This is our story of co-creating a solution with a leading Consumer Packaged Goods (CPG) company.
As we know…
The impact of marketing activities cannot be assessed easily. However, by deploying analytics, companies can invest in the most effective marketing channels and optimize the Return on Investment (RoI).
The challenge for the CPG company was…
Re-allocating its marketing budget and focusing on the right channels to combat steady decline in sales. The company partnered with WNS to identify the most effective marketing channels across TV, radio and digital advertisements, and trade and consumer promotions, to increase sales.
Here’s what we co-created as a solution…
Traditional Marketing Mix Modeling (MMM) deploys advanced statistical techniques with an understanding of industry and market to measure the performance of the marketing mix. WNS’ analytics-backed proprietary approach to MMM significantly improved on the traditional MMM by introducing a ‘path to purchase’ based approach.
Both historical internal data over the past three years (such as shipments, brand metrics and point of sale) and external data drivers were analyzed to understand the variables, their movements and interactions with each other. By deploying a combination of different sophisticated models, the RoI on marketing spend was calculated.
The solution revealed the impact of advertising, the halo effects of cross-brand advertising and the lag effects of advertising on consumers’ purchase behavior.
Insights were provided on:
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The ideal Gross Rating Point
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Scheduling of advertisements
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Best channels for advertising
WNS also designed a proprietary scenario simulator to help in future budget allocation decisions.
The outcomes from the process of of co-creation are…
The solution enabled the CPG company to radically re-look the way its marketing budget was allocated. It also helped design an effective media communication plan to meet the client’s growth objectives, besides identifying the nature of threat and vulnerability from competing brands.
The client uses the simulator to analyze standalone scenarios, and drive short-term sales targets and long-term equity buildup.
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