Intro to category
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Transcript of Intro to category
A category is defined as a distinct, manageable group of products and services that consumers perceive to be
interrelated in meeting a consumer need
What does “Category” mean?
What is Category Growth all about?
‘A’
Growing Market Share‘B’
Growing the Cake
Moving from business model ‘A’ to ‘B’
What is ``Category Growth’’ all about?
Motivating
more consumers
to consume moremore often
Motivating
more shoppers
to buy moremore often
Population
XNumber of available shoppers
(x millions)
Penetration
% shoppers purchasing
the category
(x%)
Frequency
Number of occasions
they purchase
(x times)
Weight
How much they spend
per occasion
($ AWOP)
Category size (value
purchased)
X X =
Shoppers
Sources of category growth are expressed in a “Category Growth Equation”
Exercise
Penetration
98%Total
MARKET X XPurchase, Frequency
Twice a year
Average weights of purchase
1 brush
Australian men on average change their toothbrush only twice a year, not 4x as advised. Which lever would you pull?
Growth Equation: Category Example
Penetration
98%
Purchase, Frequency
Twice a year
Average weights of purchase
1 brush
Total MARKET X X
Growth Equation: Category Example
(ThirstQuenching)
Pure HealthyHydration
First choice
Substitutes
Associated
Straws
Glass
Tap water
Ice lollly
Bottled water
Fruit
Ice cubes
Ice tea
Water bottle
For which products is “the dominant use” meeting the
identified consumer need
Defining the category
Sparkling water
Flavoured water
Everyday Tea bags
Biscuits Cake
Herbal Tea
BottledWater
Tapwater
Coffee
Hot Chocolate
Teacup
Tea pot
Sugar
Ice Tea
Loose Tea
Kettle
PremiumTea
Category Definition Exercise - Tea
Hot cup of tea
First choice
Substitutes
Associated
Category Definition Exercise - Tea
Thank You