A leading food and beverage manufacturer with nearly $10 billion in annual net sales had not conducted a thorough analysis of its marketing and consumer promotions touchpoints in several years, which was further compounded by the rapidly changing media landscape. It faced additional questions around how or how much advertising was haloing across its portfolio, as well as which consumers its communication channels were resonating with most. The client partnered with IRI to conduct a POS-based marketing mix analysis in addition to a consumer mix overlay analysis.
To address the client’s problem, IRI leveraged its marketing mix solution to quantify the volume driven by the various media and consumer promotion touchpoints, as well as their effectiveness and efficiency (i.e., ROI) and other marketing support. Additionally, we leveraged the IRI national consumer panel to understand how the client’s various investments were impacting different consumer segments within generations (Gen X, Gen Y, baby boomer, etc.) in addition to understanding which vehicles were most efficient at bringing in new brand buyers. We found that media support on new innovation did halo back onto the base business but was much less efficient than support against the core business, and that paid search, FSI and feature activity were effective at bringing in new buyers.
IRI was able to help the client provide more continuity with its current TV budget, uncovering a $1.4 million opportunity. It also found that reallocating less-efficient in-store activity to sampling would provide an additional $0.8 million. By shifting Hispanic digital display to general market display, the client would achieve an additional $0.7 million, and increasing support on paid search would uncover another $0.4 million. Finally, the client was able to understand the trade-off of a $6 million investment on base versus innovation and that it would result in a $12 million swing in topline performance.
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