Promotional Effectiveness
Which promotional dollar is the most effective has
always been a mystery. But now the typical manufacturer has to promote heavily
just to generate the volumes that will guarantee a continued listing. With Trade
budgets high and rising, Promotional Effectiveness has never been so important.
On behalf of one major fmcg client, we recently undertook to evaluate the
promotional effectiveness of all their activities and those of their competitors
in a variety of stores. By aggregating a large number of observations using
named account data and linking it to other data sources, we achieved an
evaluation that has made promotional expenditure more efficient, without the
need for significant investment in additional data.
Noble Marketing can also help you source both the data
and the specialist analysis skills to allow you to analyse the price
elasticities that are emerging in your market place. You can then use these to
create fact based arguments to discuss between manufacturer and retailer. This
is a very challenging area, requiring a careful definition of the market model
before the appropriate regression techniques are used to assess exactly what is
going on. Even defining what you want to achieve is complex. Noble Marketing has
appropriate templates that may guide your thinking.
Consumer Insight
New research into consumer behaviour is challenging the
way that many categories are segmented. One of our major fmcg clients has been
evaluating the alternative proposals of segmenting their category. It has been
important to avoid expensive re-writes of their Nielsen databases before
confirming the final segmentation. Noble Marketing was able to take the existing
data and recut it to the new segmentation so that the outcomes could be debated
and new reports test run before the final database specification was agreed.
There is data that you could buy tomorrow from Nielsen
or Information Resources that will greatly improve your understanding of
promotional effectiveness. However even they struggle to use their standard data
delivery to unravel the huge number of variables affecting category sales over a
period of time. With their Modelling and Analytics teams, Nielsen and IR can use
powerful statistical techniques to analyse all the store level detail available
to them. In this way they arrive at an assessment of the strength of a variety
of promotional mechanics affecting the SKUs being modelled.
With the agreement of Tesco and payment of the
appropriate fee, Tesco Loyalty Card Data is now available to Tesco suppliers.
While Tesco will not allow their agent to divulge names and addresses, suppliers
can interrogate to an incredible degree the shopper behaviour of people who buy
(or don't buy) their products. To describe what is possible with this data
source is almost impossible - you are better thinking in terms of what possible
questions you have ever had about your consumers, then asking if the needed
attributes are held in the Loyalty Card database. For more details, see the
article in "What's Hot"