A broader view on brands’ growth and decline: why and when distinction matters

Grateful for the interest in ‘A broader view on brand’s growth and decline’, i am posting the link here: abroaderviewonbrandsgrowthanddecline

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Recently, we analyzed 153 brands across dozens of fast moving categories in Germany, Indonesia, Saudi Arabia, Thailand and the UK. Many brands show significant change (both growth and decline) in their monthly time series, allowing us to study the change drivers. The results show that brand distinction is a consistent driver of market share, penetration and perceived value. Moreover our findings are robust to brand size, category involvement and country economy (mature and emerging).

Importantly though, the distinction-satisfaction link is stronger for small brands, in higher involvement categories and in emerging economies. This may explain the limited role of distinction as a driver for performance in previous research which focused on big brands in low involvement categories and mature markets. Managers who want to grow their brands should not just focus on penetration, but also need to take care of distinction and satisfaction. 

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Measurement specifics: For each brand, we have monthly time series observations of market share (proportion of category volume sold that is accounted for by the brand), penetration (proportion of the population that bought the brand at least once), and survey question metrics on brand awareness (unaided recall of a brand when the category is given), distinction (percentage of respondents who think the brand “offers something that other brands do not”), perceived value (percentage of respondents who do not think the brand “costs more than you are prepared to pay”), and customer satisfaction (percentage of respondents who “would recommend the brand to others”).

We are still looking for the best outlet for this empirical study, so please let us know if you have a suggestion!

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