Dannon Boosts Market Share with Big Data Analytics

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Dannon Boosts Market Share with Big Data Analytics

05/22/2013
The Dannon Company Inc., the leading selling yogurt company in the United States, works with food retailers and other partners to maintain its competitive advantage in the dynamic and growing yogurt category, in which segments such as Greek yogurt are rapidly increasing.

For example, the company is using IBM’s cloud-based predictive analytics to ensure it has the right product mix delivered at the right time to satisfy consumers in the highly competitive $7 billion U.S. yogurt market. Through the use of integrated analytics planning, Dannon is able to improve forecasting abilities in real time.
 
Through IBM’s trade and strategic trade planning solutions, Dannon analyzes shopper behavior through the use of big data and predictive analytics to improve trade investment decisions and make more precise and accurate predictions on product volume and profitability. IBM was instrumental in helping Dannon’s sales team to streamline the forecasting and planning process.
 
To meet continually changing consumer demand generated by promotions, Dannon must precisely anticipate how much additional yogurt is needed by its retailer customers, while also keeping in mind yogurt’s limited shelf life. Empty shelves cannot be filled overnight and too much production can result in spoilage, both of which are losses for shoppers, retailers and Dannon.

By utilizing these tools and statistics, Dannon is able to more accurately measure how much yogurt they will need through predictive analytics, which ensures enough yogurt is on the shelf, resulting in happier shoppers, less wasted product, and a more profitable business for retailers.
 
“Our goal was to eliminate the time our sales team was spending on forecasting and instead focus their attention on executing their promotional plans, allowing them to work more closely with our retailer customers,” said Timothy Weaver, chief information officer, The Dannon Company. “Through IBM’s planning solutions, we not only streamlined the forecasting process for our sales team, but we increased our planning accuracy from 75 percent to 98 percent, helping us to further distinguish ourselves as the leading yogurt maker.”  

This type of planning accuracy is key to Dannon maintaining its leadership in the yogurt market. And armed with new insights, the company will now attempt to challenge Chobani for the No. 1 spot in the highly competitive, fast-growing market for Greek yogurt.

IBM's Smarter Commerce initiative features software and services that help companies transform their business processes to more quickly respond to shifting customer demands in today's digitally-transformed marketplace. The initiative is driven by CMOs, CIOs, and other C-suite executives who are increasingly looking for ways to bring new levels of automation to marketing, sales and fulfillment to secure greater customer loyalty.

Current IBM cloud-based software and services being used by The Dannon Company include IBM Strategic Trade Planning and Customer Trade Planning solutions.

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