Introducing portfolioQED

What does it do?

portfolioQED allows you to combine existing marketing effectiveness insight with your internal forecasts  in order to establish the correct budgets and level of resource allocation required to meet your goals. Marketing returns can be forecast for different budgets in order to establish the correct mix of resources.

This is what the portfolioQED tool will do for you:

  1. Allocate resources to the countries, categories, brands and activities that will maximise your returns
  2. Allocate over the time horizon from just a few months to multi-year planning processes
  3. Choose between a mix of revenue and profit objectives

What are the benefits?

The greatest benefit of portfolioQED is the objectivity it brings to the resource allocation process. By allocating resources across your portfolio on an objective basis, your team will understand in clear terms the basis for your decision making. Clarity, rigour and fairness are brought to the budgeting process and everyone in your team can understand how the tough budgeting decisions are being made.

Beyond the organisational benefits, the financial benefits can be huge. Reallocating resources to the areas of the business where they will make the difference can boost growth, increase profitability and reduce the long term risk of underinvestment in growth markets. We would typically expect the profit benefits of reallocation to be in the range of 2%-8% for the first year. These benefits will cascade into future years, offering very significant payback opportunities in the future.

How does it work?

There are two key inputs that are required to make portfolioQED work. These are:

  1. Your Profit and Loss (P&L) account predictions plus some other standard financial data
  2. Your estimates – either through econometric modelling or other methods – for the relationship between marketing investments and revenues

By combining these two inputs together, we can construct a framework which can be used to assess a range of different optimisation scenarios.

Who is it for?

portfolioQED is a tool for any CEO or CMO, and their team, who want to make the tough decisions on where to invest based on facts and objective data. portfolioQED will help you cut through the often politically motivated planning process to focus on the things that matter to your business – namely long term revenues and profitability.

How do you get started?

Get in contact with us (via this link) and we’ll be happy to discuss your requirements and help you determine if this approach will meet your needs. If portfolioQED is the right tool for you, we will be happy to help you get started by setting up the initial analysis for you.