Brand KPI _ đặt mục tiêu cho thương hiệu

Market Size = the direct competitive market and alternative choices available to the current consumer in volume or value with which our brand competes.. Brand Share = the relative volum

Brand KPI

Setting Path to Growth

In your opinion, does Marketing take responsibilities for Brand Sales?

What is your Brand Sales target & growth rate for this year?

How do you set Brand Sales target for next year? On which indicator?

How do you get your Marketing budget?

What is your current Brand Share versus competitors?

How big is your category? In terms of size & growth?

What is your category Penetration? Frequency & Consumption habits?

How do you translate Brand Sales target to Marketing Objectives?

How do you translate Marketing Objectives into Communication Objectives?

— The Role of Marketing

“The role of Marketing is to get more consumers


aware of and in love with the brand,


buy more things, more frequently 


and at higher prices.”

By the end of today, you’ll know…

Business 


Objectives Objectives Marketing 
 Communication 
 Objectives

Business Objectives

Sales Share Growth Profit

Basic KPIs

Sales Share Growth Profit

Volume Sales = the quantity, amount or number of products sold

or services provided

Value Sales = the amount of revenue that a company receives

from the sale of products or services

In Monetary Unit: VND, US Dollar, Euro…

Sales

In Capacity (liquid milk, beverage, etc): liter, hectoliter…

In Weight (powder detergent, personal care, etc): kilogram (kg), ton…

In Counting Number (computers, phones, services, etc): pcs, unit, customers…

Note 1:

Volume Sales can’t be measured by bottle, box, pack in

categories that use Capacity or Weight units, specially in FMCG, because they may vary in sizes

For examples:

1 box of Vinamilk = 180ml VS 1 box of Dutch Lady = 200 ml

This year, Vinamilk sold 10 mil boxes > Dutch Lady sold 9.5 mil boxes

But in actual Volume Sales, Vinamilk < Dutch Lady if you calculate the numbers (180 x 10 < 200 x 9.5).

For examples:

A box of Vinamilk @ 6,000đ VS a box of Dutch Lady @ 6,200đ

This year, Vinamilk sold 10 mil boxes > Dutch Lady sold 9.5 mil boxes

In actual Volume Sales, Vinamilk < Dutch Lady (as previously caculated) But in actual Value Sales, Vinamilk > Dutch Lady if you calculate the numbers (6000 x 10 > 6200 x 9.5).

Leading in Volume Sales does not guarantee a leading position

in Value Sales, or vice versa

Note 2:

Simple Rules:

Sell as much as possible

Sell all available stock

Sell at maximum production capability

Sell more than last year

However, the market is not that simple:

At no-limit production capability, how big is the market we can serve?

Do we sell more than our competitors?

How big are we, compared to the market? Are we number 1?

Basic KPIs

Sales Share Growth Profit

Market Size = the direct competitive market and alternative

choices available to the current consumer (in volume or value) with which our brand competes

Simple question: Who loses when we win?

Height Enhancement Syrup for Kids

All Calcium Products (kids can have)

Brand Share = the relative (volume or value) size of one brand

compared to all other brands in a defined market

Saigon Red is the leading brand in terms of volume share

Heineken is the leading brand in term of value share

X-Men is the leading brand, with highest market share in Men Shampoo category X-Men is NOT the leading brand in Unisex Shampoo category.

Market Size = the direct competitive market and alternative

choices available to the current consumer (in volume or value) with which our brand competes

Simple question: Who loses when we win?

Simple rules:

Always know your competitive market size

It doesn’t make sense to sell more than yourself last year, but that “self” is too small comparing to the market You’re always in danger with big players

Sell more than most of your competitors

Better be No 1 or 2 in the market Or at least know where you are

However, the market is not that simple:

Even when we sell more than last year, should we be happy or worried?

How to grow healthily? How do we gain share?

Basic KPIs

Sales Share Growth Profit

Last year, Brand A sold 10,000 180gr-bottles of shampoo a year at a retail price of 30,000 VND This year, Brand A manages to sell 11,000 bottles at 35,000 VND From a reseach report, the market growth by volume is 20%, by value is 30% Should Brand A be happy with those growing numbers?

Brand A’s Volume Growth rate is 10%, less than market growth (20%) 


They’re losing volume share

Brand A’s Value Growth rate is 28%, less than market growth (30%) 


They’re losing value share

Growth Rate = the amount of increase that a brand or category

has gained within a specific period and context

E.g Brand A’s Volume Growth rate in 2016 is 10% (compared to 2015)

E.g The average growth rate of Category X is 30% by value and 10% by volume

Always put in context your Brand Growth and Category Growth

Beside, it is necessary to also consider the inflation rate

E.g: If an industry grows 12% by value but the inflation is 15%, so it is not a meaningful value growth.

