Power Pairs

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Managing a large portfolio of products can be both a blessing and a curse. Companies need to understand ways to minimize portfolio interactions while increasing overall basket size. Market Fusion Analytics’ Power Pairs Analysis uses our Simultaneous Equation modeling approach to derive a brand/size interaction matrix. This provides guidance to minimize cannibalization and increase revenue by pointing out complementary brands.

Power Pairs are complementary brands that maximize portfolio sales when promoted together.

A typical Power Pairs Analysis examines a few years of sales data of dozens of unique brand/size pairs in hundreds of DMAs to help identify which combinations of brands should consumers be exposed to via promotion (marketing and discounting) that would result in the most incremental sales with the least cannibalization.

Power Pairs Analysis captures the complex interaction across brands/sizes and provides a true net impact on the portfolio.

Via the Power Pairs Analysis, a hierarchy of co-promotion by consumer preference type will be developed and distributed to both marketing and sales teams. The marketing team could leverage it to develop a communication strategy that might result in the development of a multi-brand campaign on TV or Digital/Social Video. The sales team could provide guidance to the field for trade calendar planning and execution by pointing out complementary brands to co-activate or harmful pairs to avoid co-promotion.

If you are interested in learning more, please contact Tamir Choina at Tamir.Choina@maketfusionanalytics.com