Marketing Mix Modelling Case Study

QED software is used worldwide by a range of different industries: FMCG, Financial Services, Retail, Cosmetics, Media, Telecoms, Consultancies and Agencies to mention a few. We’ve used one case below to show how the software can be used.

Orange called. QED answered.

The orangeOrange Austria faced a familiar dilemma. One of its brands was engaged in a particular marketing situation, with tough competition from major rivals in the category. Data confidentiality is a key challenge in the telecomms sector, they needed to generate some answers to burning questions — without risking data leaks. So when they heard about QED, it seemed the perfect opportunity to put it to the test. This is what happened...

The challenge

The Orange marketing team needed to see how effective the QED software really is. Could it allow Orange to internally analyse the current marketing dynamics. And was its interface simple enough for Orange's project team to use, without training or modelling experience.

The aim

Orange set three key questions:

  1. Which marketing drivers (internal and external) have a significant and proven impact on the brand's sales performance?
  2. Can we quantify that impact - including a comprehensive ROI analysis?
  3. How efficient are the marketing investments for the identified internal drivers and which particular areas for improvement can be established?

The process

QED was set up on the project teams' PCs. No external resource was used, so data confidentiality was easily achieved. Data was collected and imported for 45 internal and external marketing drivers (including, amongst others, number of new customers, price, advertising, media, promotions, competitor data). They then put QED to the test, and analysed the results...

Within four weeks all relevant data was sourced successfully, imported into QED and analysed. Using the software allowed the team to continue to fulfil their day-to-day responsibilities, as time spent on the project was kept to a minimum.

The outcome

After just four weeks, what emerged was a crystal-clear picture of the brand's real marketing drivers. QED created new levels of transparency and quality of decision-making among the project team – a significant achievement in such a short time. Amongst other insights Orange successfully found answers to the following questions:

  1. Is there internal competition between Orange's various brands? And if yes, to what extent?
  2. Which competitor activities had a significant impact on the performance of the brand?
  3. Are our individual media channel investments justified by the corresponding sales results?
  4. Should we continue to emphasise TV as our main media or place more focus on OOH?
  5. Which promotion activities have been most efficient?
  6. What is the best leaflet distribution method (through dailies as supplements or through direct household distribution)?
  7. For trade marketing, should we invest in the increasingly expensive title page of a trade partner's main leaflet or is an ad inside good enough?
  8. Is our significant online activity working? Should we follow our agencies' advice and increase our digital activities significantly?
  9. What's our ROI - for individual marketing activities and overall?

Summary

For Orange, this highly valuable analysis was carried out in just four weeks of project time, by regular team members who had no past modelling experience. They achieved all of this in parallel with their day-to-day responsibilities.

Based on this successful first project, Orange has since rolled out QED across its marketing organisation.