Lyric Jensen

Jensen 1 CPG Companies CPG companies in the United States, such as Coca-Cola and Proctor & Gamble, that have implemented technological products and digital data tracking programs, among other things, have higher sales and return rates and larger revenue growth than ones who have not. CPG​ organizations spent an average of $41.2 million, or 0.2%, of average revenue on internet-based technology in 2015, and are expected to spend $67.6 million in 2018, with 2020 spending priorities projected to be of similar value. Only ​28%​ of CPG companies use IoT and of the ​85%​ of companies who track their customers’ digital activities via cookies, less than half of them utilize it. A study that interviewed executives at 25 large CPG companies, as well as 100 industry experts, found that by using AI analytics, CPG companies can generate more than ​10% revenue growth​ and brands that invest in digital and technological branding are estimated to gain ​$2.9 trillion​ in revenue within a decade. CPG online sales rose​ 35.4%​ in 2018, compared to a ​3.4%​ growth in sales at supermarkets that sell CPG products, and the overall U.S market grew around ​2%​ in 2018, reaching approximately ​$815 billion​. The ​Coca-Cola Freestyle​ has mixing capabilities of a beverage portfolio, has a mobile app, and a diagnostics dashboard for business owners to monitor drink inventory levels. The implementation of 50,000 units has been successful for the company, with beverage servings up ​8%​ in Freestyle outlets and calories-per-serving down by nearly ​10%​. In January 2018, Coca-Cola smart coolers, which deliver push notifications to nearby customers with special promotions, totaled around​ 120,000 ​and those numbers ​tripled by 2019​. This use of proximity marketing using internet-based technology created a return rate of ​7-10% on smart coolers, compared to the traditional returns of ​2-3%​. Jensen 2 80%​ of cooler openings indicate a sale; however, if the location is unsuccessful, they simply move the cooler from a low-impact store to a high impact one, and it generally creates a ​12% increase in sales​. Coca-Cola tracks where their products are represented across various forms of social media to receive insight on who is drinking their product and what prompted them to mention the brand online, which is used to target consumers and makes them ​4 times more likely​ to click on an ad. Proctor & Gamble is one of the United States' top truck users, and through a digitally enhanced operational program called Control Tower, they can see all inbound, outbound, raw material, and finished product data which reduced “deadhead” movement by ​15​%. By using a standardized warehouse, GDSN, it allows the company to do commerce with partners digitally, it dropped down the​ average of 70%​ of orders between retailers and suppliers to almost zero and saves millions of dollars. This research obtained a general idea of the CPG market and the percentage of the industry that implemented internet-based technology and the revenue that was gained subsequently. By utilizing statistical data provided by research reports and company statements regarding success rates of given products and programs, figures are provided that represent CPG companies as a whole.