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AMA Marketing Effectiveness

Online Seminar Series

Anna Carbonara
American Marketing Association

To hear the audio portion of today’s presentation, you must dial in:

Participants (US & Canada, Toll Free): 800 954 0656

Participants (international): +1 212 231 2901
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 Check out the AMA website

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 Commonly Asked Questions

1. Will I be able to get copies of the slides after the event?

Yes

2. Is this web seminar being taped so I or others can view

it after the fact?
Yes

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Speakers

Mike DuBoise Jay Venkateswaran

Senior Vice President Senior Vice President
Strategic Customer Marketing and WNS Research and Analytics Services
Category Development
Universal Studios Home Entertainment

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 Increase marketing effectiveness
through research and analytics
outsourcing
Mike DuBoise
Senior Vice President,
Universal Studios Home Entertainment

Jay Venkateswaran
Senior Vice President,
WNS Research and Analytics Services

June 10, 2009

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Challenges Faced By Marketing Managers

Is your team’s time spent generating reports and insights or

are they enabled to apply insight to marketing strategy?

Are you doing more research rather than getting more out of research?
How often is your team reusing research data?

Are all your Marketing Strategies guided

by analytics or does intuition continue to
play a big role?

Do you have a clear and timely overview of

your global brand performance?

Are you incorporating macro indicators in your

brand planning?

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Increasing Analytics Adoption Across The Marketing Function
Tools / Methodologies Key Benefit

 Global landscape assessment and

opportunity sizing Strategic Support
 Business intelligence, BUZZ analytics
 Meta analysis
 Segmentation and targeting Marketing
 Brand architecture mapping Effectiveness
 Market research support

 Market mix modeling

 Trade optimization Tactical Execution
 Pricing analytics Marketing ROI
 Shelf optimization
 Volume forecasting

 DI and knowledge platforms

 Investigation, diagnostics Utility
and reporting
Data Services and
 Management dashboards
Knowledge Platforms
and simulation tools
 MR support services

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Overcome Internal Bottlenecks Through
A Center Of Excellence (COE) Model
Internal Bottlenecks Advantages Of An Analytics Center Of Excellence

Specialized skill sets

Affordable resources
Inadequ
ate Better utilization
Skill
Sets Scale across geographies and business units
Scalabili
ty
Organizati Overcome corporate silos
onal Establish and spread best practices
Barriers
Standardizati Standardize disparate analytical processes
on Establish a well-defined delivery model

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 Better Focus On Consumer And Market Insight
Protocol Foundational Analytics Databasing / Tools Meta Analysis

 Consumer response modeling  Equity monitor tool Global Landscape Analysis

 Brand architecture validation  Relevant / sufficient  Global category evolution
Equity
 Portfolio mapping  Equity evolution maps models
Tracking
Studies  Drivers / barriers to trial by need,  Regional equity maps  Tipping point markets
occasion  Business and financial
 Common equity score research
 BUZZ analytics

 Improving product and packaging  Concept database, New Product Assessment

Concept using drivers analysis harmonization  Concept meta analysis
And
 Simulator tools  Concept transferability  Global new product feasibility
Use Studies
automation analysis
 Principles of writing  Developing stable franchise
winning concepts for concepts
 New product trends

 Actionable segmentation and  Global segmentation Leadership Reports

targeting and targeting  Integrated brand / market
Attitude  Shopper insights  Global consumer overviews
And targeting tool
 Shopper / consumer decision tree
Usage
 Need / gap analysis
 Consumer / shopper profiling tool

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 Maximize Return On Marketing Investment
Analytics Datasets Information Intelligence Decisions

Behavioral /  Campaign MIS Maximize Revenues  Revenue Enhancement

Demographic
 Pricing Scenario Planning  Sales Pipeline Models  Product Portfolio
Tool Management
POS /  Acquisition /Retention
Transaction  Types of Reporting Analytics  Optimize Channel Mix
– Diagnostics  Customer Segmentation  Brand Launch
Loyalty /
Membership – Investigation  Market Basket Optimize Costs
– Key business drivers  Customer Lifetime Value  Contact / Touch / Channel
Campaign &
Optimization
Promotions – Profitability  Loyalty Analytics
 Channel Migration Analysis
– Spend Analytics  Marketing Mix Modeling
Channel,  Sales Force Effectiveness
Business – Online Traffic analysis  Promotion Effectiveness
Partner  Logistics & Inventory
– Text Mining & Buzz  Shelf/ Space Optimization
Optimization
analytics
Media, Print, FSI  Fraud & Risk Analytics
Spend  Impact of key business
 Bad Debt/ Collections
trends
Forecasting
Price
 Demand Forecasting
Shipment &
Inventory

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Global Companies Have Taken A First Step