Sales vs Share vs Growth

Share - Share +

Share + Share -

Sales vs Share vs Growth

Share - Share +

Share + Share -

Declining demand Premiumization / Upgrade

(Nam Ngu to Chinsu-Nam Ngu)

Growing demand

Technology advance / economy of scale / mass commercialization (camera phones, point & shoot)

Declining importance

(make-up category in inflation)

Category Growth

Growing demand Growing value & importance

(air-con category in hot season, hi-end smartphone)

Declining demand Declining value & importance

Simple rules

Always set Brand Growth higher than Category Growth to gain Brand Share

Otherwise, you’ll lose market share

Category Growth can be considered in 3-5 year time-frame

If no Category Growth found, take average 5-year Brand Growth as KPI

Only enter healthily-growing category

Grow in both Volume and Value

Grow in long-term (10-year) in order to justify investment.

Basic KPIs

Sales Share Growth Profit

Brand A sells 10,000 180gr-bottle

of shampoo a year at a retail price

of 30,000 VND

Given the numbers in the table on

the right, if Brand A invests 50%

of their gross profit in Marketing,

how much would it be?


Distribution model in FMCG companies.

Consumers Retailers

Distributors Manufacturer

Distributors are paid 5% on actual sales-out

to handle warehouse, stocking & inventory, delivery, salemen management, etc…

Retailers are recommended to sell at xx% margin to

consumers But actual consumer price may vary based on market demand-supply.

Brand A sells 10,000 180gr-bottle

of shampoo a year at a retail price

of 30,000 VND

Given the numbers in the table on

the right, if Brand A invests 50%

of their gross profit in Marketing,

how much would it be?

Retailer Price Distributor Margin (5%)

Company Revenue COGS Total

12,000

16,500 58%

30,00028,500

%Margin is key KPI to Brand P&L

%Margin KPI may vary depending categories

E.g bottled-drink beverage has %Margin requirement NOT lower than 40%

%Margin may be much higher for premium categories (fahsion, cosmetic)

%Margin is an indicator to estimate company revenue, which then

minus estimated overhead cost, operation cost, sales & marketing

budget to arrive at company gross margin

At certain level of %Margin that the brand can generate its own “profit” and contribute to the company revenue Ideally, we want all brands to be self-profitable

Generally, Marketing Budget can be funded at 5-10% of revenue, or 30-50% gross margin

It really depends on Corporate Strategy whether to invest in building brands / gaining share or not.

Simple rules

It is generally in the responsibilities of Brand Team to control

%Margin of its own brand portoflio

You can’t always increase price, so you have to watch out for cost

For example, bottle cost (plastic price), instant noodle (potatoes & wheat price), label cost (numbers of colors & area of printing), etc

Adjust packaging materials (Pack Mat) & raw materials (Raw Mat) wisely to maintain expected %Margin

Thinner bottle, shorter label, less printing-colors, less materials, etc…

Basic KPIs

Sales Share Growth Profit

Simple Rules

Sales

Sell at max production capability Sell more than last year Sell at profitable price

Share

Always know the competitive market size (value & volume)

Not only sell more than last year, sell more than most competitors Be no.1

Growth

Gain brand share by growing faster than category growth

Invest only in healthily-growing categories

Profit

Volume Share Volume Market Size

Volume Sales

Value Share Value Market Size

Value Sales

Market Growth Price

Profit

Brand KPI 2

Setting Path to Growth

Volume Share

Volume Market Size

Volume Sales

Value Share Value Market Size

Value Sales

Market Growth Price

Profit

Penetration Frequency Consumption Choice / Loyalty

In Personal Care:

“How many percent of total population using soap daily?

“How many percent of total population using body shower daily?”

“How many percent of total population using body lotion daily?”

Usage Frequency:

“How many times a day do you brush your teeth?


Compare to 20 years ago?”

“How many times a day do you recommend your kid to drink milk? Compare to 20 years ago?”

Source of Growth:

“When there’s no room to grow (market saturation), 
 where do we look for sources of growth?”

By the end of today…

Business 


Objectives Objectives Marketing 
 Communication 
 Objectives

Marketing Objectives

Penetration Frequency Consumption Choice / Loyalty

Penetration is a measure of brand or category popularity

It is defined as the number of people who buy a specific brand or a category of

goods at least once in a given period, divided by the size of the relevant market size

Penetration can be used for category, maket, brand or segment

High-penetration categories: instant noodle, soap, TV, phones, etc…

Medium-penetration categories: facial foam, deodorant, smartphone, etc…

Low-penetration categories: body lotion, vitamin C, serum, hair conditioner, etc… Different levels of penetration in different segments: phone vs smartphone, LCD

TV vs sUHD TV.

