Analytics for CPG

Hansa Cequity's has conceptualized and developed a unique solution framework that brings together strong understanding of business case, analytics tools, techniques and processes to enable transformation of our client's CPG business by leveraging our domain expertise, analytics models, KPI frameworks, data integration techniques, dashboards, reports and intuitive portal based interface.

CPG analytics contains the following solutions:

• Market Mix Analytics
• Promotion Analytics
• Campaign Analytics

Target Marketing
In the constantly changing and competitive landscape of CPG business acquiring customers is a significant challenge: retaining existing customer is a bigger concern. Target marketing is a platform that enables more focused and personalized customer centric activities for the marketing operations. It leverages marketing to communicate with the customers on the place, form, time and possession utility of their products and to differentiate from their competitors. Marketing managers are faced with numerous challenges to conceptualize and execute such marketing initiatives. Target marketing platform helps to put in place a robust and flexible platform that automates marketing initiatives while leaving marketing managers focus on effective marketing.

Benefits of target marketing are twofold:

• Significantly brings down the marketing costs because they target fewer customers.
• Increases the probability of a customer responding to a campaign by buying a product.

Hansa Cequity brings an automated marketing planning decision support system for target marketing in CPG industry. It helps in integrating and providing insights in all the key components of marketing lifecycle: Strategy, Planning, Monitoring, Refinement & Evaluation cycles.

Hansa Cequity’s automated marketing planning decision support system uses a technology backbone that:

• Considers different channels and lines of business while developing the marketing programs.
• Gathers, manages, and analyzes customer data in a timely manner.
• Measures performance across the marketing mix.
• Helps draw valuable insights out of customer interactions.
• Ranks various parameters affecting customers’ response decision positively in the order of their relative importance.

It will thus help in

• Optimizing spend over the full portfolio.
• Getting an insight to factors affecting spend and the impact it will have on sales.
• Scenario comparison and what-if analysis guides better decision making.
• Justifying marketing spends.
• Evaluating ROMI and other business metrics for marketing efforts.

Market Mix Analytics
“While targeting my customers what should be the optimal mix of Product, Price, Promotion and Place to maximize my sales, market share and profits?”

Marketing mix refers to variables that a marketing manager can control to influence a brand’s sales or market share. Traditionally, these variables are summarized as the four Ps of marketing: product, price, promotion, and place.

The perennial question that managers face, is: What level or combination of these variables maximizes sales, market share, or profit? The answer to this question, in turn, depends on the following question: How do sales or market share respond to past levels of expenditures on these variables?

CPG companies have realized that with decreasing scope of further cost cutting and staff reduction measures, only way to stay competitive is by utilizing various mediums efficiently to better communicate with customers and bring out product/services which they actually need at right time & right place. With increasing new marketing mediums like internet, online communities, search engines, event marketing, sports marketing, viral marketing, cell phones, and text messaging, etc it has become very difficult for companies to accurately measure the business impact of these mediums. To grow revenue and profits, business managers need to understand the types of marketing investments that are most likely to produce viable, long-term revenue growth.

Hansa Cequity’s marketing mix analytics framework allows companies to maximize returns on their marketing investments (ROMI). It helps marketing managers in understanding the individual and combined contribution of various marketing initiatives. It also helps in planning the future investments by utilizing the historical marketing spend data to forecast business results.

The framework uses relevant marketing and non-marketing data to account for past performances and explain certain results. Given the planned investment details and market inputs the framework can predict highly accurate results in terms of ROMI and response rates.

Marketing mix analytics helps in:

• Budget Planning: How much should be spent? What is the recommended level of spending? How much is enough?
• Marketing planning: How should we spend it? What vehicle and message should we use? Equity or promotional?
• Media Planning: Where and when should we spend? Before or after a price increase? What time of year? National vs. Local? TV or Radio?
• Marketing Effectiveness: How do we measure? Brand metrics? ROI? Real time Scenario Planning: Forecasting, Simulation

Promotion analytics
“How do I identify the best promotion strategy for this particular customer segment?” CPG companies need to understand the impact of promotions on revenue, margins and the category so that the business impact of promotions is maximized. Hansa Cequity’s brings promotion analytics framework for CPG industry to help managers find out

• Incremental sales & lift, volume impact and margin potential of promotion
• Impact of promotion across different dimensions like geography, season, customer set, products, category etc
• The best channel for promotion delivery
• Promotion elasticity for price, delivery, & media
• Forecasts of sales for promoted products

Campaign analytics
"How do I extract valuable insight on customer response likelihood to target customers optimally and simultaneously maximize ROI?"

Hansa Cequity’s Campaign Analytics solution framework is a powerful tool that enables clients to identify profitable target segments for customer centric activities, integrating and analyzing various customer data. It brings together various tools, processes and industry best practices. The framework allows clients to interact with their customers at the right time, through the right channel and provide the right offer. Business managers will now be able to launch a campaign and target the correct customer base with the hope of increasing the sales and margin figures.

The objective of the solution is to classify the customer base into various groups based on campaign responsiveness score, derived based on customer demographics and behavioral data. This classification of customers will enable client to:

• Identify which customers should be targeted to achieve maximum response rate, given a campaign budget and per capita campaign cost?
• Find out which customers segments should be targeted to maximize ROI from the campaign?
• Get an insight of the various parameters affecting response decision, how they are influencing the decision and how much.
• Figure out the optimal strategy to spend campaign budget.

The framework combines customer demographics, behavioral data and response data from previously executed similar campaigns. Various data mining/statistical techniques are then used to build a predictive model which can be used to score targeted customers to find out their likelihood of response to a similar campaign.

Cross Sell analytics
Cross sell analytics helps in providing a customer-centric approach to decrease the gap between what the CPG clients to sell and what their customers want to buy. It explains the symbiotic relationship between cross-sell and customer-centricity, to help build a stronger relationship with the customer which in turn results into larger wallet share and higher loyalty. Hansa Cequity utilizes its analytical framework in understanding how the client can move towards customer-centricity with the help of cross-selling mechanism.

Traditionally cross selling is considered as an opportunity to sell more and more products to customer, without taking into account the customer relationship and customer needs. Our approach is quite different from the traditional product centric approach. Optimization of product centric processes in isolation might not lead to overall optimization. We help in using cross sell as means of providing customer specific, personalized, consultative process of providing value to customer. Such an approach helps in building stronger relationship between the customer and the organization and conveys the importance of the customers to them.

Demand Intelligence
Growing market saturation, increased number of communication channels, and consumers becoming more selective has resulted in markets getting controlled and driven by consumers. This calls for a change in the approach organizations used to take their decisions, market their products and manage their business.

Organizations today have to respond quickly to rapidly changing consumer needs-explicit or implicit, and sell it at price which consumer is read to pay at a given point in time.

Hansa Cequity’s framework of demand intelligence helps in making CPG clients more competitive by optimizing marketing spend, inventory levels, pricing, & improving channel performance.

The framework suggests a two dimensional approach towards Demand Intelligence -

• Analyze various factors / variables which influence the purchase behaviour of customers and understand their relationship with buying patterns
• Estimation of future demand by analyzing the historical data