![]() Theory: growing brands by marketing to everyone is not achievable.He highlights the difference between the theory and the reality of using segmentation: “I write off as quackery is how these segmentation studies are often used by us Marketers,” is his take on this topic. However, what it really did was communicate customer care that attracted new users who thought, “O2 seems to care about its customers, I’ll give them a go”.ģ. Brands grow by winning across segmentsĮvgeny also has some interesting things to say about segmentation. The O2 Rewards scheme was intended to say thank you to existing customers. An example of this is O2’s Rewards program, that I wrote about in the Grow the Core book. ‘Loyalty programs’ drives growth by increasing penetrationĮvgeny shares experience of at least two cases where “penetration-driven brand growth was achieved by brand teams trying to move the needle on frequency or loyalty.” Even when what look like loyalty-focused programs seem to work, dig deeper and they seem to work because of an unintended consequence: attracting new users. As far as I am concerned, this conclusion is beyond challenge,” he states unequivocally. As expected, frequency moved in the same direction, albeit at a smaller percentage period on period. “I can testify that in all these categories brands grew by expanding penetration. Evgeny quotes his own work using extensive panel data on multiples categories (Personal Care, Confectionary, Fast Food, Ambient Grocery). But its nice to get some real-word, unbiased confirmation that the ‘laws’ seem to work. There is loads of data in the HBG book to show how penetration, not loyalty, drives brand growth. Below I share some of his key points and my take on them. I found his article on Linked In insightful and practical, based on real-world experience ‘in the trenches’ of brand building. It was interesting to read Premier Foods Marketing Controller Evgeny Bik’s take on “How Brands Grow” (HBG) by Byron Sharp, in response to the dismissive and highly critical comments of VCCP Media’s Maire Oldham, that I posted on here. ![]()
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