The importance of innovation

Posted by Filipa Silverio on Apr 20, 2021

With tough times likely post Covid-19, we look at the importance of innovation and how volume share increases translate into added value over time.

Finally, despite lower overall shopping frequency in 2020, category frequency increased and brand loyalty dropped.

 

  1. The next few years are likely to be very hard for many families worldwide. In these times, it is tempting to curtail marketing investment and reduce new product activity. Many studies have shown that this leads to long term ‘hurt’ and that brand growth is even more driven by effective activity.
  2. Of the brands that gain volume share in year one, 84% also increased value share. Five years later, 63% were still up in volume share vs year zero and nearly all of them were then also up in value share.
  3. Although the pandemic led to lower overall shopping frequency, the record levels of market growth meant that each category featured more often in each basket and so, with more opportunities to switch, brand loyalty dropped.