BUSINESS PROBLEM:
Complex, multi-level media and marketing drivers and growing uncertainty due to changing markets, inflation, and supply chain make it challenging to take decisions in FMCG and retail value chains. Our client, a Global CPG/F&B market leader with UK operations, encountered two business challenges:
E-Commerce digital shelf optimization
Developing an effective media ROI measurement framework
APPROACH TO THE SOLUTION:
Our proprietary CatmanAi framework was used to develop two Solutions on one single engine: Digital Shelf Optimization and Media ROI Measurement Framework. The AI/ML-driven proprietary engine helps in data integration, intelligent feature recommendation, intelligent sampling, model recommendation, and business driver prediction. The entire solution was based on Cloud. The Combined Solution was used to bring an uplift in Market Share.
SIGNIFICANT BUSINESS OUTCOMES:
Optimising the product rank for the search keyword of the FMCG Brand alone predicted an incremental uplift in sales by 3% to the Brand Portfolio Unit Sales on the retailer platform.
An incremental sales uplift of 4.9% of Units sales to the Brand portfolio baseline was predicted on the retailer by improving product reviews. The effectiveness of improved reviews was exceptionally high for premium and niche SKUs.
An increase in images provides most uplift for premium SKUs (8% to 18%). With an increase in images for all premium SKUs, there is a potential sales uplift of 14% for premium SKU sales and 1% for the whole portfolio on that retailer
A revenue growth of 1.4% despite the potential sales loss of 5.1% to Baseline sales was predicted if the price of FMCG Brand portfolio products increased by 5%; it was also predicted that if the competition increased price by 5% while the brand maintained their prices, brand sales would increase by 10.5%. In addition, what if scenarios were created for the best price mix.
Simulator also provided insights into the Macroeconomic indicators and its impact on sales and market share. The Model findings indicated that a rise in the consumer price index (Factor of Inflation) impacted Niche products of the brand by a decline in portfolio unit sales by 2.4%. Further, it was also identified that Product user reviews can be used to combat the increase in the consumer price index for niche and healthy products.
Media Optimization for the brand on Retailer has resulted in an incremental uplift in ROI by 11.6% from a base ROI of 3.02 to optimised ROI of 3.37 with an increase in media spends by 20%
There is a possibility to Increase media spends on one of the retailers up to 50% as the current spends were below optimal level.
Simulation indicated that YouTube Digital Video and Twitter Digital social media spends on the retailer were operating at Sub optimal level. There is a possibility to further increase in spends for YouTube and Twitter.
Interested to learn more, a demo or how you could pilot?
Please write to us: marketing@singularintelligence.com
Comments