Measuring the impact of marketing on brand performance has been a top-tier research priority of MSI for the last 20 years. The CMO Council declared it as the biggest concern facing managers in the year 2007. This study strives to contribute towards this seemingly ubiquitous managerial problem.

Academic research in the past has traditionally approached this problem through marketing-mix models. However, such an approach offers limited insights on three managerially relevant issues that are critical to brand performance: (1) Product-line attractiveness (2) Brand preference and (3) The extent to which the product is available in different retail stores. We develop a structural modeling framework to quantify the impact of these drivers on brand performance in the context of consumer packaged goods industry. Our approach offers unique methodological contribution by virtue of achieving all of the following within a single integrated framework: (A) Decomposing mean utility to enable managers to evaluate brand performance in terms of product-line attractiveness and brand preference (B) Measuring the dynamics in unobserved brand preference using Kalman Filter algorithm(C) Accounting for dynamics in product availability while estimating product demand and (D) Modeling the interdependency between product availability and market share.

Consequently, the study helps address critical managerial questions such as: Should the manager focus on product-line extension or brand preference augmentation to stimulate brand performance? Can product-line proliferation lead to cannibalization of retailer shelf space? To what extent does product availability impact brand performance? Finally, the study ends with a brief discussion on how the framework may be implemented by firms in other industries.