6Ps Brand Growth Model 10 Second summary The 6Ps Brand Growth model links: •financial measures to market share •market share to consumer buyer behaviour •consumer buyer behaviour to 6 levers for brand growth We can drill down the model to diagnose changes in brand share, or build up to demonstrate how pulling one or more of the 6Ps brand growth levers grows the brand. We can use the model qualitatively to understand the factors, or quantitatively to measure their effects.
Profit
Market Dynamics and Financial Return
TO Value
Value Mkt Size
Value Share
Price
Market growth
TO Volume
Volume Mkt Size
The top layer of the model relates Finance metrics to market size, growth & brand share. There are clear mathematical relationships between these metrics.
Volume Share
Consumer Buyer Behaviour The second layer of the model relates volume share to key metrics for consumer buyer behaviour: Penetration: How many consumers buy the brand Loyalty: How likely they are to choose the brand within How many people buy How much they buy their repertoire Category Purchase Frequency: How often they shop Consumption: Choice: Consumption: Category Penetration for the category Loyalty purchase size frequency Average Trip Size: How much volume they buy per trip Again, there are mathematical relationships that link volume share to these metrics which help us understand how brands & categories grow. We can use the Dirichlet model to predict the patterns of buyer behaviour in a particular country & category. These are the “rules” of buyer behaviour within which we work.
6 Ps (Brand Growth Levers) The third layer of the model relates consumer buyer behaviour to the 6Ps brand growth levers: Proposition
Promotion
Place
Pack
Price
Product
Proposition: the brand that consumers have in their heads - what it stands for, its values, benefits & reasons to believe. The strength of the proposition is measured by the Brand Equity Score. This links Strength of Proposition to the brand’s performance of attributes that are important to consumers. Proposition includes the strategic price positioning. Promotion: promoting the brand wherever the consumer is. 1. Getting consumers’ attention in a world where they are bombarded with messages, and getting our message across in a clear, creative way, more likely to be remembered. The key questions are “is our advertising good enough?” and “are we investing enough behind it?”. Place: what happens wherever consumers buy the brand. “Can shoppers find the brand in store?” and “What does the brand look like in store?”. There are serious opportunities to increase share by increasing distribution. We can leverage our knowledge of shopper behaviour to optimise the in-store environment and grow share. Pack is the in-store hero. It has to stand out to create awareness, be unquestionably for the brand, and communicate the proposition. The brand’s visual triggers (colours, shapes & icons) do much of this work in store. Price: what the consumer pays – regularly, or on promotion. Most consumers are not conscious of the price they pay for our products, so it is perceived price that is important, and this is traded off against perceived quality. Product: how well our products perform against the expectations set by the proposition, determines repeat purchase (loyalty) and therefore long-term success. The challenge is when product performance is average, if propositions cue better than average, we will not meet our consumers’ expectations.
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Applications of the 6P Brand Growth Model
Relationships between the 6Ps The 6Ps do reinforce each other:
Marketing thinking
-Understand which levers to pull to grow brands -A consistent language for talking about brand performance -Qualitative diagnosis of brand share changes
CMI thinking
-How buyers behave -Translate buyer behaviour norms into insights -Setting realistic growth targets
Tracking Tools
-Brand Audit -Brand Quarterly Trackers -Launch Monitor -Standard Business Case
The 6Ps act at three points of contact with the consumer:
-6Ps Finance Calculator -6Ps Analysis of Brand Performance
The 6Ps Detective Tool The 6Ps Detective Tool uses the structure of the 6P Brand Growth Model to explain what things to look for when diagnosing brand performance and getting to Root Issues.
Using the 6Ps model BB and BD should use the model during any brand audits, or when investigating any brand issue or exploring for opportunities use data and insight to understand root issues and explore the best relevant levers to pull.
Contacts For more information, visit the Market Information pages on m@u or the CMI Portal or email:
[email protected]
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