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Monday, December 11, 2017

CPG, Unilever Big Data and Digital Twins

Always good to see interesting examples in the CPG industry, where I spent a good part of my career.   Save digital twin applications at GE.  Several useful concepts to be learned here.


CPG Industry Levels Playing Field with Power of One   Posted by Bill Schmarzo   in DSC.

Special thanks to Brandon Kaier (@bkaier) for his research and thoughts on the Digital Twins concept.

Unilever, one of the Consumer Package Goods (CPG) industry’s titans with over 400 brands and annual sales greater than $60B, recently bought Dollar Shave Club for $1B. Now normally I would not think twice about such an acquisition, peanuts in the world of mergers and acquisitions. ....

It seems that Unilever could have easily created their own subscription model without having to pay $1B for customers with whom they already have a relationship. So I don’t believe that Unilever just bought a subscription model. Instead, I think Unilever bought a capability; a capability to capture and mine individual customer product purchase behaviors – the frequency, recency, intensity, magnitude and monetary value of purchase behaviors at the level of the individual consumer – and to eventually apply this analytic capability across more of their brands.

Think about the purchase behavior details Dollar Shave Club has on each of its individual subscribers. Unilever has no similar behavioral knowledge or insights at the level of the individual consumer; they only know how much product they push through retailers and distributors like Walmart, Kroger and Target.

To be actionable, Big Data must get down to the level of the individual – the “Power of One.” Big Data enables capturing customers’ individual tendencies, propensities, behaviors, patterns, associations, and relationships in order to monetize the resulting customer, product and operational insight .... " 

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