MMM, price & promotion analysis for retailer with online and brick & mortar stores


Leading fashion retailer

Business objective

Our client is a leading fashion retailer with both online and brick & mortar stores The client was looking to optimize the marketing mix plan, in order to answer questions such as:
  • How effective is the current marketing spend?
  • Which categories should get more marketing dollars?
  • Which channels are the most effective and the most efficient?
  • Which are the oversaturation points?

Benefits & outcomes of our engagement

  • SGA’s price and promotion analysis helped identify geographic pockets where the brand had low price-elasticity and delivered c.10% cost savings on the price-off promotion budget
  • We integrated sentiment score track as part of the MMM model to determine the impact of online engagements / posts as a driver of brand sales
  • Digital media campaigns / initiatives delivered ROI of 1.5+. During the next fiscal, the client’s marketing teams enhanced their annual spend by c. 5%-10% to benefit from the ROI jump

SGA approach

  • SGA’s team had multiple initial conversations with the client’s teams (both online and stores) to understand the intricacies of their business
  • We used a mix of traditional and unconventional techniques to deliver a seamless marketing mix plan
  • We leveraged a broad range of data sources including client’s internal sales data, salesforce data, campaign measurement data, client’s agency data (media agency, research agency partners, etc.)
  • Following are the parameters we assessed:

  1. Traditional media spends and impressions
  2. Digital media spends and impressions
  3. Campaign data
  4. Price and promotion calendar-based activity trends
  5. Sales history (Store * SKU-wise)
  6. Assortment range
  7. Nielsen Retail Audit Index (Competition performance)
  8. Trade promotions
  9. E-commerce buying & spends data
  10. Brand track (consumer preference, brand equity)
  11. In-store elements (BTL spends, retailer schemes, etc.)
  12. Sentiment track / digital voice of customer track

  • We created a plug-n-play simulator tool that helped key account managers and brand managers plan their media spend as well as allocate budgets across online-offline optimally