Crucial Actions For Driving Worthwhile Share Progress
The growing share, especially in an established product category, is a challenge at best, but fundamental to long-term success. A company must at least maintain its market share, otherwise it will not benefit from the growth of the categories and countries. And if you're growing slower than other brands, you have the benefit of scalability even as your sales grow. Although it may seem unrewarded at times, it is worth increasing the stake provided you can do it profitably.
Disruption creates great gains
A brand's early years are a frantic attempt to build a viable user base and solve the problems in the business model. Growth is everything, either to keep your stake as a first mover or to establish it as a newcomer. McKinsey believes that for software and online services companies, growth path is the best predictor of long-term success. Think Amazon, Airbnb, or TikTok. But when there's a really disruptive proposition, any brand can quickly win shares, even in established and seemingly inactive categories where market share has barely changed in years. Think Chobani, Halo Top, or Dollar Shave Club.
Start differently, make it meaningful and eye-catching
What is the best form of the disorder? Something that the end consumer perceives as different from the current offers and that he finds functionally and emotionally relevant – in other words, more meaningful. Too many marketers dislike the value of perceived differentiation, and when you look at the brands, people think they are the most bothersome, they are also perceived as different. In 2018, an analysis of BrandZ data found that brands that have grown over time differ from their competition. However, in order to grow in the longer term, both the disruptive and growth brands needed to make their difference prominent and meaningful to more people.
Marginal profits contribute to growth
But what happens when the growth subsides? It's time to think about marginal gains, not disruptions. Big brands need to strive for growth wherever they can find it, from cross-selling to existing users, targeting specific segment needs, or expanding the entire category. But here's the thing: Incremental growth requires the same mindset that enables real disruption. A mindset that questions everything and is constantly looking for better ways to do things.
Growth is the result of a series of interrelated actions
Sustained market share growth is rarely the result of an event or action. Instead, it is the result of actions based on the buyer's cycle of experience, exposure and activation. Actions have different effects and their impact on sales over different periods of time, but together they add up to more than the sum of the parts. An update to Kantar's mastering momentum analysis found that brands that performed above average in experience, awareness and activation grew an average of 48% over three years.
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