Our client is an American specialty wine retailer having 200+ stores across the US. As the wine retail market has become competitive due to shrinking consumption, the marketing team faces the challenge of allocating budget amongst various channels in the most optimal method.

A comprehensive solution framework was developed to help the client understand the contribution of various marketing channels in driving incremental sales and new customer acquisition, quantify marketing effectiveness (ROI) for all 20+ media channels across 30+ markets, simulate various marketing spend allocation scenarios, make optimal spend decisions aided by robust models that also had full transparency.

• Market behavior was very different due to regulatory restrictions on product offerings, pricing and promotion tactics and response to marketing stimulus is hence varied
• Multiple models (90+) had to be developed across Markets and Categories (Wine, Spirits & Beer) to address market diversity
• Inconsistencies in media data as it was sourced from multiple external partners which resulted in challenges in reconciliation (~1000+ spreadsheets had to be processed)
• Effect of new store launch related marketing spends had to be factored in.