Market replication

Markets matter.

We replicate markets: real buyers, real choices and real competitors, faithfully enough to try any move and see what it would earn. That is why big decisions bank on our models.

Every market, rebuilt to scale

Billions served

$1B+

Our projects have been worth more than a billion dollars to our clients, counting only what we know; much of our work runs behind research and consulting firms.

2000Replicating markets since
Grand EffieA campaign our ad testing helped place
Fortune 50Companies whose markets we have replicated

What you take home

Your whole market, on your desk.

Every engagement ends with a simulator of your own market: every product, channel, shopper segment and competitor at once. Change prices, launch or retire products, shift distribution and promotion, and let competitors respond until the market settles. See what the whole company earns, with how sure we are.

Today's questions are in it. So are the next ten.

Representative screen · illustrative values

PansophIQ · Market simulator · Ready-to-drink coffee, U.S. · Scenario 14 of 38
All channelsGroceryMassClubConvenienceOnline

Your line-up

ProductPriceShelf
Flagship 4-pack$6.49 → $6.99On
Premium cold brewNew · $3.79Launch
Single 13.7 oz$2.99On
Value 12-pack$13.99 → $14.49On
Multipack 24$24.99Retire
Light 8-pack$9.99On

Competitors

Brand A · 7 productsBest response
Brand B · 5 productsBest response
Private label · 4Holds price
Entrant · 2Launches Q3

Market

Promotion depth20% → 15%
Distribution, Club64% → 81%
Shopper mixAs measured, correlated

Firm earnings, net of cannibalization · after competitors respond

Earnings a year$458M+$106M vs. today
Revenue$2.31B+6.8%
Units412M−3.1%
Move pays in97%of 2,000 futures

Earnings change by product and channel, $M a year

GroceryMassClubConv.OnlineTotal
Flagship 4-pack+12+9+6+5+3+35
Premium cold brew+14+8+4+6+7+39
Single 13.7 oz+2+10+5+1+9
Value 12-pack+6+8+9−1+2+24
Multipack 24−4−3−20−1−10
Light 8-pack+3+2+2+1+1+9

Where the market settles

+$131M+$114M+$108M+$106M No responseBrand A movesBrand B movesSettled

By shopper segment, earnings change

Premium seekers+61%
Families+34%
Club stock-up+27%
On the go+18%
Value seekers+12%

Questions in this run

  • Flagship price ladder
  • Premium launch, and where
  • Retire the 8-pack
  • Club distribution
  • Promotion depth
  • If the entrant launches
  • Online-only pack next run

2,000 futures of the market · shoppers, channels and promotions drawn with their real correlations · calibrated to 52 weeks of sales · competitors move until no one can gain.

A scale model, to fit the page.

A real replica is far bigger than any screen can show. Client models carry every item and pack-price point, every retailer, region and channel, every competitor and private label, promotions week by week, and buyers in their true mix. The picture above is a slice.

What the model does

Not every market model will fly.

Choice 1 of 1

Which would you stake your next big decision on?

The evidence

Tested against the real market.

Within 1 point of actual market shares. Attribute-based models missed by 13 to 22.

Just before founding Market Outcomes, at the American Marketing Association's Advanced Research Techniques Forum, Beau Martin presented An Empirical Test of Pricing Techniques: eight pricing methods, 1,620 buyers, one task: predict a month of the U.S. home gaming console market whose actual sales were already known.

How the two approaches compared
Market replicationAttribute-based models

Average share error

0–1 pt1,300–2,200%
13–22 pts

Median time to finish

3 min 26 s270%
9 min 18 s

Buyers who gave up partway

3.4%330%
11.1%
The full test, and why the gap →

The work

Markets we have replicated, and the calls that rode on them.

A silicon wafer

Technology · a challenger's price cut

A global technology leader

A challenger cut prices. The model showed buyers stayed with one supplier, so matching the cut would mostly have handed margin to buyers. The client team credited the work with about half of an unexpected billion-dollar gain.

The full story →
A showroom shelf of inkjet and multifunction printers

Product line-up · U.S. and EU

A printer leader: which of 28 printers earn their place

Every printer in the line replicated against its rivals and against each other, across the U.S. and EU. The optimized line went from 28 products to 14 or 15, raised expected net earnings by more than $300 million a year, and simplified the supply chain and support behind it.

The full story →
A soda aisle with packs of every size

Pack and price by channel · MRIA Project of the Year

The world's largest beverage company

Pack sizes and price points replicated store type by store type and calibrated to real sales, to set the right ladder for each channel.

A restaurant counter at night with a lit menu board

Every year since 2017

The world's largest restaurant company

The whole menu board replicated: which items stay, which come off, which launch and at what price, with every order the change touches.

A city rooftop at dusk with a cellular tower and phone lines

Brand valuation · Global strategy project of the year

A telecom merger: which name to keep

Every market either name sold in, from local phone to wireless, internet and TV, replicated with five years of growth and margin. One name was worth billions a year more, and it became the name. It even beat the next target's own name in that company's home territory, and the next acquisition followed.

