2. What does “Category” mean?
A category is defined as a distinct, manageable group of
products and services that consumers perceive to be
interrelated in meeting a consumer need
3. What is Category Growth all about?
‘A’ ‘B’
Growing Market Share Growing the Cake
Moving from business model ‘A’ to ‘B’
4. What is ``Category Growth’’ all about?
Motivating
more consumers
to consume more
more often
Motivating
more shoppers
to buy more
more often
5. Sources of category growth are expressed in a
“Category Growth Equation”
Population Penetration Frequency Weight
Number of
Number of
X % shoppers
X occasions X How much = Category
available purchasing they they spend size
shoppers the category purchase per occasion
Shoppers (value
(x millions) (x%) (x times) ($ AWOP) purchased)
6. Growth Equation: Category Example
Exercise
Australian men on average
change their toothbrush only
twice a year, not 4x as advised.
Which lever would you pull?
Average
Penetration Purchase,
Total weights of
MARKET 98% X Frequency
Twice a year
X purchase
1 brush
7. Growth Equation: Category Example
Average
Penetration Purchase,
Total weights of
MARKET 98% X Frequency
Twice a year
X purchase
1 brush
8. Defining the category
Ice cubes
Fruit Water
bottle
Straws Flavoured Ice tea
water
(Thirst Tap
Quenching) water
Ice lollly Pure Healthy
Glass
Hydration
Bottled Sparkling
water water
First choice For which products
is “the dominant
Substitutes use” meeting the
identified
consumer need
Associated
9. Category Definition Exercise - Tea
Herbal Tea
Everyday Tea bags
Tap
Biscuits Cake
water
Bottled Coffee
Water Tea
pot
Tea
cup
Hot Sugar
Chocolate Kettle
Ice Tea
Premium
Tea Loose Tea
