Optimization of budget spend across channels, brands & geographies

3AI September 10, 2020

US Pharmaceutical company

Problem Statement

• Company uses various promotion channels across various countries / brands.
• The existing allocation process was ad hoc in nature – mostly based on benchmarks and past experience an was driven more by intuition.
• Company wanted to evaluate the performance of its different promotion channels and plan for optimize multi-channel budget allocation across geography.

Analytics Led Approach

• leveraged historical data and market research to estimate the promotion response.
• Estimated ROI of most of the promotional channels across time span via a mix of “Control-Experiment” approaches and “Time Series” approaches.
• The results were used to estimate the impact of future programs and create promotion response models.
• Multi-channel optimization based on profitability was performed using our in-house tools

Business Impact

• The solution provided helped the company in developing optimal promotion mix across all the channels being utilized.
• Performance of various channels along with revenue impact was explained.
• Helped track promotional efforts and understand the effective synergies of the channels.

Critical Success Factors

• Robust and well defined analysis methodology
• Deep domain and business understanding..