Action: We analysed the productivity of marketing spend, how it was allocated and in which markets to help us understand the client’s current business performance. We also examined revenue and price by line of business and distribution channel, as well as assessing the business and distribution mix. This meant we could better understand the value drivers.
Finally we looked at market demand, business mix margins and distribution costs to help identify opportunities to improve performance. The insights we gained allowed us to work out which scenarios held maximum potential, and identify different ways of getting there. We then analysed the likely returns, assessed how difficult they were to achieve and prioritised the best strategies.
Insight: Our full analysis of the business and value drivers, coupled with assessment and prioritisation of the strategic alternatives unlocked opportunities to significantly improve our client’s existing business.
Result: As a result the hotel network shifted the way marketing funds were allocated and spent, resulting in a concentration of spend in fewer but larger markets. The hotel network focused on driving more demand direct from consumers through their low cost brand direct channels.
Revenue from the most valuable consumer segments through direct brand channels was tripled, resulting in a 6% increase in profits.