Manufacturer brand portfolios – what increases buyer overlap across brands?

Posted by Filipa Silverio on Jul 27, 2021

Manufacturer brand portfolios: firstly, apart from brand size and category frequency, which other factors increase buyer overlap across the brands; secondly, the average headroom for portfolio growth is sizeable; and overall, multi-brand buyers within a portfolio are few and far between. Our third article looks at brands that gained Number 1 ranking in 2020 – how they achieved it compared with brands that lost the top spot.

 

  1. Similarly the overlap increases if the brands appeal to similar consumer demographics or to segments with similar price point preferences. If you are concerned about too much overlap, avoid selling your brands in the same retailers. But from a sales perspective, seize any distribution opportunity you can get.
  2. On average major manufacturer brand portfolios reach only 13% of all households AND the percentage of multi-brand buyers of portfolios is tiny except for large portfolios in frequently purchased categories– maximise the reach of all brands in a portfolio.
  3. More than half of the Number 1 brands in 2020 gained share from 2019. One in five of these were not the Number 1 in 2019. How? Increased distribution and increased assortment by adding new products rather than substituting.