Marketing mix-CPG

Brief

UK based CPG firm was growing at below market rate despite have few well-known brands under its umbrella. Sales numbers were falling short, inventory holding cost was shooting and it was become difficult to find out what drivers are responsible for the tepid response to the effort put up by its sales and marketing team

Challenge

The key problem was to reorient the marketing mix to increase sales revenue for the investment done in different Marketing Avenue through yearly marketing plan. Further, we found that the data enabled decision making for marketing spend was missing as ROI on marketing spends media wise was not calculated.

Our Action

• We integrated the data related to sales and marketing spend and deeply studied the existing marketing plan
• Using internal data derived from POS and other internal database –along with data on the external macro factors, we created the dataset. In addition, Lag variable were added
• Test train split was done to test accuracy and then we prepared a Media mix model after factoring in various salesdrivers including impact of traditional and digital media and macro external factors.
• Multiple model were made and eventually the one that produced the optimised result was shortlisted
• We created the system for calculating ROI for different marketing medium
• Finally, created a real time dashboard helping managers in  scenario planning

Results

• A tool was developed for Marketing Mix Budget Allocation – enabling marketing team to take decision based on data insights
• About 5 % incremental revenue and rationalization of sales and marketing budget
• New marketing avenues were proposed to the client