By GfK and MEDIALAAN

1. POWERED BY
THE IMPACT OF
MARKETING ON
BRAND KPI’S
A DEEP DIVE ON HOW MEDIA AND PROMO WORKS

2. SETTING
THE SCENE
THE WORLD
IS CHANGING
MEDIA € ⬇︎
WHILE
PROMO € ⬆
BRAND
LOYALTY
???
BRANDS
ARE UNDER
PRESSURE
1 2 3 4

3. HOW TO
BREAK THIS
TREND?
WHAT IS THE
RECIPE FOR
GROWTH?
WHAT IS THE
IMPACT OF
DIFFERENT
MARKETING
TOOLS?

5. PENETRATION
IS KING

6. WHAT ARE THE KEY DRIVERS /
BRAND HEALTH KPI’S OF A BRAND?
X
X
MARKET SHARE
VALUE / VOLUME
VALUE / VOLUME
PER BUYER
TRIPS BASKTET
VALUE / VOLUME

7. BG20 — MANY QUESTIONS,
FIRST ANSWERS
PANEL DATA &
SURVEY DATA
FROM 14
COUNTRIES
PANEL DATA
FROM A FURTHER
10 COUNTRIES
INFORMATION
FOR MORE THAN
10K BRANDS WITH
3-8 YEARS OF
BACKDATA
POWERED BY &

8. WHO WANTS TO
BE A BRAND
GROWTH
MILLIONAIRE

9. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
HERE’S HOW TO PLAY
1. MULTIPLE CHOICE QUESTIONS ABOUT SOME
OF OUR BG20 LEARNINGS
2. FOUR OPTIONS, ONLY ONE IS CORRECT
3. SPEND ONE MINUTE DISCUSSING THE QUESTION WITH YOUR
NEIGHBOURS
4. ANSWER INDIVIDUALLY
YOU’RE NOT OUT IF YOU GET IT WRONG.
WINNER DOES NOT GET A MILLIONS EUROS (SORRY!)

10. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q1
IF A BRAND DOUBLES ITS MARKET SHARE, WHAT IS
MOST LIKELY TO HAPPEN WITH ITS PURCHASE
FREQUENCY?
STAYS THE SAME
DOUBLES
SLIGHTLY LESS OFTEN
SLIGHTLY MORE OFTEN

11. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q1
IF A BRAND DOUBLES ITS MARKET SHARE, WHAT IS
MOST LIKELY TO HAPPEN WITH ITS PURCHASE
FREQUENCY?
STAYS THE SAME
DOUBLES
SLIGHTLY LESS OFTEN
SLIGHTLY MORE OFTEN

12. LARGE BRANDS: MORE BUYERS,
ONLY SLIGHTLY HIGHER FREQUENCY
100 122 135 146 137 156
100
332
479
608
712
925
<10 <20 <30 <40 <50 >50
Frequency
Buyers Share Frequency
does not
(and cannot!)
differ as much
as penetration

13. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q2
WHAT PERCENTAGE OF ANNUAL SALES OF AN
AVERAGE BRAND COMES FROM 1 AND 2 TIME BUYERS?
33%
50%
25%
66%

14. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q2
WHAT PERCENTAGE OF ANNUAL SALES OF AN
AVERAGE BRAND COMES FROM 1 AND 2 TIME BUYERS?
33%
50%
25%
66%

15. 50% OF SALES COME FROM 1 AND 2 TIME BUYERS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21+
% of sales Cumulative Large Small

16. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q3
WHEN A BRAND GROWS, IN WHICH
SOCIODEMOGRAPHIC GROUP DOES IT GROW IN
NUMBER OF BUYERS?
MOST AMONGST STRONGHOLDS
SIMILAR EVERYWHERE
MOST AMONGST WEAK SPOTS
NO CONSISTENT PATTERN

17. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q3
WHEN A BRAND GROWS, IN WHICH
SOCIODEMOGRAPHIC GROUP DOES IT GROW IN
NUMBER OF BUYERS?
MOST AMONGST STRONGHOLDS
SIMILAR EVERYWHERE
MOST AMONGST WEAK SPOTS
NO CONSISTENT PATTERN

