XICA Launches "XICA COMPASS", a New Solution for Analyzing Why Consumers Choose Brands "XICA COMPASS" to be Launched on August 21

XICA Corporation (Headquarters: Minato-ku, Tokyo; President & CEO: Yoshiaki Hirao; hereafter "XICA") will begin offering a new solution, XICA COMPASS (hereafter "COMPASS"), which analyzes consumers' reasons for choosing a brand and quantitatively identifies the key drivers for investment to make a company the preferred choice. ), a new solution that quantitatively identifies the key drivers for investment in order for a company to be selected, was launched on August 21, 2024.

At the Marketing Agenda held on June 20, 2024, Mr. Katsuaki Nagumo, Executive Officer and CMO of TORIDOLL Holdings and Director and General Manager of Marketing Division of Marugame Seimen, introduced the project with Marugame Seimen that led to the development of "COMPASS". This release contains an agenda. This release also announces the release of an event report (https://xica.net/xicaron/eventreport_marketingagenda2024/) summarizing the day's session, which won first place in the Agenda Awards.

The press release is also available on our website.

https://xica.net/action/consumer-mix-modeling-compass/

■What is the new solution "COMPASS"?

https://xica.net/action/marketing-agenda-2024-event/

COMPASS" is a solution that clarifies the brand selection mechanism between a company and its competitors, and identifies the factors (= key drivers) that a company should invest in in order to be selected.

Based on data from consumer awareness surveys, it identifies which of the following factors influences brand selection: consumer attributes, marketing 4Ps (product, price, place, and promotion), CX (customer experience), and brand assets (brand performance, image, recognition/recall, etc.). The feature of this system is that it enables side-by-side comparison and evaluation of which elements of a brand are most likely to be chosen by customers. The solution was designed by examining the mechanism of brand selection from an academic perspective, referring to approximately 1,000 articles on consumer behavior and psychology.

Side-by-side quantitative comparison and evaluation of factors involved in brand selection

COMPASS calculates the probability that users of competing brands will switch to your company and by how much if you raise which factors, along with numerical values, while improving accuracy through a two-step regression analysis and over 1,000 repeated simulations.

XICA COMPASS Analysis Overview

XICA COMPASS quantitatively shows "why your company is selected/why your company is not selected," so you can predict how much your company's winning rate will increase by what you should appeal to the public.

Output image of XICA COMPASS

Conventional consumer awareness surveys (questionnaire surveys) evaluate brands based on the average of their scores, or on how high or low their scores are compared to their competitors. However, the high score does not necessarily lead to an increase in the brand selection rate. In addition, since the impact of each item on brand selection cannot be quantified, there were concerns about the effectiveness and reproducibility of using this method to determine priorities in order to generate results.

■ Background of Development

XICA launched its MMM (Marketing Mix Modeling) solution "XICA MAGELLAN" in 2016, and has supported the marketing activities of more than 270 clients to date.

However, according to a survey on MMM conducted by XICA (*1), 67.3% of the companies that have used MMM answered that they felt MMM had some issues.

Status of Utilization of Analysis Results from MMM

Furthermore, when we delved deeper into the sense of issues among those companies that have used MMM and are currently implementing MMM, the most frequently cited issue was that "new issues that cannot be analyzed by MMM are emerging.

Challenges in utilizing MMM

Although MMM can be used to visualize marketing effectiveness and optimize budget allocation, it cannot explain "why this budget allocation is being used" and "what aspects of the measures should be improved to increase ROI.

According to XICA's survey (*2) on empathy for marketing issues, "The current way of doing things does not work in a changing and increasingly complex business environment (57.8%)," "Decision-making is difficult (48.1%) amid similar changes," and "We are unable to understand and agree on the factors for our company to win based on data (46.6%). The top three responses were: "We are not able to understand and agree on the factors for our company to win based on data (46.9%)".

