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POWERED BY
THE IMPACT OF MARKETING ON BRAND KPI’SA DEEP DIVE ON HOW MEDIA AND PROMO WORKS
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SETTING THE SCENE
THE WORLDIS CHANGING
MEDIA € ⬇︎WHILE
PROMO € ⬆
BRANDLOYALTY
???
BRANDS ARE UNDER PRESSURE
1 2 3 4
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HOW TOBREAK THIS
TREND?
WHAT IS THERECIPE FORGROWTH?
WHAT IS THEIMPACT OFDIFFERENTMARKETING
TOOLS?
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PENETRATIONIS KING
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WHAT ARE THE KEY DRIVERS /BRAND HEALTH KPI’S OF A BRAND?
X
X
MARKET SHAREVALUE / VOLUME
VALUE / VOLUMEPER BUYER
TRIPS BASKTETVALUE / VOLUME
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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 &
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WHO WANTS TOBE A BRAND GROWTH MILLIONAIRE
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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!)
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
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
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
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
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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
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
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%
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
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%
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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
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
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
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
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
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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%
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WHAT IS THE IMPACT OF MARKETING TOOLS ON MY BRAND HEALTH?
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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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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
1
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
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
1
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
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FOR PENETRATION, ABSOLUTE MEDIA SPEND HAS THE BIGGEST IMPACT
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FOR CHALLENGER BRANDS (MARKT SHARE <10%)PENETRATION IMPACT IS EVEN BETTER
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
1
3
2
4
Q5
WHICH OF THE FOLLOWING MARKETING INVESTMENT CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S LOYALTY?
INCREASE ABSOLUTE MEDIA SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
1
3
2
4
Q5
WHICH OF THE FOLLOWING MARKETING INVESTMENT CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S LOYALTY?
INCREASE ABSOLUTE MEDIA SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO
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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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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
1
3
2
4
Q6
WHICH OF THE FOLLOWING MARKETING INVESTMENT CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S MARKET SHARE?
INCREASE ABSOLUTE MEDIA SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO
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WHO WANTS TO BE A BRAND GROWTH MILLIONAIRE
1
3
2
4
Q6
WHICH OF THE FOLLOWING MARKETING INVESTMENT CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S MARKET SHARE?
INCREASE ABSOLUTE MEDIA SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO
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BE COMPETITIVE ON PROMO AND LEAD ON MEDIA IN ORDER TO GAIN SHARE
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THE POWER OF INTERACTION
1+1=3
INTERACTION EFFECT
+40% +55%
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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
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CONCLUSION
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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