In the second of our five-part series debunking major marketing myths, we’ll take a closer look at other factors that need to be considered in growing a brand. Influenced by Byron Sharp’s work at the Ehrenberg-Bass Institute, we’ll explore brands’ customer bases and which—if any—buyers they should be targeting.
22. Thisgraphtellsustwothings.
In the 2005 UK cola market…
1. Only a very small percentage of consumers were heavy buyers.
They purchased a Coca-Cola 50 or more times a year.
2. The bulk of customers were non or light buyers.
They got just a couple Coca-Colas a year.
31. The“DuplicationofPurchase”Law
Carte D’Or vs. Mars
%ofbuyerswhoalsoboughtbrand
0
5
10
15
20
25
30
35
40
45
50
Walls Dessert Ben & Jerry's Haagen Dazs Nestle Walls
Carte D'Or Mars
Source: How Brands Grow, Byron Sharp
32. Thisgraphtellsustwothings.
1. Brands share a far greater average percentage of customers with Carte
D’Or, the market leader, than with Mars, a smaller brand.
This is in line with the market share, or overall size, of the two brands.
2. Competitors do not stray far from the average percent of buyers shared
with the two brands.
Brands sharing customers with Carte D’Or are sharing around 38%, while brands sharing
customers with Mars are sharing around 7%.
34. Whathavewelearned?
1. Mass marketing is more effective than targeted marketing
Light buyers heavily dominate brands’ consumer bases, so targeting them
will provide the greatest penetration potential
35. Whathavewelearned?
1. Mass marketing is more effective than targeted marketing
Light buyers heavily dominate brands’ consumer bases, so targeting them
will provide the greatest penetration potential
2. Brands share customers in line with their brand size
Brand growth lies in increasing market penetration
37. Percolate is The System of Record for Marketing.
Our technology helps the world's largest and fastest-growing
brands at every step of the marketing process.
Want to learn more?
Contact learn@percolate.com for more information
or request a demo today at percolate.com/request-demo
Kat Gebert
Kat Gebert is on the Product Marketing team
at Percolate.