Marketing For Growth: Advanced Marketing Mix Analysis Helps Atkins Fatten Their Bottom Line

Linda Zink

Chief Insights Officer

Atkins Nutritionals, Inc.

Joy Joseph

Analytics Practice Leader

IRI

Product platform & marketing investment propelled Atkins resurgence

2015

With a 5-year CAGR of 17.9%, Atkins has been

on AN UPWARD TRAJECTORY, bucking the

trend in the otherwise mature $33 billion

Weight Loss / Diet Product category

2016+

2014

2013 Convenience-

Atkins Frozen

Continued innovation across

portfolio

Atkins $20 Million Ad

Campaign

Engage younger

consumer demos

Expand Share of Wallet with

highly relevant product

innovation

Expand

consumer

base

…DISCOVER A BETTER WAY TO EAT FOR LIFE

… and program participation provided a unique engagement model between trial & retention

CONSUMERS SEEKING AN EFFECTIVE APPROACH

TO WEIGHT LOSS…

BECOME “LIFESTYLERS”

Ongoing MMM program provided the support necessary to scale marketing investment efficiently

… However, it was also telling us growth, while outpacing category, was beginning to slow down

100

10

13

123 134

6.5 1.5

142

2012 2013 Mktg. Non-Mktg. 2014 2015 Mktg. Non-Mktg.

Further growth required realigning strategy to market dynamics

The challenge for marketing was expanding from the small footprint low carb had within

the Diet and Weight Control category, especially given the much smaller marketing budget

Atkins was working with vs. key competitors

As Atkins’ product portfolio expanded, innovation incrementality trended lower- better

understanding of consumer segment engagement and targeted marketing was required

to ensure need-states did not overlap and cannibalize growth

With increasing marketing spending, maintaining and growing ROI required analytics and

research to find to optimally allocate resources across campaigns and levers

With the demand amongst Boomers maturing, engaging and converting younger

consumers was critical for growth and this needed the right marketing strategy

Growing No or very little change

Understanding and influencing behavior at the consumer segment level was especially important

Penetration Rate Buy Rate Occasions (Trips)

Seniors

Retirees

Older Boomers

Younger Boomers

Gen X

Millennial

Declining

Impetus for new research

• Do different consumer segments respond differently to

advertising?

• Do different consumer segments respond to merchandising

tactics differently?

Key

Business

Questions

• Do we have opportunity to buy / leverage media more

efficiently?

• What is the optimal mix of messaging?

• How should we optimize marketing plans to drive our

strategy?

Implications

Micromarketing Optimization Powered by Consumer-centric Analytics

While MMM supports macro-marketing strategy, consumer analytics are critical for targeted growth

This affinity further enhanced through the right integration of marketing

touch-points most relevant to these micro-segments

These micro-segments gravitate to brands most

relevant to their particular needs

Existing need-states are evolving, driving the proliferation

of demand micro-segments

IRI leveraged a HH level overlay to traditional mix to determine how impacts vary by segment

Consumer Marketing Mix optimize

effectiveness across consumer

segments

Marketing Mix measures marketing

effectiveness across all consumers

High-Resolution Analytics Unmatched detail for traditional and digital

media touch-points

Synergistic Impacts Accurate cross media attribution of

integrated marketing effects

Hyper Granular Data Integrated across our partner network

including Rentrak-comScore, Facebook

and Google

Reliable Marketing Metrics Unmatched detail for traditional and digital

media touch-points

MMM creates the flight plan, Consumer Analytics provides the navigation to ensure your brand gets to its destination efficiently

Consumer Marketing Mix quantifies specific consumer

segments’ response to advertising, coupons and trade

promotions:

Technical Specs:

• Uses Random Coefficients Logit Model

• Household Transaction-Level Consumption data

for all category buyers tracked within the National

Consumer Panel during the analysis time period

• Model predicts probability of purchase for

household purchase transactions as a function of

media drivers, in-store activities and environmental

factors

Step 1: Leverage MMM to determine overall cross-platform marketing plans

TV- By Campaigns, Networks & Program genres

Display- By display type and property

Paid Search by campaign and key word genre

Focus for Atkins was TV, but this can be done across multiple channels.

Step 2: Develop consumer segment level marketing responsiveness to customize overall plan

Response Index for each group is relative to the other group’s indices; NR – Variable not read / not significant in the model

Response =

Segment Sales Attributed to Marketing Channel X 100

Index Total Sales Attributed to Marketing Channel

Mille

nn

ials

Gen

X

Yo

un

ger

Bo

om

ers

Old

er

Bo

om

ers

Reti

rees

Sen

iors

Mille

nn

ials

Gen

X

Yo

un

ger

Bo

om

ers

Old

er

Bo

om

ers

Reti

rees

Sen

iors

TV

Print

Online Display

Paid Search

Paid Facebook

Organic Social

PR

FSI

Trade

>120

80> <120

<80

Index Key:

Effectiveness Index Exposure Index

Insights & Impact

Atkins had a significant opportunity to leverage multiple media vehicles to achieve specific objectives around new buyer acquisition, retention and cross purchase

Targeted messages were developed by a media vehicle to optimize consumer response across high opportunity consumer segments.

A comprehensive activation plan was developed to counter base headwinds using highly optimized TV, supported by Paid digital activation to target younger consumers, while price promotions were selectively deployed by retailer to drive retention with older consumers