Create an Integrated View of your Market, Consumers and the Size of the Brand Prize
A Profit Pool Framework delivers for a range of stakeholders across your business from Strategic Planning to Innovation and Marketing, combining Commercial, Brand portfolio and NPD needs. The framework should bridge these different departments and offer a consistent view of the market, avoiding the typical disconnections between qualitative consumer and quantitative market and product perspectives.
Key questions the profit pools can answer include:
- How much more contribution can be earned from better alignment of our product portfolio to key consumer needs states?
- What are the prioritised scale profit opportunities for our Brands?
- What are the key Brand attributes – emotive, functional and commercial – required to succeed in each profit pool?
Building the Profit Pool Landscape
By constructing a clear map of the available profit opportunity along important consumer dimensions - demographic, behavioural and attitudinal - specific opportunities can be defined.
Typical stages in building the profit pool landscape are:
- Data Collection
- Integration and Processing
- Validation and Re-processing
- Analysis & Insight generation
- Profit Pool Landscape generation
Properly constructed, you can generate powerful visual views of future profit potential. (see diagram) 
It's clearly important to try and avoid the typical pitfalls:
- Use the right blend of people skills – i.e. business, analytic and technical
- Don't let your data investments focus solely on financial requirements – consider the strategists' and marketeers' commercial issues
Business Intelligence Value Generated
Valuable Outputs generated from this approach to business intelligence (BI) include:
- Quantified future needs states for your Brand product areas
- Profit Pools for the needs states
- Your organisation's Capability Assessment overlaid on the needs states to provide success weightings
- Implications for Brand Positioning, Consumer and Channel Strategies
- A Profit Pool Opportunity Database i.e. a data asset, for scenario planning, ongoing management use and development
- Better focus of company resources on the profitable opportunities
Correctly undertaken, the right approach to BI provides you with faster and more repeatable value creation. PMSI provides clients with the unique combination of business, analytic and technical skills required to achieve the cost effective, value-rich BI which has eluded so many.
If you'd like to see how better BI from Profit Pool landscaping can better direct your own Brand innovation and value generation, call your nearest PMSI office or contact us via email.