Moving from categories to brands: how changes in relative brand prices (vs Private Label) impact their shares
Relative prices matter most for large brands in frequently bought categories
A focus on all brands
For the average brand, relative price is barely linked to share: a 10% increase versus Private Label costs only ~0.1 share points (R² = 0.02).
A focus on large brands (>5% share)
Bigger brands are more exposed — the same increase is associated with ~0.4 share points — their prices are likely more visible to shoppers given their presence on shelves (R² = 0.07).
A focus on large brands (>5% share) in frequently bought categories (>10 times per year)
Exposure is highest for big brands in frequently bought categories: a 10% increase versus Private Label costs ~1.1 share points (R² = 0.17)— close to Private Labels own 1.2 (see two weeks ago).
