What the Client Wanted: Analyze and optimize the incremental value of investments through marketing mix modeling.
The Outcome: The solutions offered by the experts at Quantzig enabled the gourmet food retailer to establish an optimum marketing mix model. This engagement entailed the implementation of a robust marketing mix model to help the gourmet food retail client understand the impact of marketing campaigns on their overall ROI.
Gourmet Food Retail Industry Overview
Over the past few years, the class of foods consumed by the global population has undergone a massive transformation. The growth of the specialty retail segment, urbanization, rise in disposable income, and a surge in economic growth have greatly impacted the gourmet food segment. Such factors have not only catalyzed the growth of the gourmet food retail segment but have accelerated the strategic shift from traditional, low-cost food products to premium upgrades such as French cheese, Swiss chocolates, and exotic fruits and vegetables. Owing to such factors, leading food retail firms have now realized the importance of analyzing and optimizing their marketing investments to ensure they are on the right track. This has also prompted leading players to invest in developing robust marketing mix models to identify the factors affecting the incremental revenue.
Food Retail Industry Challenges:
- Growing competition from non-traditional food retailers: Players in the food retail industry are witnessing growing competition from online and non-traditional food retailers. Also, leading gourmet food retailers have now realized that the online food retailers have a more perceptible impact in areas such as store sales, foot traffic, and basket size.
- Increasing health awareness: Consumers across countries are now focused on improving health and wellness, and as a result, they are increasingly leveraging food to effectively manage and avoid health issues. This has both positively and negatively impacted the gourmet food segment by paving the way for new opportunities as well as challenges. To counter such challenges, food retail companies are focusing on implementing consumer wellness programs, nutrition guidance programs, and retail dieticians.
About the Client:
A food retail industry major, specializing in the gourmet food segment.
To analyze the incremental value of investments, the client – a leading food retail industry player – approached Quantzig. The client wanted to devise an appropriate marketing mix modeling strategy that integrates both traditional and digital channels through the effective allocation of marketing budgets.
Also, the gourmet food retailer wanted to leverage Quantzig’s vast experience in the food retail industry to their benefit and devise an effective approach to marketing mix modeling to better understand the impact of their marketing campaigns across their business segments.
Benefits of our marketing mix modeling solution
To gain in-depth insights into our marketing mix modeling solution for food retail industry players
With the help of Quantzig’s marketing mix modeling solution, the gourmet food client was able to calculate the relative ROI of innumerable marketing decisions, which helped them in developing an optimum marketing mix. The solutions offered also brought about several improvements in their business performance. Marketing mix modeling also helped them quantify the impact of individual marketing activities on several factors including price perception, revenues, and volume.
Marketing Mix Modeling Insights
Marketing mix modeling acts as a powerful tool for gaining breakthrough insights that positively impact business outcomes. If managed well, marketing mix modeling (MMM) can offer a significant competitive advantage to organizations across industries. Also, marketing mix modeling plays a key role in improving revenue and profit margins by offering new predictive insights on marketing campaigns.
Quantzig’s marketing mix modeling solutions are aimed at creating a single point of truth, which enables enterprises to work toward a common goal. Also, it is essential to conduct an exhaustive study of successes and failures prior to implementing a new marketing mix model. However, organizations with little or no experience in marketing mix modeling should consider involving analytics experts who can help them successfully navigate through their challenges to devise an appropriate marketing mix model.
Quantzig provides analytics solutions that help optimize marketing decisions. Our market expertise enables organizations to adopt the right strategy to develop a marketing edge that is required to develop winning products, convert traffic into customers, and enhance sales.
To know more about how our marketing mix modeling solution helped the food retail client
LONDON: Quantzig, a global analytics services provider, has announced the completion of their latest marketing mix optimization for an online retail client. The increasing usage of mobile devices for shopping and alternative payment methods by shoppers are fueling the growth of online retail space. Amid the recent economic uncertainty, leading organizations are planning to develop competitive strategies to reduce operational costs and further improve their product offerings. Moreover, leading organizations are linking financial and operational plans to track performance and improve their overall business efficiency.
“Marketing mix helps businesses quantify their marketing activity to understand the impact of their marketing campaigns on the business performance. The primary objective of the engagement was to quantify the impact of marketing decisions on the past and the future sales.” says an expert at Quantzig.
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The solution offered helped the online retail client assess the marketing effectiveness and allocate the future spend to improve business efficiency. Furthermore, the solution also helped the client determine the effectiveness of advertising and targeting campaigns across various channels. The online retail client was able to optimize their cost and adjust new initiatives to deliver the business goals better with the help of the solution.
Additional Benefits of the Marketing Mix Solution
- Identify the actual drivers of performance and segregate it into internal and external factors
- Gain actionable insights to increase sales, market share, and marketing ROI
- To know more, request a proposal
To know more about how our marketing mix solution helped the online retail client
LONDON: Quantzig, a global analytics services provider, has recently completed their latest marketing mix modeling solution for a CPG industry client. The consumers’ behavior and needs have been changing over the last couple of years and organizations are embracing modern technologies to meet these ever-growing demands. Furthermore, the shift from conventional shopping to advanced online retailing has fueled the growth of middle-class population, urbanization, and globalization. Companies in the CPG space are increasingly trying to adjust their operating models with that of the competitors in order to keep pace with the altering preferences of the customers.
“The marketing mix solution helps businesses identify the market effectiveness and streamline their marketing campaigns to enhance the business performance. Quantzig’s marketing mix solution helped the CPG client to identify the strengths and weaknesses and to improve the effectiveness of marketing campaigns on business performance. “says an industry expert from Quantzig.
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The marketing mix solution helped the client to leverage the use of multiple regression techniques to predict the outcome of sales. The solution provided also helped the client to determine the net effect of their marketing campaigns on company’s profits. Furthermore, with the help of the marketing mix solution, the client was able to enhance their return on investment.
