case in point Title: Identify the right mix of various marketing vehicles and channels to maximize the return on sales Industry: Technology Country: US
Challenge The client - Worlds leading computer Technology Company faced the following challenge • With the shrinking market for desktop and laptops they were looking for innovative marketing solutions to sustain sales and deal with tablet cannibalization • Identify the right mix of various marketing mix vehicles and channels to maximize the impact of sales on marketing
Approach • Create a market mix model for three different regions - USA, UK and China adopting a top down approach using weekly level sales and marketing data. The model will determine each percentage contribution of each marketing activity on sales and calculate the return on investment • Perform variable selection, transformation and capture seasonality to tackle bias if any, that may be present due different reasons and include the interaction between different media vehicles to understand each other’s effect • Once the model was build several scenarios were simulated to compute the best optimal marketing mix
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Output Contribution of each marketing vehicle to sales
Predicted versus actual value
Optimizer to determine the best output
Result • Short term (14 week) ROI contributes to 99% of the long term ROI. • Short Term and long term periods on an average contributes 77.60% and 22.40% towards revenues • Magazine as a vehicle by itself is not a significant driver of sales but I conjunction (interaction) with other print vehicles becomes significant
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