BSI: How We Did It - The Case of the Fragrant Sleeper Hit


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Greats Brands, a consumer good manufacturer, needs to solidify its Marketing and Production plans for the relaunch of Goldensoft, a skin care product.
They come to BSI for help using social media in conjunction with point of sale data to determine how many units of each of five fragrances to manufacture.
Sentiment analytics on tweets, coupled with a viral coupon campaign, save the day!

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  •   This slide represents the high-level Aprimo vision for Integrated Marketing Management. We have been in this space for 13 plus years and we recognize the value and the viewpoint around a vision to create integrated marketing for organizations so they can successfully communicate across multiple channels to reach their customers efficiently and effectively. Looking at the center circle of this slide – we realize there are many functions within marketing - and we have to support those various levels within each organization. From the corporate marketing levels to the field and regional managers, to brand managers and business units. You also have to be able to reach and collaborate with the external suppliers and other external functions within the company yet outside of marketing (c-levels). And, after 13 years in the IMM space, we have also recognized the ability to utilize the number of channels continues to grow and the ability to communicate and how you communicate has evolved over the years.
  • This slide represents a high-level framework of how we bring the Aprimo Integrated Marketing Management vision to market. On the left-side you have the multiple data sources feeding into a customer data warehouse – representing the TD capabilities. Then as you take that data, moving toward the right, you have the analysis and modeling block at the top which is where Aprimo and Aster Data come into play. As you move down through those blocks in the center, next steps are to plan your marketing initiatives and work through the processes of project, spend and asset management. This planning process (which we will call the operational phase) then feeds into the next step which is the execution step - through multi-channel campaign management and lead generation programs. In essence these are the three most critical components in the integrated marketing approach. As you move through each of these phases, the analytical, the operational, and the execution stage, you have the ability to create seamless customer engagements across many channels. So when we look at IMM as an over-arching pillar – we look at integrating all these components to drive an effective message and customer engagement to the customer.
  • This is collection of some of our IMM customers and their successes as they are embarking on creating an integrated marketing environment. Many of our customers have invested in the concept of an IMM approach and whether that driver was from marketing spend like Nationwide or was more focused on bringing marketing campaigns to market more efficiently like Folksam, a Swedish insurance company – they started somewhere. The fact is, there have been many different approaches or starting points. But the common denominator is that these companies recognized they needed the operational capabilities in place as well as the execution capabilities along with the analytical capabilities to be more effective in their marketing programs.
  • BSI: How We Did It - The Case of the Fragrant Sleeper Hit

    1. 1. HOW WE DID IT: “ The Case of the Fragrant Sleeper Hit”
    2. 2. We’re Getting A Lot of Questions … <ul><li>Hi Everybody, </li></ul><ul><ul><li>We’re the brains behind the scenes and wanted to answer your questions about “how” we did the Fragrant Sleeper Hit study. </li></ul></ul><ul><ul><li>This write-up will give you an idea of our clients’ architecture and some details of our investigation. </li></ul></ul><ul><ul><li>Take a look, and if you still have questions, shoot them to us! We’re both on Facebook. </li></ul></ul><ul><li> Yours truly, </li></ul><ul><li>Chi Tylana, Lead Investigator </li></ul><ul><li>Jodice Blinco, Director, BSI </li></ul>Jodice and Chi go over the final report for Great Brands
    3. 3. Scene 1: at Great Brands HQ – Jan (COO), Stella (Group Brand VP) and David (VP Mfg) <ul><li>Today’s meeting is a review with Jan of the Goldensoft re-launch. Last year Great Brands did so-so with the rollout of the lime, spice, and ginger fragrances. They are adding coconut and almond this year. </li></ul><ul><li>Stella did some initial store tests but the point of sale data is somewhat inconclusive about demand. </li></ul><ul><li>But she used this to provide some inputs to David, responsible for the Production Plan. </li></ul>Goldensoft Skin Lotion Fragrance Options Lime Spice (last year’s top) Ginger Almond (new) Coconut (new)
    4. 4. David’s Original Goldensoft Production Forecast David shows Jan the production plan (next page), built from Great Brand’s SAP Advanced Planning and Optimization (APO) application, running on Teradata. This is a ramp plan for the 4 months running up to Christmas for each fragrance. Units are in thousands of cases, each holding 64 Goldensoft items. NOTE: Lime and Spice were expected to be the Top Predicted Sellers, based mostly on last year’s actuals coupled with Stella’s initial store tests of the new fragrances. But she didn’t get a lot of feedback, which is why David is nervous. Last year they had some major shortfalls so David wants to make sure they do better this cycle, especially with the new COO ‘watching’.
