Marketing mix optimization: How Quantzig Helps a Prominent Electronics Retailer Efficiently Promote their Marketing Campaigns

Feb 23, 2018

The client- A renowned electronic retailer

Area of engagement: Marketing mix modeling

The global electronics industry comprises of companies offering advanced electronics products such as laptops and mobile phones. With the relentless growth in innovations, leading electronics retailers are planning to redefine their shopping experience by offering a wide array products through virtual stores such as websites and mobile applications. The growth of the electronics industry can be attributed to factors such as the availability of online platforms offering discounts and the increasing penetration of the internet. However, there are a couple of factors that may curtail the growth of the electronics industry over the next couple of years. These factors include:

  • Privacy concerns: Over the last couple of years, the electronics industry has been the victim of major fraudulent activities such as spam emails and identity fraud. This brings in the notion that purchasing goods through an online medium can lead to cyber risks. To reduce instances of malpractice, it becomes necessary for the organizations to maintain privacy and security in their transaction process.
  • Rising innovation capabilities: In the electronics industry, the customers are more informed and demand products that are on par with the recent innovations. To keep pace with the rising demands, electronics retailers have been compelled to invest highly in R&D to stay updated with the global technological trends.

To counter such challenges and devise effective ways to promote their products, leading electronics retailers are facing the need for marketing mix modeling solutions. Marketing mix modeling helps businesses in the electronics industry leverage the use of historical information to quantify the impact of marketing campaigns on the business performance. The marketing mix modeling solution also helps electronics retailers identify effective ways to understand the marketing spend and determine a robust marketing mix to enhance the returns on investment.

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The Business Challenge

The client, a renowned electronics retailer, wanted to optimize the combination of marketing and advertising investments to maximize sales profit. With the aid of our solutions, the client wanted to streamline their marketing efforts to produce long-term revenue growth. Moreover, the electronics industry client wanted to understand how each marketing input can have an impact on the sales performance. The primary concern of the client was to determine the most profitable business drivers and adequately allocate their marketing budget to achieve substantial savings.

The Solution Benefits and the Business Impact

Strategies that we recommended to improve market attractiveness and enhance ROI

The marketing mix modeling engagement offered by Quantzig helped the electronics retailer to identify the strengths and weaknesses of their marketing campaigns and optimize their marketing mix across digital and social media channels. The electronics industry client was also able to understand the impact of external factors such as competitive actions, seasonality, and economic conditions on the overall sales performance. The electronics industry client was further able to improve the effectiveness of their marketing campaigns and reallocate their spending to increase the ROI.

Marketing Mix Modeling Predictive Insights

The marketing mix modeling engagement offered by Quantzig helped the electronics industry client to measure, manage, analyze marketing performance, and determine the impact of marketing activity across prominent channels. The electronics retailer was further able to gain adequate insights into the spending patterns in the organization and accurately predict the future spend behavior. The client was able to improve their advertising campaigns and enhance their overall brand affinity.

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