Highlights of the Marketing Mix Example Case Study
|Client||A manufacturing player with operations across the globe|
|Business Challenge||To effectively allocate future spending and enhance their market attractiveness|
|Impact of Solution||Increased brand appeal and increase ROI for their offerings across various media platforms|
Marketing Mix Optimization Solutions for the Manufacturing Client
The global alcoholic beverages industry predominantly includes products such as beer, wine, and spirits. Among the different types of liquor available in the market, the consumption of lager, cider, and beer is the highest – accounting for approximately 89% of the total alcoholic beverages consumed across the globe. Growing urban population coupled with increasing disposable incomes in emerging economies are leading individuals to discover new forms of entertainment such as parties and spending time at lounges and bars. Furthermore, young adults with high social media influence, family incomes, and ease of access to alcoholic beverages are other factors driving sales of alcoholic beverages. However, the future of the alcoholic beverages industry depends on several factors, which are dynamic.
The global food service industry includes restaurants and leading food chains that aim at expanding their consumer base by offering low-cost options to the customers to replace home-cooked meals. Over the years, the global food service industry has been greatly affected by economic volatility, altering consumer preferences, and market dynamism. As a result, leading food service companies are exploring innovative ways to meet the relentless demands of customers and improve their position in the market.
The global apparel retail market is fragmented and consists of clothing stores for men, women, children, clothing accessories, luggage, shoes, jewelry, and leather goods. Additionally, the apparel retail industry has short product life cycles and is characterized by demand instability. APAC dominates the apparel retail space and is expected to grow at the highest rate in the coming years. Rapidly growing middle class, availability of a trained workforce at a competitive cost, market-oriented stable economy, and local availability of most raw materials in India, China, and Japan is expected to drive the market in Asia.
Proliferation of new media channels such as online forums, content marketing, search engines, and viral marketing, have propelled marketers to spend their marketing budget in new ways. However, they are unsure whether the marketing dollars for these new channels are spent effectively. One of the biggest concerns of today’s retail marketing managers is to analyze how to allocate their limited budget for a wide range of marketing activities. With customers being more empowered now, dissatisfied customers flock to competitors, often influencing others to join them and therefore, it is vital to equip managers with an effective investment plan for their marketing activities.
It is crucial for retail companies to know their customers well as business to ensure efficient transformation of data into insights and create a competitive advantage in terms of targeting and retaining their customers. Quantzig’s market mix optimization is a decision-making tool for marketers that can leverage them to figure out spend allocation for various marketing activities.
Marketing Mix Optimization Challenges Faced by the Client
The key sectors of the market depending upon sales channel are specialty stores, modern trade, convenience stores, commercial, hotels, restaurants, bars, and online retailers.
The client, a leading company in the alcoholic beverages industry with business operations spread across the globe, wanted to effectively allocate future spending and enhance their market attractiveness. The client also wanted to align themselves with the business planning process better and increase sales, profit, and shareholder value. Additionally, with the help of marketing mix optimization solutions, the client wanted to measure the impact of advertising on the overall sales revenue.
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Shortage in the supply of raw materials: Of late, the foodservice industry has been witnessing a drastic shortage in the supply of raw materials and this can is due to the adverse weather conditions and natural calamities. Moreover, with the changing climatic conditions across the globe, the supply of raw materials has been hindered.
Economic instability: Owing to the recent fluctuations in the economy, the prices of the commodities have been increasing. This is mainly due to the extravagant tax rates being imposed by governments across the globe. This fluctuation in the prices of commodities has greatly reduced the consumer’s spending.
The client, a global apparel retail player with retail units spread across the globe, wanted to determine the success of their advertising and targeting campaigns across various channels. Additionally, the apparel retail firm wanted to optimize their cost and adjust new initiatives to deliver the business goals. With the help of marketing mix optimization, the apparel retail client wanted to assess the marketing effectiveness and allocate the future spend to improve business efficiency.
A leading global retailer wanted an effective marketing ROI solution, which would help them understand the impact of marketing spend across channels like display, paid search, social media, FEP, and print. Their customers interacted with the brand through many channels and they had to manually track the spends. It was extremely tedious and created a huge lag between effort and evaluation and the retailer needed to plan its marketing activities within a real-time fashion.
Revolutionary Marketing Mix Optimization Solutions for the Client
With the help of Quantzig’s marketing mix solutions, the company specializing in the manufacturing of alcoholic beverages, accurately tracked media spend and sales and improved overall business performance. Additionally, the client effectively allocated their marketing budget and spend it on media platforms to increase customer visibility. This helped them increase brand appeal and increase ROI for their offerings across various media platforms.
With the help of Quantzig’s marketing mix optimization solution, the apparel retail client identified the actual drivers of performance and segregated it into internal and external factors. The client also comprehended the impact of marketing activities on parameters including revenues, volume, and price perception. Furthermore, the client gained actionable insights on various ways to increase sales, market share, and marketing ROI.
By collaborating with Quantzig the European wellness industry client embarked on a marketing mix optimization transformation journey that revolved around improving overall business performance. To help them, Quantzig’s marketing analytics experts adopted a comprehensive approach that helped them to understand the shortcoming of the existing marketing mix. Our advanced marketing mix optimization solutions enabled the client to effectively allocate their marketing budget across different media platforms to increase visibility. This resulted in a measurable improvement in ROI for their products and service offerings across various marketing channels.
- Quantified marketing effectiveness of channels and campaigns in terms of ROI, revenue, contributions, and incremental sales.
- Improved cost savings based on optimized media spending and increased profitability by 12%
- Improved ROIs from their media investments based on optimized marketing strategies
- Assessed the marketing performance of different media types by generating a year-on-year analysis of media contributions and ROI
- Created an ROI simulator for analyzing the impact of investment decisions based on simulated scenarios
- Analyzed overall ROI from media spends for executive level performance snapshot
- Optimized models to identify optimum media channel combinations for specified business outcomes
- Improved MROI by 55%
- Business-friendly simulators to analyze what-if scenarios
- Identified the macro-factors impacting business outcomes such as purchase power and inflation