Sympathetic Marketing Challenges

With the business environment undergoing major changes, such as the spread of the coronavirus and high prices, about half of marketers feel that decision-making is difficult. In addition, while there are a variety of marketing issues that need to be addressed, it is apparent that they do not have a clear understanding of which issues to prioritize and what to invest in to achieve business growth.

XICA developed "COMPASS" as a solution to "identify the key drivers for business growth that cannot be analyzed by MMM" based on these findings.

Issues that can be solved with the new "COMPASS" solution

COMPASS identifies the consumer attributes to target, the 4Ps of marketing that are important, CX, and brand assets that have a high impact on purchasing behavior.

This enables us to understand which issues to prioritize and what to invest in to achieve business growth amidst a changing and increasingly complex environment and a variety of issues to tackle, and can be used to formulate strategies for business growth. It can also be used for annual marketing strategy formulation, rebranding, and new product development.

Furthermore, by combining the MMM solution "MAGELLAN," it is possible to quantitatively evaluate the degree to which actions taken based on analysis in COMPASS have led to results. By repeating the analysis back and forth between MAGELLAN and COMPASS, you can optimize strategies and tactics to maximize ROI and improve the accuracy of your marketing efforts.

About the session in which XICA participated

XICA welcomed Mr. Katsuaki Nagumo, Executive Officer, CMO of TORIDOLL Holdings and Director and General Manager of Marketing Division of Marugame Seimen, to the Marketing Agenda on June 20, 2024 for a session titled "Behind the Scenes of Marketing Strategy to Increase Win Ratio - How to Use Marugame Seimen Style Data Science for Business". Mr. Katsuaki Nagumo, Director and General Manager of Marketing Division, Marugame Seimen Co.

Many marketers are concerned with the question, "How can we increase the win rate of our business? In order to increase business win rates, it is necessary to accurately grasp the ever-changing market environment, including the diversification of customer values, and to respond in an agile manner. The use of data science is effective for this PDCA cycle, but not many companies are fully utilizing data science in their marketing activities.

While the entire restaurant industry was hit by the Corona disaster, Tridor Holdings quickly recovered its business and recorded a 49.3% year-on-year increase in business profit for the fiscal year ended March 2024, a record high. In this session, we discussed the company's marketing strategy behind its strong performance and its use of COMPASS and other data science tools, which won first place in the Agenda Awards.

▼ Click here to view the day's event report.

Behind the Marketing Strategy to Increase Winning Rates ─ Using Data Science the Marugame Noodle Way [Marketing Agenda 2024 Event Report] | XICA Inc.

https://xica.net/xicaron/eventreport_marketingagenda2024/

(*1) XICA Announces Results of "MMM Market Survey" Widening Gap in Data Utilization in the Marketing Industry (XICA Inc. Press Release)

https://xica.net/action/marketing-mix-modeling/

(*2) Survey outline

Survey conducted by: XICA Co.

Survey conducted by: Intage, Inc.

Survey method: Internet research

Survey Area ： Japan

Survey Period ： May 17-20, 2024

Survey target ： Company employees at managerial level or above working for a company with annual sales of 10 billion yen or more

Number of respondents ：422

■Company Information

XICA is a data science professional company that supports data-driven decision making. We provide services to "target and maximize" sustainable growth by leveraging data science to address our clients' business challenges. We use high-precision "data science" supported by leading data scientists and researchers in Japan and abroad as our core weapon, and link it to business and marketing results through the high level of "application capabilities" of our experienced personnel in various fields such as "strategy consulting," "implementation support," and "technology implementation. We also provide "strategic consulting," "execution support," and "technology implementation" through our highly experienced human resources.

Representative: Yoshiaki Hirao, President and CEO

Location: 14F Roppongi T-Cube, 3-1-1 Roppongi, Minato-ku, Tokyo

Established: 2012

URL ： https://xica.net/

Facebook ： https://www.facebook.com/XICA.japan/

X ： https://twitter.com/xica_official

The name and logo of XICA and XICA are registered trademarks or trademarks of XICA Corporation in Japan and other countries.

Other company and product names mentioned herein are also trademarks or registered trademarks of their respective companies.