Case study: Integrated Marketing, Pricing and Promotion Optimizer for leading Global Brewery

About the Client

The challenge in this context is for executives to have a holistic view of optimization opportunities across marketing, trade, pricing and promotion to achieve planned incremental growth. This would help then understand optimal spend architecture across multiple brands and vehicles. Secondly, it would also help decide the right pricing architecture of products across regions given product sensitivity & cannibalization effect.

Business Context

The client wanted to get a better understanding of their marketing and channel effectiveness for multiple brands across geographies. They wanted to build a sound data driven strategy to achieve planned incremental growth by identifying the optimal marketing spend architecture across brands and channels.

BRIDGEi2i Solution

BRIDGEi2i partnered with the client to build an integrated optimization solution that helped explain customer behaviour, including identification of brand perception and cases of brand cannibalization. In addition, the creation of multiple pricing scenarios drove an optimal change in brand revenue along with market share.

Below are the key datasets considered for this solution.

  • Pricing (From Conjoint Study) from brand level sensitivities, current base price and volume, segment/brand sourcing.
  • Working Media (From MMM Study)-vehicle mix to optimize resource allocation, saturation curves, and business assumptions.
  • Sponsorship & non-working media -sponsorship ROI simulation, and marketing package spend.
  • Trade (From MMM Study) included ROI curves, planned investment, business assumptions, spend & volume.

BRIDGEi2i’s AI Labs carried out non-linear price optimization by establishing a relationship between price & volume. Business decision-making was undertaken to pass on the incremental gain to marketing budget OR P/L statement. The ML experts also used a Monte Carlo based simulated optimization for budget allocation across country, brand & vehicles to maximize revenue or achieve KPI target.

BRIDGEi2i’s consulting team and AI Labs deployed the Integrated Optimizer solution to enable the leadership with a holistic view of business opportunities and concerns across price, marketing and trade levers. The converser acted as a planning assistant for optimal allocation of commercial investments.

Business Impact

Easy identification of opportunity areas & concern points across geography for holistic decision-making

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$ Increase in Net Revenue, due to Volume Upliftment from Optimized Spend Architecture & Pricing Strategy