Quantzig Enables a Vegan Food Manufacturing Company to Increase their Marketing Return on Investment by 12% with the Help of Marketing Mix Simulation
Engagement Summary When a business wants to evaluate their past marketing data and measure the omnichannel efficiency of marketing campaigns, marketing mix modeling is the technique to do so. But when a business wants to test and explore the impact of marketing efforts and campaigns on the future, marketing mix simulation is the best technique […]
When a business wants to evaluate their past marketing data and measure the omnichannel efficiency of marketing campaigns, marketing mix modeling is the technique to do so. But when a business wants to test and explore the impact of marketing efforts and campaigns on the future, marketing mix simulation is the best technique to adopt. The manufacturing industry has been relatively slow to adopt marketing mix simulation. However, it is now applying marketing mix simulation to a wide range of marketing areas. Marketing mix simulation can also provide a competitive edge by revealing opportunities to improve marketing efficiency. The client is a vegan food supplement manufacturer who wanted to upscale their marketing investments and efforts without hampering their existing marketing campaigns. In order to do so, they approached Quantzig to leverage its expertise in marketing mix simulation to perform a marketing simulation to know about the repercussions of their future endeavors.
The client is a vegan food supplement manufacturer with operations spanning across 90 countries. The client’s principal products include vegan weight loss and protein shakes. They have several manufacturing facilities across the US and third party manufacturing partners in Europe.
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The onset of the digital era has opened up a plethora of ways in which marketers can interact with their customers. Although the media landscape has transformed, generating multiple channels, marketing efforts have not kept the same pace. The testing of marketing efforts and ideas is still largely happening in the real marketplace. Technology has, however, given us the freedom to be able to test ideas in the virtual marketplace that makes use of real-time, real-world data. This enables marketers to weed out failed approaches and save the money that would have been spent on them.
Although the vegan food supplement manufacturer was investing time, effort, and money on their ongoing marketing campaigns, their customer acquisition, retention rates were dwindling. They wanted to create a marketing strategy that would have the maximum impact on these rates and increase their profitability. Implementation of a new marketing strategy is an expensive affair. They, thus, wanted to understand the impact of the new strategy on their customers and business prior to implementing it. Their key challenges can be summarized as –
- Multiple ongoing marketing campaigns not generating desired outputs and giving a low return on marketing investment (MROI)
- Dwindling customer acquisition and retention rates despite increasing marketing spends
- The excessive cost of creation, implementation of a new marketing strategy without a clear indication of the MROI it would fetch
On collaborating with Quantzig, the client onboarded on a complete transformation journey of marketing mix strategy. Our marketing simulation experts identified the flaws in the existing marketing mix strategy, the major drawbacks were a result of implementing conventional statistical techniques. Quantzig’s advanced data analytics-driven marketing mix simulation offered the client a risk-free platform to test their marketing campaigns before making decisions. Quantzig’s advanced marketing mix simulation allowed the client to adapt to both B2B and B2C situations. The previous marketing mix strategy wasn’t efficient enough to derive outcomes before real-time, but with marketing simulation solutions provided by Quantzig, the client was able to improve their business efficiency.
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The key business outcomes of this marketing simulation collaboration were-
- Testing of multiple marketing strategies in real-time in the virtual marketplace to understand which one bears the best results
- Implementation of the marketing strategy with the best outcome in the marketing mix simulation exercise
- Increase in customer acquisition, retention rates, leading to an increase in marketing return on investment by 12% in a span of 6 months