cloverpop developed a comprehensive solution that consisted of three main components. First, a holistic foresight model was built to analyze consumer and macro trends and forecast growth opportunities over a 5-year horizon. This model provided the client with valuable insights into future market dynamics. Next, a collaborative simulator was created to simulate forecasts based on execution and macroeconomic variables. This allowed the client to assess the potential impact of different strategies and scenarios on future growth. Finally, a due-to decomposition analysis was conducted to understand the key drivers of growth within each category and inform strategic decision-making.
Results