2015-04-01 Media Markt - Sales Modelling Presented.pptx

8/19/2019 2015-04-01 Media Markt - Sales Modelling Presented.pptx

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Copyright © Nepa All Rights Reserved

Media Markt Sales Modelling

2015-04-01


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Agenda•

Scope• !ec"tive s"##ary

• Method

• $vervie% o& 'nternal (ata and Media 'nvest#ents

• )o% #"ch sho"ld Media Markt invest*

• +here sho"ld Media Markt invest*

• +hen sho"ld Media Markt invest*

• !ec"tive s"##ary• Appendi!


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)o% have #ediainvest#ents in,"encedMedia Markts sales andvisits d"ring the last t%o

years*

.ects o& internal end e!ternalvaria/les

$pti#iation o& #ediainvest#ents

Media invest#ent e.ects on/rand

• )o% do internal activities s"ch as sale ca#paig

visits to Media Markt Stores*• )o% do e!ternal varia/les s"ch as %eather pay

activities etc a.ect sales and visits*

• +hat is the R$' o& #edia invest#ents*

• )o% e3cient is #edia in attracting c"sto#ers t

• +hich #edia types are #ost e3cient in driving

•

+hat is the opti#al level o& invest#ent*

• (o #edia invest#ents drive /rand val"e*

• )o% does a strong /rand a.ect sales and visits*

he p"rpose o& the pro6ect is to e!plain ho% Media Markts #edia invest#ents in,"ence sales and visits in st


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here are several %ays &or Media Markt to opti#ie #ediactivities &oc"s o& this pro6ect is )o% #"ch +here and +invest

+ho*+ho to targetand %ith %hat

+here*Media #i!

+hat* i#ing o& #edia

invest#ents

+hen*Content o&

co##"nication78rod"cts 9

Content:

)o% #"ch* otal #edia

/"dget

)o% can Media Marktopti#ie #edia

activities in order toincrease

sales;reven"es*

+ho to target and%ith %hat

Media #i!

Content o&co##"nication

78rod"cts 9 Content:

i#ing o& #ediainvest#ents

otal #edia /"dget


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Agenda•


• Method







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7/105Copyright © Nepa All Rights Reserved

Agenda•


• Method








DE +hy is there a strong correlation /et%een eating ice cdro%ning*

Due tosumme

Due to this type of relato neutralize eects o

visits that are not relainvestments. Otherwismeasuring the wrongseasonality or weekd



+hen co#paring sales and #edia invest#ents directly theo& reaching the %rong concl"sions

Media investments/day compared to dailysales

S a l e s

Media spend

•

he reason &or this relationship is /invest in #edia %hen yo" e!pect tosel&-&"lBlling prophecy To see the solely the media investments, yneutralize other afecting acto

•



Agenda• Scope

• !ec"tive s"##ary

• Method





•

!ec"tive s"##ary• Appendi!


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Agenda• Scope


• Method





•




aria/les tested &or syste#atic e.ect on sales

'nternal !ternal

C"sto#er

Sales

Open stores

Direct Marketing

Swedish (ationalDay

$st of May

)ompetitoinvestmen

*ood +riday

)hristmas

(ew

Monday%-hursday

scension Day

/ain

0eekend

1nventory level

2/

Online sales

Summervacation

3randawareness

)onsideration

Mediainvest#ents

-4

0e5%-4

2rint

Outdoor

/adio

Search

3anners

Salary week 1nternal

competitions

6eads

Directmarketing

Margin


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S"##ary G )o% #"ch*

+ho*+ho to

target and%ith %hat

+here*Media #i!

+hat* i#ing o&

#ediainvest#ent

s

+hen*Content o&co##"nica

tion78rod"cts 9

Content:


/"dget



sales;reven"es*


Media #i!




otal #edia /"dgetS"##ary

• Media invest#ents have a large esales #edia invest#ents e!plain sales

• he /iggest contri/"tion is &ro# t#edias s"ch as (irect Marketing Radio and +e//- have no signiBcontri/"tion to sales

• 'nvesting 1 S> in #edia gives in S> /ack in reven"es /ased on a

this gives and R$' o& 115• here is a potential to increase #

invest#ents and still keep a positinvest#ent


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Media invest#ents have a considera/le e.ect on Media Mtotal sales

aria/les e!cl"ded d"e to syste#atic e.ect on salesE Share o& oice 8R data and 'nventory levelsaria/les incl"ded in /ase levelE N"#/er o& open storesaria/les incl"ded in seasonal levelE Christ#as;Ne% year e.ects

Additional reven"e and Ret"rn $& 'nvest#ent is /ased on a 1@= #argin on all sales

