Small brands: Less bang for the buck

Posted by Oliver Koll on Jan 18, 2017

no1_no5Recently we showed that even leading brands struggle to attract a majority of category buyers (see “The top brands don’t get all the buyers!”). But among those that do buy these brands they get a high share-of-wallet than smaller brands.

Comparing market share and share of buyers (reach among category buyers) for the top 5 brands across 13 countries and over 80 categories shows that the ratio of reach and share for the average number 5 brand is almost twice as high as for the average number 1 brand. In other words: A small brand needs a much higher share of buyers for each market share point (2.8% of buyers result in 1 % share) than a large brand (1.6% of buyers result in 1 % share).