There are a variety of consumer goods for which the weather has a significant impact on customers’ purchasing behaviour such as sun cream, ice-cream and fashion as an example. Understanding this impact can provide companies with valuable insight on demand and the extent to which sales performance is affected by factors inside and outside their control.
The challenge & process
For Coca-Cola Europacific Partners (CCEP), predicting how the weather influences customers’ choices is critical to understanding underlying product performance.
Working closely with the CCEP business intelligence team, the Smith Institute elicited factors which CCEP believe are the most important to consider in weather and sales data. By the means of mathematical models, the Smith Institute were able to capture changes in consumer trends.
Thanks to the sensitivity analysis conducted by the Smith Institute, CCEP could validate their beliefs about the effect of multiple drivers on consumers’ buying preferences.
“It’s been great working with the Smith Institute team on this project. From the outset they have been open and collaborative, bringing technical expertise and passion to the table, and delivering the bespoke solution we were looking for”.Dan HibbsSenior Business Intelligence Manager at European Commercial Development, Coca-Cola Europacific Partners