JS eBusiness

by Joomlashack


Portfolio Management

Madison Business Analytics has a unique approach that helps allocate marketing investments across brands in a portfolio.  The framework considers current market performance of the brand (traction), contribution of the brand, competitive intensity, growth trajectory of the brand (momentum), halo and cannibalization, strategic role and responsiveness of brands to marketing investments

In the first stage, strategic requirement for the brand is arrived by considering factors like

  • Forecasted growth
  • Competitive pressure faced by the brand and the role of the brand in the portfolio.
  • Traction as measured in brand health analysis
  • Strategic role of the brand as articulated by management

In the next stage elasticity of the brand to advertising and promotion is computed and then overlaid as depicted. Computation of elasticity includes:

  1. Other key drivers like price and distribution
  2. Considers halo and cannibalization amongst brand and variants
  3. Estimate saturation level to set maximum investment levels by each brand in the portfolio

At the end of the exercise it is easy to place each of the brands in one of the quadrants. For brands that are shortlisted for advertising support, allocation is made using an optimizer that uses the advertising elasticity to allocate advertising dollars in such a that overall RoI is maximized



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