The Challenge:
Our client operates globally in a highly competitive segment of online retail. New competitors and business models have been changing the dynamics of the market in the last few years, including increased price competition and advertising pressure by their competitors.
On top of all this, the Covid-19 crisis started in the middle of the project across all markets. In this situation they needed to understand how to invest their marketing budget across their marketing levers and markets. At the same time their senior management emphasised the need to continue building their brand and find the correct balance of performance and brand investment.
The Solution:
We developed a suite of marketing mix models across a range of key countries and customer segments to uncover all aspects of marketing performance. Importantly our approach enabled us to understand both the short- and long-term business impact of different types of marketing activity.
These models, augmented by new data reflecting the Covid-19 effect on sales, were the basis for our forecasting and optimisation suite. In a series of presentations and optimisation workshops we worked with the client to develop strategies that could maximise short term cash flow whilst ensuring longer term brand health.
Finally we embedded this capability within the client’s organisation. As part of the consulting engagement we advised on structure of the team, process improvements and trained the team to enable better, quicker investment decisions throughout the planning cycle.
The Results:
We isolated a host of opportunities to refine current marketing strategy to deliver significant extra revenue growth from existing budgets. In fact the total potential revenue gain we uncovered was equivalent to adding a whole additional market.