Byron Sharp How Brands Grow Pdf

The Biggest Contributor to Brand Growth. Instead, theres a simple rule that successful brands follow Its all about increasing household penetration. Penetration is defined as the percentage of households in a market that buy a particular brand in a given year. Across dozens of diverse categories from yogurt to laundry detergent and in distinct markets from Indonesia to the UK, we have systematically confirmed the same insight. The one thing that all leading brands have in common is that they also lead their categories in penetration. Weve observed that loyalty levels within a category can be extremely similarand generally lowfor all brands. And while loyalty across categories doesnt vary significantly over time, household penetration does. No brand can truly make a difference by standing out on loyalty. Brands primarily stand out because more people buy them. Look at China. Tsing Tao in beer, Pampers in baby diapers and Maybelline in color cosmetics all earned penetration rates that are significantly higher than the average of the top 2. Kilauea Mount Etna Mount Yasur Mount Nyiragongo and Nyamuragira Piton de la Fournaise Erta Ale. Byron Sharp How Brands Grow Pdf Viewer' title='Byron Sharp How Brands Grow Pdf Viewer' />These brands usually earn higher repurchasing and purchasing frequency rates than their rivals, but their outperformance in penetration is far more dramatic see Figure 1. But while penetration may be the biggest contributor to brand growth, it shouldnt be taken for granted. If you analyze the population of shoppers that bought a brand in a given year, it is not unusual for a large majority not to be buying it the following year, and even top brands can experience churn rates of nearly 5. The implication Companies need to invest to re earn penetration over and over again. Byron Sharp How Brands Grow Pdf CompressorWinners accept that its a game of constant recruitment. Thats why they invest on an ongoing basis to acquire more new consumers every year than they lose. Despite the importance of this simple rule, we see a surprisingly high number of brands with chronically low levels of penetration. Across many categories, a large majority of brands will typically enjoy less than 5 penetration. While many companies can achieve this rate just by putting a brand out there in the market, it doesnt position them to achieve scale. Weve found that companies need to reach 1. Solid brands maintain penetration in the 2. Coca Cola can achieve 5. Too many brands make the mistake of limiting their imagined universe of users to a narrow subset, often contained in the strict boundaries of their product sub category. They typically overestimate their competitive positions and think they cant possibly grow furtherbut they could, if they looked at penetration of the overall population instead. For many brands, this means theres still a lot of untapped potential and headroom for growth. Look at the success of brands like Blue Moon or Red Bull. They would have found themselves hitting a wall if they viewed their brands as competing only in Belgian style white beer or premium energy drinks, respectively. But both realized they compete in a much broader competitive space. Many consumers could easily trade off a Blue Moon for a margarita, or a Red Bull for a cup of coffee or energy bar. By acknowledging this, those brands managed to boost their penetration in the US to above 5 and above 1. So, how can brands grow their penetration rates For starters, brands must realize that they need to be in the game for the long run. Based on our experience, brands that make all the right moves can hope to add about 1 of penetration a year. At that rate, it takes a brand starting with 1. Unfortunately, few companies choose to lay plans for longer than the next 1. SKUs to the advertising strategy, rather than staying the course. Jogos Para Pc Gratis Pinball here. Companies that keep switching everything risk losing out to rivals that stick with a plan for slowly and steadily increasing penetration. It takes unwavering discipline and patience to gain ground. As many companies have found, its easy to veer off course in the hunt for revenues to meet short term financial targets or in the pursuit of boosting volume sales. A brand can be tempted to temporarily drive up revenues with price increases, but it risks losing buyers who cant afford the higher prices. Or a brand can temporarily drive up volume by increasing pack sizes, but it risks losing occasional buyersthose who would buy a single SKU but not a six pack, for examplebut are necessary in the long term to build penetration beyond core heavy users. Over the years, it hurts the brand. Winners know they need to avoid such shortsighted moves to maintain a long term and ruthless focus on penetration. Boosting penetration is difficult to do in isolation from another critical performance indicator in consumer goods brand consideration defined as the percentage of consumers who would consider your brand for a given purchase occasion. How To Disable Driver Signing Enforcement Windows 7 64-Bit on this page. Building penetration requires continually building considerationwhich in turn helps increase penetration. The steady path for earning consideration and penetration requires investing in three key brand assets memory structures, product portfolios and in store assets. Lets look at each area one by one. Memory structures. Building memory structures means anchoring a brand in consumers long term memories, using the full range of touchpoints. Winning companies broadcast a brands messages widely enough to be heard by the largest possible swath of consumers. To get into consumers heads, they articulate messages that are distinct and memorable, often in the shape of stories that tell consumers what the brand is, why they need it, how its different and when or how to use it. Because individuals can remember only a limited number of brand names, and memorize only a few messages, memory structures are fragile and take long to establish. Winning companies therefore know that staying in consumers heads takes consistency, persistence and repetition. They use the same messaging and cues everywherefrom media advertising to packaging or point of sale signage. They avoid changes to messaging, logos, catch lines or music that erase memory structures. And they dont shy away from repetition. That is the approach that has supported brands like Nutella or Nivea for years. The iconic chocolate spread brand hasnt significantly altered the product formulation and taste, and rarely modifies its message. The skin care brand has essentially been using the same visual cues for its core product for decades the same round tin since the brand was launched in 1. Finally, look at Innocent, the leader in the smoothie category in Europe. Every communication on its containers consistently reminds consumers that its products are natural and healthy, and that it helps them achieve their objective of five a day the daily consumption of five different fruits or vegetables for nutritional balance. Many companies limit their media investment per brand, either for budgetary reasons or because theyre trying to support too many. As a result, they never gain the share of attention necessary to boost consideration, and in turn, penetration. What do winners doFirst, they stick to the brands heritage to avoid eroding memory structures, but continually refresh it to keep it current. Then, they achieve reach, repetition and audibility by concentrating their resources on fewer brands. They identify those that either have enough scale to self fund the required investments or enough potential to break into a new consideration setand they commit. Product portfolios.