Chart itle

S a l e s i n / i l l i o n S >

otal sales #odel Media invest#ents e!plain 20=

• he diagra# sho%s ho% di.erent contri/"te to Media Markts total s

• Season %eather salary lo% #argholidays have a syste#atic e.ect &or Media Markt %here season co#ost to total sales

• A#ong the varia/les that a.ects t#edia has the strongest contri/"t

standing &or 20= o& Media Markts


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Media invest#ents e!plain 20= o& all total sales %here tcontri/"tion co#es &ro# traditional #edia

Chart itle


Media 'nvest#ents acco"nt &or appro!i#ately 2 /illion S>720= o& all sales:

otal Sales #odel - deco#posed argest e.ects co#e &ro# tradi

aria/les e!cl"ded d"e to syste#atic e.ect on salesE Share o& oice 8R data and 'nventory levelsaria/les incl"ded in /ase levelE N"#/er o& open stores

aria/les incl"ded in seasonal levelE Christ#as;Ne% year e.ects

• Media invest#ents e!plain 20= osales 72 /illion S>:

• Seasonal e.ect s"ch as Christ#asS"##er e!plain 12= o& the total

• he /iggest contri/"tion is &ro# t#edias s"ch as (irect Marketing Radio and +e//- have no signiBcontri/"tion to sales


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'ncreasing #edia invest#ents increases sales considera/average R$' on sales o& ?

A d d i t i o n a l s a l e s p e r % e e k

i n S >



evelo&

2014

evelo&

201

otal sales #odel'ncreasing #edia invest#ents h

e.ect on sales

Media invest#ents per%eek

• Media invest#ents have a clear esales &or Media Markt

• 'ncreasing #edia invest#ents incconsidera/ly Average R$' on sale#eans that investing 1 S> in #eaverage ? S> /ack in reven"es

• he R$' Bg"re &or reven"es is /asinvest#ents /eing si#ilar to prev

years


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here is a potential to increase #edia invest#ents and spositive ret"rnon invest#ent

A

d d i t i o n a l s a l e s p e r % e e k

i n

S >

Media invest#ents per%eek



otal proBt8otential to increase invest#ents

ret"rn

8roBt R$'

• he #edia invest#ents can /e incleast 210 MS> each year and stilpositive ret"rn on invest#ent

• he proBt R$' c"rve appears to le1 aro"nd a yearly #edia spend o000 S> 74 00 000 S>;%eek:

evelo&

2014

evelo&

201

8 r o B t R $ '


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Media invest#ents can /e increased /y 100 #illion S> /negative ret"rn o& invest#ent is reached

!dditional #ales

rom 2$& yearslevel

'et media

(nvestment )year*

+hange in prot

rom 2$& .rot 0(

-15= 20 MS> -11J0 MS> 0@4

-10= 55 MS> -J@2 MS> 101

-5= @5 MS> -F@ MS> 110

0= 1 M#3 $ M#3 ,

5= 150 MS> @ MS> 115

?= 1?2 MS> 4F5 MS> 11

10= 210 MS> JJ MS> 100

OAdditional proBt and Ret"rn $& 'nvest#ent is /ased on a 1@= #argin on allsalesOO Sales d"ring 2014 %as 4 02 MS>

Media /"dg

Media /"dg

8ossi/ilityinvest#eR$' a/ove


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Agenda• Scope


• Method





•



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S"##ary G +here and +hat*

+ho*+ho to

target and%ith %hat

+here*Media #i!

+hat* i#ing o&

#ediainvest#ent

s


tion78rod"cts 9

Content:


/"dget



sales;reven"es*


Media #i!





• raditional tactic #edia like (irectand 8rint tend to drive sales to a g'n order to drive sales these #edihave a signiBcant share o& the tot

• $nline Search is ho%ever the #os#edia o& all

• Media invest#ents have a clear ea%areness %hich in t"rn a.ects s)o%ever ad a%areness takes ti#

hence it is i#portant to have a co#edia strategy in order to /"ild adA#ong the #edias has the strcorrelation %ith ad a%areness

• drives sales less than the tradi#edias /"t is #ore i#portant &ori#age


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)o%ever traditional #edias still drive sales to a large e!

.ect on sales 7avg additional sales;investedS>:

raditional #edia still stand strosales

(onsig.(onsig.

(onsig.

