MarkStrat – what are the ideal number of brands?

Here is some more research into the performance of teams (looking at their share price index) and comparing that to how many brands they had at the time.

Looking at the total number of brands a team has comparing that to the SPI, it peaks around 5 and 6 total brands (in both markets), though some teams have done well with as little as 3, or as much as 7. What is clear is that any more then 7 brands doesn’t look advantageous.

Now looking at the composition of those brands, referring to them as the second market (whether that be Vodites, Nutrites or Trigols), it can be observed that generally, the more second market brands you have, the better the share price index. Even the teams that had 4 brands (which is strange since there is only 3 segments in the second market) did better then other combinations of brands. The sweetspot does seem to be 2 brands in the second market which suggests you have a much larger chance of outperforming.