    5. 5. David’s Original Goldensoft Production Plan
    6. 6. Stella’s Original Goldensoft Marketing Plan <ul><li>Stella used the Aprimo Marketing Studio to lay out the spending, by the 4 regions and nationally, on a variety of marketing elements, ranging from regional store flyers and events, plus national TV and web marketing efforts. (Next page) </li></ul><ul><li>Although not shown in the episode, Aprimo also helps Stella track her spending across all the activities, including all collateral development and approvals with agencies, and compare plans to actuals. </li></ul><ul><li>She picked Lime as the main fragrance to highlight in all her promos </li></ul><ul><li>Unfortunately for her, Jan isn’t convinced she has a solid plan and asks her to call in BSI for some help </li></ul>
    7. 7. Stella Uses Aprimo Marketing Studio A Comprehensive Solution APRIMO VISION Aprimo Platform Channels Agencies Customers SEO/PPC Store/Branch ATM/Kiosk Broadcast Email Events Agent or Acct Manager Print Social Media Web Smartphoone Call Center Webinar Direct Marketing Media Direct Creative Marcom Web Advertising Finance Events The Marketing Value Chain CMO
    8. 8. Stella’s Goldensoft Marketing Spend Plan
    9. 9. Stella Also Uses Aprimo Marketing Operations - Workflow Designing and Approving the Goldensoft Ad Copy/Visuals for Print and Promos
    10. 10. Scene 2: Stella Meets with BSI <ul><li>Stella meets with BSI Investigators on contract - Chi, plus 2 new BSI hires Mercedes and Marco. This is their first case! </li></ul><ul><li>They form a plan to go way beyond POS data to predict the right mix: </li></ul><ul><ul><li>Can we find what are people saying about the Goldensoft fragrances now? </li></ul></ul><ul><ul><li>Is Word of Mouth from top tweeters / opinionators - the “Skintastics” - influencing others to buy? How much? </li></ul></ul><ul><ul><li>What patterns can be merged between social buzz and retail sales that can influence demand planning and inventory rollout, as well as marketing plans for signage, end cap displays, regional TV spot buys, and other promos? </li></ul></ul>Chi Tylana BSI Lead Mercedes Marple Stella, Group Brand VP Marco Espinoza
    11. 11. Scene 2: The BSI Team Divides up the Work <ul><li>Chi: let’s integrate POS with 2 studies of Goldensoft customers </li></ul><ul><ul><li>Marco: do Sentiment Studies on attitudes re fragrances – monitor the blogs/tweets for preferences using sentiment analytics </li></ul></ul><ul><ul><li>Mercedes: detect and study the influence impact of the Skintastics on others, with a viral couponing campaign </li></ul></ul>
    12. 12. Scene 3: FOUR Weeks later The team goes over the 2 studies with Stella <ul><li>Marco collected and did some sentiment analytics using Attensity’s Twitter Firehose Extraction tool. Reports show (see next pages): </li></ul><ul><ul><li>1000+ raw tweets, positive, negative and neutral </li></ul></ul><ul><ul><li>Tweets vs. competitors, normalized to </li></ul></ul><ul><ul><li>100% and color-coded positive/negative </li></ul></ul><ul><ul><li>Drill down on sentiments by Fragrance </li></ul></ul><ul><ul><li>Sentiment changes by week, by region </li></ul></ul><ul><li>Looks like Almond and Coconut are going to be very popular sales items! </li></ul>
    13. 13. Marco Used Attensity to Capture & Analyze Twitter Sentiment - Overview LISTEN : 75+ million online sources including Twitter, Facebook, blogs, review sites, earned and paid media ANALYZE : Get real business insights in 32 languages with over 100 reports & dashboards. Drill down to the details behind the sentiment. RELATE : to your internal reporting, CRM and business systems. ACT : reach out and engage with Attensity Respond. Plus internal sources like emails, surveys, owned media, private forums ATTENSITY VOC COMMAND CENTER