• raditional tactic #edia like (irectand 8rint tend to drive sales to a g'n order to drive sales these #edihave a signiBcant share o& the tot

• $nline Search is ho%ever the #os#edia o& all

• drives sales less than the tradi#edias /"t is #ore i#portant &or

i#age

• $nline (isplays have clear e.ect the e.ect increases e!tensively %the invest#ent )ere yo" sho"ld gat all

)igher i#pact

8roBt R$'


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here is a potential to increase e3ciency o& #edia investthro"gh opti#iing the #edia /"dget

(R 8osten has the largest e.ect

• he diagra# indicates that there increase e3ciency thro"gh chang#edia #i!

• Co#paring and (R 8osten sho%tho"gh the higher #edia invest#e8osten generates higher sales Sa8rint %hen co#paring it to (R 8os

• ("ring 201-2014 (R 8osten has

the #ost &ollo%ed /y Slightly e3ciency &or (R co#pared to (R

.ects on total sales vs total invest#ents

-otal media investments "#$'%"#$&

*enerated sales "#$'%"#$&

R$'1

Size of 5u55le indicate generated sales for each media


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'ncrease invest#ents in (R and (R 8osten since they aree3cient ingenerating additional proBt

OAdditional proBt and Ret"rn $& 'nvest#ent is /ased on a 1@= #argin on all

sales

(R and (R 8osten are the #osin generating additional

• he diagra# sho%s to %hat e!ten#edias drive additional proBt

• 'nsights &or the di.erent #ediasE• 0nline searchE )as strong /"t di#

on sales 'ncrease invest#ents• 6/6 posten" Ioth (R and (R 8o

great e.ect on additional sales 'ncractive %eeks as %ell as increase inv

• 0utdoor" ("ring %eeks %ith o"tdosales increase considera/ly Contin"

strategy• T7" 'ncrease n"#/er o& active %eek

di#inishing R$' at higher invest#e• .rint" 'ncrease n"#/er o& active %

di#inishing R$' at higher invest#e• 6isplay" (ecrease n"#/er o& activ

increase invest#ents d"ring these %

ach dot shows the average investment level during "#$&


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CaseE


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)o% sho"ld Media Marktopti#ie the #edia #i!*


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Scenario 1 Iased on the sa#e /"dget as 2014 ho% do %#a!i#ie sales /y opti#iing the #edia #i!*

Change in #edia /"dget Scenario description

(escriptionEMedia #i! that #a!i#ies additional proBsa#e /"dget as d"ring 2014 11? MS>

ogic &or the scenario analysisE1 (o not invest in #edias channels %it

7radio and %e/ :2 Media channels %ith relatively lo% #

invest#ents that sho% potential stayas d"ring 2014 7social #edia:

Moderate increase o& #edia spend &o#edia channel co#pared to 2014

4 (ecrease #edia invest#ents &or certchannels in order to allocate invest#channels that are #ore e3cient

MS>


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Scenario 1 S"ggested #edia #i! /ased on sa#e invest#d"ring 2014

#cenario

11? MS>

2$&

11? MS>

+hange

0 MS>

+onse:u

T1474 4

+onse:ue

T2?

1J

1F

25

44

FJ

12?

14

20

21F

2?F

00

1F

@

00

14?

1@F

J2

00

1F@

1F@

2014 S"ggestion

1=

2=

2=

4=

@=

11=

12=

1J=

1F=

2=

0=

2=

=

0=

1=

1?=

?=

2?=

1J=

1J=

2014 S"ggestion


sales

otal net #edia invest#ents Net #edia invest#ent Media #i!ConseU"eproBtO co


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Scenario 2A 'ncreased /"dget to sa#e level as d"ring 20increase &ro# 11? MS> to 1?2 MS>


(escriptionE• Media #i! that #a!i#ies additional pr

increased /"dget to sa#e level as d"rinincrease &ro# 11? MS> to 1?2 MS> <driving additional sales and proBt

• 'ncrease (R as #"ch as possi/le 7%ith 5levels in 201:



invest#ents that sho% potential stayas d"ring 2014 7social #edia: Moderate increase o& #edia spend &o

#edia channel co#pared to 201 and4 (ecrease #edia invest#ents &or cert

channels in order to allocate invest#channels that are #ore e3cient

MS>

S i 2 S d di i / d i


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Scenario 2A S"ggested #edia #i! /ased on sa#e investd"ring 201

#cenario

1?2 MS>

2$&

11? MS>

+hange

4? MS>

+onse:u

TJ?75 0

+onse:ue

T1

1J

1F

25

44

FJ

12?

