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Every brand can’t be an Amazon, Netflix or Airbnb, but just a 1% change in market share for an established brand can deliver significant growth. In a day and age when, in spite of opportunities and an increasingly digitally active marketplace, fewer than 1 in 10 brands grew between 2014 and 2017 per new analysis by Kantar MillwardBrown of 2,000 brands measured in the BrandZ™ global brand equity database. Alarming, isn’t it? However, quintessential disruptive brand Amazon more than doubled its brand value in the same period simply by making people’s lives easier and less expensive.
Any Brand Can Create Disruption to Fuel Growth… Recent analysis of the BrandZ global database by Kantar MilLwardBrown shows many brands aren’t seizing opportunities to disrupt, with fewer than 1 in 10 Brands growing between 2014 and 2017
So how do conventional brands tip the odds in their favour? They must take their lead from the fast-growing disruptors, say the analysis findings.
Marketers need to get out of their comfort zone and add a little disruption to the mix to create new opportunities for growth.There are several pointers established brands can take from the playbooks of disruptive brands to drive growth, and explores case studies that demonstrate a range of strategies which have led to growth for brands across different categories including CPG, electronics, e-commerce and automotive.
7 steps to disruption and brand growth
Marketers can get started by following these:
- Get out of the comfort zone – Any brand can be disruptive provided it does something different from the norm that creates new value for customers or unlocks its existing potential.
- Know what needs to change – Knowing how people think, feel and behave in relation to a brand can often reveal an immediate opportunity for growth. The challenge for a well-differentiated brand is to identify what will make it more salient and meaningful to potential consumers.
- Know who values your brand – On average, consumers pay 14% more for brands they perceive to be meaningfully different. When it comes to profit, the biggest disruptive growth opportunity may come from targeting the right customers, and then curating perceptions of meaning and difference to drive up the brand’s perceived value.
- Use consumer insights to inspire disruption – An established brand that lacks differentiation risks being commoditised. A disruptive idea may come from anywhere but the ultimate test is whether it resonates with the target audience, and this requires brands to have in-depth knowledge of their potential customers.
- Invest to make a difference – Simply spending more will not produce disruptive returns. Investing in a creative idea that fits the brand and the opportunity may be the best way for some brands to disrupt the status quo. And, since marketers are often hostage to the product innovation cycle, developing a new creative approach may be faster.
- Learn fast to achieve greater returns – A brand can have a great product or idea and in-market execution can still fail to disrupt. Marketers need to behave as if they are in perpetual beta and fast feedback is critical to quickly identify opportunities and course correct.
- Continuously improve marketing effectiveness – A brand’s success today should be viewed as an opportunity to improve marketing effectiveness while looking for the next disruptive growth opportunity. Marketers need to measure what is happening to the brand and the consumer response in-market.
Every brand has the power to disrupt business as usual provided it has a clear idea of what will make the most difference given its status and context. Read the full report here to learn more about growth strategies and for in-depth case studies of conventional brands that have disrupted business as usual to achieve increased sales and improved brand growth. (From Kantar MilLwardBrown’s BrandZ study)