Additional Benefits of the Marketing Mix Solution
- Quantify the impact of sales on marketing activities
- Develop an attribution model based on the past marketing spend and sales
- Optimize the future spend and improve the overall business efficiency
- To know more, request a free proposal
To know more about how our marketing mix solution helped the CPG client
Marketing Mix Modeling and ROI
The client: A prominent player in the CPG industry, Size:$2.1 billion in revenue, Area of engagement: Marketing mix modeling
Over the last couple of years, the consumers’ behavior and needs have been changing, and organizations are embracing technologies to meet the ever-growing array of these demands. The shift from conventional shopping to advanced online retailing can be attributed to factors such as the rise of middle-class population, urbanization, and globalization. To keep pace with the altering preferences of the customers, leading businesses in the CPG industry are planning to adjust their operating models with that of the competitors. Moreover, as retailers consolidate, and e-commerce platforms increase, CPG companies are relying on winning go-to-market strategies to retain their position in the market.
Some of the factors influencing the growth of the CPG industry are:
- Innovations: As the current retail landscape is witnessing a shift toward digitization, prominent companies are developing, testing and iterating innovative ideas to optimize customer engagement. Moreover, it becomes essential for the companies to re-align their product offerings to meet the growing demands of the customers.
- M&A activity: With the growing number of e-commerce platforms, a considerable number of companies are looking forward to expand across geographies to potentially reach out to different markets. Moreover, organizations are further collaborating with reputed firms to drive sales and increase their return on investment.
To address such challenges and optimize the marketing campaigns to enhance their business efficiency, leading organizations are leveraging marketing mix modeling solutions. The marketing mix solution helps businesses identify the market effectiveness and streamline their marketing campaigns to enhance the business performance.
The Business Challenge
The client, a prominent CPG company with considerable retail stores, spread globally, wanted to gain actionable insights into the sales, market share, and marketing ROI. The CPG company wanted to identify the strengths and weaknesses and optimize their marketing mix to improve the effectiveness of marketing campaigns on business performance. Moreover, with the help of marketing mix modeling engagement, the client also wanted to understand the impact of online media on sales and optimize investments to drive profit. The primary objective of the client was to measure the potential value of all marketing inputs and make investments to increase long-term revenue.
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The Solution Benefits and the Business Impact
Strategies that we recommend based on our analysis to promote sales and increase marketing efficiency
Beyond traditional marketing campaigns, the marketing mix modeling solution offered by Quantzig helped the prominent client in the CPG industry, leverage the use of multiple regression techniques to predict the outcome of sales. The solution also helped the client determine the net effect of their marketing campaigns on company’s profits. The engagement also focused on attributing the impact of marketing activity across all channels to further enhance the return on investment.
Marketing Mix Modeling Predictive Insights:
The engagement offered by Quantzig assisted the CPG company to quantify the impact of sales on marketing activities. The solution also focused on developing an attribution model based on the past marketing spend and sales. Through this model, the CPG company could optimize the future spend and improve the overall business efficiency.
Want to know more about the benefits of marketing mix solutions for the CPG industry
The client: Food Retail Company, Size: >$150 million in revenue, Area of engagement: Marketing mix optimization
Retail trade has emerged as one of the most significant industry contributions to revenue generation, employment generation, and increased turnover. Among various segments within the retail industry, the food retail sector has emerged as the most dynamic and fast-paced sector with several players venturing into this market space. The food retail industry has strong linkages with the economic growth and development of the economy, including the rise in per capita income, improved infrastructure, and growing consumerism. Moreover, the food retail segment is expected to dominate the retail market space with more than fifty percent share of the overall retail market.
Some of the factors that will influence the growth prospects of the global food retail industry over the next few years include:
- Increasing customer preference for private label brands: The rising consumer spending on food items and increasing supermarket shopping culture are some of the major drivers of the food retail The share of private label strategy in the US and the UK markets is estimated to be around 19% and 39%, respectively; thereby, providing an excellent opportunity for the homegrown labels to expand their customer base.
- Increasing investments in infrastructure: With the increase in government spending on infrastructure, connectivity to towns and other rural markets have become much more accessible. This helps the retailers to increase their reach in such high potential markets.
Due to many such factors, leading food retail firms are leveraging the use of market mix optimization solutions. Marketing mix optimization solutions help companies in measuring the impact of marketing tactics on sales. Furthermore, these solutions help firms in developing marketing mix models to understand and access the incremental value of their investments.
The Business Challenge
The lack of supply chain effectiveness and the threat from unorganized food retailers are the major restraints of the market.
The client, a reputed food retail firm with an international presence wanted to allocate their fixed marketing budget among various marketing channels. The client also wanted to make use of marketing mix modeling (MMM) tools to develop a robust marketing model, which will reflect the impact of each marketing channel on their overall sales. Additionally, the client was looking at quantifying the impact of individual marketing activities on revenues, volume, and price perception.
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The Solution and the Business Impact:
The marketing mix modeling solutions offered by the team of experts at Quantzig helped the food retailer determine the past impact of various marketing channels on revenues and provided insights to reallocate resources to form an optimum marketing mix model. Additionally, the marketing mix modeling solution helped the food retailer allocate their marketing budget efficiently among various marketing channels. Also, it assisted the client in establishing investment synergies that provided a considerably more accurate attribution of ROIs.
Marketing Mix Optimization Predictive Insights:
By applying a more holistic, commercially-focused approach to marketing mix modeling, marketing-driven analytics organizations such as the food retail segment can get a more accurate read on the ROI of their marketing investments. Moreover, applying fact-based marketing mix ROI optimization solutions to marketing investments can help firms drive improvements in their marketing effectiveness.