In an era where marketing budgets are under intense scrutiny, Chief Marketing Officers (CMOs) face the formidable task of ensuring their strategies not only withstand financial examination but also drive substantial growth.
The contemporary market landscape, marked by fierce competition and fragmented channels, often leaves CMOs grappling for the most effective approach. According to a recent Kantar report, the answer might lie in brand equity.
The Power of Brand Equity
Kantar’s ‘Blueprint For Brand Growth’ report offers a comprehensive analysis derived from an extensive data set. As explained by the Chief Brand Solutions Officer at Kantar North America, the report distinguishes itself by leveraging years of data to provide a holistic view of brand growth.
They stated that their brand blueprint spans years of data, allowing businesses to understand the full spectrum of brand growth – before, during, and after implementation. This comprehensive perspective helps businesses develop tailored strategies for sustainable brand growth.
The report categorises the data into two primary buckets: attitudinal and purchase. The attitudinal bucket encompasses 5.4 billion data points across 21,000 brands, 540 categories, and 54 markets.
Meanwhile, the purchase bucket includes 1.1 billion data points spanning 20,000 brands, 100 categories, and 25 markets. This data, collected over a decade, underscores the importance of a nuanced approach to brand strategy.
A Three-Pronged Approach to Brand Growth
The findings of the report suggest a three-pronged strategy for driving brand growth: predisposing more consumers to a brand, maintaining a consistent presence throughout the consumer lifecycle, and exploring new avenues for growth.
1. Predisposing Consumers to a Brand
Predisposing more consumers to a brand involves creating meaningful differentiation. Brands that successfully build stronger emotional and functional connections with consumers achieve five times the market penetration of those that do not.
This differentiation not only increases purchase intent but also drives higher volume shares, price points, and overall value share in the market.
As the Chief Brand Solutions Officer puts it, being meaningful means addressing the consumer. If your brand resonates with the right buyers, it sets you up for success.
2. Consistent Presence in the Consumer Lifecycle
Being consistently present across all touchpoints where buying decisions are made is crucial. This includes being visible in search results, on websites, and on physical store shelves.
Brands that maintain a constant presence attract seven times more buyers compared to those that are sporadically present. This omnipresence reinforces the brand’s relevance and accessibility, making it easier for consumers to choose it over competitors.
3. Exploring New Spaces for Growth
Expanding into new markets and finding additional uses for existing products are essential strategies for growth. Brands that discover new uses for their products have twice the growth potential compared to those that do not.
For instance, a 10% increase in product usage can drive a 17% growth in the brand. However, venturing into new spaces requires innovative thinking, expanded distribution, and strategic communication.
However, proven methods include meaningful and differentiating innovation, which can unlock new opportunities and consumer segments.
Market Penetration: The Heart of Brand Growth
Market penetration remains a cornerstone of brand growth. Reaching a broader target audience is increasingly challenging in today’s saturated market. The plethora of choices available to consumers necessitates that brands stand out distinctively.
Meaningful differentiation – building emotional and functional connections – is the key to achieving this. Brands that are more predisposed to consumers see significantly higher market shares, prices paid, and overall value from their products.
One illustrative example is Dove’s extension from soap into healthcare and skincare. This strategic move was underpinned by Dove’s established reputation and brand equity, allowing it to seamlessly transition into new categories and drive growth.
Strategies for Meaningful Differentiation
Meaningful differentiation involves addressing consumer needs in a way that resonates deeply. This requires being present across all decision-making points and maintaining a consistent brand message.
Brands that achieve this differentiation see exponential growth in buyer attraction and market penetration. Additionally, exploring new uses for existing products or expanding into new markets can significantly enhance growth prospects.
To push into new spaces, brands must invest time and effort into innovation, expanded distribution, and communication. These strategies enable brands to tap into new consumer segments and markets effectively.
Conclusion
In summary, Kantar’s “Blueprint For Brand Growth” report provides CMOs with a data-driven roadmap to navigate the complex landscape of modern marketing.
By focusing on meaningful differentiation, maintaining a consistent presence, and exploring new growth avenues, brands can significantly enhance their market penetration and overall growth.
The insights from Kantar underscore the importance of a strategic, data-informed approach to brand management, offering a beacon for CMOs striving to drive their brands forward in an increasingly competitive market.
