demand forecasting in marketing Archives - Business Intelligence

Tag: demand forecasting in marketing

Redesigning Your Marketing Strategies to Suit New-Age Consumers

Marketing organizations seem to have lagged behind when compared to other sectors in terms of technological transformations and customer expectations. From the growth in popularity of online shopping channels to personalized ad campaigns for specific customer groups, consumer marketing strategies have evolved drastically over the past decade. Although the channels and technologies used by modern marketing companies have changed considerably, the manner in which tasks are approached remains more or less the same even today, and that is not a good sign. Organizations that continue to roll out large and infrequent campaigns, rely on media purchasing agencies, and are organized by geography or by product fail to take full advantage of the latest digital and advanced analytics tools. They can be used as effective marketing tools to chalk out marketing strategies that are more engaging, effective, and agile. Making use of these capabilities for effective marketing strategies require new management approaches.

Failing to have a comprehensive understanding of the target customers can result in failed marketing strategies. Request a free proposal to know how we can help your business streamline processes and build the right marketing strategies.

Building New age marketing strategies

Marketing strategiesManage internal and external partnerships

Organizations must leverage opportunities for advanced marketing strategies available today including search, social, programmatic, and content management. Internal and external teams that deliver these services must aim to function as an interconnected ecosystem. A key decision relating to marketing strategies to be made here is to figure out what needs to be handled internally and what must be outsourced to an external partner. It is advisable for the brand to handle core competencies such as strategy, while execution functions such as experimenting with new media or channels can be outsourced to external partners.

Build globally dispersed networks

Over the years, a common practice followed by brands to manage marketing strategies is by putting a global team under control of global marketing campaigns and assigning a local team to locally execute these campaigns. This could often create a clash between teams, especially with local teams thinking that the global team lacks a comprehensive understanding of their market. To combat this issue while promoting marketing strategies, a new age concept brand tribe have emerged. Brand tribes refer to an informal and globally dispersed network of marketers who come together to identify and share their best assets. Instead of the conventional top-down approach, these brand tribes have community managers who foster global collaboration, post insights, promote assets for particular markets, and discourage off-brand execution. This can also act as a way to reinforce brand standards.

Your marketing strategies proving to be ineffective? Marketing campaigns not generating the expected ROI? Tell us your business challenge and learn how our solutions can help.

Identify new growth channels

With the rising market competition, brands are under extreme pressure to identify and pursue new sources of growth that may be internal or external to the core business. Fastest growers in any industry are those that develop new products or services while maintaining their baseline capabilities. One way to achieve this is to create a dedicated new-ventures unit in the company that examines and identifies new growth opportunities for the company. Another way to do this is by partnering with start-ups that can provide a larger pool of opportunities in terms of emerging technologies and innovation.

 Building an agile operating model

Building marketing strategies to attract new age consumers have become extremely challenging. As a result, now brands are even taking inspiration from companies in other sectors to innovate their operations. The concept of agile is one such strategy that has originated from software development wherein small, self-organizing, cross-functional teams that work towards specific goals by breaking down large tasks in smaller units, assigning responsibility to team members, and constantly reviewing progress. Agile operating models can help identify profitable opportunities in real-time, rapidly deploy tests, evaluate results, and constantly reiterate.

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Demand Forecasting in Retail: Critical Mistakes to Avoid

Companies in the retail industry rely on demand forecasting to support inventory planning and distribution functions across their sales channel. Accurate demand forecasting requires companies to have a clear understanding of the right data and the repercussions of incorrect demand estimation. If done correctly demand forecasting techniques can help companies across the consumer goods spectrum to optimize operations and increase value while reducing additional costs. However, the absence of an accurate demand forecasting strategy could result in a faulty business strategy. To avoid this, we uncover some common mistakes made by companies in the retail industry during demand forecasting.

Smart forecasting is a powerful tool in today’s increasingly competitive retail landscape. Request a free proposal to know how we help companies to make information-driven decisions that optimize revenue.

Demand forecasting mistakes in the retail industry

demand forecastingIgnoring store-level demand

Sometimes retail companies tend to build demand forecasting models using a top-down approach in order to speed up and simplify the forecasting process. However, by not using an individual location-level unconstrained demand forecasting can result in significant under-prediction while estimating the actual demand. Furthermore, computing demand forecasts solely against prior sales don’t account for lost sales due to out-of-stocks, causing any forecasts for the future to be artificially depressed, and the cycle to continue.

Planning solely for distribution channels

Sometimes companies in the retail industry make the mistake of using demand planning solely to enhance their distribution channels and make it more efficient. Retailers will be able to churn out more from their investment if they rely on the data to optimize the production process as well. Demand planning, for instance, can be used to determine what manufacturers should be producing.

Getting the most out of your demand planning tool requires you to become familiar with its features and with several concepts related to inventory forecasting. Get in touch with our experts for more insights on everything you need to know about demand forecasting for your business.

Overlooking historical patterns

Unless a company has restructured its organization recently, altered their product or service lines significantly, there should be historical data that reflects distinguished demand and sales patterns. These patterns are the best sources to use for demand planning, because while they don’t necessarily consider current changes or possible impacts to the supply chain, they give retailers a baseline against which they can build accurate numbers for demand forecasting.

Optimizing business processes too soon

This is especially true in the case of new businesses or a recently restructured organization. Accurate demand forecasting requires adequate time to gather relevant data. Businesses that tend to undertake demand forecasting based on a small dataset that ranges over a short period are more likely to end up with adverse results.

If you have experienced any of these common dilemmas in demand forecasting, we can help you take the guesswork out of forecasting and gain the kind of actionable intelligence that produces results.

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