Driving Marketing Efficiency In The Consumer Goods Business With Advanced Analytics

CONTENT
A The current state of marketing in the consumer goods business
How advanced analytics solutions like Compass helpB
How the solution works
1. Data integration and harmonization
2. Harnessing data with advanced analytics
What you can do with the solution
1. Measure campaign eﬀectiveness
2. Get actionable recommendations
3. Set and get real-time campaign alerts
4. Perform what-if analysis and forecast sales
5. Understand competitor performance
6. Product portfolio management
7. Identify growth opportunities
8. Stay updated on important KPIs
9. Consume data in a simpliﬁed way
C Case study
D About Acuvate

UK | USA | Netherlands | India
Proprietary information - Do not copy or duplicate without written authorization from the author.
“Consumer packaged goods companies allo-
cate by far the largest percent (24) of total com-
pany budget to marketing”
The CMO survey, American Marketing Association
Compared to businesses in other industries, the ones in the
Consumer Goods (CG) industry spend a colossal amount of
money on marketing and advertising. This is mainly because
these campaigns have a major influence on the shopping and
buying behaviours of consumers and thereby act as the prima-
ry drivers of revenue.
With the continuous expansion of the target market, the com-
plexity and diversity in the 5 P's of marketing - Product, Price,
People, Place and Promotion has also increased.
Needless to say, the distribution networks are extensive and
there are numerous influencing factors that can impact con-
sumer buying behaviours and marketing strategies.
Added to this, the rapid rise of digital media and online social
networks has opened several new channels to target the con-
sumer base.
However, a large percentage of marketing
efforts has little to no impact on sales and
doesn’t drive the desired results.
One primary reason for low-yield marketing campaigns is a
lack of data-driven decision-making. Success in any consumer
goods business largely depends on the speed and accuracy of
decision-making. However, most marketers today lack a holis-
tic view of reality and all the influencing factors that can impact
their campaign performance.
A truly data-driven decision needs a 360-de-
gree and unified view of the market and con-
sumer insights.
Most CG businesses already recognize the need for leveraging
data analytics for taking critical business decisions around
market-mix modelling, revenue management, trade promotion
optimization etc. They are also investing in relevant tools.
“A thirst for insights is also reflected in CPG mar-
keters investing more in marketing analytics
compared with all other survey respondents”
-Gartner
However, the adoption rates of most of these BI and analytics
tools get reduced after a certain time and thereby become
unsuccessful.
The current state of marketing in the consumer goods business

5 reasons most analytics solutions fail to
appeal decision-makers.
a) The software provides shallow insights from historical data
from limited data sources (old syndicated and internal data,
data solely from primary sales etc.)
b) The data fed in the system lacks quality.
c) The software doesn’t provide actionable recommendations
for the present and future.
d) It’s too sophisticated to use and inconvenient to incorporate
in day-to-day operations.
e) These solutions are provided only for the high-level man-
agement.
Most CG analytics solutions don’t strike the perfect balance
between providing in-depth insights and ease of use. Tools
which give meaningful insights lack good usability and the
ones which are convenient to use, provide shallow insights.
Marketing and revenue management teams as a result, aban-
don these tools and go back to making decisions based on gut
or partial intelligence or past experiences. Decisions impact
your revenue and such non-usage of data for taking decisions
can cost you millions of dollars

The uncertain marketer in the consumer goods business
How much sales uplift
did I achieve with that
ad campaign?
Are my marketing efforts
helping competition and by how
much?
Which types of
media are yielding
the desired results?
Am I spending at
the right time and
place?
Am I getting the cor-
rect ROI for the mar-
keting spend?
Am I missing any op-portunity which canyield me good results?
Is there a new
segment that I can
target?
Can I optimize
the spend on
each brand
based on the
BCG Matrix?

How advanced analytics solutions
like Compass help
Compass is a trade promotion optimization solution with advanced marketing and advertising analytics capabilities. The solution
helps you unlock the value of diﬀerent types of internal and external data to run better promotions and marketing campaigns.It is
built with a sole goal of generating the maximum ROI and sales uplift for a minimum marketing, advertising and trade promotion
spend.
Compass leverages advanced analytics for the following marketing scenarios
Measuring advertising
eﬀectiveness
Marketing Mix
Modelling
Product portfolio
management
Sales forecasting
Optimizing
advertising spend

How the solution works
Step #1 Data Integration
We start by combining and integrating data from multiple internal and external sources.
This integration increases data accuracy and helps decision-makers get a unified and 360-degree view of all the influential factors
which could possibly impact the marketing campaign. This combined raw data also acts as a strong foundation on which a powerful
analysis can be run to glean insights.
1. Past promotions and campaigns
2. Market Research
3. Primary Sales
4. Secondary Sales
5. Point of Sales
1. Competitor Intelligence
2. Location
3. Search Analytics
4. TRP
5. Weather
6. Social Media
7. Syndicated Data
8. Events
Internal Data
External Data
Data
Lake
Different types of data Compass
captures and harnesses

