Scaling a New Fragrance Brand Without Cannibalizing Legacy Sales
Scaling a New Fragrance Brand
Without Cannibalizing Legacy Sales
A leading fragrance company in Mexico set out to accelerate adoption of a newly launched brand while protecting performance across three established legacy brands. The challenge was not just driving growth — it was managing portfolio dynamics to avoid internal competition and revenue erosion.
NoiseGrasp deployed Marketing Mix Modeling (MMM) to quantify cross-brand interactions, including halo effects and cannibalization. By measuring how brands influenced one another across channels, we provided a data-driven roadmap to optimize investment at the portfolio level — not just by individual brand.
Balancing Growth and Portfolio Stability
Launching a new fragrance brand in a competitive retail environment creates inherent tension: incremental growth often comes at the expense of existing products. Without clear measurement of cross-brand effects, increased investment in the new brand risked cannibalizing sales from higher-margin legacy brands.
The client needed visibility into how media investment for one brand influenced the others — both positively through halo effects and negatively through substitution. Additionally, budget allocation decisions had to respect operational and channel constraints, making optimization more complex than a simple reallocation exercise.
Portfolio-Level MMM for Smarter Brand Investment
Measure Incrementality
Quantified halo and cannibalization impacts to understand how each brand influenced total portfolio sales.
Optimize Budget Allocation
Designed a constrained portfolio-level allocation strategy to accelerate the new brand without eroding legacy performance.
Forecast & Scenario Planning
Modeled multi-year revenue projections to align investment strategy with sustainable portfolio expansion.
Unlocking Incremental Portfolio Growth
The optimized strategy projected MXN 900M in sales over three years, supported by MXN 70M in direct marketing investment. Beyond direct impact, the model revealed substantial cross-brand influence, allowing the company to strategically harness portfolio synergies.
Attribution analysis showed MXN 105M in sales driven directly by marketing efforts and an additional MXN 71M generated through halo effects from sister brands — validating the importance of managing media investment at the portfolio level rather than in isolation.
Through advanced MMM and portfolio optimization, NoiseGrasp enabled the client to grow a new brand confidently while strengthening the overall brand ecosystem.
Get In Touch
Speak With Our Team
Not sure where to start? Let’s talk.
Our team will walk you through how NoiseGrasp can solve your specific marketing challenges.
+1 (310) 302 - 7198
Email Address
Reach out to our team for any questions, product details, or support—we’ll respond promptly.