Success Stories
Industrial Business
Utilizing internal data, Ozanne Analytics assisted an industrial division of a Fortune 100 company to control a business segment which no one had been able to develop. Utilizing the analysis for a subsequent strategy session lead to a streamlining of the delivery system allowing total market share growth from 34% to 43% while increasing profitability by nearly 100% and creating extremely satisfied customers.
Retailer
Ozanne Analytics’ analysis revealed the opportunities for revenue and profitability growth for a major regional convenience store chain. The details suggested internal store organization that allowed for better throughput of customers demanding immediate “convenient” service while also servicing high demand items such as cigarettes, lotto and propane. Over the following year, the new store design/organization increased revenues and profits by more than 15%.
Trade Shows
A ROX Scorecard has been developed for a large trade show organizer. The scorecard suggested that a large proportion of previous visitors to the trade show had a zero chance of attending the show. Consequently, the show organizers decided not to mail any of these zero probability former visitors any literature. This action was expected to save the organizers a few hundred thousand dollars. However, as the show approached, the number of confirmed intended visitors fell below desired levels and an additional half a million dollars was allocated for a mailing to the zero probability group. Not a single person from this group responded positively to the invitation, thus spending a half million dollars with no payback.
Pharmaceuticals
Working with a combination of internal information and data together with external product movement data, we demonstrated which sales (detail) calls were generating profitable business and which were not. The subsequent actions taken by the multi-national pharmaceutical company allowed them to reallocate sales activities to more profitable opportunities.
Non-profit contribution
Working with a large international non-profit organization, Ozanne Analytics determined the number and type of mailings that were most effective in securing donations from contributors. Implementation allows the non-profit organization to reduce its mailing costs with no negative impact on donations and majors reductions in the so-called “pest factor”.
Publishing
Ozanne Analytics has not always been successful in having clients adopt its findings. A publishing division of a major multi-national refused to accept projections for future demand for its print publications. “The is too low,” was the response from the client for a parsimonious Box-Jenkins forecasting model which showed a trend toward declining demand and revenues for the division’s publications. Internal models with high statistics showed demand would recover. Demand for the divisions products declined and the division has since been eliminated and the publications ended or sold.
Ozanne Analytics comment: A high statistic often hides interaction among variables which many consider acceptable, but which debilitates the forecasting capabilities of a model.
Strategy
A large Australian multinational knew that part of their marketing budget was not driving revenue or profits. The problem they faced is that they did not know which part of the budget was successful and which was failing. Ozanne Analytics employed its sophisticated ROX analysis to reveal that the company spent nearly 65% of its marketing promotion expenditures on activities delivering no revenue impact. Moreover, most of these activities negatively impacted profitability. In other words, thirty-five percent of the budget was driving huge revenue and profit improvements.
Armed with this knowledge, the business has begun to explore new promotional approaches that they previously would have been unable to afford. In addition, the analysis revealed that certain training policies were actually costing the company money rather than improving the business. Training modifications have been made eliminating the weakness.