    14. 14. Raw Tweets, Both Positive and Negative Captured from subscription to Attensity Twitter Firehose Then scored for intensity of comment and graphed (next pages) Can also capture tweets on competitors (Magic Elixir and Erfrischer)
    15. 15. Sentiment : Goldensoft vs. Competitors Competitor Brands Note ratio of positive: negative for Goldensoft is good; 8:1
    16. 16. Drilldown: Sentiment on 5 Fragrances
    17. 17. Drilldown: Tweets on Almond, by Region
    18. 18. Sentiment on Fragrances Over Time, South Region
    19. 19. 2 nd Study: Mercedes Studies Viral Couponing <ul><li>Begins by looking at first purchases vs. repeat purchases (POS data) </li></ul><ul><ul><li>Using Loyalty Data analytics (CPG Manufacturers are increasingly getting basket-level loyalty card data from their retailers) </li></ul></ul><ul><ul><li>Looks for an &quot;early adopter&quot; segment from store sales data, </li></ul></ul><ul><ul><li>And a &quot;repeat purchase&quot; metric </li></ul></ul>One issue with CPG product launches is that blanket media communication can drive high levels of trial giving the impression of a big success, but no repurchase as the product doesn't live up to expectations leading to a slump in demand, usually just after the CP has invested a ton in packaging and ingredients because of the initial demand!)
    20. 20. Report Showing Initial vs. Repeat Purchases Goldensoft Hand Lotion- Repeat Buy Analysis, By Fragrance Repeat buys of Lime and Spice are low! Repeat buys of Almond and Coconut are outstanding!
    21. 21. Mercedes’ Coupon Campaign for this Segment <ul><li>A coupon offer with two parts </li></ul><ul><ul><li>$7 off for the individual OR </li></ul></ul><ul><ul><li>$20 off if at least 2 other friends also buy the product </li></ul></ul><ul><li>Mercedes Runs a “Viral Couponing” Campaign </li></ul><ul><ul><li>A real-time social media couponing experiment, (much like what Jimmy Dean Sausage tried, see later slide) </li></ul></ul><ul><ul><li>Sends out coupon offers to the Skintastics segment </li></ul></ul><ul><ul><li>Analyzes how people influence their friends to purchase </li></ul></ul><ul><ul><li>Can see coupon campaign results – by fragrance type </li></ul></ul><ul><ul><li>Also by region </li></ul></ul><ul><li>She starts by creating a Skintastics Segment </li></ul><ul><ul><ul><li>Loyal customers who bought Goldensoft at least once before and typically become repeat purchasers of cosmetics </li></ul></ul></ul>
    22. 22. Viral Coupon Campaign Deployment on Aprimo Outer Firewall DMZ Corporate Intranet Email Offer Send Email Offer P o s t M e s s a g e s Post Social Data 2. Sends out Email Coupon 3. Skintastic Influencers Get Email Coupon, pick option 4. Forward via Email, Facebook, Tweets, with a copy to Great Brands 7. Mercedes analyzes POS redemptions in Aprimo to see how coupons are used Inner Firewall Teradata Database T C I M C l u s t e r TCIM Load Balancer Aprimo Relationship Manager, part of Aprimo Marketing Suite ARM / Administrator Reporting User Marketing User Emarketing Server Social Media Influencers Social Feed Social Feed 6. ETL POS data 5. Skintastics and friends redeem coupons POS <ul><li>Mercedes Sets </li></ul><ul><li>Up The Campaign </li></ul><ul><li>For “Skintastics” </li></ul>
    23. 23. Mercedes Uses Both Aprimo Marketing Analytics and Campaign Automation Marketing Analytics Mining Modeling Reporting Trending Profiling Segmenting Marketing Operations Workflow & Rules Plan Spend Brand Assets Campaign Design Multi-Channel Campaign Automation Leads Campaign Automation Source Data Product/ SKU Inventory Sales/ POS/ Franchise Supplier Promotional/ Loyalty Data Strategic Insight and Marketing Processes Seamless Customer Engagement Call Center Events Email Mobile Channels Customers Sales Consumer Partner Pre-engineered Consumer-centric Data Management Assets Feedback Loop Social Media Web Data Warehouse Consumer