14

20

21F

2?F

00

1F

@

00

2J

1@F

J2

4?2

21

21

2014 S"ggestion

1=

2=

2=

4=

@=

11=

12=

1J=

1F=

2=

0=

1=

5=

0=

20=

12=

4=

2F=

14=

14=

2014 S"ggestion


sales



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Ma!i#iing additional proBtis o& co"rse i#portant /"t

%hat a/o"t #ediainvest#ents e.ect on the

/rand*

C d t 201 / d t i h d d ith @


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Co#pared to 201 /rand #etrics have decreased %ith @thro"gho"t the %hole &"nnel %hile ad a%areness and /raattri/"tes are hit even harder

he /rand &"nnel Changes in /rand #et

!d a;areness

!;areness)(M/ToM*

+onsideration

.reerence

+ustomer at)sometimes/oten*

Avg 2014 (i. vs avg201

4J -2=

55 ; 15 -4= ; -F=

0 -@=

14 -@=

50 ; 1F -4= ; -11=

4est prices 15 -1@=

•

he Media Markt /rand has s".erconseU"ence o& lo%er #edia inve/rand #etrics have decreased conco#pared to 201

• he /rand #etrics have decrease%hile total sales &or Media Markt hdecreased %ith F= on total level

• VIest priceW has decreased %ith -1

2014 co#pared to 201 Note tha#argin &or Media Markt has decre&ro# -2@= to -21=O

• hese dra#atic changes in /rand and /rand salience sho% the i#poco##"nication on the ho#e elect#arketAverage daily level not incl"ding e!tre#e cases


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+hat a/o"t the relationship/et%een #edia

invest#ents ad a%arenessand sales*

Media invest#ents have a clear e.ect on ad a%areness


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Media invest#ents have a clear e.ect on ad a%areness

.ect o& #edia invest#ents on ad a%areness'ncreased #edia invest#ents #e

a%areness

•

here is a clear correlation /et%e#edia invest#ents and ad a%aren

• 'ncreased #edia invest#ents #eaa%areness and higher ad inventor

1nvestments7 week average

d awareness

Ad a%areness takes ti#e to /"ild hence it is i#portant to


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Ad a%areness takes ti#e to /"ild hence it is i#portant tocontin"o"s #edia strategy in order to /"ild ad inventory

Correlation /et%een ad a%areness and total#edia invest#ents

't takes ti#e to /"ild ad a%

•

)igher correlation #eans that #einvest#ents /etter e!plain the leva%areness he diagra# sho%s thaverage #edia invest#ents e!plaa%areness /etter co#pared to noaverage 70 %eeks:

• his sho%s the i#portance o& a co#edia strategy in order to /"ild ad$nly one %eeks #edia invest#en

eno"gh to change /rand perceptioit takes ti#e

Correlation

Moving average &or ad a%areness

't is e!pensive to decrease #edia invest#ents /"t the e.


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't is e!pensive to decrease #edia invest#ents /"t the e.not i##ediate

Ad a%areness (i.erence

•

(espite relatively high invest#ensecond hal& o& 2014 ad a%arenesMarkt is lo%er than e!pected

• his is likely an e.ect o& generallyinvest#ents d"ring the Brst hal& o&"rther e#phasis the i#portance contin"o"s #edia invest#ents to high ad inventory

•

I"t %hich #edias have the strongcorrelation %ith ad a%areness*

Media invest#ents

Relatively high#edia invest#ents

altho"gh ada%areness is /elo%

e!pected level

't takes ti#e &or ad a%areness a&ter a drop in #edia inves

CaseE (i.erent #edia strategies have di.erent e.ects on


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CaseE (i.erent #edia strategies have di.erent e.ects on

here is a strong relation /et%een Share o& voice and ass


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here is a strong relation /et%een Share o& voice and asslo%est price

So vs 8erceived lo%est prices on the #arket)igh share o& voice e.ects assoc

/rand

•

As Share o& voice 7Media Markts sinvest#ents in the %hole ho#e elcategory: increase the share thatMedia Markt %ith the lo%est price

• he strong correlation /et%een asMedia Markt %ith lo%est price shoi#portance o& co##"nication %itcategory

raditional #edia s"ch as (R and 8rint have the stron


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raditional #edia s"ch as (R and 8rint have the stronrelationship %ith ad a%areness &oc"s on these to drive th

Correlation /et%een #edia spend and ada%areness

(i.erent #edias have di.erent e/rand

•

he diagra# sho%s to %hat e!teninvest#ents in di.erent #edias coad a%areness A high level o& corrthat the relation /et%een an inves#edia channel and ad a%areness

• has the strongest correlation %a%areness &ollo%ed /y (R (R 8oshave si#ilar level in ter#s o& corr

• $nline invest#ents have a li#itedthe ad a%areness )ence increasinvest#ents online does not sho%e.ect on /rand perception 'n ordthe /rand &oc"s on (R and 8r

(o moving average


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+hat i& %e take /rande.ects into consideration

%hen opti#iing #edia #i!*

Scenario 2I Iased on increased /"dget ho% do %e #a!


