Modelling of a Dynamic Adaptation System of a Retail Enterprise

Гросул, Вікторія Анатоліївна; Askerov, Timur

doi:10.32838/2523-4803/69-4-11

Cited by 2 publications

(3 citation statements)

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“…Retailers should rely more and more on the omnichannel model of interaction with consumers and finding ways to optimize their media support. In the case of lockdown in the period of the COVID-19 crisis, the mobility and moving around the city of potential consumers significantly dropped, and there is a decrease in media response from advertising, so we need to find effective solutions to compensate for it, ensure a high level of company's readiness to challenges of the external environment [3] and achieve positive dynamics of business indicators.…”

Section: Introductionmentioning

confidence: 99%

“…In these circumstances, media activity and any actions of the retailer in relation to the required target level of business indicators should be justified as much as possible, which can be achieved through marketing mix modeling based on in-depth data analysis and comprehensive assessment of various external factors and the internal environment of the enterprise. All solutions must be generated and adapted to ever-changing market conditions [3] and ensure that goals are achieved in the most efficient way.…”

Section: Introductionmentioning

confidence: 99%

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Marketing Mix Modeling of Traffic to the Store Under the Covid-19 Crisis

Chornous

Fareniuk

2023

KSS

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The paper contains the results of marketing mix modeling for Ukrainian retail in conditions of the COVID-19 crisis. The main goals of the research are modeling the level of traffic to the store based on regression analysis and forming appropriate recommendations for media strategy. Estimating the influence of media on business KPI makes a basis for ROI calculations and optimization of budget allocation between communication channels by periods, formats, and optimization of media pressure. Models for offline and online traffic were constructed based on weekly data for 2018-2021 and since 2020 there is a strong impact of COVID-19 on traffic and media response. In 2020 there was a significant drop in offline traffic due to the lockdown, but also there was deferred demand, which was compensating for a part of the traffic. The results show that TV is the main driver for offline traffic and digital - for online, but there are also significant impacts of TV and digital on online and offline traffic, respectively. During the lockdown, the mobility of consumers dropped, that is, a decrease in response from Out of Home advertising; therefore, we need to compensate for this by higher activity in other media channels. Scenario forecasting of different media mix helps to select the most efficient strategy taking into account memory decay of advertising, period of activity, and weekly weights. Marketing mix modeling is an effective tool for business management, as it generates opportunities to improve ROI by more than 15% and ensures the achievement of business goals in the most efficient way. Keywords: marketing mix modeling, COVID-19, ROI, regression analysis, retail, traffic

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Marketing Mix Modeling of Traffic to the Store Under the Covid-19 Crisis

Chornous

Fareniuk

2023

KSS

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“…Attraction of new customers is among the key tasks to retail stores, what means the generation of online and offline traffic, which in turn will be converted into the appropriate level of sales and turnover. Given the intensification of marketing competition and the unstable economic situation, the emergence of new factors (Grosul et al, 2019), the task of maximizing the stores' traffic requires to find new effective solutions, and increases the relevance of the researches in this area.…”

Section: Introductionmentioning

confidence: 99%

Optimization of Media Strategy via Marketing Mix Modeling in Retailing

Fareniuk

Chornous

2023

ECO

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The paper describes the marketing mix modeling results for companies in nonfood retailing. The main objectives of the research are to demonstrate the viable way of making effective recommendations for optimizing the media strategy by modeling offline and online traffic to the stores based on econometric modeling and to develop a decision support system, which enhance the effective growth of business KPIs and an effective decision-making process. Econometric modeling, deeper data analysis, decision support were implemented on the data of one of the main retailers in Ukraine in a period before the full-scale Russian invasion. Estimating the impact of different communication channels on business results made basis for ROI calculations and optimization of media investments allocation among media channels by periods, video durations, type of advertising and with optimal weekly media pressure. ROMI calculation was based on the results of regression modeling, which estimate the level of traffic and sales generated by each media channel. The information-analytical decision support system based on an interactive dashboard has been developed for improvement of day-by-day business planning and management. The developed framework of regional strategy selection facilitates to the formation of a strategic vision on a regional scale and improves the quality of a regional media strategy.

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Modelling of a Dynamic Adaptation System of a Retail Enterprise

Cited by 2 publications

References 0 publications

Marketing Mix Modeling of Traffic to the Store Under the Covid-19 Crisis

Marketing Mix Modeling of Traffic to the Store Under the Covid-19 Crisis

Optimization of Media Strategy via Marketing Mix Modeling in Retailing

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