The 36% Marketing Opportunity

The 36% Marketing Opportunity

New Report Shows A 36% Opportunity To Land New Customers

Catalina, a marketing company that monitors buyer behavior, recently reported a statistic that is both frightening and exciting. It speaks to the opportunity every company has in losing and landing a new customer.

The report noted that of the top 100 Consumer Packaged Goods (CPG) brands, most were either down or flat in sales during the first half of 2015. It also noted that 90 of those 100 brands lost market share. Disappointing if you are a Proctor & Gamble or Kraft. The news is inspiring if you are a new brand or one that’s not among the top 100.

For example, among the grocery category there has been a 5.2% increase in sales, but among 10 brands within the top 100, sales were down 2.3%. Among refrigerated meats, growth was 11% while brands in that category were off .4%.

So who is buying all of these products and why are they not reaching for top brands with literally billions of dollars in advertising and marketing behind them? The answer is that the consumer is switching to other national brands or private label. Brand shifting had the greatest negative impact on declining top 100 brands.

The real opportunity is in knocking off some of those consumers who are open to trying a new brand. Secondly, the survey noted that at any one time a category will loose approximately 36% of its shoppers. Think about it, when the kid grows out of diapers and baby food, most parents are ready to depart the category.

The trick for growing sales is three fold. Understand that brand loyalty is down among top brands as consumers look for something new. Know that more than 30% of the buyers in a category will leave in a year, so advertising, social media, PR and in-store merchandising is key to encourage trial of buyers entering your category. Lastly, growing volume among active buyers in your category is key. While he or she may not be a customer for life, encourage opportunities for them to load up on your products while they are customers. While some companies shudder at offer a buy 2, get one free offer, by encouraging them to load their pantry, you preserve the customer from needing to consider switching brands a little longer.

Want to take a deeper dive into the Catalina report? Just click (