Valvoline shifts gears to reach the Hispanic market through agent-based modelling

Damon Ragusa

Journal of Brand Strategy, 2014, vol. 3, issue 3, 290-294

Abstract: The ability to execute innovate marketing approaches has exceeded the ability to measure how those approaches deliver sales. As more and more marketers increase the marketing they use, they need to add new ways to measure results. Older analytic approaches cannot evaluate performance in this diverse and dynamic marketing world of seemingly unlimited options. In the case of Valvoline, that meant finding a way to incorporate their extensive ethnic research into a performance evaluation system that could help them choose the right mix of marketing tactics to reach those key shoppers. Adopting Think Vine's audience based approach supported by an agent-based modelling engine helped Valvoline improve the sales they achieved from marketing. This came from insights on how their key Hispanic shopper groups responded to various marketing tactics. By understanding how Hispanic shoppers responded to various marketing tactics. These insights enabled valvoline to increase some tactics while decreasing others. The results were a 15 per cent increase in sales from the same level of spending. Along with the improved sales from more effective allocation of marketing dollars, the analysis helped Valvoline identify the potential for growth in a new category they had never considered.

Keywords: marketing mix optimisation; Hispanic marketing; marketing budget; marketing performance; ethnic marketing (search for similar items in EconPapers)
JEL-codes: M3 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jbs000:y:2014:v:3:i:3:p:290-294

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