Optimized marketing budget and increased sales for a global automotives OEM company

A global car manufacturing company wanted to improve marketing efficiency.

Client was facing decline in its product sales due to unknown reasons and wanted to optimize its marketing strategy budget and allocation to ensure maximum ROI for its marketing campaign

TransOrg performed exploratory data analysis (EDA) on the available data sources like

• Sales data
• Product price data (own and competitor) and
• Media spend data

The outlier events that had affected sales were identified and their impact on sales was removed.

The insights generated in the exercise was discussed with the client and secondary variables were created that would help predict sales.

During model building the impact of each category and at the drill down level the impact of each campaign was determined. Using the ROI from each component the budget was optimized accordingly.

The model is refreshed every month to account for the change in market conditions and competitor actions.

• Huge inefficiencies were highlighted in the execution of promotional activity and media support.
• Optimized budget allocation with the help of model output by doing simulations for various scenarios.
• Recommended 15% shift of spending from Trade promotions to TV and Digital platforms for the first campaign post the analytics exercise.

• The media plan was redefined to realize an overall increment of close to 4% in the sales volume generated through TV activity and Digital platform.
• Product price plays a significant role and has the highest weightage. The most critical marketing component is TV