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A better way of thinking about incremental volume
Of the thousands of new product initiatives tested by BASES every year, approximately half are line extensions of established brands. In these cases, marketers are interested not only in an estimate of gross line extension sales, but also in understanding how much of the volume will be incremental to the brand.
It can be easy to confuse “incrementality” and “cannibalization.” While cannibalization (consumers buying the new product in place of its parent brand) is an important component in estimating incremental volume, it is not the sole issue. When introducing line extensions, marketers often borrow funds or shelf space that had previously been used to support the parent brand. It is important not to overlook this change in parent brand support as BASES has found that these factors can have a meaningful impact on the proportion of line extension sales that are truly incremental to the franchise.
BASES FGA is designed to provide this critical perspective to marketers. It is the only technique that integrates all of these issues into a proven model for incremental sales, giving you the most complete and accurate picture for running financial analysis. BASES FGA is included as a standard deliverable on all BASES I and II line extension studies.
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