Revenue Management Solutions (RMS), the industry recognized leader in providing sustainable profit building pricing solutions to clients in the foodservice and retail industries, announces the granting of U.S. Patent No. 8,417,564, A Method for Allocating Advertising Resources, to inventors Thomas J. Kelly and Iassena Stratieva.
This patent uses a database that includes a number of business unit characteristics, including average allocation of advertising costs over time. A regression coefficient is produced based on the characteristics, wherein a non-linear specification is used for the average allocation of advertising cost characteristic. An impact indicator is assigned based on the how positive the regression coefficient is so that the effect of each characteristic on sales/profits and quantity sold can be determined.
RMS Media Solutions quantify the effectiveness of promotional campaigns bringing new rigor to the marketing and media planning process. Optimal media spending levels are identified highlighting which promotional elements generate the most profitable consumer response. Working with multiple years of media activity data and top-line performance results, RMS will accurately calculate the return of every media dollar spent. The analysis will determine the impact of additional media on sales, revenue and profit determining the point at which incremental expenditure does not improve results. This also allows for scenario planning on different media levels during a campaign.
RMS is an international consulting firm specializing in quantitative modeling and statistical analysis of data and is the global provider of strategic pricing advice in the foodservice and retail industries. Since 1994, RMS has been successfully providing revenue management recommendations to clients to increase gross profit and enhance brand value. RMS currently partners with brands in over 34 countries and its recommendations are used in over 50,000 locations around the world.