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

Author

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

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.

Suggested Citation

  • Tanusondjaja, Arry & Nenycz-Thiel, Magda & Dawes, John & Kennedy, Rachel, 2018. "Portfolios: Patterns in brand penetration, market share, and hero product variants," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 211-217.
    • Handle: RePEc:eee:joreco:v:41:y:2018:i:c:p:211-217
    DOI: 10.1016/j.jretconser.2017.12.009
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    References listed on IDEAS

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    Cited by:

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    2. Trinh, Giang & Corsi, Armando & Lockshin, Larry, 2019. "How country of origins of food products compete and grow," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 231-241.
    3. Hoskins, Jake D., 2020. "The evolving role of hit and niche products in brick-and-mortar retail category assortment planning: A large-scale empirical investigation of U.S. consumer packaged goods," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).

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