BASES Franchise Growth Analysis
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Source: en-us.nielsen.com, Author: BUCKLEYEM01
Mar 7, 2009 - BASES offers the only model for franchise incrementality BASES Franchise Growth Analysis (FGA) is designed to provide this
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BASES Franchise Growth Analysis
A better way of thinking about incremental volume
Assessing the full impact of extending a brand
Of the thousands of new product initiatives tested by BASES every year, approximately half of them are line extensions of established brands. In these cases, marketers are interested not only in an estimate of gross line extension sales, but also in understanding how much of the volume will be incremental to the brand.
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Key Benefits
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“Incrementality” is different from “cannibalization”
It can be easy to confuse “incrementality” and “cannibalization.” While cannibalization (consumers buying the new product in place of its parent brand) is an important component in estimating incremental volume, it is not the sole issue. When introducing line extensions, marketers often borrow funds or shelf space that had previously been used to support the parent brand. It is important not to overlook this change in parent brand support as BASES has found that these factors can have a meaningful impact on the proportion of line extension sales that are truly incremental to the franchise.
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Estimates all factors that affect incrementality, not just cannibalization Can examine how different support allocations between parent brand and line extension impact franchise sales Produces more accurate picture of incremental sales for financial analysis
The industry’s only true franchise incrementality model
BASES Franchise Growth Analysis (FGA) is designed to provide this critical perspective to marketers. It is the only technique that integrates all of these issues into a proven model for incremental sales, giving you the most complete and accurate picture for running financial analysis. BASES FGA is included as a standard deliverable on all BASES I and II line extension studies.
BASES Franchise Growth Analysis
Line Extension Sales
Sales Affected by: cannibalization shifts in marketing support
Parent Brand Sales
Parent Brand Sales Today
Portfolio Sales Tomorrow
BASES offers the only model for franchise incrementality that estimates both cannibalization and marketing support allocation effects.
For more information contact your BASES representative or visit www.bases.com/contact/index.html
Copyright © 2009 The Nielsen Company. All Rights Reserved.
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