Providing strategic marketing advice to a loss adjustor
Learn how we provided strategic marketing advice to global loss adjustor Sedgwick International on a large insurance claim.
Challenge
To support Sedgwick International, a loss adjustor, in providing an FMCG brand with strategic advice following a major factory fire that caused significant business interruption.
The fire led to a steep decline in the brand’s market share within its core UK region. The challenge was determining how much the insurance companies should contribute to a proposed advertising campaign aimed at restoring market share while ensuring the investment was proportionate to the losses.
Key challenges included:
- Significant market share loss: The brand faced a significant drop in market share that needed a strong advertising push for recovery.
- Distribution vs. advertising: Historically, the brand relied on distribution gains, making the balance between advertising spend and distribution growth crucial.
- Proportionality: Ensuring the proposed advertising spend was fair and targeted at fire-related losses without inflating normal marketing budgets.
- Category decline: The general decline in the packaged goods sector further complicated the recovery estimates.
Solution
We developed a data-driven approach by applying the latest marketing science principles including the Excess Share of Voice (ESOV) principle to guide the advertising investment necessary for market share recovery.
We modelled various market share recovery scenarios, ranging from 5.5% to 8.1%, each with its corresponding advertising spend, providing flexibility for both the policyholder and insurers.
Key elements of our solution included:
- Proportional advertising spend: We analysed the brand’s historical advertising performance and market conditions to determine how much of the £2.24m proposed campaign was tied to fire recovery.
- Comprehensive market analysis: Factoring in external conditions such as the COVID-19 pandemic, we ensured the advertising spend aligned with current market realities.
- Collaborative stakeholder engagement: Working closely with insurance companies and forensic accountants, we ensured all stakeholders shared a clear understanding of the required advertising investment, fostering transparent decision-making.
Impact
- Defined advertising investment: Our analysis offered a detailed range of advertising investment (£471k to £1.96m), providing a clear path for restoring the brand’s market share.
- Fair insurance contributions: By distinguishing between fire-related recovery needs, category decline and typical business operations, we helped insurers make fair and informed decisions.
- Optimised marketing strategy: The brand structured a more efficient advertising campaign aligned with realistic recovery goals, supported by insurance contributions.
- Data-driven decision-making: All decisions were grounded in the latest marketing science, solid data, ensuring a sound foundation for the brand’s recovery efforts.
Leopard Co’s expertise was instrumental in helping us navigate this complex case. Their strategic insights on advertising investment were invaluable in shaping the right recovery strategy for our client. The scientific and data-driven approach they brought to the table made a significant difference in ensuring fair contributions from insurers and setting up the brand for a successful market share recovery.Head of Major & Complex Loss at Sedgwick International