2. www.thebrandgym.com
Introduction
About the research
In this, our 7th global survey, we looked at the challenges and opportunities for
companies who seek to “Grow the Core”. This included looking at the potential
advantages of growing the core over stretching brands into new markets.
The research was with almost 100
senior marketing professionals across
Europe, Africa, Asia, the USA and Latin
America, covering sectors from banking
to beer. We have brought to life the
findings with examples from our work
on brandgym projects, and through
interesting case studies we have come
across in our blogging and book writing.
We are strong believers in the power of
focusing on your core business for brand
success, having published a book on this
earlier in 2013. We wanted to evaluate
marketing directors’ real-life experience
with growing the core, to understand just
how important a driver of growth it was,
and to explore the challenges within their
organisations.
In this paper we look at the following areas:
• The case for the core: what are the
potential advantages of growing the core ?
• Neglecting the core: what gets in the way
of companies growing their core business?
• Core growth drivers: what are the most
effective ways of growing the core?
1 | SEPTEMBER 2013 | BRANDGYM RESEARCH PAPER 7
Grow the Core
The brandgym partners
3. www.thebrandgym.com
2 | SEPTEMBER 2013 | BRANDGYM RESEARCH PAPER 7
The key role that growing the core can play in a business was confirmed by the marketing directors
in our survey. Almost ¾ of the growth in the past two to three years came from growing the core, as
opposed to innovation to stretch into new markets. In addition, 42% of the panel expected growing
the core to become even more important in the coming years, with only 6% expecting it to become
less important.
Part1: The case for
the core
Avoiding fragmentation of investment and strengthening brand equity were considered to be
the most important advantages of growing the core versus brand stretching, with c. 60% of
respondents agreeing strongly, followed by creating economies of scale.
Action point: ensure growing the core is getting its fair share of your
time, talent and budget given the major advantages this form of growth has compared to
brand stretching.
More Important
Stay Same
Forecast Change in Importance of Growing the Core Next 2-3 years
Less Important
42%
6%
52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Avoids fragmenting
investment
Strengthens brand
equity
Creates economies
of scale
Agree
Agree Strongly
Benefits of Growing the Core vs. Brand Stretching
4. www.thebrandgym.com
0%
20%
40%
60%
80%
100%
Best way to drive sustainable, profitable growth
Grow the core
Innovation
Mkting Dir
78%
22%
45%
55%
47%
53%
43%
57%
Senior Mgt Sales Force Retail Cust.
3 | SEPTEMBER 2013 | BRANDGYM RESEARCH PAPER 7
The vast majority of marketing directors (78%) agreed that growing the core was the best way to
drive sustainable, profitable growth. However, the survey showed a lack of alignment with the rest
of the organisation. Only 55% of senior management agreed that growing the core was the best
way to grow, with an even lower level seen amongst the sales force (47%) and retail customers
(43%). This weaker support beyond the marketing team helps explain why the share of budget for
growing the core (65%) lags behind the share of growth it has delivered in the last 2-3 years (74%).
Part2: Neglecting
the core
The survey results gave some clues as to why growing the core is viewed less positively by the sales
force and retail customers. Almost all the marketing directors (95%) said innovation was seen by
the organisation as “more sexy and exciting” than growing the core, and 74% felt innovation was
seen as the “best way to get promoted”.
Action point: engage and excite senior management, the sales force and retail
customers , when making the case for growing the core, including the use of inspiring examples,
from inside your business or from other brands.
5. www.thebrandgym.com
4 | SEPTEMBER 2013 | BRANDGYM RESEARCH PAPER 7
There was a clear hierarchy in terms of the core growth drivers, based on those seen as being extremely
important:
Part3: Core
growth drivers
Action point: ensure you start with creating distinctive communication and identity for
your brand, followed by extending distribution, as all these drive growth without adding any extra
complexity. Only then consider extending the core with new pack formats and products.
