Posted by Filipa Silverio on Feb 16, 2021
This week, following a question about brand strategy, we look at the importance of recognising that brands lose a significant number of buyers every year.
Secondly we continue our innovation theme with insight on the relative performance of true innovations. And lastly, confirmation of how the FMCG market performed in 2020 and how that translates into 2021.
- Before a brand can grow, it needs to continually replace lost buyers. The numbers are very significant and underline the principle of maximising the choice probability on every occasion.
- The average true innovation represents 13% of annual brand value – more than double the average for renovations. But for any new introduction It is much more difficult in frequently bought categories which are bigger, with larger ranges and where shoppers have more opportunities to switch.
- Although lockdowns continue into 2021 and more people will still work from home, the market will not match 2020 levels and I expect a reduction of between 4% and 5% this year – but still well above 2019.