Finding Clarity in Chaos: Quantifying Marketing Tactic Effectiveness...

HAVI’s Business Analytics team helped a quick-service restaurant’s (QSR) marketing team to identify the most effective marketing tactic to drive sales of their new product nationwide...

CASE STUDY FOCUS: MARKETING ANALYTICS

Finding Clarity in Chaos: Quantifying Marketing Tactic Effectiveness Ensures Product Launch Success

Quantitative analysis helps a quick service restaurant (QSR) chain identify the single most effective marketing tactic to drive sales of a new product nationwide.

Challenge

A QSR chain was launching a new product and encouraged franchisees to supplement the national marketing plan with local marketing tactics. Thousands of franchisees across the United States, excited about the new offering, immediately, and in record numbers, began implementing local promotional tactics to drive sales. Tactics included sampling, bundling, price discounting, giveaways and more across a variety of mediums – from social media and direct mail to radio advertisements.

Corporate marketing was thrilled with the franchisees’ response, but struggled to determine which local marketing tactic was

the most effective in driving sales and would best support the upcoming national promotion of the product. The chain planned to launch subsequent new related products and would develop a corporate marketing plan for each introduction based on the success of the latest launch.

Solution

The QSR corporate marketing team sought help from the Business Analytics team at HAVI. HAVI has deep expertise in the QSR and foodservice markets, and their breadth of analytics experience across a promotion’s lifecycle, and their ability to manipulate very large, complex data into meaningful insights is unsurpassed.

HAVI’s business analytics group gathered data on a daily basis from each of the chain’s 10,000+ restaurant locations and processed this information quickly and efficiently to derive the insights that would be most helpful to the chain’s corporate marketing team. HAVI analytically dissected each of the components surrounding the various local marketing offers, including isolating the effects of television advertising and adjusting for seasonality, geographic variation and the type/length of tactic, to determine the best offer. They also quantitatively analyzed each local tactic’s incremental sales contribution to the product line and overall category to determine the specific offers that increased sales the most.

HAVI was able to determine that one particular tactic increased sales of the new product by 180 percent, whereas others generated only 3.5 percent sales lift. This level of analysis and detailed insight enabled the chain to make an informed decision about which marketing tactic to employ for a national launch

of the product (and subsequent similar product launches) as opposed to simply acting on gut feeling about what might be the most successful tactic.

Benefits

Increased sales – HAVI’s Business Analytics team identified the specific marketing tactic that increased product sales by 180 percent and category results by 115 percent.

  • Improved promotion planning – HAVI’s Business Analytics team helped the chain make fact-based decisions about which marketing tactics would be most effective in driving sales of a new product.
  • Enhanced field collaboration – HAVI’s Business Analytics team empowered the corporate marketing team with information about tactics they would not have otherwise had, enabling them to collaborate more easily with franchisees and share best practices.
  • Saved time and resources – HAVI’s Business Analytics team was able to aggregate, summarize and manipulate large raw data very quickly and develop actionable insights that helped the chain make better business decisions, and freed up the customer to focus on their core competencies.