Large CPG Company

Key Innovation Objectives How They Got There

Affordable, fast, marketing analytics CPG domain, statisticians, SAS experts
for its brand marketers across
Over 50 countries supported
categories and markets

Sample Analytical
Techniques Used
Structural equation modeling
Hierarchical Bayesian Random Coefficient
(HBRC) techniques
Segmentation and targeting
Category evolution and tipping point analyses

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Global Companies Have Taken A First Step (cont’d)

Travel and Leisure

Key Innovation Objectives

Generate insights on transacting
customer base that can be used to
maximize inventory usage and
hence revenues

How They Got There

OR, forecasting experts, statisticians
Inventory analytics, revenue management,
demand forecasting, consumer analytics

Sample Analytical Techniques Used

Acquisition / retention propensity
modeling
Customer segmentation
Call center volume forecasting
Inventory modeling & simulation

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 Mike DuBoise
Sr. Vice President
Category Management and Customer Marketing

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Consumer Centricity…

Ensuring we have the right product, at the right place, at the

right time which is a function of knowing the right consumer, right
quantity, right price, and the right message/experience.

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Using Insights To Drive Sales

Insights add value to identifying and refining opportunities to drive sales.

Universal has employed insights to develop business through areas such as

 Category Events

 In-store Program Development

 Increasing Product Efficiency

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Category Events: Summer Sizzler

Challenge

The DVD category is driven by New Releases and seasonal peaks often creating a lull in sales.

Opportunity

Develop a program to drive category traffic and shopper conversion by creating a deep
discount event on core catalog items for one week. Required specific advertising and in-store
placement at retail.
 Required circular to drive traffic and awareness
 Required out of aisle placement to convert traffic in-Store
 Collaborated with retail to create a targeted short term category event that drive
excitement rather than frequent “one-off” promotions that de-value the category

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Category Events: Summer Sizzler
Results
A positive lift in sales with limited affect to future sales performance.

Summer sizzler impact to overall

catalog
Summer +10%
sizzler
$60.0 Summer increase
week sizzler
Previous Jun and
+34% week July
$50.0 Previous year
increase average
year Jun and had been
$40.0 July -5.0%
average
had been
$30.0 9.2%

$20.0

$10.0

$0.0
CY vs. PY CY vs. PY

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In-Store Program Development: Unborn

Unborn theatrical artwork:

Challenge

New Release titles that are not kid friendly, such as

The Unborn, can be difficult to place and to secure
in-store promotion for in the Mass channel. This holds
true even if a title has a strong box office performance
and/or is anticipated to over-perform on DVD.

Opportunity

Leverage research and comp title analysis to

understand the attitudes and preferences of likely
buyers to help secure placement and
in-store promotion. Demonstrate the synergy of the
likely buyer with the retailer.

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In-Store Program Development: Unborn

Results

Secured in aisle corrugate placement at retail by

communicating the core audience’s retail
preferences and increased likelihood for impulse
purchases.

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Increasing Product Efficiency: Store Allocations

Challenge Illustration of Store Performance

Top volume stores vary by the title. Identifying Overlap of a major retailers top 20% of
comp titles is difficult given the uniqueness of performing stores for each title. Each title had
each New Release title. Consistently we found a similar core female audience.
 The top 30% of volume driving stores for a
title were over indexing on the % of sales to Bridget Jones 2 In Good Company
% of inventory signifying we were missing
sales in key stores.
 The bottom 30% of volume driving stores for
a title were under indexing on the % of sales 41% 8% 40%
to % of inventory resulting in product returns.
42%
9% 10%
Opportunity

Improve store level allocation accuracy for new 39%

products by developing advanced analytic
models. New model development take into
consideration inputs such as store volume,
store traits and store trade area demographics. Wedding Date

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Increasing Product Efficiency: Store Allocations

Results

Reduced error in product allocations allowing Universal to capture more demand and lessen product
returns. MAPE reduction by approximately 4%.

Product Allocation Example: WANTED

Store A Store B

Comp Method 72 1282

New Analytic Method 135 993

Actual Unit Sales 134 734

Captured an Reduced
additional 62 return risk
units in sales by 289 units

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Insight Development

Two Critical Rules of Opportunity Analysis

 Data itself is not analysis.

Observations and Implications are analysis.

 For each Observation, identify key Implications.

Our challenge is to not only identify “the what”, but “the why” and
“the what do we do about it?”

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Key Elements

 Commitment
– Mission & Strategy

 Alignment
– Clearly Defined Work Processes
– Structure, Capability Development, Role Clarity & Job Interaction
– Performance Metrics

 Vision and Deployment

– Put Consumer/Shopper at the center of your decision making
– Integrate information & leverage tools to deliver actionable insights
– Business Planning Cycle
– Communication

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 Thank you for your Participation!

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