XICA launches new solution "XICA COMPASS" to analyze consumers' reasons for brand selection
Marketing Agenda 2024
The event report, which won first place in the Agenda Award, is also published.
XICA Corporation (Headquarters: Minato-ku, Tokyo; President and CEO: Hirao Yoshiaki; hereinafter referred to as XICA) began offering a new solution, "XICA COMPASS" (hereinafter referred to as COMPASS), on August 2024, 8, which analyzes the reasons why consumers choose brands and quantitatively clarifies the key drivers in which companies should invest in order to be chosen.
In addition, at the Marketing Agenda held on June 2024, 6, we welcomed Katsuaki Nagumo, Executive Officer and CMO of Toridoll Holdings and Director and Head of Marketing at Marugame Seimen, to introduce the project with Marugame Seimen that led to the development of "COMPASS". This release summarizes the session that day, which won first place in the Agenda Awards.Event ReportWe will also announce the release of:
New Solution "COMPASSWhat is
"COMPASS" is a solution that elucidates the mechanism of brand choice between your company and your competitors, and identifies the elements (key drivers) in which you should invest in order to be chosen by your company.
Its distinctive feature is that it allows users to compare and evaluate side-by-side which of the factors that influence brand selection - "consumer attributes," "marketing 4Ps (product, price, place, promotion)," "CX (customer experience)," and "brand assets (brand performance, image, recognition/recall, etc.)" - should be raised in order to select their own brand, based on data from a consumer awareness survey. With reference to approximately 1,000 papers on consumer behavior and psychology, the mechanism of brand selection was examined from an academic perspective, and a solution was designed.
COMPASS calculates the probability that users of a competing brand will switch to your company if certain factors are improved, and calculates the numbers with increasing accuracy by repeating two-stage regression analysis and more than 2 simulations.
By quantitatively understanding "why your company is chosen/why it is not chosen," you can predict what appeals will increase your company's chances of success.
In conventional consumer opinion surveys (questionnaire surveys), brands are evaluated based on the average score or the score compared to competitors. However, there was an issue that a high score does not necessarily lead to an increase in the brand selection rate. In addition, since it is not possible to quantify the impact of each item on brand selection, there were concerns about the validity and reproducibility of using it to set priorities for generating results.
For more information about COMPASS, .
Development background
XICA began offering its MMM (Marketing Mix Modeling) solution "XICA MAGELLAN" in 2016, and has supported the marketing activities of over 270 clients to date.
However, according to a survey on MMM conducted by XICA (*1), 67.3% of companies that have used MMM responded that they "perceive issues with MMM."
Furthermore, when we dug deeper into the issues felt by those currently using MMM among companies that have used MMM, the most frequently cited issue was, "New issues are emerging that cannot be analyzed by MMM."
By utilizing MMM, it is possible to visualize marketing effects and optimize budget allocation, but it cannot explain "why this budget allocation is being made" or "what aspects of the measures need to be improved to increase ROI."
In addition, according to a survey conducted by XICA (*2) asking about empathy for marketing challenges, the top three responses were "As the business environment changes and becomes more complex, our previous methods no longer work (57.8%)," "It is difficult to make decisions (amid similar changes) (48.1%)," and "We are unable to understand or agree on the data-based factors that will enable our company to win (46.9%)."
Amid drastic changes in the business environment due to the spread of the coronavirus and rising prices, about half of marketers are finding it difficult to make decisions. In addition, with various marketing issues to address, it appears that they are not sure which issues to prioritize and what to invest in to lead to business growth.
Based on what emerged from these surveys, XICA developed "COMPASS" as a solution to "uncover the key drivers for business growth that cannot be analyzed using MMM."
New Solution "COMPASSIssues that can be solved with
COMPASS identifies the consumer attributes you should target, as well as the important elements of the 4Ps of marketing, CX, and brand assets that have the greatest impact on purchasing behavior.
This allows you to determine which issues to prioritize and what to invest in to grow your business in a changing and increasingly complex environment. It can also be used for annual marketing strategy planning, rebranding, and new product development.
Furthermore, by combining it with the MMM solution "MAGELLAN," you can quantitatively evaluate how much the actions taken based on the analysis in COMPASS led to results. By repeatedly performing analyses between MAGELLAN and COMPASS, you can optimize strategies and tactics to maximize ROI and improve the accuracy of your marketing.
About the session in which XICA spoke
At the Marketing Agenda held on June 2024, 6, XICA welcomed Katsuaki Nagumo, Executive Officer and CMO of Toridoll Holdings and Director and Head of Marketing at Marugame Seimen, to hold a session titled "Behind the scenes of marketing strategies that increase win rates: How to use Marugame Seimen-style data science in business."
Many marketers are concerned about how to improve their business success rate. To do so, it is necessary to accurately grasp the ever-changing market environment, including the diversification of customer values, and respond agilely. Using data science is effective in implementing this PDCA cycle, but not many companies are able to fully utilize data science in their marketing activities.
While the entire restaurant industry was hit hard by the COVID-2024 pandemic, Toridoll Holdings quickly recovered its business and recorded its highest ever operating profit, up 3% year on year, for the fiscal year ending March 49.3. In this session, we discussed the company's marketing strategy that supports its strong performance and its use of data science, including COMPASS, which led to the company winning first place in the Agenda Awards.
▼Click here to see the event report from that day
(*1) XICA announces results of "MMM Market Survey" - Widening gap in data utilization in the marketing industry (XICA Co., Ltd. press release)https://xica.net/action/marketing-mix-modeling/
(*2) Survey overview
・Survey organization: XICA Co., Ltd.
Survey organization: Intage Inc.
・Research method: Internet research
Survey area: Japan
・Survey period: May 2024th to 5th, 17
Survey participants: Employees with a section manager or higher position working for a company with an annual turnover of 100 billion yen or more
・Number of responses: 422
Company
XICA is a professional data science company that supports data-driven decision-making. We provide services to "target and maximize" sustainable growth by using data science to solve our clients' business problems. With high-precision "data science" supported by leading data scientists and researchers from Japan and overseas as our core weapon, we connect business and marketing results through the high "application skills" of our experienced personnel in various fields such as "strategic consulting," "execution support," and "technology implementation."
Representative: Yoshiaki Hirao, President and CEO
Location: Roppongi T-Cube 3F, 1-1-14 Roppongi, Minato-ku, Tokyo
Established: 2012
URL: https://xica.net/
Facebook: https://www.facebook.com/XICA.japan/
X: https://twitter.com/xica_official
*Saica and the XICA name and logo are registered trademarks or trademarks of Saica Co., Ltd. in Japan and other countries.
*Other company names and product names mentioned are trademarks or registered trademarks of each company.
[Contact for inquiries regarding this press release]
XICA Corporation Public Relations Officer: Kawabata
TEL: 070-1049-6954
E-MAIL:pr@xica.net