Market level strategy is a framework for evaluating and optimizing performance of a unit. Depending on a business the unit could be a ‘market’, a customer segment or a product. Multiple drivers impact the performance of such units including marketing and media effectiveness, sales force, channels, pricing, unit attributes e.g. functionality, speed, time to market, customer satisfaction, product quality – both actual and perceived. For example: how many store do we need in market A vs. market B or how much should we invest on stores vs. marketing in market A. This framework allows companies to identify the incremental impact of each lever and cross-functional teams to coordinate and optimize investments across units and across levers.
Our Market Level Strategy and Planning services help our clients to:
- Assess incremental impact of each lever on the unit to prioritize drivers that drive higher performance relative to other drivers. This is especially important to justify incremental investments in certain levers and to optimize investment during periods with budgetary/resource constraints
- Cross-unit optimization and budget allocation for making investment decisions for e.g. network capital allocation across units, retail footprint expansion across segments
- Cross-lever optimization to identify optimal ways to improve a unit’s performance by identifying an efficient mix of resource investment across levers based on predictive analytics and actual data
- Identification of poor, at-par and over performing units – most performance monitoring programs use some combination of financial performance along with a baseline reference of last year/quarter performance for comparison. However, unit performance is also a function of different levers and unit-specific assets. Using a reference frame of such inputs and drivers will help identify and unlock incremental areas of opportunity for at-par or over-performing units. In addition, it can also provide a basis to identify root causes of poor unit performance
- Capital allocation scenario planning dashboards to rapidly optimize and develop scenarios to understand impact of different investment decisions at a unity or resource level.
Please contact us to learn more about our customer value management services