18. WHEN A BRAND GROWS OR DECLINES IN TERMS OF PENETRATION,
THIS IS NOTICED WITHIN EACH OF THE DIFFERENT TYPE OF HOUSEHOLDS
21.3% 21.3%
26.9%
19.9%
All HH HH with kids Pensioners Others
-21.4%
-16.8% -17.3%
-28.2%
All HH HH with kids Pensioners Others

19. WHAT IS THE
IMPACT OF
MARKETING
TOOLS ON MY
BRAND HEALTH?

20. THE RESEARCH MODEL
APPROACH
 DYNAMIC MODELING
 BASED ON GFK
PANEL DATA
 OF 300 BIG FMCG
BRANDS
 OVER SEVERAL
YEARS (2008-2015) SEARCHING FOR
IMPACT OF
CHANGES IN…
 MEDIA SPENDINGS
 SHARE OF VOICE
 NUMBER OF PROMOS
 SHARE OF PROMO
 CATEGORY VALUE
 PRICE PAID
ON DIFFERENT
BRAND HEALTH
KPI’S
EVOLUTION OF…
 MARKET SHARE
 PENETRATION
 LOYALTY

21. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q4
WHICH OF THE FOLLOWING MARKETING INVESTMENT
CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S
PENETRATION RATE?
INCREASE ABSOLUTE
MEDIA SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO

22. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q4
WHICH OF THE FOLLOWING MARKETING INVESTMENT
CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S
PENETRATION RATE?
INCREASE ABSOLUTE
MEDIA SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO

23. FOR PENETRATION,
ABSOLUTE MEDIA SPEND HAS THE BIGGEST IMPACT

24. FOR CHALLENGER BRANDS (MARKT SHARE <10%)
PENETRATION IMPACT IS EVEN BETTER

25. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q5
WHICH OF THE FOLLOWING MARKETING INVESTMENT
CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S
LOYALTY?
INCREASE ABSOLUTE MEDIA
SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO

26. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q5
WHICH OF THE FOLLOWING MARKETING INVESTMENT
CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S
LOYALTY?
INCREASE ABSOLUTE MEDIA
SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO

27. IMPACT ON LOYALTY IS LIMITED. SHARE OF VOICE HAS THE BIGGEST
IMPACT FOLLOWED BY SHARE OF PROMO  BEING COMPETITIVE IS KEY

28. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q6
WHICH OF THE FOLLOWING MARKETING INVESTMENT
CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S
MARKET SHARE?
INCREASE ABSOLUTE MEDIA
SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO

29. WHO WANTS TO BE A
BRAND GROWTH MILLIONAIRE
1
3
2
4
Q6
WHICH OF THE FOLLOWING MARKETING INVESTMENT
CHANGES HAS THE BIGGEST IMPACT ON A BRAND’S
MARKET SHARE?
INCREASE ABSOLUTE MEDIA
SPEND
INCREASE NUMBER OF PROMO’S
INCREASE SHARE OF VOICE
INCREASE SHARE OF PROMO

30. BE COMPETITIVE ON PROMO AND LEAD ON MEDIA IN ORDER TO
GAIN SHARE

31. THE POWER OF INTERACTION
1+1=3
INTERACTION EFFECT
+40% +55%

32. IN ADDITION
0.0%
0.1%
0.2%
0.3%
0.4%
0.5%
0.6%
0.7%
0.8%
0.9%
1.0%
0% 2% 4% 6% 8% 10%12%14%16%18%
Media spend
(as % of category value)
Increasing media
spendings results into
slower PL OM growth!
This is however not the
case for Hard Discount
market share growth
Promotions are not
able to stop PL
market share
growth!
S S SNS

33. CONCLUSION

34. KEY CONCLUSIONS?
THE WORLD IS CHANGING & CONSUMERS ARE TOO
MEDIA IS IMPACTING PENETRATION MORE THAN PROMOTIONS
BUT THE POWER LIES IN THE INTERACTION
OF BOTH MEDIA & (share of) PROMO
PENETRATION IS THE STRONGEST LEVER TO BOOST SALES