Business Economics
Market modelling
What we do
Many of our clients find that one of the most effective ways of informing decisions on marketing strategy
is to have access to a broadly-based model of how their market behaves. The development of such a
model requires an analysis of the key market drivers, typically to include the following:
• Estimating the effects of price, advertising, promotions, distribution, etc;
• Taking into account competitive effects;
• Estimating the impact of changes in the external environment, including market trends,
macroeconomic factors, demographic factors, etc;
• Incorporating, as appropriate, market research metrics.
We often use econometric analysis to identify those parameters that are significant drivers and
those that are not, and to quantify the impacts of the key drivers. The results may confirm intuition,
but may also on occasions confront it with unexpected and surprising results that are equally insightful.
Although “what-if” models are valuable for investigating a range of pre-determined scenarios, in “real life”
situations it is often the case that there are just too many variables to enable the optimum solution to be
determined by scenario modelling.
One of our specialist areas of expertise is in formulating and developing leading-edge approaches
to efficient and robust optimisation. A key area of application is the allocation of marketing
expenditure across a portfolio of brands, products, geographical regions and media channels
in order to maximise profit. But there are many other, more general, applications including
resource allocation to minimise costs.
Recent clients and projects
BP, InBev, Unilever, Accenture Marketing Sciences, MindShare, mediaedge:cia,
Book Club Associates, GNER, Warburtons, ntl, Ford of Europe
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Forecasting
Market modelling
Marketing effectiveness
Information systems
Financial modelling
Benchmarking
Restructuring
Training