Colgate-Palmolive finds the limits of artificial intelligence

Colgate-Palmolive, the consumer products company, used artificial intelligence (AI) to try a gain a clearer perspective on the payback from its retail promotions.

Colgate-Palmolive set artificial intelligence (AI) to work as it sought to tackle one of the thorniest problems in marketing: discovering the true return on investment (ROI) from its retail promotions.

Given that consumer packaged goods (CPG) manufacturers usually allocate between 30% and 40% of their budgets to such activity, finding anything near a definitive answer would generate significant value for the business, argued Rahul Tyagi, Colgate-Pa

vWhile an individual market for Colgate-Palmolive’s products may be “relatively stable”, Tyagi explained, the sheer number of relevant factors at play – say, competitor activity, local weather conditions, seasonality, and what other retailers are doing, for instance – make reproducibility an extremely difficult aim to achieve in reality.

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