Storytelling Is Not a Good Companion for Data: The Opportunity That AI Offers Us

Written by Antonio Sánchez Boned, Consumer Goods Advisor at SDG Group Spain.

2025 has begun with multiple challenges in the consumer goods sector—at a time of intense global competition—where it is increasingly important to implement measures and policies that foster competitiveness; we hope that recent external interference does not harm us too much.

Although the initial market data confirms some of the positive forecasts made, there is a certain degree of uncertainty in the industry. We are facing an exciting year where we will not be able to stop playing, game by game and until the last minute, although there is still a lot of work ahead.

And precisely in times like these, it is more important than ever to seek common ground, to find the right partners that will allow us to create alliances to face the future with confidence. As the African proverb goes: "If you want to go fast, go alone. If you want to go far, go together."

First, I would like to address a variable such as price positioning and its direct connection to the world of information and data. This factor is becoming a critical point in the consumer goods market today. This is why manufacturers and retailers are increasingly focusing on this variable.

Brand manufacturers are investing in increasing their promotional pressure, but in most cases this strategy is not yielding the expected returns and is deteriorating margins. However, a good global pricing model—one that incorporates all available internal and external data—can guarantee improved promotional efficiency and a significant return on investment. In parallel, product costs throughout the value chain must be continuously reviewed.

Related to the above, it is increasingly important to position a good replacement price, taking into account the gaps with the competition and the private label brand. And, of course, any price change must be accompanied by a predictive model. At this point, it is very important to continue listening to the millions of consumers who pass through stores every day purchasing our products; who express their opinions on multiple channels, such as social media, which are also a source of information for all brands.

It is increasingly important to position a good replacement price taking into account the gaps with the competition and the distributor brand.

This type of data is often unstructured. And without a doubt, this data poses a challenge for companies, which must invest in increasingly advanced analytics tools to understand it and leverage it in their operational and business processes to gain a competitive advantage over their competitors.

Data management is essential, and companies must work with the right partners and tools to extract the most insights from their data based on their needs and resources. Through data analytics and AI technologies, business agility can be achieved, allowing organizations to quickly adapt to market changes.

The reality is that we are at a time when all data can be combined, and the magic of being able to cross-reference "everything with everything" offers us a unique blend of information. This is a historic moment that we must not miss. This dream was unthinkable just a few years ago, but today's technology allows it. Using technology as a lever for growth is undoubtedly a form of innovation and an investment with guaranteed return. Anyone who sees it as an expense is mistaken.

The incorporation of Artificial Intelligence offers us the opportunity to accelerate processes. Only 25% of multi-sector European companies are using it, so the competitive advantage will lie with those who use data and AI to interact directly with the customer.

"It's about protecting the most important thing a company has: critical information. You have to be very careful about who you entrust with your data and information."

Opportunity and Responsibility

What is undoubtedly an opportunity also entails a certain responsibility, as it involves protecting the most important thing a company has: its critical information. It is necessary to be very careful about who is entrusted with data and information, so choosing good partners is crucial.

The commitment to in-house development, that is, within a company's internal systems, must be considered a non-negotiable and mandated by corporate management. Sometimes, a short-term vision can delay development time, lead to unnecessary investments, and pose risks if combined with exposing our data to the outside world. And in this sense, cybercriminals are also emerging in our sector, carrying out increasingly sophisticated and complex attacks. Therefore, it is also very important to ensure security in all operational processes.

We must be receptive and attentive to the challenges that will arise around us and not become obsolete. Furthermore, we must view Artificial Intelligence as our ally, where human value will continue to be very important. Although objective data encourages rational decisions to be made based on the recommendations of an algorithm, the truth is that people must always incorporate their emotions, principles, and ethics into the business strategy.

The goal is to become a "Data Driven" company, where we can extract the maximum knowledge from data with the appropriate tools and seek the best partners to help us on this journey. In conclusion, and based on everything discussed, we must be increasingly clear that narrative is not a good companion for data.

Original article published in the FRS Food Retail & Service 2025 Innovation Yearbook, here.