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Simultaneous Equations Modeling
Improves system consistency and cannibalization measurement (through stringent zero-sum game) for category-portfolio-brand-size level of product aggregation.
  • Can be applied on various levels of market structure according to client's issue
  • Focuses on category (or portfolio) volume and brands volume and share
  • Delivers key drivers of brands performance, marketing effectiveness and ROI's, price elasticity and cross-price elasticity, new product incrementality, shelf management, etc.
  • Ensures consistent assessment of brand interactions and net incrementality in a cohesive market domain
  • Provides assessment of the volume to the top level of the system (portfolio, category, segment) and each component (brand, size, etc.), net of cannibalization
  • Provides assessment of incremental profit taking into account brand specific margins
  • Describes competitive market structure based on brands' cross-price elasticities
  • Evaluates brand's strength and vulnerability to competitive actions.
 
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