Step #2 Harness data with advanced
analytics
Now that we took data from a myriad of influencing factors, it is
time to convert them into meaningful and actionable insights
and recommendations. This is where most analytics solutions
fail.
While these analytics tools do provide some key insights, most
of them are non-actionable. Consumer goods businesses
produce massive amounts of data every day and a powerful
harnessing of this humongous data requires advanced tech-
nologies like Artificial Intelligence and Machine Learning.
Advanced analytics like predictive and prescriptive analytics
are powered with AI and machine learning and add the much
needed “intelligence” part to an analytics software. Unlike
traditional analytics solutions which provide shallow insights,
advanced analytics turn data into meaningful insights - insights
which are actionable and enable you to take a decision quickly
and more accurately.
For instance, traditional analytics can accurately project the
annual marketing trends in London for 2017, but can’t recom-
mend you the necessary steps for profitably optimizing your
annual spend.
Leverage unstructured data
Unstructured content already accounts for a
staggering 90 percent of all digital data, much
of which is locked away across a variety of dif-
ferent data stores, in different locations and in
varying formats - IDC
Data from crucial data sources like digital and social media,
TRP, events, POS are largely unstructured and cannot be har-
nessed by traditional analytics. Big data and AI technologies
such as machine learning (ML) harness and convert this raw,
unstructured data into meaningful insights.
Advanced analytics let you spend less time
analyzing data and more time gaining
insights from it
Traditional analytics tools can answer a
simple “what’s happening” question but not
a much-needed “why is it happening” or a
“what’s the best way to proceed” question

Traditional Analytics vs Advanced Analytics
Traditional Analytics Predictive and Prescriptive Analytics
What happened?
How many?
How often etc.
Why is this happening?
What will happen in the future and what should i do
about it?
Which marketing campaigns are delivering the highest
ROI and why?
What is the lost sales percentage?
Which types of media generated the highest sales
uplift?
What is the right media mix strategy for the upcoming
quarter?
How can I maximize my marketing ROI?
What is my expected ROI if I increase my spend on TV
campaign by $60k and decrease digital spend by $40k?
What are my predicted sales if I keep Brand A at base
price for the next 6 months and promote Brand B for a
BOGO for the next 1 month?
Which creative is working and why?

What you can do with the
solution
1) Measure Campaign Eﬀectiveness
a) Measure the performance of your marketing and ad
campaigns.
b)Detect and analyze which type of channels, media and
creative have yielded the maximum ROI and sales uplift.
c)Measure campaign ROI by segment type
d)Compare the total spend on diﬀerent campaigns and the
short-term and long-term business objectives it has
achieved
e)Measure ROI of dollar spend
f)Learn how much your competition has lost or gained
market share due to the campaign.
g)Understand the individual impact of each campaign on
sales
h)Learn the reason(s) why a campaign did or did not per-
form.

2) Get Actionable Recommendations
Compass leverages machine learning and runs a powerful analysis on the internal and external data fed into the solution. Based on
this analysis, it recommends
a) The right type of campaign to be run - where and when, for which product and how much time.
b) The proﬁtable way to optimize spend for various locations, types of media, and products.
c) Custom plans for each product and location.
Compass also predicts sales for every recommendation it provides.

3) Set and receive real-time campaign alerts
In addition to providing recommendations, Compass also leverages machine learning to harness data and detect key patterns and
trends from it. It makes trend discovery easy by providing deeper insights on your campaigns and their impact which you might not
be aware of. These real-time insights can include
a) Campaign alerts like dip in campaign ROI or sales
b) Business impact updates
c) Any other trends that can aﬀect the on-going campaign.
You will have the ﬂexibility to choose and set the alerts you prefer.

4) Perform what-if-analysis
and forecast sales
Compass’ what-if scenario builder
enables you to intelligently optimize
marketing mix by forecasting sales for
various marketing mix variables. You will
have the ability to define constraints like
budget, set objective parameters such as
maximize revenue, profit or volume. You
can also predict the impact on sales for
the proposed marketing tactics and
forecast lost sales.
5) Understand competitor
performance
a) Stay updated on the market share
percentages of your competitors
b) Learn the segment wise perfor-
mance of competitors
c) Analyze the impact of your marketing
campaigns on your competitors’ market
shares.
d) Learn if your marketing efforts are
helping competitors and by how much.