    24. 24. Mercedes creates a “Skintastics” Segment
    25. 25. Mercedes Creates a Communication Plan
    26. 26. Mercedes kicks off Campaign Execution Email offer goes out and redemptions begin <ul><li>She waits to see who opens the email, who forwards it, how they forward it, who buys (both targets and friends), which fragrance they buy </li></ul><ul><li>Redemptions. To “stitch together” the results, they give $7 off right way when the Skintastic buys, and a $13 credit later when the 2 nd friend buys </li></ul><ul><li>Data. Mercedes used Teradata to tie together Skintastic IDs, Coupon IDs, plus their CC message types on how Skintastics forward the offer, plus the POS codes (to find 3 redemptions of the same coupon ID) </li></ul>
    27. 27. Mercedes’ “Skintastics” Viral Campaign Experimental Results <ul><li>We saw variations by region – South and Central reacted strongly </li></ul><ul><li>In trial of 2000, 46% (920) responded to the coupon. Of those: </li></ul><ul><ul><li>68% sent to 2+ friends to try for the $20 coupon. </li></ul></ul><ul><ul><li>62% emailed it, 32% facebooked, 4% tweeted the coupon. </li></ul></ul><ul><ul><li>One of the rules is that when you forward it, you cc Great Brands. </li></ul></ul><ul><ul><li>Their friends redeemed at a 42% rate. </li></ul></ul><ul><ul><li>Clickthrough rates on Facebook were 68%, email 41%. </li></ul></ul>
    28. 28. Chi Compares Marco’s Sentiment and Mercede’s Viral Coupon Study to the POS Trends <ul><li>Real-time data from the POS scanners in the stores and online flows into the Great Brand’s Teradata Integrated Data Warehouse so she can also see purchase trends above and beyond the 2 BSI studies </li></ul><ul><li>Integrating and analyzing all this information confirms to Chi that the Great Brands Marketing Plan needs to change </li></ul>
    29. 29. BSI Recommendation: Revise Your Marketing Plan <ul><li>BSI discovered 2 things from the investigative workstreams… </li></ul><ul><li>1.Almond & Coconut were not planned as biggest hits, but are in fact the Goldensoft stars of the launch – Great Brands has to increase demand forecasts!!! Both the Sentiment Study and Viral Coupon study, coupled with the latest real-time POS feeds, show this trend will impact your sales forecasts. </li></ul><ul><li>2.A viral email coupon campaign will create huge ROI especially in the Central and South regions – Stella needs to redo her Marketing Plan </li></ul>
    30. 30. Chi’s Advice: Revise the Marketing Plan Chi: based on these results, suggest you change your mix to more WOM marketing. Suggest stronger B2C marketing efforts in 2 regions - Central and South Regions – where a larger percentage of repeat buyers reside. Stella: We’ll redo our plan – this actually saves us quite a bit of money if we don’t have to spend on regional TV – the Coupon Campaign is less expensive way to get the Same impacts
    31. 31. Aprimo Revised Marketing Plan
    32. 32. Scene #4: Marco Calls Supply Chain VP David Hefenhaus with details results “ Even though you are in limited stores right now with the new fragrances, we think you are going to have a big problem… David, the Almond and Coconut fragrances are most likely severely underplanned!” David: OK, we will take a look at revving our production forecasts. Stella and I also see new POS data, which is shifting in the same direction. We will create a new plan. Shoot over your findings and I’ll revise our SAP APO plan, then talk to our suppliers.
