Olli Salumeria

‍The Challenge:

Olli Salumeria, armed with a fresh media strategy and compelling creative campaign, entered the market with high expectations for a sales boost. Initial results showed promise, but soon after, a sustained decline in sales raised red flags. The pressing question from business executives: Could continued investment in marketing still deliver a positive financial return?

The Strategic Solution:

E29 Marketing conducted a comprehensive data-mining exercise to uncover the root causes behind the fluctuating sales trends. While Olli’s team initially attributed the decline to external factors like trade promotions and seasonality, our analytics approach dug deeper into non-marketing drivers—ultimately revealing a game-changing insight.

We identified a significant shift in Total Distribution Points (TDP), a key metric representing the availability of products across retailers. The analysis showed that Olli’s distribution footprint was shrinking faster than sales were falling, leading to a crucial realization: while distribution points were declining, Olli’s Units Sold per TDP was actually on the rise. This indicated that the remaining distribution points were performing more efficiently, a key metric that would become the cornerstone of our strategic recalibration.

Our approach focused on understanding the true impact of marketing in light of these distribution changes. By isolating Units Sold per TDP, we were able to measure the marketing campaign’s effectiveness in driving sales independent of distribution losses. This metric provided clarity on how media efforts were successfully compensating for shrinking shelf space, particularly during trade promotions and media-heavy periods.

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Analytical Insights:

Further analysis uncovered additional insights, strengthening the connection between marketing activity and sales performance:

• Baseline and Lift Estimation: We created a baseline sales trend that accounted for the declining distribution. By calculating incremental sales lift from media activities—excluding trade promotions—we demonstrated how media investment was effectively offsetting what would have been a much larger decline.
• Spikes in Performance: Our trend analysis pinpointed specific periods where Units Sold per TDP surged, correlating with major retail promotions and high media impression periods. For example, media impressions from Promoted Social Media and Programmatic Display showed a consistent positive impact on sales, particularly during peak promotional windows.

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The Impact:

• $1 Million+ in Incremental Sales: The campaign successfully generated over $1 million in incremental sales, despite the distribution challenges.
• Targeted Media Allocation: Detailed analysis revealed which product categories and media channels were driving the most significant sales lifts, allowing us to fine-tune future budget allocations for maximum ROI.
• Units Sold per TDP as a Key Metric: This metric became the guiding star for ongoing monitoring and decision-making, ensuring Olli could measure performance independent of distribution fluctuations and focus on driving efficiency in the markets where they remained strong.

Strategic Takeaway:

E29 Marketing’s ability to translate complex analytics into actionable strategies allowed Olli to see beyond the surface-level numbers and understand the real value of their media investment. By focusing on Units Sold per TDP, we provided a framework that not only justified ongoing marketing spend but also optimized it for future growth.

Why E29?
At E29, we don’t just look at metrics—we uncover the stories behind them. Our analytical depth and strategic foresight ensure that every marketing dollar works harder, driving measurable impact even in the face of market challenges. Let's collaborate to turn your data into your next success story.

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