GROUND RULES

OF BRAND GROWTH

For example, we hardly ever change our brand of Laundry Detergent, right?

We all know how we buy brands don’t we?

TODAYLAST MONTH NEXT MONTH NEXT MONTHLAST MONTH

The actual behavioural data however says most popular way (after not buying) is buying Persil just once, then twice…..

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0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

%category buyers

Number of Persil trips per annum

Based on 30,000 households purchases ofMachine Wash products in all outllets and channels 2013

Even the heaviest Persil buyers buy occasionally competitive brands…(our five Persil purchases in a row would be a rare occurrance)

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0

1

2

3

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Average Competitor Trips

Number of Persil trips per annum

MORE PERSILSAMELESS

But is just an odd example?

What about with its very distinctivepositioning?(perceived owner of the non-biological attribute)

that Persil has significantly more buyers than FairyFairy’s distribution is just like Persil’s except

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Fairy

Persil

10987654321

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

%category buyers

Number of trips per annum

FAIRY & PERSIL = 3.3 TIMES PER YEAR

Between all the brands penetration varies considerably more than average trips….

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.400.0

0.5

1.0

1.5

2.0

2.5

3.0

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4.0

4.5

%Penetration (Buyers of Brand/ Total Population)

x1.3

x2.6

Average trips per annum

DazEcoverFairyPersilBoldSurfAriel

DJ SHAPE

Both are odd: Persil has a lower trip average than you would expect for it’s penetration while Fairy is the opposite

What is clear, however, is that if Fairy wants to be bigger than Persil it will need to attract over twice the number of buyers

Ehrenberg and latterly Sharp have called this Double Jeopardy (j): smaller brands have significantly less buyers who buy slightly less often.

What is amazing is that these LAW LIKE RELATIONSHIPS are seen in every category where a consumer has a choice to make

COUNTRIES, SECTORS, CATEGORIES, RETAILERS, BRANDS

NOT EXACTLY LIKE SCIENCE BUT CLOSE

Boyles Law

"If you attract more buyers, ‘loyalty’ will come."

"If you build it, they will come."BECOMES

Consequently you need to think like this….

NEW YORK’S GREAT

AND SO IS PARIS

AND MADRID

AND LONDON

AND BERLIN

AND GENEVA

AND ROME

AND AMSTERDAM

AND STOCKHOLM

YOUR CONSUMER IS SOMEBODY ELSE’S CONSUMER WHO SOMETIMES VISITS - BUYS - YOU

That people like many places…and brands!

It’s about how you stand out when I’m thinking that I’verun out of Washing Power/Tablets

A GROWING ANNUAL PENETRATIONCONTROLLED FOR THOSE PREPARED TO PAY FULL PRICE

Unique reach potential

Personal for the many (not the few)

“MORE LOVE et al”

?

THINK

#1 METRIC TO MONITOR ON-GOING

=

Personalised contentPrecise targetingReal time interruptions

That a brand’s strength is about how many people choose you;And much less about whether they ‘love’ you.

SO, FOR BRAND GROWTH YOU SHOULD CONSTANTLY REVIEW THE FOLLOWING RULES>>>

Rule1:

Being available everywhere to buy

more availability = immediate increase in sales

I’m not going to wait and go somewhere else to buy you…

V

V

V

x3.5

x3.4

x4.4 18%

20%

20%

It’s not just about distribution though….

The Tesco so called venture brands – real brands made by Tesco –some 20% cheaper than the brand leader but the brands a 3 times bigger!

YOO YOGHURT WAS EFFECTIVELY DISCONTINUED 18 MONTHS AFTER LAUNCHJUST IN THE STORE & GOOD VALUE: A TEMPORARY PLAN

Muller Corners

Yoo

A S OND J FMAM J J A A S OND J FMAM J J A A S OND J FMAM J J J A S OND J FMAM J J J A S OND J FMAM J J J0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45%£Share of Yoghurt

2011 2012 2013

18 MONTHS

MILD GREEN

SLOGAN

TYPEFACE

CELEBRITY

SOUND SHAPE

CHARACTER

JINGLES

AD STYLE

LOGO

Rule 2:

Mentally available and relevant to all

SOURCE: IDENTIFYING DISTINCTIVE ASSETS….JENNI ROMANIUK AND NICOLE HARTNETT. EHRENBERG-BASS REPORT 52 TEXTURE

LONG LASTING WEAK SHORT TERM FORCE

LARGE LONG TERM DOMINANT FORCE

Why I need to be able to recognise and know the brand....

Rule 3:

More genuine new product innovation

SHARING

SOME CLASSIC ATTRIBUTES THAT PEOPLE WILL PAY MORE FOR

ENTERING THE LIONS DEN – WHERE A BIG PLAYER EXISTS ALREADY

INCREMENTAL TOTAL BRAND SALES IS AN INCREASING CHALLENGE

“BEST” PREMIUM

EASIER

TECHNOLOGY

HEALTH

To attract current non-buyers it can’t just be about the core…

Rule 4:

More promotions ormore discount or both

Working on the value equation…the short term effect that dominates the sales data typically

BUT ONLY IN THE SHORT TERM!PROMOTIONS DO ATTRACT BUYERS e.g. Cheerios in Tesco

0

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250000

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350000

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Cumulative Buyers

Sales

No Promotion

On Deal

10% INCREASE IN BUYERS

2011/12 2012/13

Rule 5: Agility when the opportunity arises

£1arguments

PULLING OUT

TRENDS OR EVENTS

Simply moving fast…..

Frequency

Penetration

The Double Digit Growth Line

X million buyers are required(and your loyalty will come)

If you could repeat last years NPD

In conclusion…Do you know how many buyers you will need to reach your target? I need 1 million extra buyers this year is more exciting than 10% growth

Are you thinking…..I need to get in more stores/get more space I need more people than ever before to know and recognise me My new innovation is aimed at attracting current non-buyersMy value offer is better than before (compared to competitors)I react fast and appropriately when the opportunity arises

© Kantar Worldpanel© Kantar Worldpanel

Panel data lifting the fog

GROUND RULES OF BRAND GROWTH

http://www.kantarworldpanel.com/en/Expertise

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