Online penetration has been increasing across markets in Asia and Online has been witnessing an increased amount of clutter amongst the CPG category. The key question that was asked of RainMan by this CPG brand team was - how many cases they actually sold through this medium. Secondarily the objective was to derive the role of Online in Brand strategy. In other words, the objective was to derive the drivers of sales of the brand and clearly identify the role of Online.
An econometric model was created by RainMan by carefully choosing relevant marketing variables. The variables included numerical, value weighted distribution, TV advertising, price, quality of distribution, variant’s marketing inputs and competition inputs. In addition to these a host of online inputs like i-media impressions, search engine marketing and social media mix used by the brand in the past.
Multivariate regression technique was used with Bayesian shrinkage estimation process to estimate the short term and long term impact of various inputs.
The modelling revealed following action points:
The implementation of a new strategy with the help of modelling results yielded a successful result by enhancing the marketing ROI by 16% and helped provide a focused strategy for online media by clearly mapping its role and performance.
An Alco-Bev major wanted to understand the sizes of each of the categories of alcohol such as Whisky, Vodka and so on into the future for a plan strategy for a 5 year period.
The advantage of this methodology is that ROI of key digital channels can be compared and spends optimized in line with these insights, significantly improving overall efficiency.
The problem this CPG brand was faced with was a typical problem- Brand had presence across multiple connect points, paid media, owned media ( website, Facebook page etc) and earned media ( Twitter and other social mentions) but not knowing clearly what works across market clusters, and the interrelations between these connect points.