Marketing mix and spending levels are vital parts of the strategic plans of any branded FMCG business. Here is an example of how PIMS has helped business units identify the ‘correct’ level of marketing spend relative to competition and the strategic plan.

The marketing management team of a leading brand in the dairy spreads sector saw a need to appraise their new marketing plans – in particular, marketing spend and mix plus other critical strategic ‘levers’ which may affect the growth objectives for the brand over the medium term.

The brand, owned by a broadly based UK dairy food company, won a prominent blind taste test – a strong indicator of its product quality. The marketing management team recognized that they faced increasing competition from spreads and spreadable butters. Essentially, the brand competes for consumer preference in the broad ‘spreads in tubs’ market sector.

PIMS met with the marketing team to profile their key market characteristics and competitive positioning. In so doing, the key drivers of consumer choice in the category and the consumers’ ratings on those drivers of the brand versus competing brands were identified.

As a result of this profiling, PIMS was able to compare the brand against other FMCG brands with similar strategic profiles. The growth rates achieved, marketing expenditure levels, and key actions that underpinned successful growth among peers were determined.

PIMS’ analysis showed that brands similarly positioned which had ‘successfully’ grown incurred and sustained significantly higher levels of marketing expenditure (especially advertising) than the brand’s actual spend in recent years. Furthermore, profitable growth for analogous brands was achieved by improving consumer-perceived quality and the value-for-money position of the brand offer, relative to competitors’ brands.