Discover how a global cereal manufacturer with over 100 brands and a presence in 40+ markets transformed its business through data-driven decision-making. By adopting a global business driver econometric modelling approach, the company accurately forecasts sales, identifies growth opportunities, and activates key drivers for market share growth. With highly automated data management and tailor-made dashboards, the company has regained market share, resulting in a significant P&L impact and a projected ROI of 95x over five years.
A renowned global cereal manufacturer, known for its extensive portfolio of over 100 brands, operates in more than 40 markets worldwide. The company is facing a critical challenge of accurately predicting sales on a monthly and quarterly basis while comprehending the crucial factors that contribute to market share growth or decline. To regain lost market share and boost profitability, the organization recognizes the imperative to transition towards a more data-driven approach, moving away from reliance on intuition or "gut feeling." This entails gaining a comprehensive understanding of growth opportunities in each market and identifying the key drivers to activate for success.
The global cereal manufacturer is employing an econometric modeling approach to drive their business. With over 500 active models at various levels, including the manufacturer and key brands, they are able to consistently identify growth opportunities, value levers, and early warning signs of decline. These growth levers encompass price, promotion, distribution, assortment, and media optimization. The company has implemented highly automated systems for data and model management, ensuring efficiency. The results are consolidated in customized dashboards and market simulators, providing a comprehensive view of the market landscape.
Following a successful pilot in four key markets, the solution has now been scaled and implemented across 46 markets. The estimated yearly impact on the Profit and Loss (P&L) statement amounts to $10 million, based on a sales base of $1.7 billion. With an anticipated return on investment (ROI) of 95 times the initial capital and operational expenditure (CAPEX/OPEX), the company expects substantial long-term benefits from this initiative.
Intrigued by the accomplishments highlighted in this case study? Do you see parallels with your own organization's challenges? At Blend, we are experts in delivering clear, concise and engaging solutions that meet your unique business needs. We're eager to apply our strategic thinking and domain expertise to help transform your business operations, just as we did for our esteemed client.