Key Points
  • A leading Consumer Packaged Goods (CPG) company was looking to identify the most effective marketing channels to increase sales

  • WNS improved on traditional Marketing Mix Modeling (MMM) and deployed its analytics-backed proprietary approach to MMM

  • The insights enabled the client to re-look the way its marketing budget was allocated and optimize the Return on Investment

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).

A leading Consumer Packaged Goods (CPG) company, experiencing a steady decline in sales, started looking at TV, radio and digital ads, and trade and consumer promotions. The company partnered with WNS to re-allocate the marketing budget and focus on the right channels.

 

Marketing Mix Modeling Analysis

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.

We analyzed both historical internal data over the past three years (such as shipments, brand metrics and Point of Sale) and external data drivers to understand the variables, their movements and interactions with each other. By deploying a combination of different sophisticated models, we calculated the RoI on marketing spend.

The solution revealed the impact of advertising, the halo effects of cross-brand advertising and the lag effects of advertising on consumers’ purchase behavior. We provided insights on the ideal Gross Rating Point (GRP), scheduling of ads and the best channels to deliver, thus enabling RoI enhancement. WNS also designed a proprietary scenario simulator to help in future budget allocation decisions.

 

The Outcome: Effective Budget Allocation

The insights provided by WNS enabled the client to radically re-look the way its marketing budget was allocated. It also helped design an effective media communication plan to meet the CPG company’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.

Reach Out To Us ENQUIRE NOW
Follow us on:
Stay Updated