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.

Latest News

Masculinity Roasted In Clever New Ad
  • Advertising
  • Campaigns

Masculinity Roasted In Clever New Ad

Think masculinity means drinking a case without chundering? Well, rediscover it (& possibly yourself) with this top ad.

by B&T Magazine

B&T Magazine
WPP AUNZ Partners With Career Trackers Indigenous Internship Program
  • Advertising

WPP AUNZ Partners With Career Trackers Indigenous Internship Program

Advertising and marketing network WPP AUNZ has joined the Career Trackers Indigenous Internship Program as part of its commitment to a diverse workforce, and the creation of opportunities that inspire excellence. As part of the program, WPP AUNZ has welcomed its first three interns: Abi-Leigh Dillon (WPP AUNZ), Amy Mccutcheon (MediaCom) and Jacinta Evans (Ogilvy), […]

Taboo Goes On A Hiring Spree
  • Advertising

Taboo Goes On A Hiring Spree

Taboo has gone a hiring spree. And when it comes to sprees, that's far better than a shooting one or a farting one.

Luke Kelly Becomes A Partner At HBT
  • Advertising
  • Marketing
  • Technology

Luke Kelly Becomes A Partner At HBT

B&T's not sure what's with that twirly thing in the press photo, suffice to say a vortex to an alternate dimension?

Women In Media Profile: Alison Michalk
  • Media

Women In Media Profile: Alison Michalk

If B&T's Women in Media profiles were an animal they would be a gazelle or lioness, or even a lioness eating a gazelle.

by B&T Magazine

B&T Magazine
Grant Broadcasters Makes Several Changes To Senior Executive Team
  • Media

Grant Broadcasters Makes Several Changes To Senior Executive Team

Independent media company Grant Broadcasters has announced a number of changes to its executive ranks. Grant Cameron will move up to become non-executive chairman for the company, and Alison Cameron (pictured above) – currently the chief operating officer – will assume the CEO role. Dugald Cameron remains responsible for the family’s investment portfolio and is […]

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities
  • Advertising
  • Media

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities

Australian retail out-of-home (OOH) business Shopper Media Group (SMG) has announced a partnership with AI-powered wireless networks provider Mist. The partnership will see SMG offer new WiFi, analytics and location-based services across the company’s portfolio of Australian shopping centres. Mist currently provides WiFi and location services using virtual Bluetooth LE technology to businesses across all […]

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account
  • Advertising
  • Media

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account

Travel organisation Cruiseco has announced the appointment of Sydney independent agency This is Flow (TIF) to handle its $5 million media account. This is the first time Cruiseco has appointed an agency, having managed its communications internally. Cruiseco is the largest and broadest distributor of cruise products in the Southern Hemisphere. With a membership base […]

Women In Media Profile: Naomi Shepherd
  • Media

Women In Media Profile: Naomi Shepherd

Need a Monday morning pick-me-up? You could stand naked next to the office fridge or read these inspiring words.

by B&T Magazine

B&T Magazine
APN Outdoor Takes Off With Queenstown Airport Contract
  • Advertising
  • Media

APN Outdoor Takes Off With Queenstown Airport Contract

Out-of-home media business APN Outdoor has won the tender for New Zealand’s Queenstown Airport. As part of the new agreement, APN Outdoor has flagged extensive development plans for Queenstown Airport’s advertising assets. The new contract adds Queenstown Airport to APN Outdoor’s existing portfolio of Auckland and Christchurch Airports. The media company will hire a South […]

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ
  • Media

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ

Havas Sports & Entertainment ANZ, a division of the broader global full-service agency Havas, has confirmed an exclusive deal with Foxtel to showcase the World Boxing Association (WBA) Welterweight Championship across the trans-Tasman. Billed as the ‘Fight of Champions’, Manny Pacquiao and Lucas Matthysse will square off for the WBA Welterweight belt this Sunday. Havas […]

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?
  • Media
  • Opinion

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?

In this guest post, PHD’s Chloe Hooper (pictured below) analyses the campaign that claimed top honours in the Media category at Cannes this year. I sat in the auditorium as the Cannes Media Lion winners for 2018 were awarded. One thing became instantly clear to me: it is all about taking home Gold or the Grand Prix. […]

Opinion

by B&T Magazine

B&T Magazine
MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope
  • Advertising
  • Campaigns

MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope

An integrated campaign by Vizeum Melbourne for MINI Australia’s new ‘Connected’ vehicles will see digital out-of-home (DOOH) served via Posterscope’s Liveposter platform. Delivered centrally, the campaign will showcase the flexible qualities DOOH provides via multiple creatives targeted with specific data overlays such as location, traffic, time of day, and weather triggers such as rain. The […]

Women In Media Profile: Lisa Sheehan
  • Media

Women In Media Profile: Lisa Sheehan

The delightful Lisa Sheehan straps into B&T's "cage of truth" we actually prefer to call our Women in Media profiles.

by B&T Magazine

B&T Magazine
News Corp, Storyful & Fox Sports Join Forces To Support AIME Hoodie Day
  • Advertising
  • Campaigns
  • Marketing
  • Media

News Corp, Storyful & Fox Sports Join Forces To Support AIME Hoodie Day

News Corp Australia, Storyful and Fox Sports have joined forces in support of 2018 AIME Hoodie Day with a creative advertising, PR, social media and editorial campaign across print, digital, and broadcast media. Fox League presenter Hannah Hollis (pictured above) fronts the AIME Hoodie Day campaign, conceptualised, designed and created by News Corp’s trade marketing […]