Could Chocolate Be the Answer to Your ROI woes?

Could Chocolate Be the Answer to Your ROI woes?
SHARE
THIS



Vlad Radosavac, Senior Manager, Marketing Effectiveness Practice at Nielsen explains how Cadbury used market mix modelling (MMM) to review and optimise media spend which uses sophisticated mathematical models of the past to predict the future.

But if the findings and recommendations aren’t translated and implemented into your media planning and buying strategy, nobody wins and these powerful analytics projects become a sophisticated, but shelved, ‘nice to know’. Mondelēz, Carat and Nielsen set out to change this during a recent project with the Cadbury brand. The three players came together to flip the equation and put the consumer at the heart of the analysis with impressive results.

MARKET MIX MODELS AS AN ENABLER RATHER THAN A CAPABILITY

With a goal to optimise and execute media spend using the consumer as the start; we decided to do things differently to the usual MMM process. We started with the end goal in mind and figured out how to run our models to enable that end goal rather than dictate the end goal, a paradigm shift in the MMM world. We set out to understand the individual drivers of media response in order to increase the effectiveness of Cadbury’s advertising program without needing an increased media budget; we simply wanted to find a smarter way of planning Cadbury’s existing media spend that would more effectively and efficiently, resonate with their consumers. Cadbury is already a well-known brand and has strong equity in the market. Instead of focusing predominantly on TARPs as the central TV buying measure, we examined the buying behaviours of Australian chocolate consumers and established the need to plan using reach and frequency goals that were appropriate for this much loved brand. We looked at many different variables in order to understand what components (and by how much) each of them elicited a sales response in our chocolate consumer; day-part of media airings, media vehicle, TV copy durations, flighting strategies, unique reach and frequency, as well as in-store activity over the past three years were just some of the variables under the microscope.   The new approach however, required a rethink from all parties as to how the measures are used and applied:

  • Mondelēz and the Cadbury brand team needed to rethink the use of internal MMM and guidelines, as well as the conversations their brand teams had on a global level
  • Carat needed to rethink the conversation it had with the Mondelēz marketing team and how the media strategy was developed, as well as the traditional principles of media buying
  • Nielsen needed to rethink traditional ways of running MMM to ensure we could accurately measure optimum reach and frequency cap thresholds, amongst other variables

market-mix-modelling

To properly prepare, discussions began late-2012. By mid-2013 we were faced with some very interesting learnings and some pretty radical recommendations about how media works best for Cadbury. The Mondelēz leadership team further challenged us with proving the MMM recommendations in the “real world”.

A test case was run with the media strategy recommendations implemented in one city as a test market, while other states in Australia continued on; business as usual. We identified and paired test and control stores so that we could measure the difference in actual volume sales at a store level in the test market vs. other states. The test and control study validated the hypothesis, Mondelēz leadership approved the recommendations and thus, a new media program was agreed to by late-2013 and rolled out Australia-wide in 2014.

Results to date have been overwhelmingly positive. So far, Cadbury’s media spend has been optimised to provide an increased 28% return on investment on a flat media spend. Despite this flat spend; Cadbury’s weeks on air across their brand portfolio have increased by 61%.   By planning Cadbury’s campaigns using these principles, we’ve managed to ensure that the master-brand is leveraging and maximising all halo effects to its advantage, least of all, that advantage being that sales results have been encouraging in 2014.

KEY LEARNINGS FROM THIS PROCESS

1. Collaboration is the key to success Too often MMM is done in isolation and the powerful learnings that can be identified in these projects aren’t directly applied or implemented. By getting the media strategists, marketing and sales managers and researchers all in one room, collaborating, the results were staggering.

2. Consumer insights need to be placed at the heart of research. 
By starting with the end goal in mind and putting the need to understand consumer behaviour and response at the centre of our analysis, we were able to focus on learning what was best for this particular brand and the people who buy it. Media return on investment was impressively increased and the marketing campaign was optimised with no additional budget.

The result was incredibly satisfying for all parties; not only did it teach all of us new understandings and ways to look at media analytics, planning and buying, it also showed us what can truly be achieved when all stakeholders collaborate with one goal in mind.

