Measuring & Interpreting Brand Performance Report
Prepared for Buyer & Consumer Behavior team
University of South Australia
Cameron Lau Ming Cham
25 May 2012
This report examines Mars bar chocolate Brand Performance; Awareness and Salience; and Demographics and Segmentation.
Brand performance part showing that the difference between subscription market and a repertoire market, although chocolate industry is most commonly in the subscription market but Mar Bar have extremely high Sole loyalty to denied this rule. Light buyer is the essential factor for marketers due to the theory Pareto Law, strategy such as increase penetration but not increasing loyalty of existing customers can be success in targeting light customers.
On the awareness and salience, brand salience is the golden factor that for brand to success in the market, customers are often using cues to link to their potential product during the buying situation.
There is no brand level segmentation across whole chocolate industry which means that there are only a little difference between customer profiles in terms of relationship status, total household income and gender.
The implication of Mars Bar’s marketing strategy should reform the cues and doing heavy advertising campaign therefor Mar Bar can acquit more female consumers due to poor performance for the segment of female.
1.1 Brand Performance
Table 1: Brand Performance Metrics|
Brand| Market Share | Penetration| Average Purchase Frequency | Category Buying Rate | Share of Category Requirements | Sole Loyalty | Mars Bar| 34| 74| 2.2| 5.8| 39| 22|
Kit Kat| 24| 52| 2.3| 6.2| 37| 7.7|
Snickers| 20| 48| 2.0| 7.4| 27| 4.2|
Twix| 16| 46| 1.7| 7.3| 23| 0|
Nestle Gold| 6.5| 26| 1.2| 8.5| 14| 0|
Average| 20| 49| 1.9| 7.0| 28| 6.7|
According to table 1, Mar Bars is the biggest brand with the highest results of market share, penetration, share category requirements and sole loyalty. Larger brands tend to have proportionately more light buyers in their user bases, this is known as “Natural monopoly law” (Sharp, 2010). Mars Bar chocolate have an extremely high sole loyalty, the reason is because light occasional buyers favor the bigger brand.
Small brand like Nestle Gold will suffer twice with the average purchase frequency, share category of requirements and solely loyalty for Double jeopardy law, which is “brands with less market share have far fewer buyers, and these kind of buyers are slightly less loyal” (Sharp, 2010).
1.1.2 Types of market
Mars Bar chocolate is belong to the subscription market, Subscription market is the market that the most of consumers are high degree of solely loyal buyers .The share of category requirements under subscription market is 100%. For instances, categories such as mobile phones or insurances. Consumers are not willing to switching the brand because they only like to use particular brand in that certain period (Sharp et al. 2002). Mars Bar chocolate has the highest sole loyalty of 22% overall whole chocolate industry which means there are 22% of consumers are buying Mars Bar at the same time and do not switch to other brand of chocolate.
Repertoire market, in this market consumer are polygamous loyal, Buyers are seldom 100% brand loyal even over quite small runs of category purchases, not meaning that consumer are not loyal, but they shuffle around between the brands in their repertoire. The variation in repertoire composition across buyers is predictable hence repertoire markets demonstrate well-documented patterns in marketing metrics (Ehrenberg and Goodhardt 2002; Ehrenberg 1972; Ehrenberg et al. 2004; Sharp 2007).
1.1.3 The importance of light buyers
It is absolutely a good strategy to getting more light buyers as opposed to focusing on heavy buyers, there are so many of them...