In global companies, markets currently divide up the Advertising and Promotions investments at their discretion or based on their business sense.
For Advertising investments to be effective, companies must spend on the right brands in the right countries and then convey the most compelling messages through the right channels to reach the most valuable consumers/shoppers.
The traditional budget breakdown suffers from several shortcomings:
- It gives limited consideration to the significant differences in ad/promo intensity and sensitivity that often exist given market context and brand growth situation
- It fails to recognize the fundamental choices needing to be made to fuel growth, maintenance, and harvest strategies for each brand, segment, and country.
- Market share and the impact of support investments on profits are not measured, and as a result, market share objectives are not linked to Ad budgets.
Based on our work with various FMCG leaders, we have developed Epilogi® a new approach for a budget breakdown based on AI and Machine learning that
- Combines a multitude of databases to understand the historical market performance, and 100+ industry, consumer and macroeconomic drivers, to define parameters of growth
- Applies machine learning and time series algorithms testing of more options than traditional analytics, and make the process much more fluid and transparent
- Replaces simplistic forecasting with powerful AI algorithms that accurately and quickly predict market shifts on the country and product level
- Create a common base of comparison between markets to rationalize the investment choices.