Marketing Mix Modeling Optimizes MROI for a Global Food and Beverage Player

What you’ll find in this case study:

• The Client
• The Challenge
• The Solution
• The Business Impact
• Continuing the Pursuit of Marketing Mix Modeling Transformation
• Quantzig – A Leader in Marketing Analytics

Client Details

Client: A well-known player in the frozen food market, the client has been a leading processor and marketer of frozen foods for over 50 years. The client is headquartered in the United States and has operations spanning across 17 countries. One of the client’s strongest suits is their fully integrated, robust supply chain.

The client is looking to expand its overseas presence across EMEA and APAC with innovative product offerings across the next three years.

Region: The United States of America

Sector: Food and Beverage Industry

The Challenge

Even though the client had a resilient global supply chain organization, they could not stand out against the crowd with their existing marketing strategies. Creating a marketing mix modeling strategy that allowed the client to optimize customer acquisition, reduce churn, and drive customer engagement while eliminating unnecessary marketing spends, had become imperative for them to maintain and enhance their market share.

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The Solution

While researching the benefits of applying analytics and AI in marketing, they came across Quantzig’s marketing analytics solutions. The client contacted us to optimize their campaign plans and increase their MROI.

Quantzig’s marketing analytics experts helped the client create a robust, data-driven marketing mix modeling strategy that enabled them to boost customer acquisition, engagement, and improve marketing returns by over 12%. With the aid of our accurate strategy, they were able to vary their marketing activities according to resources, market conditions, and consumer needs. The strategy also helped the client understand their present consumers better and enabled them to uncover innovative ways to reach new consumers.

Business Impact

• Creation of a robust, data-driven marketing mix modeling strategy
• 12% increase in MROI
• 8% reduction in marketing spending
• 6% increase in customer acquisition
• 14% increase in customer engagement
• Reduction of errors and improved marketing processes
• Greater flexibility and agility

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Continuing the Pursuit of Marketing Mix Modeling Transformation

The driving forces behind any marketing strategy are the four Ps of marketing mix modeling—Product, Price, Place, and Promotion. To better segment and target their customers, this strategy has incorporated three additional Ps—People, Processes, and Physical Environment. Accurate marketing mix modeling can save marketers tons of money and optimize campaigns, marketing returns, and increase conversions. It also helps companies gauge their past performance and use it to optimize their plans. With this tool, marketers better understand the marketing effectiveness of their campaigns and take corrective actions to realign their marketing budgets for better future returns.

Quantzig’s data-driven solutions enable you to understand the descriptive (what happened?), predictive (what will happen?), and prescriptive (what next?) aspects of all your marketing activities. We use integrated artificial intelligence (AI) and robust statistical techniques to deduce the optimum marketing mix, designed to give you optimal MROI and conversions. Our solutions also enable you to understand the impact of changing your marketing strategies and measure the effectiveness of various marketing channels with multi-channel performance metrics.

Whats the Best Way to Use the Marketing Mix to Promote a Food Product?

Utilizing the marketing mix effectively is paramount in promoting a food product, particularly in a competitive market landscape like that of McCain Foods. Here are four pointers on how to leverage the marketing mix for optimal promotion:

