Like people, no brand is an island that exists apart from its context. Especially if the product is dominantly distributed through retail systems. Retail systems are like a whole different planet, and categories are like different parts of that world, each with “their own culture”.
However, considering the category is not just about gaining a much-needed understanding of the context; it is also about untapped growth potential and potentially missed opportunities. Not only that, but how can a brand be relevant if it does not follow the trends of its own category unless its mission is to be disruptive and deliberately goes against them?
What is a category growth strategy?
Oksana Sobol, Insights Lead at Clorox Company, said in Deep Dive episode six, “Why context is king for category leadership,” that a business planning process might undergo change where it starts with a vision for a category rather than a brand.
She pointed out that there are several key questions that must be addressed.
- What are brand hypotheses for how the entire category will grow?
- How will the category evolve?
- What challenges and opportunities will those hypotheses need to solve?
She then added that a mindset shift is neither enough, nor achievable without a mechanism.
“This is where concrete changes have to be made to mechanisms like the business planning process, the way we interact with our retail partners, and, critically, the way the Insights team supports this approach.”
In researcher terms, it means testing everything you can (pack design, displays, NPDs) in context, in a real environment. However, for tasting to be fast, “real environments”, are usually virtual environments – which have a striking 0.9 correlation with offline shopping, so they are scalable and definitely more affordable. Going beyond pack, display, and planogram testing, it is the most critical for context understanding to add behavioral Decision Tree studies, which tell us how people make decisions within the entire category and the importance and hierarchy of decisions. When we use Decision Tree studies, we are not only knowledgeable of the role that every product in a category has but also of the role of every product within one brand’s portfolio.
The benefits of a category growth strategy
As mentioned in previous article about brand blocking, it is all about finding a way to get that ‘triple win’ we all strive for and tactics that benefit:
- the consumer
- your brand
- and the total category
Once that is achieved, the benefits are easy to see. First and foremost, there is a satisfied consumer since you can always foresee how their needs are changing, and, therefore, how the category’s offering needs to change to ensure it remains relevant and continues to recruit new shoppers on new occasions.
Second, if the point of purchase is improved by creating a simple, intuitive, but engaging place to shop that cut through autopilot shopping and drives interest and category reassessment, as mentioned in the brand blocking article, everyone is once again satisfied. Brands are seen, purchases are made, and customers have a better shopping experience.
Third, is there anything better than having a clearly aligned pathway to growth where all sides are satisfied even before embarking on that journey? It means fewer misunderstandings and detours from the final destination, which is success.
Conclusion
When considering the category growth mindset, it may appear that it will impose not only more work for the teams, but also more complex problems that require truly creative solutions. However, when all of the benefits are considered, and once that category and brand growth are aligned, the risk that something could have a negative impact on ROI is much lower. All of those extra miles that should be walked will be those that you will not have to take in the future when time is not on your side.
Interested in category management? Check out our Deep Dive podcast episode with the Clorox Company Insights Lead.