Business Challenge
This US-based beverages manufacturer wanted to evaluate the impact of a new sampling activity on sales of its core brand. The sampling activity was planned in a test market Champaign, Illinois. The Matched Market Test had to answer the following questions – Identify a ‘Control’ market for the Matched Market Test, quantify the impact of sampling activity on sales, and make a “Go/No-Go” recommendation on expansion of the sampling activity to other key markets.
Solution
We deployed our in-house DIY “Test vs. Control” tool.
- Used a distance-based algorithm to select Ft. Myers/Napes as the control market for the test market.
- Category sales trend, CDI, BDI and Median HH income measures were used for matching.
- 4-cell ANCOVA model was developed to calculate the net lift of sampling activity while controlling for key causals.
Impact
- +4% Higher Net Impact: Net impact of sampling activity on test market was +4% higher than the control market.
- Expansion of Activity:Expansion of sampling activity to all focus markets was commissioned as recommended.
- 50% Reduction in Analysis Cost: Reduction achieved by using Analytic Edge’s Test vs. Control Tool for sampling activity across all focus markets.
