Our collaboration with the companies has covered both strategic and operational marketing problems such as optimal marketing mix allocation, long-term marketing effectiveness, measuring customer lifetime value and optimal ordering. We have applied our expertise in the automobile, retailing, kitchen built-in appliances, furniture and textile sectors for the firms ranging from small-size to big-size.
For example, in a recent empirical study, members of the Centre looked at the sales volatility threat at the retail level for several FMCGs. The project revealed that marketing actions are the sources not only for creating average sales, but also for producing sales volatility which is not a desired outcome due to many types of operational costs. Lower price and promotional growth rates lead to less volatility in sales growth. Marketing managers can track their own and competitors’ sales volatility to better understand their supply chain relationships, which in turn creates long-term competitive advantages.
In a different research project, the team focused on the computation of the optimal CLV achieved as a result of optimal mass and direct marketing actions. For a kitchen appliances firm, the team proposed optimal dynamic marketing budget allocation procedure that yields the optimal CLV. Marketing managers dealing with both one-to-one and mass marketing can use the model to determine the level of the price, how much money they should spend on each customer and on general advertising to maximize their CLV even if they have a high number of customers.
A full list of publications can be found here.