DNA  - Data Analysis of Competitive Strategies

A Data crunching application to uncover the strategic make-up of the marketing promotional plans

How far can we optimize a marketing plan, by analyzing the competition?

For years digital commerce, brands and retailers have used their databases and social networks to better understand, identify and communicate with their existing and future customers. However, statistical engineering is no longer limited to classification of consumer profiles and grouping the correlated behavior in virtual ‘tribes’.

Data Modeling today allows analysts to uncover all kinds of complex behaviour patterns, not only about the end user (customer), but also about the strategies employed by the marketer. As is the case with Banks, and Insurance companies and their clients, so also with retailers, all the variables of the leaflet promo plan can indicate the strategy profile of a retailer. This is the aggregation of  dozens of marketing variables: from the number of pages, number of products per page, up to the standard deviation of the price range to the  weight of Private Label .

This data leads to a classification of competitors according to their proximity to a strategic profile. The results can be surprising and sometimes disturbing. Communication in the leaflet is still very empirical, and teams are all too often extremely focused on meeting timings resulting in a strategic tension. An overview can quickly uncover that globally the strategy is much closer (or farther away) from a particular competitor, than first imagined. So, does the communication positioning versus the competition really match with the established brand image?

Nevertheless, the exercise is not limited to these conclusions!
Among the dozens of variables treated, the analysis uncovers those that are really creating the largest difference. The variables, which really impact the strategies relative positioning from of a given competitor, and they are not always the most budget consuming .... forewarned is forearmed.

The second fascinating application is the ability to test options. From October the period of provisional budgetting begins. Marekteting teams should commit for a number of promotional campaigns, a number of pages per leaflet, a number of regional variations, the distribution by categories etc. It is not uncommon to have to calculate the financial impact while variable values are still changing; it is now possible to estimate the impact on the relative position of the strategy versus competitors. At this stage the impact of a marketing plan on the corperate P&L is not yet calculable, but the simulation of the consequences caused by changes in the values are just a click of the mouse away.

Now of course the efficacy of marketing support and communications is not an exact science, but rather a statistical indication that can provides additional tools to the decision-maker to support his strategic choices; and help him to initiate marginal savings that he could not “risk“ until these days, because of the missing metrics.

A key benefit resides in the analysis of the standard deviation of all the average values. Our analysis can give you more accurate insights into the positioning of your plans versus the average position of the competition. This is a real step forward toward more  basic clean analysis, and a giant step for those who copy past marketing plan strategies year after year because they do not have the tools to really know where best to tune and optimise the strategies.

What is needed :

  1. All detailed data about retailers promotions digitalized & structured.
  2. Expertise with statistic and mathematics tools for analysis and classification

Data analysis of multi variant promotional activity to uncover the operational dynamics of competitive Strategies

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