    33. 33. After studying the details, David comes up with a new Goldensoft Production Plan He does some quick math on Almond Extract incremental needs, then calls his supplier Francois in France to buy 800 extra kg. The Math: The monthly Almond plan changed from 20-28-35-20 thousand to 30-48-62-77 thousand cases, and from 103,000 units total to 217,000 units. Each 3 oz unit needs ¼ oz of almond product, so 1 pound of almond extract is good for 64 units. Then the difference of 114,000 units needs 1781 pounds or 809 kilos more almond product
    34. 34. David’s Revised Goldensoft Production Forecast Focus is on getting more extract for the almond line)
    35. 35. Scene #5: After the Holiday Crunch Stella and Dave Meet with Jan to Look at Results And, we had 12% fewer stockouts 18% less leftover inventory <ul><li>We had 10% less Marketing spending vs. plan because of the word of mouth campaign </li></ul><ul><li>15% more product sold vs. first estimates </li></ul><ul><li>8:1 payoff on Marketing $$$ </li></ul>Good job team – I’m happy to see that the replanning with better data paid off!
    36. 36. SUMMARY: Another Victory for BSI: Teradata! Better Market Spend Planning, Integrated Marketing Mgmt, Wider Voice of the Customer Synchronized Supply Chain Planning And Chi Is Duly Impressed By Mercedes’ and Marcos’ Work on their Very First Case !
    38. 38. For More Information Other Companies Using Social Media <ul><li>Jimmy Dean Sausage Offer </li></ul><ul><li> </li></ul><ul><li>Coca-Cola article on Social Media Marketing </li></ul><ul><li> </li></ul><ul><li>See also the BSI “Case of the Retail Tweeters” episode on Brizio Fashion </li></ul><ul><li> </li></ul><ul><li>And a writeup about social media in “BI Experts Perspective: Structured and Unstructured Data” in Business Intelligence Journal, Vol 16, Number 2, available from TDWI (requires membership) </li></ul><ul><li> </li></ul>
    39. 39. Jimmy Dean Sausage Experiment on Facebook “Consumer Goods Club” Blog Site
    40. 40. Another Idea – “Cause” Marketing As described in an eMarketer Webinar, 7/2011
    41. 41. 3 Teradata CPG Customer Talks about Big Data Presentations at the Teradata Partners Event 10/2011 <ul><li>How Coca-Cola Leverages Rocket Science to Drive Retail Results - Actionable shopper insights are a critical and competitive success factor for consumer goods companies, and Coca-Cola is among the most progressive when it comes to taking a data-driven approach to understanding the consumer.  This session shows Coca-Cola exploits pattern recognition over large data sets to better understand shopper behavior and how shopper and consumers interact with products. </li></ul><ul><li>&quot;Quenching the Thirst for Master Data at MillerCoors &quot; – Using MDM ” - is especially applicable in consumer goods companies where maintaining consistent data across supply and demand chains not only helps reduce cost, but allows market and business-driven changes to be implemented more quickly all while keeping an accurate up-to-the-minute pulse on the entire business.  </li></ul><ul><li>“ A Recipe for Success: Driving better Trade Funds ROI with External Data” - Trade promotions are second only to cost of goods sold on the books of consumer goods companies, yet  many CG firms struggle with understanding the real impact of these investments?  “This session discusses Sara Lee’s Demand Signal Repository (DSR) initiative that built a DW platform to house, integrate, and deliver a range of external and internal data to drive business results.” </li></ul>
    42. 42. For More Information Links to the Technologies Used in this Case <ul><li>Aprimo </li></ul><ul><li>Teradata </li></ul><ul><li>Attensity </li></ul><ul><li> </li></ul><ul><li>SAP </li></ul><ul><li> </li></ul>
    43. 43. Customer Successes with Aprimo’s Integrated Marketing Management Environment Improved visibility of the marketing spend from 11% to over 85% to make educated adjustments to spend Increased campaigns from 200 to 1000+ without expanding resources Lowered campaign cycle time by almost one-third and increased number of campaigns by 29% Consolidated databases for better communication & more effective customer and prospect leads Decreased time to market for customer campaigns and interactions and increased sales volume by 38% Eliminated hours of manually managing spreadsheets and marketing initiatives and improved targeting ability and lead generation Saved $4M in operational expense & drove $5M in incremental revenue through reduced campaign cycle time and reduction of resources
    44. 44. The End <ul><li>We hope you enjoyed the BSI episode and this accompanying writeup covering How We Did It. </li></ul><ul><li>Stay tuned for more BSI episodes. And “Like” us at or “Friend” us on Facebook! </li></ul><ul><li>Chi and Jodice </li></ul>