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Unlocking Marketing Excellence: A Case Study in Optimizing Short and Long Term ROI for a Multinational Consumer Goods Giant

In the fast-paced world of consumer goods, staying ahead of the competition requires not just smart marketing, but razor-sharp precision in budget allocation. Our client, a renowned multinational consumer goods company with a global presence, faced the daunting task of optimizing their marketing investment. They sought to allocate their budgets to areas that promised the highest Return on Investment (ROI) while also understanding the profound impact of long-term brand investments. To tackle this challenge head-on, they turned to us.

The Challenge:

Our client was determined to answer two pivotal questions:

  • Marketing Budget Allocation: Where should their marketing budgets be directed to maximize ROI?
  • Long-term Brand Investment: What is the true impact of long-term brand investment, and how can it be optimized?

Our Solution:

We devised a comprehensive solution that combined cutting-edge methodologies and harnessed a wealth of data sources:   Genetic Algorithm + Structural Equation Modelling (SEM)

  • Genetic Algorithm: We harnessed the power of Genetic Algorithms to explore hundreds of marketing mix models incorporating numerous variables. This allowed us to identify the most effective strategies by simulating different investment scenarios.
  • Structural Equation Modelling (SEM): SEM, on the other hand, enabled us to create latent variables. By measuring both direct and indirect impacts and providing standardized beta coefficients, it helped us paint a clear picture of the complex web of relationships in the consumer goods market.

We leveraged a rich tapestry of data sources to run the marketing mix modelling, including: Internal sales data, Media investment data (digital and conventional), Marketing activity calendar, Market share and distribution data, Competitor’s distribution, price, and activity data, External factors and Brand tracking data.

The Outcome:

Our efforts bore fruit in a multitude of ways:

  • Short-Term Sales Drivers: We successfully identified the key drivers of short-term sales, shedding light on the factors behind changes in sales over previous years.
  • Effective Marketing Activities: We pinpointed the marketing activities that were most effective in driving short-term sales, providing our client with actionable insights to refine their strategies.
  • Long-Term Brand Health: Crucially, our analysis also uncovered the activities that contributed to the long-term health of their brands. This holistic view allowed our client to align their marketing efforts with their overarching brand goals.

Impact and Utilization:

Armed with our findings, our client was empowered to define their marketing plans for the upcoming year with unprecedented precision. Moreover, we delivered a simulator that enabled them to run numerous ‘what-if’ scenarios, helping them visualize the impact of different marketing activities on their bottom line.

Notably, the client achieved their budgeted sales targets while realizing a remarkable 8% reduction in their marketing expenditures. This achievement underscores the model’s ability to optimize resource allocation and enhance cost-effectiveness in their marketing strategies, exemplifying its capacity to drive results across diverse markets.

Furthermore, owing to the resounding success witnessed in our initial selected market, the client strategically expanded the utilization of our model to various other markets within their global portfolio. This decision was underpinned by the demonstrable effectiveness and reliability of our model, which provided invaluable insights and recommendations that transcended geographical boundaries and proved instrumental in enhancing marketing performance on a global scale.


In a rapidly evolving consumer goods landscape, staying competitive requires data-driven insights and innovative methodologies. Our successful collaboration with this multinational consumer goods leader stands as a testament to the power of Genetic Algorithms and Structural Equation Modelling in shaping marketing strategies that optimize ROI and drive long-term brand success.

Are you ready to unlock the full potential of your marketing investments? Contact us today to embark on your journey towards marketing excellence.