Gross Rating Point (GRPS)
Context for my presentation: This is the problem statement.
—The Consumer Packaged Goods (CPG) industry is a $2 trillion dollar industry that is one of the largest sectors in North America. CPG items are used daily by average consumers and require routine replacement, such as food, beverage, clothes, tobacco, makeup, and household products. Because the industry is large and full of competitors, TV advertising is heavily relied on to grow companies audiences. By analyzing the data from CPG network level spending, we can optimize the spending for advertising on broadcast and cable. We will base our findings on GRPs, which is a combined calculation of reach and frequency. The descriptive and predictive analyses of purchase behaviors in relation to advertising placements will help us formulate several insights and action plans to maximize the CPGs advertising dollars.
—The descriptive, predictive, and prescriptive analyses will allow us to identify spending efficiencies and deficiencies, changing trends, spending patterns of subcategories, and the networks relationships to subcategories spending. We will look at five psychographic markets – snack consumers, alcoholic beverage consumers, cola consumers, confectionary consumers, and cooking segments – and analyze how demographic, network, ownership, and cost vary per market. These analyses will also justify the need to adjust advertising messages and production.
—We expect that our analyses will indicate that snack and beverage products have the greatest reach with their ads. Through analysis, we will be able to identify which category or subcategory spends the most on ad dollars and which reaches their audience more efficiently. We also want to determine which networks see greater spend, and if network ownership plays a role in CPG advertising participation.
Write the BACKGROUND: What do you know about this problem? Describe the context. Do some background research on the topic (CPGS) and write what you have found. – go into detail about TV spend (what it is, how it is measured, what are GRPs – how are they calculated, why did we choose this metric), common trends in CPG spend, etc.