Econometrics / Marketing Mix Modelling
KITE build advanced econometric / marketing mix models to disaggregate and quantify all key drivers of historic sales (or other KPIs), including:
ATL Advertising – TV, VOD, OOH, Press, Radio, Cinema, Digital (OLV, Display, Mobile, Search SEM / SEO, Social, Influencers) and PR.
BTL Advertising – Coupons, Sampling, Door Drops, In-Store Media, Direct Marketing (Mails/Emails), Affiliates and On/In Pack Promotions.
In-Store Promotions – Promotional Mechanics/Offers, Special Packs and On/Off Shelf Display Support.
Pricing – own price, competitor price, price relative to competitors and crossing of price thresholds.
Distribution – changes in breadth and depth of distribution, facings, shelf position, new product launches and de-listings.
Other non-controllable factors – competition, category trends, seasonality, holidays, weather, economy, national events and out of stocks.
Econometric model outputs provide clients with huge benefits, including:
Detailed understanding of key drivers of business performance to date and the relative contribution of each one.
Sales uplifts and return on investment metrics for each individual marketing and sales investment lever.
Price and promotional elasticities.
Quantification of the inter-dependencies between investment levers, for example:
- Does TV advertising drive online search
- What is the optimal mix of media channels
- Is there a synergistic effect when synchronising TV with in-store promotions