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Revolutionizing Marketing Strategy: Senior Manager Saurabh Kumar Drives $35M In Savings With In-House MMM Model And Forecasting Innovations

How Saurabh Kumar’s Data-Driven Innovations at Kraft Heinz Delivered $35M in Marketing Savings and Revolutionized Operational Efficiency.

Saurabh Kumar
Saurabh Kumar
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In an era where data-driven decision-making has become a cornerstone of successful business strategies, Saurabh Kumar, Senior Manager of Data Science and Marketing Analytics at Kraft Heinz, has emerged as a trailblazer. His innovative approaches to marketing strategy have led to significant cost savings and operational efficiencies, culminating in a remarkable $35 million in savings for the global food giant. Kumar’s work not only underscores the power of advanced analytics but also highlights the critical role of in-house solutions in optimizing marketing spend.

Since joining Kraft Heinz in January 2023, Kumar has been at the forefront of the company’s data science initiatives, leading a team of highly skilled data scientists in the Advanced Analytics team. His team’s work spans multiple business units, including marketing, sales, resource allocation, and revenue growth management, contributing over $200 million annually to the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Kumar’s leadership in developing data products has empowered Kraft Heinz to make informed, data-driven business decisions that drive growth and efficiency across the organization.

One of Kumar’s most notable achievements is the development of an in-house Media Mix Model (MMM). This sophisticated tool has revolutionized how Kraft Heinz allocates its substantial annual marketing budget of over $350 million across various channels and brands. By providing a data-driven strategy for optimizing the media mix, the MMM has enabled Kraft Heinz to enhance profitability through the strategic reallocation of promotional spend to more efficient channels. This model alone has saved the company an impressive $35 million by identifying and reallocating funds away from less effective marketing channels.

The MMM’s insights have had a far-reaching impact across Kraft Heinz, influencing brand budgets set by the Central Finance team and guiding the e-commerce and retail media network teams. These teams, responsible for managing direct response and display advertising across major retail platforms like Walmart, Target, and Kroger, have benefited from the precise data-driven recommendations generated by Kumar’s model. Furthermore, these insights have been instrumental in helping the sales team allocate funds more effectively for discounts and promotions, maximizing their impact and return on investment.

Kumar’s contributions extend beyond the MMM. His automation of the post-campaign analysis process has led to significant operational efficiencies within Kraft Heinz. Prior to his intervention, evaluating the results of marketing campaigns involved labor-intensive processes that required over six hours of analysis. However, with the introduction of an RShiny-built post-campaign analysis tool, which employs a causal framework, this time has been reduced to just 30 minutes. This dramatic reduction in analysis time has streamlined operations and allowed for quicker decision-making, further enhancing the company’s marketing effectiveness.

In addition to these innovations, Kumar has also developed an in-house household penetration forecast model that has saved Kraft Heinz $100,000 annually. Previously, the company relied on external service providers for this critical forecast, which plays a crucial role in strategic planning and budget optimization. By internalizing this process, Kumar has not only improved the accuracy of the predictions but also enhanced the company’s self-sufficiency, ensuring that resources are allocated more effectively.

Kumar’s expertise extends to assessing retail media networks, a vital component of Kraft Heinz’s strategy for optimizing marketing investments across platforms like Amazon and Instacart. His work ensures that marketing dollars are spent effectively, maximizing ROI and strengthening Kraft Heinz’s market presence.

Through his leadership and innovative approaches, Saurabh Kumar has significantly enhanced Kraft Heinz’s marketing strategy, driving substantial cost savings and positioning the company for continued success in a highly competitive market. His work exemplifies the transformative power of data science in modern business, setting a new standard for efficiency and effectiveness in marketing analytics.