MMM (Marketing Mix Modeling) Services

MAGELLAN

This service maximizes marketing ROI and supports sustainable business growth by optimizing marketing investment amounts and budget allocation.

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OUR CLIENTS

Focused on major companies
We have a track record of doing business with over 250 companies.

XICA has been running MMM for over 10 years with over 250 brands.
MAGELLAN was born after over five years of research and development, and is an industry-leading product that enables accurate analysis and sustainable business growth.

WHY DO YOU NEED MMM? Why do we need MMM?

In today's complex marketing environment, many variables affect business outcomes: promotions, pricing, competition, seasonality, and even weather. To accurately measure marketing ROI and understand the factors that influence business outcomes like sales, you need a comprehensive measurement framework that takes these factors into account.

Without understanding these factors and their impact, it's difficult to make optimal decisions regarding your marketing strategies and tactics. That's where our MMM services come in, providing a holistic view to help you make data-driven decisions with confidence.

FUNCTIONS MAGELLAN FEATURES

Considering the indirect effects of marketing

It is possible to visualize not only the direct effects on the results of marketing activities, but also the indirect (ripple) effects.

On-off integration allows you to properly evaluate each measure and maximize business results.

Considering the mid- to long-term effects of marketing

You can visualize not only the immediate impact of your actions, but also the impact they will have on your bottom line over the days, weeks, and even years to come.

It will be possible to make optimal marketing investment decisions to continue winning

Visualize the impact of external factors (competition, seasonality, etc.)

Get a more accurate picture of the results of your marketing efforts by taking into account the impact of uncontrollable external factors such as weather, seasonality, macroeconomic trends, and competitive activity.

Ability to accurately grasp changes in the market environment and optimize marketing

Response curves and saturation points of each media
simulation

Simulation of response curves and saturation points for each media

It is possible to accurately predict how business results will change depending on the amount of investment for each medium, taking into account flexibility.

Budget allocation can be optimized based on simulations.

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KEY OUTPUTS Main Output

Quantify the impact of marketing initiatives on results

Calculate the impact (contribution) of marketing on results. Evaluate the effectiveness of all marketing elements using the same indicators.

The effectiveness of each marketing measure and
Evaluate efficiency

Evaluate the effectiveness and efficiency of each marketing initiative

We comprehensively assess the effectiveness, efficiency, and investment costs of each marketing initiative to determine the outcome of the initiative and appropriate allocation of resources.

Simulation of optimal budget allocation

Simulate optimal marketing budget allocation based on objectives such as maximizing results and minimizing costs.

WHAT CAN YOU EXPECT What you can expect from MAGELLAN

Expert-led processes aligned to your business needs

MAGELLAN goes beyond just providing tools, we provide dedicated consultants and analysts to support our clients in meeting their specific needs and challenges, providing practical, concrete insights that are more directly linked to their goals and enable actionable results.

Balancing complexity and transparency

We use transparent and explainable models to increase trust in the data. We design models together with our clients and provide reliable analysis results by being open about every process. This allows the whole team to accurately understand the decision-making process and obtain insights that are convincing.

Quarterly or monthly reports and model updates

While traditional MMM analyses are typically conducted once or twice a year, MAGELLAN provides quarterly or monthly reports and model updates, delivering timely, actionable insights aligned with clients' planning and budget cycles, ensuring decisions are always based on the latest models.

A neutral and unbiased approach

Because we have no relationships with any particular data assets or media businesses, we provide neutral and unbiased insights. We are dedicated to helping our clients achieve sustainable business growth and provide the best possible support.

For inquiries about MMM projects, please click here

CLIENT SUCCESS STORIES & TESTIMONIALS Client Success Stories and Testimonials

PROCESS Process

Service Process Overview

1Project goals and
Setting the range

First, we discuss and clarify the goals and scope of the project, which allows us to set the most effective analytical framework for the specific business challenges and marketing objectives that our clients want to achieve.

2Data collection and
Cleansing

Collect the necessary data* from the client, cleanse it, and prepare it for analysis. Data collection requires at least 13 months' worth of data to adequately capture seasonality, and 2-3 years' worth of data is recommended.

3modeling

Using MAGELLAN's MMM modeling technology, a model is built based on the collected data, and is designed to evaluate the direct and indirect effects, as well as the short-term and long-term effects, of the measures.