• Product Development and Differentiation: Begin by ensuring that your oven chips or potato-based snacks stand out amidst competitors on retail shelves. Innovate by offering unique flavors or healthier alternatives to cater to changing consumer preferences. Consider expanding your product line to include options for various dietary needs, such as gluten-free or vegan options. Collaborating with retail stores and supermarkets to conduct tastings or demos can help showcase the quality and versatility of your products, fostering brand awareness and loyalty. 
• Pricing Strategies and Accessibility: Determine an appropriate pricing structure that reflects the value proposition of your products while remaining competitive in the market. Consider implementing a tiered pricing strategy to cater to different customer segments. Additionally, ensure accessibility by distributing your products across various channels, including both offline and online stores. Utilize the 4Ps of marketing—Product, Price, Place, and Promotion—to align your pricing strategy with your target audience’s preferences and purchasing behaviors. 
• Promotional Activities and Brand Awareness: Implement a multi-pronged approach to promotional activities to increase brand visibility and drive sales. Leverage digital marketing channels such as social media ads, email marketing, and display ads to reach a wider audience and engage with potential customers. Collaborate with The Times or other relevant media outlets for PR opportunities to showcase your brand story and product offerings. Additionally, consider traditional advertising methods like TV advertising or banners strategically placed in high-traffic areas to reinforce brand awareness and stimulate purchase intent. 
• Cohesive Marketing Strategy and Evaluation: Ensure that all marketing efforts align cohesively to communicate a consistent brand message and value proposition across all touchpoints. Monitor and evaluate the effectiveness of your marketing activities using metrics such as ROI, brand sentiment, and sales performance. Continuously adapt and refine your marketing plan based on market dynamics, consumer feedback, and emerging trends to stay competitive and drive long-term success. 

What Is a Good Food Marketing Mix Example?

A good food marketing mix example illustrates how a comprehensive strategy can effectively promote a food product:

Product: Develop a line of oven chips with various flavors and packaging sizes to cater to diverse consumer preferences and occasions. Introduce limited-edition seasonal flavors to generate excitement and drive sales. 

Place: Distribute the product through retail stores, supermarkets, and online channels to maximize accessibility and reach a wider audience. Collaborate with third-party members such as food delivery services to expand distribution channels and tap into new customer segments. 

Promotion: Launch an integrated marketing campaign across digital and offline channels, including social media ads, TV advertising, and in-store displays. Engage influencers or food bloggers to create buzz and generate user-generated content, increasing brand visibility and credibility. 

Price: Implement a competitive pricing strategy while offering promotions or discounts to incentivize trial and repeat purchases. Conduct market research to understand pricing dynamics and consumer willingness to pay, adjusting pricing strategies accordingly. 

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What role does the marketing mix play in your organization?

In your organization, the marketing mix plays a central role in driving yourbusiness objectives and achieving sustainable growth. By carefully orchestrating the elements of the marketing mix—product, price, place, and promotion—you can aim to create value for both our customers and stakeholders while maintaining a competitive edge in the market.

The marketing teams collaborate cross-functionally to develop and execute cohesive marketing strategies that resonate with target audience and drive brand awareness, engagement, and sales. You can continuously monitor market trends, consumer insights, and competitor activities to inform marketing procedures and policies, ensuring agility and adaptability in response to the changing dynamics of the market.

Moreover, you canrecognize the importance of innovation and differentiation in product development and pricing strategies to meet the evolving needs and preferences of your customers. By leveraging digital marketing channels, enhancing the user interface of your online platforms, and optimizing promotional activities, you strive to enhance the overall customer experience and maximize accessibility across both offline and online channels.

In essence, the marketing mix serves as a guiding framework that informs strategic decision-making processes and enables us to effectively navigate the complexities of the food industry. By understanding the strengths and weaknesses of your business, identifying market opportunities, and aligning your marketing efforts with your overarching business objectives, you can position yourselves for long-term success and sustainable growth in the highly competitive food market. 

Quantzig – A Leader in Marketing Analytics

Quantzig is the world’s foremost full-service advanced analytics and business intelligence solution provider, turning clients’ complex, unstructured data into intelligent, actionable insights that enable them to solve complex business problems and inspire innovation, change, and growth. Over the past 16 years, our insights have helped over 120 clients spanning across industries and sectors like Pharmaceutical and Life Sciences, Retail and CPG, Food and Beverage, and more. We have successfully delivered 1500 in-depth solutions in areas like marketing mix modeling and analytics, customer analytics, supply chain analytics, and more.

At Quantzig, we firmly believe that the competences to harness maximum insights from the influx of continuous information around us will drive any organization’s competitive eagerness and success. Our objective is to bring together the best combination of analysts and consultants to complementfood and beverage organizations with a shared need to discover and build those capabilities and drive continuous business excellence through advanced marketing analytics.