Market Mix optimization -Retailer

Brief

Our client is a Middle East retailer with 50+ stores across the countries. With market becoming competitive, the retailer was looking for support to optimise its budget allocation across different marketing channels.

Challenge

A comprehensive framework was needed to analyse the impact on incremental revenue from various market channels and ascertain the ROI for each channel. It was equally important to simulate marketing spend allocation using AI models. In addition, data was not streamlines and was kept in silos as opposed to common repository.

Our Action

• Data was ingested data from structured and semi structured sources; and then cleaned and transformed
• Multivariate time series models was implemented taking into account score of marketing variables
• Different models were developed markets and categories wise to consider market variability
• The effect of different marketing campaigns were analysed on increment sales
• ROI was measured on different marketing efforts
• A user friendly dashboard was prepared to have real time insights on effect of marketing campaigns

Results

• 20% improvement in incremental annual sales
• Annual gross margin increased by 15%
• Data Driven Marketing spending decision