The most effective path to brand growth lies in constantly attracting new buyers for your products, this is especially true for FMCG brands operating in the Philippines, according to new research from Kantar.
The new study on brand growth found that given the options available, shoppers are likely to purchase from a repertoire of brands. Hence, to grow a bigger brand attracting more buyers is essential but this is a difficult challenge due to the ‘leaky bucket effect’: on average, a brand will lose 50% of their buyers from a year to another.
In the Philippines, only 13% of brands tracked by Kantar managed to grow their penetration by more than one percentage point penetration between 2017 and 2018.
“It is essential for brands to realize that shoppers should not be taken for granted. There is a need to win over shoppers again and again,” said Marie-Anne Lezoraine, Kantar, Worldpanel Division Philippines general manager. She adds that demand for FMCG products may differ across the country. Brands that enjoy a higher market share in Metro Manila may not necessarily be popular in Visayas or Mindanao.
In a previous Asia Brand Footprint report, Kantar found that in the FMCG sector, the Philippines demonstrated a consistent love for two things: instant noodles and instant coffee.
Specifically, local brand Lucky Me has, for the fourth consecutive year, surfaced as the “most chosen brand” by Filipinos (98% of households), followed by instant coffee brand Nescafé (84%). Another coffee brand, Kopiko, is fifth on the list (72%).
Lezoraine noted that these brands can sustain market leadership because they constantly work in reaching new customers.
“These brands not only appeal to a large majority of households, but also consistently make efforts to be the chosen brand as often as possible,” she said.
Kantar outlined five strategies practised by successful brands:
- More categories: successful brands have broken category boundaries.
- More targets: successful brands expanded their target market to entice more shoppers.
- More presence: successful brands increased their presence through distribution into new regions or ensuring maximum presence across all channels.
- More moments: successful brands have tapped into more shopper moments.
- New needs: successful brands can anticipate new shopper needs.
“What is key is to have a thorough understanding of the shoppers, a clear strategy and, most importantly, excellent execution. Having the right product or pack available for the target shopper at the right price and in the right channel is critical because the competition to penetrate the Filipino shopping basket today is getting tougher,” said Lezoraine.
Sourced from Marketing Interactive, Inquirer.net.