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Scenario 2I Iased on increased /"dget ho% do %e #a!additional sales and drive the /rand /y opti#iing the #e


(escriptionE•

Media #i! that #a!i#ies additional princreased /"dget to sa#e level as d"rinincrease &ro# 11? MS> to 1?2 MS> <driving additional sales and /rand

• Maintain (R on sa#e as 201 invest re8rint

ogic &or the scenario analysis1 (o not invest in #edias channels %it


invest#ents that sho% potential stay

as d"ring 2014 7social #edia: Moderate increase o& #edia spend &o



MS>

Scenario 2I S"ggested #edia #i! /ased on an increase


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Scenario 2I S"ggested #edia #i! /ased on an increaseto sa#e level as 201

#cenario

1?2 MS>

2$&

11? MS>

+hange

4? MS>

+onse:u

T4F74 J

+onse:ue

T@F

1J

1F

25

44

FJ

12?

14

20

21F

2?F

00

1F

@

00

21@

1@F

J2

0@

?2

?2

2014 S"ggestion

1=

2=

2=

4=

@=

11=

12=

1J=

1F=

2=

0=

1=

5=

0=

14=

12=

4=

1F=

22=

22=

2014 S"ggestion


sales


Scenario Iased on an increased /"dget ho% do %e #a


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g sales /y opti#iingthe #edia #i!*


(escriptionE• Media #i! that #a!i#ies additional pr

increased /"dget to si#ilar levels as d"11? MS> to 210 MS>

• 'ncrease (R as #"ch as possi/le 7scenainvest rest in and 8rint



invest#ents that sho% potential stay

as d"ring 2014 7social #edia: Moderate increase o& #edia spend &o



5 'nvest the rest on /rand /"ilding activ

MS>

Scenario S"ggested #edia #i! /ased on an increased


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gg

#cenario

210 MS>

2$&

11? MS>

+hange

F4 MS>

+onse:

T1 075

+onse:u

T1F

1J

1F

25

44

FJ

12?

14

20

21F

2?F

00

@

@

00

2J

1@F

14

4?2

?2

4FJ

2014 S"ggestion

1=

2=

2=

4=

@=

11=

12=

1J=

1F=

2=

0=

2=

4=

0=

1?=

F=

J=

22=

1J=

24=

2014 S"ggestion

OAdditional proBt and Ret"rn $& 'nvest#ent is /ased on a 1@= #argin on allsales



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Main &oc"s is nat"rally to increasetotal sales )o%ever di.erent

#edias have di.erent e.ects onvisits sales and /rand &or /oth

online and /rick-and-#ortar )o%do the e.ects di.er /et%een

these channels*

Media channels have di.erent e.ects on the para#eters


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pin the econo#etric #odelling

)o% do the di.erent #channels give Media M

di.erent e.ects*

isits that are a conseU"ence o& #edia invest#ents are %


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co#pared to other visitors

Media invest#ents e.ect on sales and visits

• Media invest#ents e!plain to a lasales 720=: co#pared to visits 714

• his i#plies that visits that are a co& #edia invest#ent are o& higherco#pared to other visits

• 'n average those %ho visit Media conseU"ence o& the #edia activiti#ore co#pared to other visitors

• his is pro/a/ly d"e to a co#/inacons"#ers act"ally co#pleting a larger e!tent and also spending #their visits7(#(T#

(i.erent #edia channels have di.erent e.ects on store s


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online sales and /rand /"ilding

Stores Sales $nline Sales Irand driver

(i.erent #edia serve di.erent Media Markt

• (i.erent #edias have di.erent e.sales online sales and on the Med/rand

• S"##ary o& res"ltsE• 6, .rint and outdoor a.e

and-#ortar sales and the /rae!tent

• 0nline search has a strongonline sales co#pared to /ri#ortar sales

• T7 has a considera/le /randco#pared to the other #edia

• #ocial media has strongest online sales

• i#ited e.ects o& online disand ;e-T7 on all three var

Sorted 5y tore sales


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ooking at online the di.erent #edias play a di.erent ro


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driving sales andvisits co#pared to /rick-and-#ortar

Radio e!cl"ded d"e to insigniBcant invest#ent levels

• (i.erent #edias have di.erent e.

sales and on online visits

• S"##ary o& res"ltsE• 0nline search and #ocial

/oth online visits as %ell as s•


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Agenda• Scope

•

!ec"tive s"##ary• Method






• Appendi!

S"##ary G +hen*


58/105


+ho*+ho to

target and%ith %hat

+here*Media #i!

