A Bottoms-Up Approach to Double-Digit Growth:
A fresh new look at granular allocation issues quickly maximizes media ROI for leading skincare company
The proliferation of media channels and stiff competition in the skin care and beauty industry posed serious questions for a prominent mineral makeup company. Struggling to identify the best media allocations to launch new products without cannibalizing existing product line sales, they came to Analytic Mix to uncover an optimal media allocation strategy for a maximum ROI. We were asked to help them understand:
- The optimal media allocation strategy to maximize portfolio sales
- Best-case allocations across product categories and lines
- Investments across channels for each product line
- Diminishing points for each media channel
Importantly, they needed to know whether their current media strategy was generating sales for new product launches and existing product lines equally, and how their media strategy was impacting new customer retention and acquisition.
We created a customized mathematical algorithm which integrated a range of the company’s structured and unstructured data and generated optimum allocation scenarios. Our innovative system of equations took a bottoms-up approach to answer granular allocation issues through the highest level investment queries.
Our fact-based analysis armed the CMO and media buying agencies with insights that resulted in double-digit revenue gains without increasing budgets. The marketing team was able to see, through analytics and visualization, the effects of optimizing media allocation on the company’s various product lines and overall portfolio. And the executive team was able to attribute the gain directly to shifting media budgets from one product to another, and one channel to another.
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