By Cobena June 22, 2020Data Modeling

Determining halo effect between 2 different brand categories and determining how to optimize advertising and promotions (a&p) spending

Opportunity

This project aims to help the client know if here is a halo effect between Liquid Soaps and Bar Soaps. They also wanted to understand if there are components of the business that are correlated with sales. They also asked to know how they can optimize their A&P spending for both categories (Liquid and Bar Soaps).

Approach

With the help of an independent consultant who specializes on econometrics and modeling, Cobena employed a Sensurround approach. This approach consists of Data Blending, Data Gems Discovery, and Visualization. 36 data points (2013-2015 data) for Liquid Soaps and 24 data points (2014-2015 data) for Bar Soaps were used for this project.

Results

  1. 3% allowable price increase due to the price elasticity
  2. 2 Sales Models run, based on the biggest volume contributors of each Category