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Kantar worldpanel - rules of brand growth

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This a view from Kantar Worldpanel on brand growth - using extensive purchasing behaviour of shoppers to demonstrate some ground rules for growth

For more information please visit: http://www.kantarworldpanel.com/en/Expertise

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Kantar worldpanel - rules of brand growth

  1. 1. 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
  2. 2. The actual behavioural data however says most popular way (after not buying) is buying Persil just once, then twice….. 109876543210 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 of Machine Wash products in all outllets and channels 2013
  3. 3. Even the heaviest Persil buyers buy occasionally competitive brands…(our five Persil purchases in a row would be a rare occurrance) 109876543210 0 1 2 3 4 5 6 7 8 9 10 Average Competitor Trips Number of Persil trips per annum MORE PERSILSAMELESS
  4. 4. But is just an odd example? What about with its very distinctive positioning? (perceived owner of the non-biological attribute)
  5. 5. that Persil has significantly more buyers than Fairy Fairy‟s distribution is just like Persil‟s except 10987654321 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
  6. 6. Between all the brands penetration varies considerably more than average trips…. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 %Penetration (Buyers of Brand/ Total Population) x1.3 x2.6 Average trips per annum DazEcoverFairyPersilBoldSurfAriel 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.
  7. 7. 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
  8. 8. "If you attract more buyers, ‘loyalty’ will come." "If you build it, they will come." BECOMES Consequently you need to think like this….
  9. 9. 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‟ve run out of Washing Power/Tablets
  10. 10. A GROWING ANNUAL PENETRATION CONTROLLED 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 content Precise targeting Real time interruptions That a brand‟s strength is about how many people choose you; And much less about whether they „love‟ you.
  11. 11. SO, FOR BRAND GROWTH YOU SHOULD CONSTANTLY REVIEW THE FOLLOWING RULES>>>
  12. 12. 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…
  13. 13. 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!
  14. 14. YOO YOGHURT WAS EFFECTIVELY DISCONTINUED 18 MONTHS AFTER LAUNCH JUST IN THE STORE & GOOD VALUE: A TEMPORARY PLAN Muller Corners Yoo 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 A O N D J F M M J J A S O N J F M A M J A S O N D J F A M J J A S O D J F M A M J A S O N D J M A M J J %£Share of Yoghurt 2011 2012 2013 18 MONTHS
  15. 15. 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....
  16. 16. 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…
  17. 17. Rule 4: More promotions or more discount or both Working on the value equation…the short term effect that dominates the sales data typically
  18. 18. BUT ONLY IN THE SHORT TERM! PROMOTIONS DO ATTRACT BUYERS e.g. Cheerios in Tesco 0.0 0.5 1.0 1.5 2.0 2.5 0 50 100 150 200 250 300 350 400 Cumulative Buyers Sales No Promotion On Deal 10% INCREASE IN BUYERS 2011/12 2012/13
  19. 19. Rule 5: Agility when the opportunity arises £1 arguments PULLING OUT TRENDS OR EVENTS Simply moving fast…..
  20. 20. 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-buyers My value offer is better than before (compared to competitors) I react fast and appropriately when the opportunity arises
  21. 21. © Kantar Worldpanel© Kantar Worldpanel Panel data lifting the fog GROUND RULES OF BRAND GROWTH http://www.kantarworldpanel.com/en/Expertise For further information please visit:

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