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Marketing Mix Model

Consumer Packaged Goods (CPG) companies spend millions of dollars on marketing across channels. With expanding categories, emerging local competition & deep media penetration, it becomes extremely imperative for brands to constantly monitor their media mix and optimize spend. They need to understand the ROI on each dollar spent and the long term and term impact on brand’s reputation.

Our models help CPG companies understand the effectiveness of different media campaigns and key execution drivers like price & distribution, impact on category and competition to take data-driven decisions on their marketing spend.

Our Approach

Our Marketing Mix Models use sales and marketing time series data to estimate impact of various marketing tactics on sales. We build an optimizer and a simulator on top of the models to help firms allocate their marketing spend across tactics, brands and retail channels. Marketing Mix models can help not only improve ROI on individual media tactics by identifying the right mix and saturation points but also help with media flighting strategy.
Techniques used

Multivariate Regression

Linear /
Non-Linear Programming

Possible outcomes with Marketing Mix Model

Effective marketing

Insights to drive effectiveness of both digital and traditional marketing across channels and enabling swift data-led decisions to drive campaigns

Better spend management

Analysis of campaigns and network effect of drivers to understand long-term (erosion) impact of price and promotion on elasticities

Personalized campaigns

Targeted advertising, promotions and product offers to customers on their specific needs and preferences to improve conversions

Improved performance assessment

Assessment of marketing performance across media by generating year-on-year analysis of sales contribution and the cost of customer acquisitions

Related solutions

Price & Trade Optimization

CPG firms spend heavily on trade promotions activities across categories and also offer huge discounts...

SKU Optimization

CPG firms rely on data-driven insights to adapt themselves to the rapidly changing preferences...

Sales Forecasting

Multiple factors come into play in driving sales for CPG companies and it is imperative to understand...

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