Optimization of budget spend across channels, brands & geographies
3AI September 10, 2020
US Pharmaceutical company
- 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
- 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..