how brands grow seminar - the impact of marketing on brand kpis

POWERED BY

THE IMPACT OF MARKETING ON BRAND KPI’SA DEEP DIVE ON HOW MEDIA AND PROMO WORKS

SETTING THE SCENE

THE WORLDIS CHANGING

MEDIA € ⬇︎WHILE

PROMO € ⬆

BRANDLOYALTY

???

BRANDS ARE UNDER PRESSURE

1 2 3 4

HOW TOBREAK THIS

TREND?

WHAT IS THERECIPE FORGROWTH?

WHAT IS THEIMPACT OFDIFFERENTMARKETING

TOOLS?

PENETRATIONIS KING

WHAT ARE THE KEY DRIVERS /BRAND HEALTH KPI’S OF A BRAND?

X

X

MARKET SHAREVALUE / VOLUME

VALUE / VOLUMEPER BUYER

TRIPS BASKTETVALUE / VOLUME

BG20 — MANY QUESTIONS,FIRST ANSWERS

PANEL DATA & SURVEY DATA

FROM 14COUNTRIES

PANEL DATAFROM A FURTHER

10 COUNTRIES

INFORMATIONFOR MORE THAN

10K BRANDS WITH3-8 YEARS OF

BACKDATA

POWERED BY &

WHO WANTS TOBE A BRAND GROWTH MILLIONAIRE

WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE

HERE’S HOW TO PLAY

1. MULTIPLE CHOICE QUESTIONS ABOUT SOME OF OUR BG20 LEARNINGS

2. FOUR OPTIONS, ONLY ONE IS CORRECT3. SPEND ONE MINUTE DISCUSSING THE QUESTION WITH

YOUR NEIGHBOURS4. ANSWER INDIVIDUALLY

YOU’RE NOT OUT IF YOU GET IT WRONG.WINNER DOES NOT GET A MILLIONS EUROS (SORRY!)


1

3

2

4

Q1

IF A BRAND DOUBLES ITS MARKET SHARE, WHAT IS MOST LIKELY TO HAPPEN WITH ITS PURCHASE FREQUENCY?

STAYS THE SAME

DOUBLES

SLIGHTLY LESS OFTEN

SLIGHTLY MORE OFTEN

LARGE BRANDS: MORE BUYERS, ONLY SLIGHTLY HIGHER FREQUENCY

<10 <20 <30 <40 <50 >50

100 122 135 146 137 156100

332

479

608712

925 Frequency

Buyers Share Frequency does not

(and cannot!)

differ as much as penetration


1

3

2

4

Q2

WHAT PERCENTAGE OF ANNUAL SALES OF AN AVERAGE BRAND COMES FROM 1 AND 2 TIME BUYERS?

33%

50%

25%

66%

50% OF SALES COME FROM 1 AND 2 TIME BUYERS

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21+

0%10%20%30%40%50%60%70%80%90%

100%% of sales Cumulative Large Small


1

3

2

4

Q3

WHEN A BRAND GROWS, IN WHICH SOCIODEMOGRAPHIC GROUP DOES IT GROW IN NUMBER OF BUYERS?

MOST AMONGST STRONGHOLDS

SIMILAR EVERYWHERE

MOST AMONGST WEAK SPOTS

NO CONSISTENT PATTERN

WHEN A BRAND GROWS OR DECLINES IN TERMS OF PENETRATION, THIS IS NOTICED WITHIN EACH OF THE DIFFERENT TYPE OF HOUSEHOLDS

All HH HH with kids Pensioners Others

21.3% 21.3%

26.9%

19.9%All HH HH with kids Pensioners Others

-21.4%-16.8% -17.3%

-28.2%

WHAT IS THE IMPACT OF MARKETING TOOLS ON MY BRAND HEALTH?

THE RESEARCH MODEL

APPROACH

DYNAMIC MODELING BASED ON GFK

PANEL DATA OF 300 BIG FMCG

BRANDS OVER SEVERAL

YEARS (2008-2015) SEARCHING FOR IMPACT OF

CHANGES IN… MEDIA SPENDINGS SHARE OF VOICE NUMBER OF PROMOS SHARE OF PROMO CATEGORY VALUE PRICE PAID

ON DIFFERENT BRAND HEALTH KPI’S

EVOLUTION OF… MARKET SHARE PENETRATION LOYALTY


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3

2

4

Q4

WHICH OF THE FOLLOWING MARKETING INVESTMENT CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S PENETRATION RATE?

INCREASE ABSOLUTE MEDIA SPEND

INCREASE NUMBER OF PROMO’S

INCREASE SHARE OF VOICE

INCREASE SHARE OF PROMO

FOR PENETRATION, ABSOLUTE MEDIA SPEND HAS THE BIGGEST IMPACT

FOR CHALLENGER BRANDS (MARKT SHARE <10%)PENETRATION IMPACT IS EVEN BETTER


1

3

2

4

Q5

WHICH OF THE FOLLOWING MARKETING INVESTMENT CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S LOYALTY?





IMPACT ON LOYALTY IS LIMITED. SHARE OF VOICE HAS THE BIGGEST IMPACT FOLLOWED BY SHARE OF PROMO BEING COMPETITIVE IS KEY


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3

2

4

Q6

WHICH OF THE FOLLOWING MARKETING INVESTMENT CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S MARKET SHARE?





BE COMPETITIVE ON PROMO AND LEAD ON MEDIA IN ORDER TO GAIN SHARE

THE POWER OF INTERACTION

1+1=3

INTERACTION EFFECT

+40% +55%

IN ADDITION

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%0.0%0.1%0.2%0.3%0.4%0.5%0.6%0.7%0.8%0.9%1.0%

Media spend (as % of category value)

Increasing media spendings results into slower PL OM growth!

This is however not the case for Hard Discount market share growth

Promotions are not able to stop PL market share

growth!

S S SNS

CONCLUSION

KEY CONCLUSIONS?

THE WORLD IS CHANGING & CONSUMERS ARE TOO

MEDIA IS IMPACTING PENETRATION MORE THAN PROMOTIONS

BUT THE POWER LIES IN THE INTERACTION OF BOTH MEDIA & (share of) PROMO

PENETRATION IS THE STRONGEST LEVER TO BOOST SALES

how brands grow seminar - the impact of marketing on brand kpis

Marketing