• First: distinctive brand communication,
products and identity, with a good
example of this killer combination being
the Nespresso brand.
• Second: growing distribution in both
existing and new channels, a strategy used
with success by Costa Coffee on the high
street, and in Express outlets for coffee on
the go.
Also, creating distinctive activation
properties, such as Carling Black Label’s
Be the Coach campaign, where consumers
select the teams competing for the
Carling Cup.
• Third: extending the core through new
pack formats, such as WD 40’s Smart
Straw, and new products, such as Gillette’s
razor range.
The minor role of social media for most brands was confirmed by only 12% of marketing directors
rating this as extremely important for growing the core.
6. www.thebrandgym.com
5 | SEPTEMBER 2013 | BRANDGYM RESEARCH PAPER 7
Conclusions
Conclusions
• Focus on the core: growing the core is the best way to create sustainable profitable growth, as it helps
you sell more of what made you famous, strengthening brand equity and avoiding fragmentation.
• Make the case for the core: senior management and the sales team still need convincing of the benefits
of growing the core over innovation, which they see as being more sexy and exciting. When making the
case for the core, use exciting examples to inspire and engage them.
• Harness all the growth drivers: we recommend working through the growth drivers in a sequential
fashion, starting with the core mix, then distribution and at the end core product and pack extension.
This will help you avoid the mistake made by some teams who jump straight into core range extension,
neglecting the other drivers.The framework below from the Grow the Core book summarises this approach.
7. Anne Charbonneau (Benelux/France)
M: +31 611 64 34 07
E: anne@thebrandgym.com
Silvina Moronta (Latin America)
M: +54 (9) 3436612393
E: silvina@thebrandgym.com
Prasad Narasimhan (Asia)
M: +91 8951939090
E: prasad@thebrandgym.com
6 | SEPTEMBER 2013 | BRANDGYM RESEARCH PAPER 7
grow the core
All books available from www.wiley.com
with a 20% discount. Simply enter promo
code: XXXXX at the checkout.
Should you wish to buy multiple copies
of any of David’s books, please contact
our Corporate DevelopmentTeam on:
+44 1243 770247. Or email Laura Cooksley
on:
12-50470/MLEA021413
Other books available from
David Taylor and The BrandGym
The Brand Gym
2nd Ed
9780470686195
Hardback
256 pages
£24.99
Brand Vision
9780470028353
Hardback
284 pages
£28.99
Brand Stretch
9780470862117
Hardback
178 pages
£28.99
Never Mind the
Sizzle… Where’s
the Sausage?
9781841127699
Paperback
162 pages
£9.99
www.thebrandgym.com
Diego Kerner (Latin America)
M: + 54 (9) 11 5 058 5900
E: diego@thebrandgym.com
David Taylor (Managing Partner)
M: + 44 (0) 7789 202 564
E: david@thebrandgym.com
David Nichols (Managing Partner)
M: +44 (0) 7787 148 806
E: davidn@thebrandgym.com
Grow the Core Coaching
www.brandgymblog.comwww.thebrandgym.com |
• We are a network of 6 senior brand coaches helping companies gain and retain brand leadership.
• We are leaders in the area of Growing the Core, helping teams develop effective marketing plans that
focus on the core business for brand success:
• We have published 7 books on brand growth including
the world’s first practical guide to growing the core,
“Grow the Core: How to Focus on Your Core Business
for Brand Success”.
• We also have a track record of delivering top rated
keynote speeches and training courses on the
subject of growing the core.
• Additional brandgym services include Brand Vision to
Action and Brand-led Innovation.
• Our have a track record of helping leading companies focus on their core business for brand success,
including SAB Miller, Sainsbury’s, LVMH, Danone and Kraft.
• Creating an clear and compelling vision to inspire core brand growth
• Developing “turbo charged” marketing plans to grow the core, using every bit of the marketing mix
• Building team energy and alignment through a collaborative, cross-functional process
