Portfolio Allocation Print E-mail
Image

A large fuel retailer wanted to allocate budgets across various markets based on the responsiveness to earlier marketing investments. At the end of the exercise, the client was able to quantify a 15% lift in the ROI of marketing investments.

Client: A Global Fortune 500 Fuel retailerCategory: Fuel Retail
Objective
Allocating a controlled marketing budget across brands and countries
Solution
The team at Meritus developed a two stage model
In Stage I, using Econometrics, we estimated the ROI of marketing spend for every Brand-market, and also estimated minimum threshold support required to maintain market share based on competitive pressures
In Stage II, we optimized the budget such that marketer maximized the profit and more than 80% of brand- market combination secured threshold support budgets
WHY WAS THIS BENEFICIAL TO THE CLIENT?
The client was able to quantify a 15% lift in the ROl of marketing budgets. Equally important, an unbiased way of budget allocation ensured greater buy-in from all marketing stakeholders across markets, leading to higher motivation