+hat* i#ing o&

#ediainvest#ent

s


tion78rod"cts 9

Content:


/"dget



sales;reven"es*


Media #i!





• Media invest#ents are #ore e.ec

ti#es o& high sales• Co##"nication in itsel& is #ore i#

having high share o& voice do notinvesting %hen co#petitors inves

• 'n ter#s o& sales the #ain sales ed"ring day o& invest#ent and &o"rday o& invest#ent &or all #edias

• Media Markt are on the right trackco#e to invest#ent ti#ings

Media invest#ents are #ore e.ective d"ring ti#es o& hig


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Sales rend

1

+inter-Ne% Kear74@-1:

+inter-S"##er 72-2:

10@

1?

ate S"##er72-1:

10


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("ring salary %eek or the %eek a&ter salary %eek are thee.ective ti#es to co##"nicate


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e.ective ti#es to co##"nicate

#!=!>


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ti#ings

2014 S"ggested &or 2015

S"ggested spend

• he s"ggested invest#ent pattern

U"ite si#ilar to 2014

• 'nvest#ents sho"ld peak in the laand d"ring Christ#as

• Contin"e to /oost invest#ent aro%eeks

(R &ollo%ed /y have the longest /"rn e.ects


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I"rn e.ects

• 'n ter#s o& sales the #ain sales e

d"ring day o& invest#ent and &o"rday o& invest#ent &or all #edias

• Note that /rand /"ilding e.ects ainto consideration

• (R has the longest /"rn e.ects &o

• 8rint and $nline have the #ost i#e.ects on sales

(ay o& invest#ent T ne!t day

Ne!t three days

Slightly higher e3ciency o& 12 pages co#pared to @ page


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Content U"antity in (irect Marketing

• 12 7or 1?: pages in (R %ill give 10

additional sales co#pared to @ pa

• he di.erence is apparent in (irecthro"gh 8osten

,es9 $#: higher e;ciency for $" pages compared to < pages

(s there a diference et;een8 pages and 2 pages in 6A


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Agenda• Scope

•







• Appendi!

!ec"tive s"##ary


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• Media invest#ents have a large e.ect on sales #edia invest#ents eall total sales

• 'nvesting 1 S> in #edia gives on average ? S> /ack in reven"es

1@= #argin this gives and R$' o& 115• 8otential to increase #edia invest#ents and still keep a positive ret"

invest#ent• arge potential &or Media Markt to increase sales /y changing the #e

• (R tend to drive sales to a great e!tent 'n order to drive sales these have a signiBcant share o& the total /"dget

• $nline Search is ho%ever the #ost e3cient #edia o& all

• Co##"nication in itsel& is #ore i#portant than having high share o&

hesitate on investing %hen co#petitors invest• Media Markt are on the right track %hen in co#e to invest#ent ti#ing

)o% #"ch*

+here*

+hen*

+hat*

• has generally lo%er e3ciency in generating sales &or Media Marktsi#ilar cases /"t is #ore i#portant &or /rand i#age

• Nepa s"ggests to eval"ate content o& co##"nication in order to incrinvest#ents in


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Agenda• Scope

•







• Appendi!

Media invest#ents are directly related to 20= o& sales anvisits in Media Markts stores


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visits in Media Markt s stores

Chart itle


Media 'nvest#ents acco"nt &or appro!i#ately 2 /illion S>720= o& all sales:

Store Sales deco#position #odel

Chart itle

M i l l i o n v i s i t s

Media 'nvest#ents acco"nt &or app714= o& all vi

Store isits deco#position



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Chart itle

S a l e s i n S >

Media 'nvest#ents acco"nt &or appro!i#ately 1@0 #illion S>7@= o& all sales:

$nline Sales #odel

Chart itle

$nline isits #odel

aria/les e!cl"ded d"e to syste#atic e.ect on salesE Share o& oice 8R data and 'nventory levelsaria/les incl"ded in seasonal levelE Christ#as;Ne% year e.ects

5 h o " s a n d v i s i t s

Media 'nvest#ents acco"visits to Media M

= o& the visits

Sales is decreasing oXine /"t increasing heavily online


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Sales over ti#e

Stores inear 7Stores: $nline inear 7$nl'n storesales;%eek

Sales;visits

#ales

201

7isits201

+onversion

201

-9%

?1$%

-5%?8%

?2%?1%

isits are decreasing /y appro!i#ately the sa#e rate as stores %hile online sees a little less increase co#pared t


