APPLYING LAWS OF GROWTH TO BRAND HEALTH TRACKING

Jenni Romaniuk‘s book ‘Better Brand Health’ recaps 3 laws of brand growth & highlights their implications for brand health tracking.

Click here to view the video version

🥇 Double Jeopardy

Brands grow mainly by adding more buyers to their customer base in each time period, not by growing loyalty. When brands grow, a bi-product is that loyalty also rises but usually only when accompanied by a much larger change in penetration.

This predictable pattern is called Double Jeopardy – smaller market share brands suffer twice as they have fewer buyers who are ALSO slightly less loyal when compared to brands with larger market share.

Many metrics are linked to Double Jeopardy, so knowing this pattern, we can identify when metrics are unusually high or low for a brand given it’s size.

▶ For brand health tracking the implication is we need to understand how a brand is present in the minds of non & light brand buyers.  They are important for future growth but harder to hear in research.

 

🥈Buyer profiles hardly differ

Your brand’s buyer profile should follow the category buyer profile. If your brand’s buyer profile differs from the category it usually means you have a barrier to growth – skews should be scrutinised, not celebrated.

Brand growth comes less from finding an optimal target and is more about the brand’s feasible market – the buyers it could have.

▶ For brand health tracking the implication is the sample should reflect the category.   Don’t let any brand specific target market assumptions contaminate your research sample plan.

 

🥈Competitors are the biggest brands in the category

The Duplication of Purchase law states that brand’s typically compete with other brands in line with the competitor brands size.

If a brand grows, it will gain more additional buyers from bigger competitors, fewer from smaller competitors.

▶ For brand health tracking the implication is competitor lists need to be comprehensive to include all the bigger and medium sized brands plus a sample of smaller brands. Done well, the brand list could be used by any brand in the category.

Our next section in this speed review is a contentious one…“Brand Awareness”.

If you are interested in hearing more about how we approach Brand Health Tracking then…
Arrange a virtual coffee with Rich: rich@bamboozled.co
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