Market Mix Optimization and Campaign Analysis for a Leading Retail Firm

Sep 22, 2017

Lately, the retail industry players have started looking for ways to gain traction and drive traffic in this ever-changing competitive environment. To be on par with the competitors, retail industry players must understand their customers, their likes and dislikes, and buying preferences that influence shopping behavior. Marketing mix optimization involves a robust analysis of several variables, including sales, marketing, operations, and other external activities. Additionally, marketing mix optimization helps retail industry players gain an in-depth understanding of the key drivers impacting the growth of the business and accordingly allocate budgets to maximize revenues and profits across channels.

Quantzig’s marketing mix optimization solutions assist clients in the retail industry space to increase and maintain market shares based on the optimization of marketing spends. Also, through a robust marketing mix model, businesses can evaluate and improve individual and granular ROIs across channels.

The Business Challenge

A leading retail industry player with offices spread across the globe wanted to optimize the mix of short-term and long-term marketing activities to achieve sales growth and increase marketing effectiveness. Additionally, due to the relatively short life cycles for new electronics products, there was a significant dip in their sales. As a result, the retail industry player wanted to determine a proper mix of long-term brand building and short-term marketing activities to increase revenues.

Our Approach

To cater to the client’s business requirements, Quantzig’s team of marketing mix optimization experts built a dashboard to quantify the contribution of each media type on incremental sales and the ROI, response curves to understand saturation point for spends. Quantzig also conducted a deep dive analysis of campaigns for each media type and a simulation of expenditure for future budget allocation.

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Marketing Mix Solution Benefits for Manufacturing Industries

Based on their business requirements, the client joined forces with Quantzig’s team to yield a wealth of quantitative insights on the negative impact of competitor sales for products in the same category. The marketing mix solution helped the client measure the effectiveness of activities by selling seasons. Also, we provided additional insights into how the retailer should reschedule manufacturing activities to support key selling seasons, leading to an increase of 12% in returns.

Marketing Mix Solution Predictive Insights:

  • Measured the impact of spends across marketing and sales channels
  • Assessed and revised budget allocation based on revenue and ROI forecast for each channel
  • Determined the point of diminishing returns for each media type and investment amount
  • Improved cost savings based on optimized media spending

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