Brand Profitablility

Analyzing a Brand's Current vs. Potential Profitability

For most brands, there is a sizable gap between existing market share and total potential share. But how does a company determine what the brand's potential is, as well as how best to close the gap between current and potential performance?

Indeed, this type of analysis provides an understanding of the profit potential—and limitations—of an existing brand, which is crucial in determining the financial viability of various marketing strategies such as:
  • Developing retention programs for vulnerable customers
  • Developing programs to expand business among existing customers
    (NB: the above strategies are often much less costly than the next two)
  • Creating campaigns to attract new customers to the existing product line, and/or
  • Expanding the product line.
This chart depicts a hypothetical brand profitability analysis, showing the brand's unavailable market share made up of consumers not in the category, your competitors' best customers, etc.; the current share of loyal and vulnerable customers; and the potential available incremental brand market share.


Brand Profitability Pie Chart

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