The Ehrenberg-Bass Institute for Marketing Science has generated scientifically proven empirical generalisations for how brands grow. This has been proven to work for the vast range of fast moving consumer goods (FMCG) organisations from small brands to world leading organisations such as Coca-Cola and Mars Inc. Their stand-out advice on marketing strategy includes:
- Focus on penetration rather than frequency: reaching a larger audience will increase sales more so than reaching the same audience numerous times. The key to growing your brand is to get more people to buy your product once, rather than getting your heavy consumers to buy your product an additional 5 times. Consider how you can get the largest reach within your market.
- Availability is key: if your product is not available where your consumers are, they do not have the opportunity to purchase your product. Think about your distribution network and how you can make your product available to your customers whenever they may think about your product category.
- Don’t limit your market: conduct an analysis on who currently buys your product – how can you expand this customer-base? Ensure to not exclude any of your current customers through your strategy. For example, if 20% of your customer-base are male, you may be tempted to focus your marketing strategies on females. However, this could risk losing 20% of your customer base!
- Be top of mind: your brand appeals to your competitors’ customers and your competitor’s brands appeal to your customers. How to make the most of this is to ensure that your market is aware of your brand, and that your brand is salient and top of mind when they are in the market for your category. This can be done through advertising – ensuring that you are reaching consumers when they are in the market for your category and when they are as close to a purchase as possible.
These techniques can be applied to all organisations, not only FMCG companies:
- Penetration is a key consideration for all organisations. What are the awareness levels of your brand(s) within your markets? How can you increase the size of the customer/client-base that are aware of your brand(s)? Has your strategy been consistently focused on reaching the same area of the market in the past? How can you expand this reach?
- Distribution: is your product/service available everywhere? If not, which locations could you feasibly expand into to grow your availability to the market?
- Appeal to your market. Ensure that you don’t exclude any of your key customer/client groups through your marketing strategies, your distribution strategies, or your organisation's key decisions. Also, consider how you could expand your products and/or service to appeal to a broader market, while ensuring not to reduce the quality and value of your existing brand(s).
- Advertise smart. Where and when can you advertise your brand(s) to ensure that you have a large reach? Advertise so that your market will be reminded of you when they may be in the market for buying from your category. Where do your competitors advertise – is it working for them? Why are you not advertising there? Where don’t your competitors advertise that would reach a large proportion of your market?
Growth often does not come instantaneously. The correct components need to be in place within your organisation to support this growth. This will help ensure that the quality and value of your brand(s), and subsequently your organisation, are not decreased as a result of the growth.
The CEO Institute was founded in 1992. It is now Australia's leading membership organisation for CEOs and senior executives. It provides a forum for over 1,000 Chief Executive members to connect and share their learning with each other. In 2011, The CEO Institute became the world’s first global certification body for CEOs, and in 2013, partnered with UNESCO in support of the "Malala Fund for Girls' Right to Education". In 2014, they began offering their programs globally.
The CEO Syndicate is an exclusive peer support network for CEOs. The first meeting of The CEO Syndicate program was held in Melbourne in June 1992. Offices were opened in Adelaide in 1996 and Sydney and Brisbane in 1997, with Perth launching in 2007. In 2015 the New Zealand office opened.
The Future CEO program is a certification course designed by the business leaders of today for the business leaders of tomorrow. The first Future CEO meeting was held in Melbourne in May 2012. In 2014, the "Future CEO Scholarship Fund for Women" was established, and continues to be offered today.
Membership of The CEO Institute is by invitation only. To register your interest click enquire.