Stop Sprinkling the Infield: For B2C Multi-Unit Business Operators A Smarter Way to Allocate Marketing Dollars Across Units
Kingside Partners – A Boston-Based Integrated Finance & Marketing Advisory
Too often, owner-managed and even P?E backed B2C multi-unit businesses – restaurants, fitness facilities, medical clinics, spas, retailers and the like – fall into the trap of allocating their marketing budget evenly across all locations — the equivalent of “sprinkling the infield” and hoping for uniform results.
Capital is the lifeblood of a business and certainly not unlimited. Marketing spend is typically the single largest discretionary item in an income statement and as such, the decision-making process on allocating the marketing spend has important consequences. Accordingly, marketing dollars, like capital investments, should be deployed strategically and discriminately with rigor and analysis — not evenly.
As an example, if a decision maker is managing a $10,000 monthly budget across 100 locations, simply assigning $100 per unit might feel appropriate or instinctively the prudent thing to do , but it’s typically not the wisest approach. Recognizing that each unit is a distinct economic unit and operates in a different market context, experiences a different growth phase, and has a different performance trajectory is essential. All of which means that each unit requires a different marketing investment strategy to truly maximize your return on marketing spend (ROMI).
Professional Institutional capital providers such as private equity firms raise their capital for their business of investment and acquisitions ( their deals) by speaking to and promising their capital sources, their limited partners that they have the expertise to manage and deploy the capital made available in a subsequent fashion ( the Funds) that will eventually deliver compelling returns those sources. It is all about returns or ROI.
That ROI thesis and capital orientation mindset drives the aforementioned institutions’ ordinary course deal pursuit, the actual acquisition valuation established on proposed deals and then in the capacity as the Board of Directors , the ensuing management and oversight of the actual acquired portfolio company. The Board expects and entrusts management to think and execute in the same fashion particularly the C-suite – the CEO, CFO and CMO with the latter customarily the key decision maker and principal steward of the marketing budget. This organizational alignment – performance objectives, framework of thinking and mindset, decision making and execution customarily produces the best feasible operating result over the long run.
Specifically, to accomplish and manage the marketing spend properly and in an astute fashion, the CMO (or the final decision maker) needs more than traditional marketing acumen and instincts — the decision maker needs to think like a corporate strategist and in a corporate finance portfolio manner . That means truly understanding actual, historical unit economics, return on investment (ROI), and a resource allocation framework grounded in corporate finance — including one inspired by the classic BCG Matrix.
The Financial Lens: Marketing as Capital Allocation
- Marketing is often treated as an expense. In reality, it’s an investment. And like any investment, it should be evaluated on:
-Incremental return (how much additional revenue or profit it generates)
– Payback period (how quickly it recovers the investment)
– Unit contribution margin (the profit per transaction or customer)
– Capacity to scale (can this success be replicated across other units)
Understanding these principles helps you assess where each unit sits on the performance spectrum — and what kind of marketing it really needs.
The Matrix Approach: A Smarter Allocation Framework
Borrowing from the BCG Growth-Share Matrix, we believe that dynamic categorization of each unit across two key dimensions:
– Market Opportunity (external potential based on demographics, local demand, competition, etc.)
– Operational Performance (internal performance: revenue trends, customer conversion, capacity, execution)
Employing this approach , a decision maker and the team can classify the units into four groups:
Segment | Description | Marketing Approach
—————-|—————————————–|———————————————
Stars | High potential, strong performers | Double down. These units deserve the lion’s share.
Question Marks | High potential, underperforming | Invest strategically and offer support.
Cash Cows | Low growth market, strong performance | Maintain spend. Preserve gains efficiently.
Strugglers | Low potential, low performance | Reduce or pause marketing. Reassess viability.
Note that BCG actually captioned strugglers as dogs but Because I love dogs personally and to not be off putting to not only dog lovers like me but in general, I think it acceptable and more professionally to change the terminology as I have done here
The framework and approach tat I have outlined here is more complex and more rigorous than can be conveyed in this document. Kingside has over four (4) decades in marketing and consumer centric businesses. Let’s see if we can help you implement these methodologies and actually improve the ROI on your marketing spend and the EBITDA and enterprise value of your business.
Final note, the financial ROI approach is not meant to preclude the need for strategic-oriented marketing investments when warranted. In certain cases, especially when a unit is struggling, it may be appropriate subject to further considerations and instinct to ‘back up the bet.’ that was made in the first place. Strategic reinvestment can be the right decision when decision makers and ownership believe in the long-term potential of a particular unit location and seek to give that unit every chance to succeed in a challenging local market. This is disciplined exception-making — guided by data and yes instinct and acumen but not irrational emotion —and this discipline is what separates reactive marketing from strategic growth leadership.
Tactical Benefits of This Portfolio Corporate Finance Framework
1. Maximizes Return on Spend
By focusing dollars on high-yield locations, you amplify ROI.
2. Reveals Hidden Potential
A ‘Question Mark’ location might just need operational tuning and support — not more ads.
3. Reduces Waste
Why spend equally across units when some have no real ability to deliver return?
4. Supports Better Decision-Making
With this framework, you bring objectivity to what is often an emotion-driven or politically influenced budget allocation process.
From Thought to Execution
At Kingside Partners, we help B2C business owners and multi-unit operators make smarter marketing decisions by combining CFO-level financial modeling with CMO-grade marketing insight. Our integrated approach ensures your capital is not just spent — it’s invested with discipline, strategy, and purpose.
Let’s talk.
