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Prima Ham's Marketing Transformation

executive summary

Phase 1: Optimizing "Quantity"

The need for objective indicators in budget formulation

The company was implementing a multifaceted marketing strategy for its flagship product, "Koukun®," including TV commercials, digital initiatives, and various promotional campaigns. However, it was difficult to compare and verify the effectiveness of each strategy side-by-side to determine how much each contributed to sales.

Under these circumstances, when formulating the budget, there was an unavoidable tendency to rely on proposals from advertising agencies and the continuation of past practices. Within a limited budget, there was a need for objective, fact-based verification to determine how much to invest in each initiative to generate sales.

The potential of the policies that have been revealed

XICA'sMMM analysis platform "MAGELLAN"This allowed us to quantify the effectiveness and efficiency of each measure, and several important facts became clear.

• The efficiency of TV commercials:The analysis revealed that TV commercials not only have a ROAS above average, but also contribute significantly to sales. Furthermore, it was discovered that there is a "long-term cumulative effect (Brand Equity)" that influences results not only immediately after the campaign but also over the medium to long term. When this is taken into account in the evaluation, it was found that efficiency increases even more significantly.
• The role of digital initiatives:The "long-term cumulative effect" was also confirmed for official social media accounts (LINE, X, etc.). This suggests that regular contact with friends and followers may be contributing to the building of brand image from a medium- to long-term perspective.

• Variation in campaign efficiency:By taking a closer look at various campaigns being implemented nationwide, we were able to quantitatively compare which campaigns were efficient and which had room for improvement, based on differences in participation hurdles and cost structures.

Decision-making based on "maximizing ROAS"

Based on these analysis results, the budget for the following year was to be considered not by simply following the previous year's approach, but by establishing a clear criterion: "maximizing ROAS." Specific action plans were formulated, including determining the optimal amount of TV commercials to air, adjusting budget allocation for digital initiatives, and reviewing some campaign content. This data was also used to explain the situation to management, leading to a budget allocation that was well-received.

"By using XICA's analysis results, which are not affiliated with advertising agencies or media companies, we were able to provide objective explanations to our employees and management, rather than just 'data that suits their convenience.'"(Mr. Katagiri)

Phase 2: Optimizing "Quality"

Exploring brand strategies to break away from price competition

After gaining direction regarding the optimization of the "quantity" of investment, the company began to restructure the "quality" of its brand strategy.

The ham and sausage industry is currently facing a challenging environment, with rising raw material costs leading to price revisions and a general decline in overall market production. In this environment, for "Koukun®" to maintain and expand its market share, it needed to strengthen the motivation for customers to specifically choose "Koukun®" rather than competing on price, and become a brand that continues to be selected.

Within the company, the "11 kinds of freshly ground spices" and the "fragrance of cherry wood smoke," which are made using a unique manufacturing method, were recognized as strong selling points. However, the next challenge became verifying how well these points were conveyed to consumers and how they translated into purchasing behavior. Furthermore, the establishment of the "Marketing Headquarters," which integrates research and analysis, product planning, and sales promotion departments, has created a system that allows for the seamless execution of strategies and measures.

Identifying the Key to Royalization

XICA'sCMM analysis platform "COMPASS"Using this method, we worked to identify the drivers (keys) for fostering loyalty among "Koukun®" purchasers.

As a result, in addition to identifying the decisive factors in brand selection, we also uncovered a perception gap between current communication and consumer expectations. Further analysis suggested that depicting "specific usage experiences (scenes)" in everyday life is effective in generating empathy for a brand.

In response to this, we are now shifting the focus of our communication strategy to creating and pursuing "experiential value" that is deeply integrated into the context of consumers' lives.

*Since the specific analysis results and strategic policies are not publicly available, the actual analysis results have been processed and masked.

- Difference in participant scores:Score difference between "Regular Users" and "Royal Users" (Rating of "Royal Users" - Rating of "Regular Users")
Switch rate:The change in the probability of transitioning from a "regular user" to a "loyal user" when the driver element score increases by 1 point (magnitude of impact).

Improving the accuracy of communication through data

In response to these results, the company shifted to a process that more clearly defined its communication direction. Briefings with agencies now include presenting a clear, data-driven appeal, enabling them to consider specific strategies and actions aimed at fostering user loyalty.

"These analysis results play a crucial role in ensuring we move forward without wavering, rather than relying on 'gut feeling' judgments based on experience. For example, in the past, projects were sometimes decided based on who the talent was, but now we can proceed logically, thinking, 'This person is a good fit because this type of project is needed for this type of target audience.'"(Mr. Katagiri)

Future plans and summary

Topics to consider next

For this company, which has introduced a data-driven decision-making process, establishing a PDCA cycle is a crucial theme going forward. They aim to create a cycle in which they continuously monitor the strategies they have formulated and their implementation results, and reflect these findings in their actions through budget optimization and creative effectiveness verification using MAGELLAN.

"XICA understands the 'things that need to be done' that we haven't been able to articulate, and they have been a reliable pace-setter, running alongside us when needed. Also, because this project was launched at the same time as the establishment of the Marketing Department, I feel that it has led to positive changes, such as field members deepening their understanding of customers through analysis and becoming more proactive in their work. The newly established organization still has many areas where it is immature, but we would like to work with XICA to improve its skills as well."(Mr. Katagiri)

Summary

With rising raw material costs and rapidly changing markets, relying on the "power of brand" rather than price competition is a crucial challenge for many companies. Prima Ham's case study offers valuable insights into tackling this transformation.

The company has improved the accuracy of its decision-making processes by incorporating objective data, which has allowed it to calmly assess its current position and move away from a decision-making process that tended to rely heavily on proposals from external partners and qualitative opinions from within the company. By optimizing the "quantity" of investment, demonstrating the intrinsic value of its brand with data, and reviewing the "quality" of its strategy, it is only by driving both of these wheels that a strong business foundation, independent of price, can be built.

Furthermore, this data becomes a "common language" that transcends departmental boundaries, ensuring the entire organization is aligned and creating strategic consistency. It transforms the next step that marketers are confident in into "solid evidence" that drives the organization. We hope this case study will be helpful to those of you working on brand building going forward, helping you move your company forward.

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Even if your challenges differ from this case study, please feel free to contact us if you are interested in optimizing your marketing or making decisions using data.