As Atkins’ product portfolio expands, maintaining innovation incrementality requires a better understanding of consumer segment engagement to ensure need-states do not overlap and cannibalize growth.

1. Marketing For Growth:
Advanced Marketing Mix Analysis Helps
Atkins Fatten Their Bottom Line
Linda Zink
Chief Insights Officer
Atkins Nutritionals, Inc.
Joy Joseph
Analytics Practice Leader
IRI

2. Product platform & marketing investment propelled
Atkins resurgence
2015
With a 5-year CAGR of 17.9%, Atkins has been
on AN UPWARD TRAJECTORY, bucking the
trend in the otherwise mature $33 billion
Weight Loss / Diet Product category
2016+
2014
2013
Convenience-
Atkins Frozen
Continued innovation across
portfolio
Atkins $20 Million Ad
Campaign
Engage younger
consumer demos
Expand Share of Wallet with
highly relevant product
innovation
Expand
consumer
base

3. …DISCOVER A BETTER WAY TO EAT FOR LIFE
… and program participation provided a unique
engagement model between trial & retention
CONSUMERS SEEKING AN EFFECTIVE APPROACH
TO WEIGHT LOSS…
BECOME “LIFESTYLERS”

4. Ongoing MMM program provided the support
necessary to scale marketing investment efficiently

5. … However, it was also telling us growth, while
outpacing category, was beginning to slow down
100
10
13
123
134
6.5
1.5
142
2012 2013Mktg. Non-Mktg. 2014 2015Mktg. Non-Mktg.

6. Further growth required realigning strategy to
market dynamics
The challenge for marketing was expanding from the small footprint low carb had within
the Diet and Weight Control category, especially given the much smaller marketing budget
Atkins was working with vs. key competitors
As Atkins’ product portfolio expanded, innovation incrementality trended lower- better
understanding of consumer segment engagement and targeted marketing was required
to ensure need-states did not overlap and cannibalize growth
With increasing marketing spending, maintaining and growing ROI required analytics and
research to find to optimally allocate resources across campaigns and levers
With the demand amongst Boomers maturing, engaging and converting younger
consumers was critical for growth and this needed the right marketing strategy

7. GrowingNo or very little change
Understanding and influencing behavior at the
consumer segment level was especially important
Penetration Rate Buy Rate Occasions (Trips)
Seniors
Retirees
Older Boomers
Younger Boomers
Gen X
Millennial
Declining

8. Impetus for new research
• Do different consumer segments respond differently to
advertising?
• Do different consumer segments respond to merchandising
tactics differently?
Key
Business
Questions
• Do we have opportunity to buy / leverage media more
efficiently?
• What is the optimal mix of messaging?
• How should we optimize marketing plans to drive our
strategy?
Implications

9. Micromarketing Optimization
Powered by Consumer-centric Analytics

10. While MMM supports macro-marketing strategy,
consumer analytics are critical for targeted growth
This affinity further enhanced through the right integration of marketing
touch-points most relevant to these micro-segments
These micro-segments gravitate to brands most
relevant to their particular needs
Existing need-states are evolving, driving the proliferation
of demand micro-segments

11. IRI leveraged a HH level overlay to traditional mix to
determine how impacts vary by segment
Consumer Marketing Mix optimize
effectiveness across consumer
segments
Marketing Mix measures marketing
effectiveness across all consumers
High-Resolution Analytics
Unmatched detail for traditional and digital
media touch-points
Synergistic Impacts
Accurate cross media attribution of
integrated marketing effects
Hyper Granular Data
Integrated across our partner network
including Rentrak-comScore, Facebook
and Google
Reliable Marketing Metrics
Unmatched detail for traditional and digital
media touch-points

12. MMM creates the flight plan, Consumer Analytics provides the
navigation to ensure your brand gets to its destination efficiently
Consumer Marketing Mix quantifies specific consumer
segments’ response to advertising, coupons and trade
promotions:
Technical Specs:
• Uses Random Coefficients Logit Model
• Household Transaction-Level Consumption data
for all category buyers tracked within the National
Consumer Panel during the analysis time period
• Model predicts probability of purchase for
household purchase transactions as a function of
media drivers, in-store activities and environmental
factors

13. Step 1: Leverage MMM to determine overall cross-
platform marketing plans
TV- By Campaigns, Networks &
Program genres
Display- By display type and
property
Paid Search by campaign and
key word genre
Focus for Atkins was TV, but this can be done across multiple channels.

14. Step 2: Develop consumer segment level marketing
responsiveness to customize overall plan
Response Index for each group is relative to the other group’s indices; NR – Variable not read / not significant in the model
Response
=
Segment Sales Attributed to Marketing Channel
X 100
Index Total Sales Attributed to Marketing Channel
Millennials
GenX
Younger
Boomers
Older
Boomers
Retirees
Seniors
Millennials
GenX
Younger
Boomers
Older
Boomers
Retirees
Seniors
TV
Print
Online Display
Paid Search
Paid Facebook
Organic Social
PR
FSI
Trade
>120
80> <120
<80
Index Key:
Effectiveness Index Exposure Index

15. Insights & Impact
Atkins had a significant opportunity to leverage multiple
media vehicles to achieve specific objectives around new buyer
acquisition, retention and cross purchase
Targeted messages were developed by a media vehicle to optimize
consumer response across high opportunity consumer segments.
A comprehensive activation plan was developed to counter base
headwinds using highly optimized TV, supported by Paid digital activation
to target younger consumers, while price promotions were selectively
deployed by retailer to drive retention with older consumers