A physician reviewing a patient chart and a tablet

Specialty pharmaceuticals

A new treatment against the standard of care

Physicians' choices replicated for patients at their true clinical mix, so the launch team could see where the product would win, with whom and at what price.

A television showing a grid of channels

Pick-and-pay television

Canada's largest wireless and cable company

Canada's regulator unbundled TV, and there was no history to forecast from. We replicated a market that did not exist yet, and the client positioned its line-up and prices for the most profitable result.

The full story →
A laptop and a stack of tax forms on a kitchen table at night

Tax and small-business software

The tax-software leader: keeping customers, choosing what to build

Customers who did not come back told us why. The reasons were largely fixable, and fixing them cut the share lost in half. Then the road map, optimized against staffing and uncertain task times, and later its small-business accounting editions.

A back bar at night with beer, wine and spirits on the shelves

Excise tax · Thailand · for an MBB strategy firm

A global drinks company, ahead of a tax increase

Thailand taxes alcohol at the higher of a specific and an ad valorem rate. Before rates rose, we replicated how drinkers would switch among specific brands of beer, wine and spirits, each with its own price and alcohol content. The company used it to weigh acquisitions and to make the case for a tax design that served both the treasury and the company.

A child reading with a stylus-based learning reader

Learning toys · Grand Effie

A learning-toy leader, against the toy industry's giant

A far cheaper rival came for the category leader. Head-to-head ad testing showed which ads won with which viewers, and where to place each one. The campaign won the Grand Effie, and the rival soon left the market.

The full story →
Congested interstate lanes beside a free-flowing express lane

Express toll lanes

Major U.S. interstate corridors

Drivers choosing between free lanes, express lanes and other routes, at prices that move with traffic, so the operator could see traffic and revenue at every price.

A passenger train arriving at a platform at dusk

Passenger rail and transit

The national passenger railroad and two big-city transit systems

Travelers choosing between rail, bus, car and plane at real fares and schedules, so each agency could weigh ridership against fare revenue.

The full stories, and how the work was done →

Clients

The markets these companies lead are markets we have replicated. Some engagements are direct; many are as the modelers behind the research and consulting firms that lead them.

Pharmaceuticals and health

Pfizer
Merck
Johnson and Johnson
Novartis
GSK
AstraZeneca
AbbVie
Alkermes
Bristol-Myers Squibb
Abbott
Bayer
Gilead
Takeda
Novo Nordisk
Janssen
Daiichi Sankyo
Teva
Vertex

Food, beverage and consumer goods

McDonald's
Coca-Cola
PepsiCo
Nestlé
Procter & Gamble
Mars
Mondelez
Kraft Heinz
Kenvue
Wrigley
Tyson Foods
Clorox
Frito-Lay
Molson Coors
Pernod Ricard
Tim Hortons
Panera
Sara Lee
Hillshire
Glad
Maple Leaf Foods
Canada Bread
vitaminwater
Traditional Medicinals

Technology, industrial and automotive

Intel
HP
LeapFrog
Toyota
Lexus
Honda
Danaher
Dover
Fluke
Amprobe
Matco Tools
Warn

Telecom and financial services

Rogers
Scotiabank
CIBC

Transportation

Amtrak
WMATA
SEPTA

Higher education

Yale
Dartmouth
Johns Hopkins
University of Michigan
University of Virginia
Tuck School of Business
“We spent just 4 hours with Beau and in that time we came out with a simple, but effective framework and desired set of outcomes that we need to shape a major change in our strategy. We all have the data, Beau makes it make sense.”
COO · National clothing manufacturer and retailer
“Probably the best ever project we’ve done with your firm.”
Senior research manager · Fortune 50 technology firm
“In over 10 years in both market research and strategy consulting I have never met anyone with a greater depth of knowledge.”
Cofounder and partner · Leading research and consulting firm

How an engagement runs

Fast when it counts. Thorough always.

Some decisions cannot wait; others deserve every market, segment and scenario. Design, fieldwork, replication and optimization run on PansophIQ, our own platform, so the time goes into the thinking, not the logistics.

  1. Start with the decision

    The call, every move on the table and what rides on it. Bring sales data if you have it; we work from what exists.

  2. Designed with care, fielded fast

    Every study is built around your market and reviewed before it fields. Once the design is agreed, fieldwork can start the same day.

  3. Proved against sales

    The replica must reproduce today's sales before any scenario is trusted.

  4. Yours to keep

    The best move, what it earns, how sure we are, and a simulator of your market to keep asking.

Talk to us about your decision →

For research and consulting firms

We're the modelers behind some of the best research and consulting firms in the world.

When your client's decision needs the market itself modeled, bring us in. Your name on the work, your client stays yours, and we handle the hardest part.