EXPERTISE - PERFUME, COSMETICS AND HYGIENE

The Perfume, Cosmetics and Hygiene sectors have given us many challenges we have been able to solve
challenge
1

Mass market Beauty products: using halo effects to maximize total brand profit

Our client asked us to measure the halo effect of the advertising of different products within a beauty range, in order to take maximum advantage of those products which contributed most to their market share.

Which product advertising generates a greater effect on the sales of the product itself and in turn, yields a greater halo effect, contributing to total sales growth?

Solution:

We calculated the effect of all TV advertising campaigns on each product.

Actions carried out:

Econometric models were constructed that explained:

The effect of campaigns on the sales of one product.

The effect ofthe same campaigns on the sales of other products (halo effect).

Results:

We determined how to minimize the negative impact on market share if it were decided to cut marketing communication of a product (making the most of the one with the greatest halo effect on other products and discarding the one with the least effect).

Halo effect

Halo effect
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challenge
2

Mass Consumption Customer: Simulation tool for optimizing media tactics

A leading advertiser in advertising investment asked for a dashboard to simulate different advertising scenarios, with the option of optimizing the allocation of the budget.

Solution:

Through econometric models and multivariate techniques, we were able to isolate the effect of the different variables of the marketing mix (promotion, pricing, distribution, advertising), with particular detail in the different media, and differentiating by product.

Actions carried out:

Creating a tool with which to simulate different scenarios as well as optimizing the allocation of the advertising budget.

Results:

Obtaining the best advertising scenario with recommendation by product and media.

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challenge
3

Health and Beauty: Direct Response Models

One of the major investors in the Health and Beauty sector asked us to measure the impact of media investment in generating new business to deepen the understanding of the return on investment and in order to enable decision making in the future.

Solution:

Developing econometric models that would help us distinguish the different stages and every possible avenue in the process of generating business, in order to be able to quantify in detail the isolated influence of investment in online media (SEM, Membership, Web visits ...) and offline (TV, brochures, outdoor, ..).

Actions carried out:

All variables affecting the business units were identified by segmenting the different impacts (through channels or flows) of the analyzed variables.

They were developed from the mathematical models to quantify the contribution of media investment by the different channels.

Results:

The total impact of media in generating new business was evaluated and strategic recommendations were given to improve the uptake of new business.

Direct response model

Direct response model example
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