Consumer fragmentation is leading to an explosion in brands and choice, and ever harder to reach consumers and new media and marketing vehicles are putting strains on the old marketing models.
Increasing retail concentration and challenges in balancing trade investments, and building long terms equity and pricing power are being faced every day in the consumer products category. Adding to that the challenges of mature markets with slowing growth and emerging markets with significant growth creates significant challenges of portfolio management.
Case Study Optimizing marketing levers in consumer products
A major food products manufacturer was increasingly relying on promotions to drive volume and was finding decreasing profitability of promotion and declining marketing cost due to increases in media costs. The investment needed just to maintain sales and profit was rising, and the business was looking to drive profitable growth.
Ninah worked with marketing, sales, finance and research associates, involving the media planning & buying agencies, to build a financial model which replicated the way investment in different media and promotions impacted brand sales and profit of key brands. This helped to identify where cash flow comes from and how (by adapting the marketing investment strategy) further cash could be generated to boost sales growth while delivering promised profitability.
The resulting impact on the business was a 12% increase in earnings across the key brands in the portfolio that were optimized.