Portfolios: Patterns in brand penetration, market share, and hero product variants

Arry Tanusondjaja, Magda Nenycz-Thiel, John Dawes and Rachel Kennedy

Journal of Retailing and Consumer Services, 2018, vol. 41, issue C, 211-217

Abstract: This research investigates the contribution of each stock-keeping unit (SKU) within a brand portfolio towards total brand penetration and market share, by adapting a method called Saturation Curve Analysis. The study utilises UK and US data on 90,000+ SKUs across 15 packaged goods categories. The results show that while the optimal number of SKUs in a portfolio is category specific, the top-selling SKU contributes around 50% of the brand penetration and 40% of sales. This establishes a benchmark for monitoring brand performance. These results emphasise the importance of having top-selling SKUs readily available to consumers, rather than sacrificing them over new product launches.

Keywords: Brand management; Portfolio size; Portfolio composition; Portfolio evaluation (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:41:y:2018:i:c:p:211-217

DOI: 10.1016/j.jretconser.2017.12.009

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