Coopers
Regression
Being a challenger brand, fighting to hold market share, every dollar Coopers spent on marketing needed to be fine-tuned to work hard and ensure their budgets hit above their weight.
The Challenge
Coopers Brewery set out to improve the effectiveness of their media and marketing mix. Being a challenger brand, fighting to hold market share up against the Goliaths of the beer category, every dollar Coopers spent on marketing
needed to be fine-tuned to work harder and ensure their budgets hit above their weight. Compounding the challenge was the increased media spends by the big beer conglomerates, which saw Coopers SOV drop by 3pts.
The Solution
We set a benchmark for understanding and measuring the performance of media channels. We created a long-term learning platform to know more and do better with Coopers media budgets. To do this, we used Marketing Mix Modelling – a statistical model which helps understand all the factors driving sales.
Marketing Mix Modelling (MMM) is done to understand scientifically, the contribution to long term and short-term brand and activation effects from previous marketing activity.
MMM leverages multivariate regression methods within econometric modelling philosophies.
“Econometric modelling is a Forecasting technique that uses computer processed mathematical equations (that are based on historical data and certain assumptions) to predict economic conditions. These models are employed commonly in determining the economic aspects of changes in government policies, regulatory conditions, interest rates, demographic changes, tax laws, wage levels, etc.” Business Directory
Ultimately, we adjusted the media spend to channels that were found to have a higher ratio of contribution to sales and were found to be more cost efficient.
The result? The changes implemented, to make the media channel mix more efficient, have seen the year-on-year comparison to contributions to sales increase by 5pts.
