This is the first in a five-part series meant to take an empirical approach to marketing. We challenged the most dominant marketing myths out there, using data to explain why they are wrong. In busting some of these myths, we hope to show you how you can grow your own brand.
15. 4%
8%
12%
16%
Brands
Head & Shoulders Pantene Herbal Essences L'Oreal Elvive Dove Sunsilk Vosene
Market share Annual market penetration Purchase frequency (average)
TheImpactofthe“DoubleJeopardy”Law
Shampoo Market, UK 2005
Source: TNS.
16. Thegraphtellsustwomajorthings
1. Loyalty doesn’t vary dramatically between brands
But it is higher for those with greater market share.
2. Annual market penetration varies with market share
Larger brands have far larger penetration than smaller ones.
27. Thegraphtellsustwomajorthings
1. A one-week time frame will show little customer disloyalty
Customers usually don’t have the time or need to buy multiple brands in just one week.
2. A year-long time frame will show far greater disloyalty.
Customers have the time and need to buy a product multiple times, making it very likely
they bought from a couple different brands.
30. Whathavewelearned?
1. Smaller brands have far fewer buyers who are less loyal
Brand growth lies in increasing market penetration, or buyer market
31. Whathavewelearned?
1. Smaller brands have far fewer buyers who are less loyal
Brand growth lies in increasing market penetration, or buyer market
2. Customer loyalty is largely out of your control: it will always occur
Most loyalty measures are skewed by the time frame, resulting in
analytical misattributions
33. Percolate is The System of Record for Marketing.
Our technology helps the world's largest and fastest-growing
brands at every step of the marketing process.
Want to learn more?
Contact learn@percolate.com for more information
or request a demo today at percolate.com/request-demo
Kat Gebert
Kat Gebert is on the Product Marketing team
at Percolate.