How we can learn about brand growth in times of high inflation
Inflation and brands. What can we learn about brand growth in times of high inflation?
- During periods of high inflation the rules of growth are unchanged – penetration is key
Following the significant levels of price inflation in 2008, brands that gained share also increased the percentage of category buyers they reach almost on a one for one basis – whilst the opposite was true for losing brands. - Winning brands continue to invest even in times of high inflation
Despite the significant levels of price inflation in 2008, brands that gained share invested much more than losing brands in new products – 35% more new products in number and with much higher contributions to brand sales. - Key drivers of brand buyer growth in periods of high inflation include physical availability and pressure
Gaining retailer listings and translating new products into increased presence are just as important when inflation is high. Make sure these form part of your plans and thereby maximise the probability of choice.