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 prominent player in the frozen food sector, boasting more than 50 years of expertise as a leading processor and marketer. Based in the United States, the company operates in 17 countries, showcasing its extensive global footprint. A key strength lies in its fully integrated and resilient supply chain, which enhances its competitiveness in the market.
Strategic Growth Plans
With ambitions for international expansion, the client is focused on increasing its presence in the EMEA and APAC regions over the next three years through innovative product launches.
The Challenge
Marketing Strategy Limitations
Despite having a solid global supply chain, the client struggled to differentiate its brand using existing marketing approaches. To address this issue, they recognized the need for a marketing mix modeling strategy to optimize customer acquisition, minimize churn, and enhance customer engagement. The client aimed to eliminate unnecessary marketing costs to sustain and grow its market share.
Customized Pilot Offering
To tackle these challenges, the client was invited to participate in a tailored, complimentary pilot study designed to address their specific needs. These pilot studies were non-binding, providing an opportunity to explore potential solutions without long-term commitments.
The Solution
Collaboration with Quantzig
In their pursuit 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 boost their marketing return on investment (MROI).
Data-Driven Marketing Mix Modeling
Our team of marketing analytics specialists collaborated closely with the client to develop a robust, data-driven marketing mix modeling strategy. This initiative resulted in a 12% increase in MROI, alongside an 8% reduction in marketing expenditures. Additionally, the client experienced a 6% rise in customer acquisition and a 14% boost in customer engagement. Our strategic insights facilitated flexible marketing activities responsive to resource availability, market trends, and consumer preferences, enhancing their understanding of existing customers and uncovering innovative ways to attract new audiences.
Business Impact
Significant Outcomes
- Data-Driven Marketing Mix: Established a strong, data-centric marketing mix modeling strategy.
- 12% Increase in MROI: Enhanced returns on marketing investments.
- 8% Reduction in Marketing Spending: Improved efficiency in expenditure management.
- 6% Increase in Customer Acquisition: Expanded customer base.
- 14% Increase in Customer Engagement: Strengthened 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 fundamental to shaping any marketing strategy. To enhance customer segmentation and targeting, the strategy has been broadened to include three additional Ps: People, Processes, and Physical Environment. Effective marketing mix modeling not only conserves resources but also refines campaign execution and boosts conversion rates, empowering organizations to analyze past performance for more informed future planning.
Quantzig’s Comprehensive Solutions
Quantzig’s data-driven solutions cover descriptive (what happened?), predictive (what will happen?), and prescriptive (what's next?) analytics for all marketing initiatives. By utilizing integrated AI and robust statistical methods, we identify the optimal marketing mix to maximize MROI and drive conversions. Our solutions also enhance the understanding of how adjustments to 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, particularly in a competitive market like McCain Foods, consider these four key strategies:
Product Development and Differentiation: Ensure that offerings, such as oven chips or potato-based snacks, stand out. Innovate with unique flavors and healthier options to meet changing consumer demands. Organize tastings or demos to boost brand awareness.
Pricing Strategies and Accessibility: Create a pricing model that reflects the product's value while remaining competitive. Implement tiered pricing for different market segments and ensure distribution across both offline and online channels to maximize reach.
Promotional Activities and Brand Awareness: Adopt a multifaceted promotional approach that includes digital channels, media partnerships, and traditional advertising to enhance 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, adjusting strategies as needed to maintain competitiveness.
Conclusion
Marketing Mix Importance
The marketing mix is vital for achieving organizational goals and fostering sustainable growth. By effectively coordinating the elements of product, price, place, and promotion, you can create value for customers and stakeholders, securing a competitive advantage 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 diverse industries, our focus is on empowering organizations to leverage analytics for continued excellence and success in the food and beverage sector.
