Manufacturer brand portfolios dynamics

The dynamics of manufacturer brand portfolios are not as supposed – small brands in the portfolio are not especially premium priced and buyer overlap between the brands is low. Our third article looks at brands that gained share in 2020 – their huge increase in sales value and how they achieved it.

1. Although the 4th and 5th brands in the average manufacturer portfolio are just 10% higher in price than the top brand, 20% of the 4th and 5th brands charge more than double the price of the biggest brand.
2. The rules of buyer duplication apply just as much within manufacturer portfolios – more overlap with big brands and in frequent categories. But buyer overlap, averaging less than 10%, is much lower than many would believe!
3. Brand share winners in the record 2020 FMCG market saw a huge increase in sales value and Private Label was more likely to fall back in those categories. The direct relationship between share change and buyer numbers was retained and key drivers included new product success translated into increased presence.