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p

isits over ti#e

Stores inear 7Stores: $nline inear 7$nl'n storevisits;%eek

Sales;visits

#ales

201

7isits201

+onversion

201

?1$%

-5%?8%

?2%?1%

-9%


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!ternal e.ects a.ect sales heavily and are taken intoconsideration &or the sales #odel 7slide 1;2:


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8ayday e.ects he (ece#/er e.ect !trac"rric

Average Month $cto/er Nove#/er

8aydays a.ect MediaMarkt sales

signiBcantly he %eek a&ter apayday sho%s al#ost 20= highersales on average &or stores and

T0= &or online

Co#pared to the average #onth

sales are t%ice as high in(ece#/er even tho"gh the e.ecthas decreased every year &or the

last three years

Praph sho%

highest sales All 10 days a

?2$%

?5$%

!ternal e.ects a.ect sales heavily and are taken intoconsideration &or the sales #odel 7slide 2;2:


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N"#/er o& open stores Ne% stores opening Share o& pr

arge variation o& open stores

since 2012 %ith /oth increasesand decreases in n"#/er o&

stores

Share o& pro

Ne% storesales

Averagesales

Sales are very high d"ring the

Brst days a&ter opening /"tdrop U"ite &ast and reach a

steady state in less than t%o%eeks

Clear corre

conversion %stock levels

average stocincreasing

Share o& prod"cts in stock is not directly considered in the #odel d"e to #"lticollinearity and non syste#atice.ects


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he total #edia spend o& the ind"stry has decreased ovetho"gh the share o& voice &or MediaMarkt keeps on shrink


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Media spend ind"stryMediaMarkt share o& voice

he total ind"strycyclic pattern %her%ith #ost &oc"s in (then decrease inv

the /eginning o&

'n the /eginningMediaMarkt lost #"%hen lo%ering its in

O 8lease note that#issing (R invest#

lack o& reported

PR$SS M('A S8N(

Note that this analysis is /ased on RM data %hich is so#e%hat di.erent to the act"al #edia spend

MediaMarkt and lgiganten have a si#ilar #edia strategy201 and 2014

Media Mi! 201


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C i ht © N All Ri ht R d

5=

4=?=

0=0=

25=

Mediainvest#ents7000 000 S>:

J4=

25=

1=0=0=

44=

=1=

1=0=

20=

$$)

8rint

Radio'nternet

(M

4?22@=

MediaMarkt

J?0

4?=

lgiganten

Share o& voice

124

@=

Netonnet

22=

5F=

0=0=

1F=

1F0

12=

$N

J5=

5=1=

1=

?=

112

J=

Si/a

0=0=

2=

10=?=

0=1=

21=

Mediainvest#ents7000 000 S>:

Media Mi! 2014

@=

0=

1?=0=0=

5J54@=

lgiganten

12F11=

Netonnet1=

J0=

1=0=

1?=

1FJ1J=

$N

Share o& voice

2=

54=

2=

21=

504=

Si/a

4

1=1=@=

5=42=

2=

1=1=

$$)

8rint

Radio

'nternet

(M

24120=

MediaMarkt

Note that this analysis is /ased on RM data %hich is so#e%hat di.erent to the act"al #edia spend he res"l#issing direct #arketing


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he print strategy shi&ted in 2014 %ith #"ch less invest#papers as (N


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C i h ll i h d

)ela YstergZtland S#[landsposten Qpsala Nya idning MittMe

YstgZta Correspondenten Ior[s idning NorrkZpings tidningar ]ZnkZp

Metro S tockhol# (agens Nyheter PZte/orgs-8osten P8

8rint strategy over ti#eChange in #edia invest#ent

strategy201 2014

8lease note that this slide is /ased on the net #edia data %hile the #odelling in the "pco#ing chapter is "singeg i#pressions data and R8 data to distri/"te the #edia &"lly correct over ti#e


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>al#ar8osten - '/ladning Ior[s idning - 'IA(N'N

]ZnkZpings- 8osten - 'IA(N'NP > - .ekt - 'IA(N'NP

Qpsala Nya idning - 'IA(N'NP )ela Sk[ne - 'IA(N'NP

(R strategy over ti#eChange in #edia invest#ent

strategy201 2014



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n" vn" Mo/ilt Acc"en (isplay A&ton/ladet Mo/il Ilocket

(agens Nyheterse +idespace AI !pressense eeads AI A&ton/la

(isplay strategy over ti#eChange in #edia invest#ent

strategy201 2014



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S"# o& '#pressions S"# o& Clicks

Search activity over ti#eChange in #edia invest#ent

strategy201 2014



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Social #edia sho%s a so#e%hat discrete pattern e!ceptlast %eeks o& 2014 %here the strategy %as contin"o"s a

