A leading FMCG company required Decision Point’s help in optimizing DME spend and improving sales. Check out how our Marketing Mix Models enabled it!
01. Business Challenge
A leading FMCG client wanted to determine the optimal allocation of the DME spend and interventions to improve their Ready-To-Drink Tea sales.
02. Approach
Our approach involved two phases – Discovery & Development.
Decision Point experts also applied advanced Bayesian Regression techniques to estimate baseline volume, volume lifts.
03. Impact
The impact of Decision Point’s Marketing Mix Models to our client – a leading FMCG company included:
- Improving their allocation strategy and planning the yearly budget with key insights & recommendations from the analysis.
- Optimizing client’s DME spend. DME has a significant impact on Volume gain and Preference gain (Brand Equity), with every 10.0% increase in DME results 10.9% increase in Volume.
- Enabling optimal allocation of promotional spend across channels as part of the annual budget cycle.
Key Highlights
- Determining optimal allocation of DME spend
- Use of Bayesian Regression Model
- Non-Linear Transformation to capture volatility
