Market Optimization is a systematic process On Brand uses in identifying the relative heath and business potential each market has in a brand’s geographic footprint. This approach recognizes the various market factors that have the greatest influence on brand growth. Since these factors vary by product or service category, On Brand works closely with the client team to not only zero in on those key performance indicators that define a market’s potential but to properly weight each factor. This weighting process allows for an Opportunity Index to be applied to each market which ultimately provides a guide for investment, maintenance or pull back deployment of marketing dollars by market.
Typical data points used in the Market Optimization process include but are not limited to:
- Brand Development Indexes
- Category Development Indexes
- Current User Penetration
- Category User Penetration
- EBIDA Indexes
- Comp Trend Data (if Restaurant or Retail)
- Competitive Presence and Pressure
- Brand Longevity
In addition to providing a blueprint for marketing dollar deployment, this approach can have significant implications for brand messaging. For example, in markets tagged for significant growth by attracting new users, a trial oriented message strategy may be called for. Conversely, in markets where volume maintenance is the objective, a brand reinforcement message will likely be the best approach.
The end result of the Market Optimization process is to tailor marketing dollar allocation and brand messaging so that the brand achieves its full potential in each market it occupies.