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Design A Marketing Experiment For Samokat

The document proposes two marketing experiments for Samokat, a food delivery service. The first experiment is a before-after design that will test increased billboard advertising in Perm, Russia compared to a control city of Yekaterinburg. Sales data will be collected for both cities over three months before and after the three month advertising campaign to measure the lift in sales. A second version proposes a full factorial web advertising experiment to test the impact of price and advertising theme on sales. This would provide more insights but exclude audiences not active online for a food delivery service.

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GHARAT BHAVESH
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126 views2 pages

Design A Marketing Experiment For Samokat

The document proposes two marketing experiments for Samokat, a food delivery service. The first experiment is a before-after design that will test increased billboard advertising in Perm, Russia compared to a control city of Yekaterinburg. Sales data will be collected for both cities over three months before and after the three month advertising campaign to measure the lift in sales. A second version proposes a full factorial web advertising experiment to test the impact of price and advertising theme on sales. This would provide more insights but exclude audiences not active online for a food delivery service.

Uploaded by

GHARAT BHAVESH
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Design a Marketing Experiment for Samokat

Introduction
This report aims to design a marketing experiment for Samokat. which is a food
delivery service. The campaign is a billboard advertising campaign highlighting
saving time when using grocery delivery services instead of ordinary shopping at the
supermarket. With the growing demand for different delivery services during
pandemic, grocery delivery service is becoming very profitable.
The experiment will be a before –after design experiment. Not going for full factorial,
as it will be difficult to quantify impact if several parameters are simultaneously
changed.
Experiment Design
In this experiment, the independent variable is increased advertising in the form
of billboard advertising campaign. Sales is the observed dependent variable.
The experiment will be run in Perm, Russia. The control market observed will be
Yekaterinburg, Russia. The test and control markets are so chosen that they resemble
closely in terms of consumer behavior towards delivery services. Although the
population of Yekaterinburg is higher than in Perm, the cities have much in common
in terms of the economic growth, population demographics and consumer behavior.
Since the entire cities will be exposed to the experiment, the sample size
would be big enough to be statistically significant.
As it is a before-after design experiment, sales will be recorded for both control and
test markets for a 3 month average from June-August. The experiment will be run for
the next three months from September to November. Then the change in sales during
the experiment will be used to calculate the lift in sales.
The experiment adheres to the first three rules of causality. However, the experiment
has no control over the fourth rule, which deals with the presence of external
factors. At first sight there appears to be no external factor impacting the
experiment, however there might be competitive response or seasonal fluctuations in
delivery service demand that shall be accounted for.
Anticipated Issues
Both the before and during experiment results are collected from June to
November. If the field implementation is executed anywhere between December
to May, the winter months might see the dampening in the impact due to the
seasonality involved.
Any other external factor during implementation such as a new competitor entering
the market or decrease in prices from competitors could adversely affect the field
results.
The above mentioned issues might have an adverse impact on the sales, however,
the experiment will still demonstrate the impact of billboard advertising on sales.
The seasonality and external factors notwithstanding, the experiment will provide a
fair guideline on whether to go ahead with the nationwide marketing campaign.
The lift in sales would also provide a concrete idea on the appropriate amount of
spending on the campaign.

Experiment 2.0
Another version of the experiment can be through paid web advertising. Web
advertising provides much better control on the target audience, test markets and
analytics. Hence, it can be a full factorial design with the independent variables as
both price and advertising theme or advertising content.
This will also yield more informative results as
 It demonstrates the impact of more than one independent variable
 The web analytics gives far more insights on the consumer behavior and buying
preferences of the audience
This version of experiment is also generally cheaper and quicker to implement
than the offline campaigns such as billboard advertising.
The only concern with the web experiment is that it does not include the chunk of
audience that is not so active on web. In the context of food delivery service this
can be a significant limitation.

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