A spotlight on large brands – Part 1
The role of penetration, frequency, category growth and assortment size
When large brands grow, the number of buyers is key
In line with all types of brand, category and country rules of growth, the biggest brands also rely on attracting more buyers. The relationship is close to one-to-one between changes in relative penetration and changes in market share. Frequency of purchase plays a minor role – especially when frequency has been down over the pandemic and inflationary period.
Winning large brands operate in dynamic categories
Share winners among large brands compete in categories where we see more volume growth on average than in categories where share losers operate. Whether it’s chicken or egg, winning large brands either help drive category growth or better exploit category growth.
Although winning large brands have introduced fewer new products, these have been incremental
A key element in new product strategy is to gain more physical availability rather than cannibalise or replace one’s own assortment. Despite launching fewer new products, winners have turned these launches into a larger assortment.
