Originally published by Quantzig: Marketing Mix Modeling Optimizes MROI for a Global Food and Beverage Player
Client Overview
Established Industry Leader
The client is a well-known authority in the frozen food industry, with over 50 years of experience as a top processor and marketer. Headquartered in the United States, the company has operations in 17 countries, showcasing its extensive global reach. A significant advantage is its fully integrated and resilient supply chain, which strengthens its competitive position in the market.
Strategic Growth Plans
The client is committed to international expansion, focusing on increasing its presence in the EMEA and APAC regions over the next three years through innovative product launches.
The Challenge
Marketing Strategy Limitations
Although the client possesses a strong global supply chain, it faced challenges in differentiating its brand with existing marketing strategies. To address this, they recognized the need for a marketing mix modeling strategy to enhance customer acquisition, reduce churn, and improve customer engagement. The goal was to eliminate unnecessary marketing expenditures to sustain and grow market share.
Customized Pilot Offering
To overcome these challenges, the client was invited to take part in a tailored, complimentary pilot study specifically designed to meet their needs. These pilot studies were non-committal, allowing the client to explore potential solutions without long-term obligations.
The Solution
Collaboration with Quantzig
In search of improved marketing strategies through analytics and AI, the client turned to Quantzig’s marketing analytics solutions. They partnered with us to refine their campaign strategies and enhance their marketing return on investment (MROI).
Data-Driven Marketing Mix Modeling
Our marketing analytics experts worked closely with the client to develop a robust, data-driven marketing mix modeling strategy. This initiative resulted in a 12% increase in MROI and an 8% reduction in marketing costs. Additionally, the client achieved a 6% rise in customer acquisition and a 14% boost in customer engagement. Our strategic insights enabled flexible marketing activities that responded to resource availability, market trends, and consumer preferences while enhancing their understanding of current customers and identifying new target audiences.
Business Impact
Significant Outcomes
- Data-Driven Marketing Mix: Established a strong, data-centric marketing mix modeling strategy.
- 12% Increase in MROI: Improved returns on marketing investments.
- 8% Reduction in Marketing Spending: Streamlined and more efficient management of expenditures.
- 6% Increase in Customer Acquisition: Expanded the customer base.
- 14% Increase in Customer Engagement: Strengthened levels of customer interaction and loyalty.
- Improved Processes: Reduced errors and enhanced marketing workflows.
- Flexibility and Agility: Increased adaptability in marketing strategies.
Interactive Demo Invitation
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Continuing the Pursuit of Marketing Mix Modeling Transformation
Expanded Marketing Framework
The four Ps of marketing—Product, Price, Place, and Promotion—are crucial elements of any marketing strategy. To enhance customer segmentation and targeting, this framework has been expanded to include three additional Ps: People, Processes, and Physical Environment. Effective marketing mix modeling conserves resources, refines campaign execution, and improves conversion rates, enabling organizations to evaluate past performance for more informed future planning.
Quantzig’s Comprehensive Solutions
Quantzig’s data-driven solutions encompass descriptive (what happened?), predictive (what will happen?), and prescriptive (what's next?) analytics for all marketing initiatives. By leveraging integrated AI and robust statistical methodologies, we identify the optimal marketing mix to maximize MROI and drive conversions. Our solutions facilitate a deeper understanding of how adjustments in marketing strategies can impact overall effectiveness, supported by multi-channel performance metrics.
Effective Food Product Promotion Strategies
Leveraging the Marketing Mix
To successfully promote food products in a competitive market like McCain Foods, consider the following four key strategies:
Product Development and Differentiation: Ensure that your offerings, such as oven chips or potato-based snacks, stand out in the marketplace. Innovate with unique flavors and healthier options to cater to evolving consumer preferences. Organize tastings or demos to enhance brand visibility.
Pricing Strategies and Accessibility: Develop a pricing strategy that reflects the product's value while remaining competitive. Consider implementing tiered pricing for various market segments and ensure distribution across both offline and online channels for maximum reach.
Promotional Activities and Brand Awareness: Utilize a diverse promotional approach through digital channels, media partnerships, and traditional advertising to increase visibility and drive sales.
Cohesive Marketing Strategy and Evaluation: Align all marketing efforts to convey a consistent message. Monitor performance using metrics like ROI and customer feedback, making adjustments as necessary to maintain competitiveness.
Conclusion
Marketing Mix Importance
The marketing mix is essential for achieving organizational objectives and fostering sustainable growth. By effectively coordinating the elements of product, price, place, and promotion, you can create value for customers and stakeholders, ensuring a competitive edge in the market.
Quantzig is a leader in marketing analytics, transforming complex data into actionable insights that drive innovation and growth. With over 16 years of experience and more than 120 clients across various industries, we focus on empowering organizations to leverage analytics for continued excellence and success in the food and beverage sector.
