Background
A supermarket chain partnered with Gain Theory to evaluate and optimize its growth drivers – notably store conditions, economics, inventory, trade, pricing, and media – with the aim of maximizing its sales and profits.
Solution
Gain Theory built unified models that identified incremental sales for each growth driver and any synergies that existed between different drivers. For example, price decreases were found to increase media effectiveness by 5%. Other interactions, such as links between marketing investments and seasonality, were also identified. The company’s marketing team was able to view all the results of the modeling in our decision-making platform Gain Theory Interactive (GTI). Using GTI, they were able to flex marketing investment levels up and down, overall and by channel, and based on the time of year or business context.
Results
A below target sales forecast due to planned changes in non-marketing growth drivers was identified, so the company boosted its media investments by +12% to mitigate the gap. This insight also influenced changes to the company’s promotion strategy and website CX, which resulted in an 8% annual increase in the number of e-commerce customers. Overall, the work undertaken by Gain Theory helped to drive a $390m increase in marketing ROI.
increase in marketing ROI