PenetrationNote 1

Low penetration = new / niche categories

Body lotion vs Body wash (better skin care, deep moisture, no water cleansing…)

Detergent vs fabric softener (powerful cleaning vs fabric-softening & better smelling)

Simple Rules: Grow with Penetration

Create new demands / needs

Educate to differentiate benefits, help overcome key barriers, drive motivation, build importance

Diversify needs, grow segments with variable product offerings

Marketing Objectives

Penetration Frequency Consumption Choice / Loyalty

Frequency = the number of times a consumer buys or uses a

product or category in a given period (daily, weekly, monthly, etc)

For examples, Vinamilk educate consumers to have 3 glasses of milk everyday to achieve better height and eye-vision

Lubricant brands educate motobikers to re-fill every 1,000 km

Coca-Cola creates multiple usage occasions with different needs, where

consumers should drink a Coke (with food for better taste, during relaxing office time, festive occasions like Tet celebration, music events, social sharing with friends, etc)

It could be Purchase Frequency or Consumption / Usage

Frequency, as they are pretty much related.

Consumption = the amount / size / value of a single product or

category usage

Inject more tooth-paste per use

Drink more milk per box (through size increase)

Each family member has his / her own dipping sauce

Value upgrade: in a saturated fish-sauce market, a brand can grow buy upgrading ist mainstream users-base to use a more premium one with more benefits (better taste, good for health, Vitamin A) As such, the value of consumption shall be

increased

Incease Consumption = increase the amount / size / value per use.

Frequency & Consumption

Simple Rules

Only educate consumers to increase frequency / consumption ONLY when you are the leading brand in your category

If you are number 3 or 4 in the market, and you succeed at educating

consumers, brands in number 1 or 2 will be more beneficial from your campaign

as their Top of Mind scores (TOM) are better than yours

Consumers - when changing habits - will still remember of brands in number 1 and 2, as such their choice

Which leads us to final Marketing Objective: Choice / Loyalty.

Marketing Objectives

Penetration Frequency Consumption Choice / Loyalty

Choice / Loyalty

Choice / Loyalty = basket share = how often / how much of a

basket does consumers choose a brand?

For example, if you look at a consumer basket and see 6 boxed of Vinamilk, 3 boxes

of Dutch Lady and 1 box of TH, then the Loyalty scores of according brands are 60%, 30% and 10%.

Choice / Loyalty

Loyalty does not mean choosing one brand and not others

As such, the objective of increasing Choice / Loyalty is to

encourage consumers to choose our brand more often,

sometimes by attacking / switching competitors’ users

For X-Men to grow, it’s hard to increase frequency or consumption

X-Men can grow by switching direct competitor users (ClearMen, Romano) or switching unisex users (Clear, Sunsilk)

To attack unisex brands, they can have a communication message like “Love your husband? Let him use shampoo for the real men.”

To attack ClearMen, X-Men can launch an anti-dandruff variant, with dandruff efficiency” on par with ClearMen, but better “perfumed smell”.

“anti-Marketing Objectives

New market High competition

(someone is dominant despite small market size)

Grow through Penetration

(needs diversification)

Matured market

Low competition (You’re No.1 or

2, and the gap is far)

Grow with any objective.


(frequency, consumption, loyalty Just don’t screw up)

Matured market

High competition (You’re No.3 or

lower, or the gap is close)

Grow by switching choices

(awareness, switch choice and loyalty, differentiated yourself)

New market Low competition

Grow through Penetration

(consumer education, demand creation, overcome barriers)

Case-study: Oral Care

Case-study: Oral Care

Increase Penetration

Case-study: Oral Care

Case-study: Oral Care

Increase Consumption

Trét kem vậy

mới sành điệu

Case-study: Oral Care

Loyalty 


/ Choice

Gia đình, nụ cười, trắng răng

Hơi thở thơm tho

Chuyên gia Switch

Attack

Case-study: Dove

Case-study: AXE

Brand KPI 3

Setting Path to Growth

Volume Share

Volume Market Size

Volume Sales

Value Share Value Market Size

Value Sales

Market Growth Price

Profit

Penetration Frequency Consumption Choice / Loyalty

Business Objectives

By the end of today…

Change in Mind

Awareness
 (TOM, Spontaneous, etc)

Key Attributes
 (Brand Equity)

Communication Objectives

Awareness Key Attributes Creative Quality Communication Awareness

Top of Mind (TOM)

Remember First in mind

Brand Awareness is a fundamental score of any advertising Always look to increase Brand Awareness

Especially Top of Mind (TOM) or at least, Spontaneous Awareness

Brand Awaresss is available in Brand Health Tracking by Millward Brown

Or any customized research that delivers the same report / methodology.