CXpose.tech gained an in-depth look into the use of technology and digital solutions to inform FrieslandCampina’s strategies in China for B2B2C marketing execution as well as to elevate the user experience of stakeholders in their ecosystem.

FrieslandCampina, one of the world’s largest dairy companies, provides millions of consumers with milk-based nutrition and various milk-based dairy products. CXpose.tech interviewed Professor William Lu, the company’s Head of Digital and Technology, about the transformative digital strategies they have deployed to remain at the forefront of consumer engagement and operational efficiency.

In China itself, Friso which is FrieslandCampina’s infant formula brand in the market, accounts for over 95% of the organization’s total revenue, according to Prof. William.

It does so by maintaining its premium positioning through stable pricing and high margins that are enabled and supported by their carefully thought out marketing strategies as well as technologies.

Empowering Partnerships

Prof. William emphasized the significance of the business-to-business-to-consumer (B2B2C) approach which addresses retailers, service providers, and consumers.

He said, “The B2B2C concept is not a new concept. But, why is it a success in Friso? I would say it is because we treat business owners as our partners.”

The company partners with retailers through a software platform that provides retailers with digital tools for store operations, ordering products, and promoting brands on social media. FrieslandCampina focuses on a collaborative approach by partnering with their retailers and empowering them with solutions that increase their revenue, rather than just promote of their own brand.

This approach has helped the software platform to quickly gain adoption among retailers.

It does so by maintaining its premium positioning through stable pricing and high margins that are enabled and supported by their carefully thought out marketing strategies as well as technologies.

He truly believes that the more consumer touchpoints there are, the more mature the ecosystem will be for retailers, partners, and FrieslandCampina.

Data-Driven Decision Making

Central to the organization’s digital strategy is a relentless focus on data-driven decision making, where the role of data ops in optimizing operational efficiency and enhancing consumer experiences cannot be understated.

Due to the scale of its operations, the organization has over 400 business KPIs that require aligned data definitions. Here, metadata management is applied to define each KPI and ensure there is consistency across the board. Some data are entered manually, and tools are utilized to integrate this data with the master data and avoid inconsistencies.

Through metadata management and data integration, FrieslandCampina can ensure the integrity and accuracy of its data. The technology and digital leader said, “Data governance and data ops is very important because for data-driven decisions at every level of the sales and marketing process, we need to make sure all the data comes from an integrated data source, rather than multiple disconnected sources.”

Innovative Solutions for Consumer Engagement

FrieslandCampina’s innovative use of technology extends beyond objectives like operational efficiency; the end goal is to redefine consumer engagement. Through AI-powered solutions such as computer vision and robotic process automation (RPA), FrieslandCampina is able to enhance store operations and elevate the retail experience. For example, AI and computer vision are used to automate tasks like capturing inventory data and recording them into the relevant systems.

Prof. William also shared about use of computer vision to capture headcount from photos taken at retail events, rather than relying on manual eyeballs which is an arduous and inaccurate process.

The combined use of these technologies go a long way in automating repetitive manual tasks and providing insights through visual data. By further harnessing them, store owners can accurately track inventory, analyze consumer behavior, and optimize sales strategies, to potentially drive revenue growth and enhance brand visibility.

Driving Digital Progress

What are the elements that are essential to driving digital progress in the fast moving consumer goods (FMCG) industry?

Prof. William emphasized efficiency and data. In an era marked by economic uncertainty, digitalization initiatives tend to focus upon efficiency which is a cost-saving element. However, he wanted to also highlight data and the need for data efficiency.

Accurate data drives accurate decisions

“Every business leader I have met is focused on data efficiency. So, we need to build the ecosystem around consumer systems like SFA (sales force automation), CRM (customer relationship management), and so on, to be able to provide a service platform.”

The’service platform’ could be likened to an internal data service that centralizes access to consolidated data from the data warehouse, and distributes it to other applications and teams in a standardized, and often self-service way. Among other things, this service platform can offer reports on the performance of sales and also enable decisions about resource allocations to be made with verifiable data.

For example, having visibility into booking units by retailers, and being able to manage booking quotas ensures that prices remain stable. Resource allocation decisions also apply to their planning and decisions for A&P (advertising and promotion) activities like roadshows, showroom consultants, and more.

Data on sales performance can also be used to ‘set rules’ for allocating resources. For example, allocating more spending on consultants when sales at a store surpasses a certain threshold.

The organization has successfully harnessed technology to capture data generated on the ground at retail and various other touchpoints, all the way to providing an internal service that serves up accurate, verifiable, and actionable data for teams.

Through the strategic use of business data, FrieslandCampina is enabled to drive operational efficiency as well as good experiences for consumers, employees, and other players throughout their ecosystem.