A retailer wished to know exactly what was driving sales performance for its given product lines in any given week. This meant explaining why sales had stagnated for certain product lines and how this situation might be improved by investment in the most appropriate marketing activities.
A well known high street retailer, having seen sales for some of its core product lines stagnate, wished to understand how it might boost sales growth by determining which factors had historically helped sales performance and which factors had detracted away from it. This was no easy task given that sales of the retailer could have been influenced by a range of factors such as the retailers marketing activity, the highly competitive nature of the marketplace, seasonality or indeed the health of the economy as a whole.
Business Science developed a series of marketing mix models for each of the core product lines by overlaying factors such as pricing, seasonality, distribution, marketing activity, economic health and competitor activity against weekly sales. These models allowed Business Science to attribute product sales in any given week to each factor considered so that an incremental sales benefit could be attached to each (i.e. how much of sales in a week were down to marketing, how much to pricing, how much to seasonality etc). In addition to determining which factors had had the biggest impact on sales, this facilitated calculation of the ROI of each element of marketing activity so the retailer could establish which activities were working best.
The retailer used the information provided by Business Science to overhaul its marketing strategy and re-invest its marketing budgets in the most efficient marketing activities. Moreover, the analysis provided by Business Science is now seen as an integral component of the marketing planning process, with Business Science providing updated analysis four times a year to help the retailer understand what has worked well, what hasn't and to ensure the best marketing investment strategy is implemented each time.