Please login with linkedin to comment

Latest News

Why The “No” Campaign Is Just One Long Slippery Slope
  • Opinion

Why The “No” Campaign Is Just One Long Slippery Slope

Not exactly your typical marketing/media piece, but here playwright Ron Elisha (pictured below) explains the damage done by the “No” campaign and the now infamous skywriting on a recent blue-sky Sydney Sunday… My daughter is crying. It’s not that she’s fallen over and barked her knee. Nor is it the trauma of immunization, or the […]

Opinion

by B&T Magazine

B&T Magazine
QMS Goes West With ‘The Leeder’
  • Advertising
  • Media

QMS Goes West With ‘The Leeder’

QMS Media continues to expand its digital portfolio across Western Australia, switching on an iconic billboard in the heart of Perth. Following the launch of two new digital billboards in the major WA regional centres of Bunbury and Kalgoorlie in recent months, ‘The Leeder’ further delivers on QMS’ digital expansion strategy out west. Positioned at […]

PR Firm Text100 Wins NetApp Account For APAC
  • Marketing

PR Firm Text100 Wins NetApp Account For APAC

Global marketing communications agency Text100 has announced it been appointed by data management company NetApp to drive its brand transformation effort across the Asia-Pacific (APAC) region. Following local competitive pitches conducted across the region, Text100 has been appointed as the APAC lead agency out of Singapore, and as the local agency of record in Australia, […]

MFA Awards 2017 Winners Revealed!
  • Advertising
  • Marketing
  • Media

MFA Awards 2017 Winners Revealed!

B&T once again donned the tux, applied the Brut, and primed the liver for last night's MFA Awards in Sydney.

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant
  • Media
  • Technology

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant

Digital publisher Concrete Playground has unveiled a new app that helps Millennials plan their night out using voice control – the first of its kind to become available in Australia. Concrete Playground’s Guide to Tonight now works with Google Assistant, making it available on a range of Google devices and helping people to decide what […]

Digital Agency Inlight Secures Two Key Client Wins
  • Marketing
  • Technology

Digital Agency Inlight Secures Two Key Client Wins

Independent agency Inlight has announced it has won the digital account for Benetas, a not-for-profit aged care provider in Victoria. Following a competitive pitch process, Inlight was chosen to handle Benetas’ new website design, build and ongoing optimisation. Richard Barker, marketing manager at Benetas, said: “We wanted an agency that could be our true digital […]

AMI Awards 2017 Winners Revealed!
  • Marketing

AMI Awards 2017 Winners Revealed!

With almost 30 awards handed out, B&T predicts plenty of numb bottoms at last night's AMI Awards in Melbourne.

Clems Sydney CEO Andy Pontin Quits
  • Advertising

Clems Sydney CEO Andy Pontin Quits

Sure, B&T flashed the news of Andy Pontin quitting this morning. White lies aside, he's actually still got six months.

by B&T Magazine

B&T Magazine
Adobe MAXes Most Creatives In A Room Record
  • Advertising
  • Media

Adobe MAXes Most Creatives In A Room Record

B&T's journo is reporting live from the annual Adobe Summit in Vegas. Although, "reporting" is somewhat of a stretch.

Opinion

by David Hovenden

David Hovenden
Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses
  • Marketing

Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses

The Australian College of Marketing is collaborating with the Digital Women’s Network to bring new short courses aimed to provide the latest skills across all aspects of the Digital landscape, kicking off in Melbourne and Sydney in 2018. Course content will focus around various topics related to the digital marketing landscape. All courses will run […]

Man working at office desk, looking at computer and scratching head
  • Technology

Where Are Digital & Tech Skills & Salaries Headed?

The rapid pace of technological change in the digital sector is seeing demand for those with the right skill sets outstrip availability, both locally and globally. The individuals who have kept their skills up to date are being well-rewarded financially. Now, Digital + Technology Collective’s expanded annual Skills and Salary Survey will put some numbers and context […]

Disney & ESPN Unify Sales & Partnerships Teams
  • Advertising
  • Marketing
  • Media

Disney & ESPN Unify Sales & Partnerships Teams

Disney and ESPN have formed an even closer bond, announcing a new alignment of the two properties through their media sales and partnerships teams. Instead of entering through three doors, Disney ESPN Media Sales & Partnerships will give media buyers and marketers a refined, singular point of entry for Disney, ESPN Digital and Maker. Nik […]

by B&T Magazine

B&T Magazine
Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]