cs3picTaking a Bite Out of Promotions in Biscuits

LOCATION: Brazil

When the overall portfolio of one of the world’s largest biscuit and cookie manufacturers began to decline in Brazil, Middlegame used established scientific processes and marketing insights driven by CIA® proprietary software to create a turn-around story with strategically revised trade promotions.

1 Situation Review


cs3-tab1

SITUATION REVIEW

Examining all Ingredients in the Mix

An international cookies and crackers manufacturer was experiencing significant volume declines in the biscuits and cookies category in Brazil – sales were down 4.7%. By comparison, the client’s competitors were experiencing declines of 2.2%. While all distribution channels were experiencing severe decline, supermarkets, in particular, showed sales declining 3.4%, which represented the majority (64%) of the overall decline. More detailed analysis revealed that these supermarket declines were driven by losses of 3.0MM kilos in the client’s leading cookie brand, which was marketed primarily to children. In fact, its sister brands had actually made volume gains, which meant this cookie brand represented a startling 170% of the drop in supermarket sales. On a more comprehensive scale, the cookie brand’s loss in grocery stores represented 107% of the overall decline across channels.

2 Opportunity Assessment


cs3-tab2

OPPORTUNITY ASSESSMENT

Feeling the Crunch of Competition

Careful examination demonstrated that a change in supermarket secondary locations, on-deal conditions, and subsequent forward stock levels across competing brands correlated directly with the significant decline in the client’s cookie brand’s performance. The cookie brand had historically been underrepresented in all of these areas, but the data now confirmed that the brand was suffering disproportionate losses in both promotional opportunities and prominent product placement.

3 Scenario Definition

SCENARIO DEFINITION

Fresh Strategic Insights Guide Competitive Marketing Decisions

Based on the data, Middlegame and the client agreed that the increased competition for the children’s cookie brand would require secondary locations and on-deal merchandising. Middlegame proposed several scenarios where the client’s portfolio would remain neutral in total trade support, but marketing resources would be allocated in proportion to the historical SKU volume for the cookie brand.

Insightful marketing analytics, driven by CIA proprietary software,  address multiple challenges from a holistic perspective that closely examines interactions among the client’s and the competitor’s SKUs.

Insightful marketing analytics, driven by CIA proprietary software, address multiple challenges from a holistic perspective that closely examines interactions among the client’s and the competitor’s SKUs.


4 Expectation Analysis


Middlegame’s strategic business insights ensure that marketing goals align with finance, operations and sales disciplines for holistic success.

Middlegame’s strategic business insights ensure that marketing goals align with finance, operations and sales disciplines for holistic success.

EXPECTATION ANALYSIS

Developing a Savory Solution

The reallocation of marketing support for the cookie brand in Brazilian grocery stores was expected to generate more than 10.1% in volume for the client’s entire biscuits and cookies portfolio. Middlegame used its proprietary CIA® software to accurately predict that such a change would impact the overall volume decline across all channels, resulting in a transition from -4.7% decline to a potential +8.5% increase.

5 Client Actions


cd3-tab5

CLIENT ACTIONS

The Sweet Taste of Success

The Middlegame analytics and insights enabled strategic client conversations across all disciplines for a holistic solution. The client was able to obtain hurdle rate approval from finance and joint efforts with the sales force assisted the client in applying operational constraints to the marketing strategy moving forward. The client was also able to realign its trade support budget with confidence to protect the brand in the future.