4Analysis and interpretation

The results of the model are analysed to gain insight into how marketing activities and external factors affect sales and other business outcomes, as well as their cost-effectiveness and efficiency.

5Reporting

Based on the analysis results, we perform simulations and predictions to provide clients with insights and recommendations, which allow them to develop concrete action plans that help optimize their operations.

* Required data:
Examples of data required for a MAGELLAN project are sales and conversions, i.e. KGIs to be optimized, marketing activity data, and non-marketing factor data.

Examples of marketing activity data: online advertising impressions, views, clicks, engagement, organic search volume, website and store traffic, TV and radio GRPs/TRPs, magazine and newspaper circulation and readership, etc.
Examples of non-marketing factors: promotions and discounts, economic indicators, weather, seasonality, competitor trends, etc.

Project Schedule

This entire process depends on the time it takes to collect data, but it usually takes about three months before the first report is issued, including confirmation of the initial analysis results (analysis model and accuracy) in order to finalize the model together with the client.

Building the foundation for the marketing PDCA cycle

Through analysis and reporting using the latest data, we aim for continuous improvement and optimization by repeating the PDCA cycle and hypothesis verification on a quarterly or monthly basis.

“Modern MMM (Marketing Mix Modeling)” Practical Guide for Marketers

MMM quantifies the effectiveness of marketing activities and supports optimal budget allocation and decision-making, but its effective implementation requires specialized knowledge in areas that many marketers are not yet familiar with. Experience required.
Therefore, from the perspective of XICA, which has been working alongside and supporting over 2016 major companies since 250, we have created a guide that summarizes the know-how to successfully implement MMM.

MAGELLAN VS TRADITIONAL MMM Differences between MAGELLAN and conventional MMM

Modeling with Path Analysis

We build a multi-stage model that depicts the customer journey, from awareness to business outcomes such as purchase, and we also build a multi-stage model to gain a deeper understanding of the individual and overall impact of each marketing initiative.
The advantage of path analysis is that it can correctly grasp the impact of measures that have large indirect effects (ripple effects), such as cognitive measures. It allows for proper evaluation without underestimating or overestimating each measure.

Modeling using multi-stage multiple regression analysis

Brand Equity Analysis

We evaluate the impact that marketing activities have on the baseline results over the long term. By visualizing fluctuations in brand value, which is difficult to quantify, we support the formulation of sustainable growth strategies, including reviewing the effectiveness of measures.

Backtesting to verify and adjust models

Models created by MAGELLAN are back-tested using past data that was not used for learning to verify and adjust the accuracy of the model. This increases the reliability of the model and enables more realistic predictions and optimization.
This is why MAGELLAN requires at least 13 months of historical data. The model is trained on one year's worth of data, and the model predicts business results in the 1th month, which are then compared and verified against the actual results.

Systemization and automation

We ensure the speed of model building and analysis without sacrificing accuracy or flexibility, enabling faster decision-making and adapting to market changes, enhancing your competitive advantage.

Building a customized model

A major advantage of MAGELLAN's multi-stage modeling technology is that it allows us to customize models to fit our clients' specific marketing hypotheses, business needs and industry characteristics.
The diagram is an image, and the number of steps and the variables within each step can be increased or decreased. XICA consultants and data scientists will work with the client to design an appropriate model.

HOW IT BENEFITS YOUR WHOLE ORGANIZATION The value MAGELLAN brings to your entire organization

Brand Marketing
For managers

We provide a 360-degree view of your marketing strategies to enable data-driven decision-making. We help you plan and optimize for sustainable growth, and support strategic decisions for long-term business success.

For analysts

With transparency into model design and analysis logic, you can be confident in the reliability and accuracy of your analysis.

For corporate planning and finance managers

With a clear understanding of marketing performance, effectiveness and efficiency, you can adjust your investment strategy to drive value creation and growth for your company.

Consultation on data utilization using MMM

MMM × CMM SYNERGY Synergy with CMM service "COMPASS"

By combining "COMPASS" and "MAGELLAN," you can optimize both the "quality" and "quantity" of your marketing, thereby realizing a growth cycle. "COMPASS" will clarify "who" and "how" you should approach, while "MAGELLAN" will provide the optimal budget allocation to maximize the ROI of those measures. This synergy will strengthen data-driven decision-making and dramatically improve the success rate of your company's marketing strategies.