Change in #edia invest#ent


84/105



85/105


+eekday strategy per #edia

T7 6 6 .0#T'

!6(0 #0+(!=M6(! 0'=('


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#edia #ore &air

8ris6akt;8ricer"nner;Poogle;


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Share o& visitors /eing trackedleads

8ris6akt 8ricer"nner


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okt-12 ".t &Zr Media Markts \gareokt-12 Media Markt l\gger e!pansion p[ isokt-12 Media Markt /lZderokt-12 Media Markt varslarokt-12 Ar/etslZsa "nga /lev drea#tea#

okt-12Media Markts \gare &[r s\nktkredit/etyg

okt-1S[ illa "te \r Media Markt ;St\ngning avSt Iernstorp

^ ^nov-1 Media Markt /6"der p[ sterotypa kZnsrollernov-1 Media Markt i ]ZnkZping kry#pernov-1 Media Markt kreditv\rdighet s[gas

apr-14 ".t &Zr Me

and 8rint ads are #issing %hile $nline ads see#s to snoticed at a lo% rate

I d t ki tih / d & l


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Ad a%areness Seen ads Seen print ads Seen internet ads

Irand tracking over ti#e he /rand &"nnel

!da;areness!;areness )(M/ToM*

+onsideration

.reerence

+ustomer at)sometimes/o ten*

Avg 2014 (i. vs201

4J -2=

55 ; 15 -4= ;-F=

0 -@=

14 -@=

50 ;1F

-4= ;-11=

4est prices 15 -1@=

he lo%er presence o& ads also a.ects the 'M a%areness oM is #ost serio"sly a.ected

Irand tracking over ti#ehe /rand &"nnel


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A%areness A%areness 'M A%areness oM


!d

a;areness!;areness )(M/ToM*

+onsideration

.reerence

+ustomer at)sometimes/o ten*

Avg 2014 (i. vs201

4J -2=

55 ; 15 -4= ;-F=

0 -@=

14 -@=

50 ;1F

-4= ;-11=

4est prices 15 -1@=


91/105


92/105

he visits #ost o&ten state#ents have dropped over the



93/105


isits so#eti#es isits #ost o&ten isited ho#ep


!d


+onsideration

.reerence

+ustomer at

)sometimes/o ten*

Avg 2014 (i. vs201

4J -2=

55 ; 15 -4= ;-F=

0 -@=

14 -@=

50 ;1F

-4= ;-11=

4est prices 15 -1@=

he perceived V/est pricesW attri/"te has dropped heavillast year



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Iest prices 7#est prisv\rd:


!d


+onsideration

.reerence

+ustomer at

)sometimes/o ten*

Avg 2014 (i. vs201

4J -2=

55 ; 15 -4= ;-F=

0 -@=

14 -@=

50 ;1F -4= ;-11=

4est prices 15 -1@=

$vervie% o& #edia invest#ents &or Media Markt 2014 vs

8R'N (R ('S8AK +II SY> $Q($$R Sociala #edier RA('$


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=

20=

=

4==5=

2=1=0=

(M

5=

?=5=

5=

2=

8$SN7 A(R$(RQppslAdressAMS8;8$SN)ela Sk[ne - 'IA(N'NP

>

$

8rint

1J=

1=5=

4=

?0=

PZte/orgs-8osten P8

(agens Nyheter

)ela YstergZtland

(isplay

2=

11=

F=@=

4F=

A&ton/ladetse

Ilocketse

eeads AI

(M

?J=@=

4=

=

1J=

8$SN7 A(R$(RQppslAdress


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R8 in A 25 5F over ti#estrategy

201 2014

l-giganten a/ Media#arkt

Media 'nvest#ents and Irand tracking over ti#e

Irand tracking over ti#e 7Moving average F %eeks:


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g 7 g g :

Media 'nvest#ents and Irand tracking over ti#e



98/105


g g g

Irand tracking over ti#e



99/105


Co#pared to lgiganten Media #arket has a lo%er shareespecially in the s"##er and aro"nd christ#as

Media MarCtShare o& #edia invest#ents every #onth


100/105


lgigantenShare o& #edia invest#ents every #onth

8roBt #argin

Average proBt #argin over ti#e


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Average receipt

Average reciept over ti#e


102/105


he role o& So



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8ositivee.ect d"e

to largeshare o&

voice

Negativee.ect d"e

to lo% shareo& voice

Al#ost all /rand tracking varia/les have a positive e.ectinvest#ents



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he i#portant oM varia/le is clearly a.ected /y #ediainvest#ents



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Documents

2015-04-01 Media Markt - Sales Modelling Presented.pptx