Unchanged rules of growth
This week we continue to look at some of the issues raised in our recent New Year’s resolutions – the unchanged rules of growth and some of the key underlying drivers.
The pandemic has not changed the rules of growth – the number of buyers drives growth and decline
Covid has impacted FMCG purchasing but the key to brand share growth and decline remains the number of category buyers. Frequency and loyalty continue to follow but at much lesser change levels. Focus on buyer acquisition.- Innovation is a key driver of penetration and therefore share growth
In 2020 the brands that gained the most share were more active and much more successful with new products compared with the brands that lost most share – a 30% higher contribution to their sales and more than double the contribution from major introductions. - Physical availability also remains key to growth – and decline
In 2020 the brands that gained the most share increased their physical availability and translated new product introductions into greater range and shelf presence. The opposite was the case for brands in decline.