Sales Analysis and Geographic Strategies

Light Beer Marketing

• Bud Light, Miller Lite, and Coors Light - Maintain

• MGD, Bud, High Life - Take Share

• Who do you target?• When do you advertise?• Where do you advertise?• What media do you purchase?

Deciding Where to Advertise

• Need to compare the sales of the category to sales of the brand by market– Looking at data for differences in sales– Calculate relative performance by market

• Are you over performing the market?• Are you under performing the market?

• Doesn’t tell you where to focus your efforts, but it does provide considerable guidance

Sales Analysis

• Must consider a range of factors– % of target population by market– % of industry sales by market– % of brand sales by market– % of competitors sales by market

– By Nielsen Territories– By County Size

Brand Development Index

% of brand’s total sales in Market XBDI = ----------------------------------------------------------

% of total US population in Market X

Sales performance - “how do you perform relative to the population size?”

Category Development Index

% of category’s total sales in Market XCDI = ----------------------------------------------------------

% of total US population in Market X

Sales potential - “how does the category perform relative to the population size?”

Market Share Index

% of brand’s total sales in Market XMSI = ----------------------------------------------------------

% of category’s total sales in Market X

Relative performance - “how does the brand perform relative to the category?”

The Decision Grid

High BDI Low BDI

High CDI High share of market; good market potential“A keeper!!!”

Low share of market; good market potential“What is wrong?”

Low CDI High share of market; poor market potential“Can we sustain?”

Low share of market; poor market potential“Bail”

Nielsen Territories

• New England• Middle Altantic• East Central• West Central• South East• South West• Pacific

Consider Brand X - Where do you advertise?

County Size

• A Counties - All counties located within the 25 largest metros

• B Counties - All counties not included under A that have +150,000

• C Counties - All counties not included under A or B that have +40,000

• D Counties - All remaining counties

Using Simmons / MRI Data