Do Big Brands Matter?

 In Australia, NewZealand
Manufacturers often ask us “do big brands matter?” We would respond, to whom? Retailers or consumers? Given retailer ‘supremacy’ in the Australia and New Zealand grocery market, market structure tends to dictate profitability. So when considering the major determinant of a brand’s size, it often comes down to winning with the retailer, rather than winning with the consumer.
Retailers drive brand ranking variations
A brand’s performance can vary dramatically by retailer. Given that 99 percent of shoppers have shopped in both major retailers in the past 12 months, it boils down to the major retailers’ commercial imperatives and category priorities driving the variation in brand ranking.
Favourable trading terms leads to increased space, more opportunities to trial new product development, better promotional calendars and catalogue opportunities, all of which leverage sales.
The link between brand market share and rank within category
To explore this theory, we looked at a portfolio of big brands – not based on absolute dollar size, but by their relative market share ranking.  Nielsen Australia – Read more…

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