6) Product portfolio management
a) Understand your total expenses, ROI and actual sales for each brand
b)Measure the performance of your cash cows, stars, dogs and question marks
c)Optimize your spend based on the BCG matrix
d)Analyze the performance of your question marks and forecast the likely performance for the future.
e)Get alerts on any risks for your cash cows and stars based on market performance

7) Identify growth opportunities
a) Forecast the growth of your existing segments and product base
b) Identify new potential market and product segments and forecast the size of the opportunity. Thereby, you can allot the right
amount of planning and budgeting for new product launches and marketing
c) Get recommendations on which market/product segments to focus on
8) Stay updated on important KPIs
Get a holistic view of important KPIs like market share, investment, growth, competitor performance etc. for every brand and
location. You will have the option to set the needed time-period.

9) Consume data in a simplified way
Marketing analytics solutions usually fail because of the change management which is required. Business users face a challenge
with learning to use the new solution and accessing the data to make better decisions.
a) AI Chatbots
By integrating chatbot into the analytics system, you can get the
required data right within your actively used messaging app like
Skype for Business, Skype, Slack, Microsoft Teams etc. This data
can be accessed in both textual or multi-media formats. This avoids
the hassle of logging into the system, navigating and filtering dash-
boards.
Learn more: Business Intelligence Chatbots
b) Advanced Visualizations
Advanced data visualizations provide a variety of ways to view data
-including visuals such as bubble charts, heat maps, and so on.
Advanced visualization greatly simplifies the process of analyzing
massive data sets and trend discovery.

Case-Study
Acuvate helps in reducing
advertising spend by 5 % with
advanced analytics for a
global CPG company
Business Scenario and Objectives
Reduce advertisement spend with increased sales
Just like any other consumer goods business, the company had a
huge marketing and advertising budget which is not proﬁtably
spent. Increasing the sales for health products by running adver-
tisements at a minimum spend was the primary objective.
The Challenge
Decisions based on gut
The marketing team was running advertisements based on gut or
past experiences. Data from social media and weather - which
have a huge impact on the sales of healthcare products was not
leveraged to make decisions. This signiﬁcantly increased the
advertising spend with little to no impact on the sales uplift. In
addition, the marketing team was not able to predict future sales
accurately.

#1 Gather Important Data
The first step of the solution was to collect data from some
key sources which have the highest impact on the sales of
health products.
Social media (Twitter feeds)
Weather (past, current and future)
Disease outbreak data
Past sales data of the products
#2 Transforming Data into Insights With
Advanced Analytics
Once the raw data was collected, the next step was to derive
actionable intelligence from it. Most of the data was very
unstructured. Acuvate used advanced analytics and machine
learning algorithms to effectively harness and transform it into
a structured format and meaningful insights.
#3 Build Interactive Dashboards and Re-
ports
Power BI, a BI software and analytics platform was leveraged
to build flexible dashboards and reports. Users can customize
and change several parameters within the dashboards
according to their needs.
What Users Can Do With The
Solution
Get crisp recommendations on running the right advertise-
ment at the right location at the right time in the right
channel and for the right duration.
Receive real-time alerts for disease outbreaks or occur-
rence of rain etc.
Get campaign ROI for each campaign type - Radio, TV,
Social media, Print Media, Banners etc.
Forecast sales
Compare actual sales with predicted sales
Understand sales uplift for every advertisement run.com
Our Approach

Beneﬁts
With Acuvate’s guidance the company was able to…
Proﬁtably
optimize
Advertising
spend and
resources.
Forecast
sales more
accurately
Increase sales
due to better
brand recall
by consumers
after seeing
the advertise-
ments at the
right time
Personalize
advertising
campaigns
Leverage data
to make
decisions.

Clients Who Trust Us
About Acuvate
Acuvate is a Microsoft Gold Certified Partner with 11+ years experience in improving business efficiencies and revenue for numerous
enterprises worldwide. We do this by building enterprise applications that help in intelligent analysis, collaboration and orchestra-
tion of information.
Over the years, Acuvate has helped several Fortune 100 consumer goods organizations in deploying Business Intelligence and
advanced analytics solutions and services to increase revenues and overall profitability. Acuvate holds profound expertise and
specialization in providing AI-powered BI solutions for many leading consumer goods companies.

Learn More About Compass
Schedule a Demo
www.acuvate.com+44 (0)1753 299600info@acuvate.com

Driving Marketing Efficiency In The Consumer Goods Business With Advanced Analytics

Driving Marketing Efficiency In The Consumer Goods Business With Advanced Analytics

Driving Marketing Efficiency In The Consumer Goods Business With Advanced Analytics

Recommandé

Contenu connexe

Tendances

Tendances(19)

Similaire à Driving Marketing Efficiency In The Consumer Goods Business With Advanced Analytics

Similaire à Driving Marketing Efficiency In The Consumer Goods Business With Advanced Analytics(20)

Dernier

Dernier(20)

Driving Marketing Efficiency In The Consumer Goods Business With Advanced Analytics