Marketing Mix Optimization Helps A Leading Soft Drink Beverage Industry Client Increase Customer Visibility

Apr 6, 2018

The client: Soft drink beverage manufacturer

Area of engagement: Marketing mix optimization

The global soft drink beverage industry comprises of firms manufacturing sparkling drinks, bottled water, juices, concentrates, smoothies, functional drinks, and ready-to-drink coffee and tea. A soft drink typically does not contain alcohol but can have up to 0.5% alcohol content. Consumer preferences, growing population, and health awareness are the major growth drivers for the industry. Within the global beverage industry, beer is expected to remain the largest segment by value. However, the increase in the consumption of non-alcoholic beverages by consumers, population base of the young generation, and increasing per capita income are the major driving forces that spur growth for this segment.

However, our analysis of the global beverage industry shows that the soft drink beverage firms are facing challenges in terms of:

  • Health-oriented customers: Today, consumers are usually concerned about their health and consider consuming a beverage which consists of organic compounds. A soft drink is not considered to be appropriately processed, as a result, companies are finding their way out of this roadblock by developing healthy drinks.
  • Slow product innovation cycles: Bringing to market new products that align with emerging consumer trends in a timely manner is difficult for many soft drink beverage companies as the process of creating new, relevant products and moving them through R&D, testing, and marketing to retail takes time

Several such factors are compelling soft drink beverage industry players to leverage the use of robust marketing mix optimization solutions. Marketing mix optimization solutions help food and beverage industry firms to determine the value of marketing activities and interactions while identifying the revenue and cost opportunities for the same. These solutions also offer insights into the challenges of optimizing marketing mix, the benefits of leveraging digital channels in the marketing mix, and the future of marketing strategy development in organizations.

The Business Challenge

The client, a leading manufacturer of soft drink beverage with retail outlets spread across the globe, wanted to align themselves with the strategic business planning process better and increase profit and shareholder value. Additionally, the client was facing challenges allocating the future spend for enhancing market attractiveness. As a result, they wanted to optimize their spend on marketing. Furthermore, the client wanted to measure the impact of their advertising on the overall sales revenue.

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The Solution and the Business Impact

Quantzig’s marketing mix optimization solution helped the soft drink beverage client accurately track their media spend and sales and improve their overall business performance. Additionally, the client was able to allocate their marketing budget effectively and spend across media platforms to increase customer visibility. This further helped them increase brand appeal and enhance their ROI.

Marketing Mix Optimization Predictive Insights

With the help of Quantzig’s marketing mix optimization solutions, beverage companies can develop marketing strategies that will help in increase incremental sales, driving profitability, and improve conversions by identifying media channels that are effective and profitable in reaching customers.

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