A CPG brand uses market mix model (MMM) estimates to optimize marketing budget

The CPG brand was already using market mix modeling (MMM) studies to estimate the sales being generated by different marketing channels. They also had a good understanding of return on Investment (RoI) and the contribution of marketing to total sales. They were looking for a solution that would allow them to make use of the MMM results to test spend scenarios and try out multiple spend combinations across channels to find the best spend plan.

Generate Optimization results in less than 5 minutes

By deploying Optimo – the web based SaaS platform enabled our client to generate results for different scenarios without customized results from their existing vendor

• Generate results in less than 5 minutes
• Web based, in-tool collaboration through team account
• Quick, cost effective deployment

The tool transformed the way our client was using market mix modeling results, with proactive marketing spend planning at the tip of their fingers.

Proactive use of MMM to plan future spends

Our client was performing market mix studies and was able to understand the effectiveness of their marketing spend only through retrospective studies. They used to get Return on Investment (RoI) estimates and response curve results. They used this to understand the sales being generated through the marketing efforts, monthly estimates of sales driven by each marketing channel and the investment saturation levels – but all as a part of retrospective study.

What they needed was something more – a spend optimization tool that could help them test different spend scenarios, compare one against the other and then finalize their media plan. With our SaaS based Optimo – they got all that, and with a turn around time that they had never imagined.

Optimo is more than a spend optimization tool

Optimization scenarios are generally custom generated.

With Optimo, there is no waiting time. Once the MMM results are uploaded on the tool, the client can generate following scenarios in no time:

a. Optimized spend distribution for a fixed spend amount

b. Optimized spend (amount and) distribution for a defined KPI e.g. marketing sales goal of USD 80 Mn.

c. Spend scenarios e.g. Sales impact of reducing TV spend by 50% and increasing Digital spend by 20%

Now, there’s no waiting for the strategy and planning team. They spend their time more effectively analysing the pros and cons of any spend scenario they think of!