Let’s start with the fable of The Crow and the Pitcher…
In a spell of dry weather, when the birds could find very little to drink, a thirsty Crow found a pitcher with a little water in it.
But the pitcher was tall and he had a narrow neck. No matter how hard he tried, the Crow could not reach the water.
The poor thing felt as if he would die of thirst.
Then an idea came to him.
There were some pebbles nearby. He picked up a pebble and dropped it into the pitcher. Then another. Then another.
With each pebble the water rose a little higher until it was high enough so he could drink.
The crow was no longer thirsty.
Why are we talking about this?
In the FCMG world it is easy to think in a traditional way. We often do the same things in the same way. We do them because they are things that we’ve always done. We do them because everybody else does them. We do them because they are the safe things to do.
But if you keep doing the same things, you will get the same results. Like the crow trying to squeeze its head into the pitcher.
Instead we need to think differently. Do things that are different to what we’ve always done. That are different to what everybody else is doing. That are the riskier things to do.
When you do things differently you get different results. Like the crow dropping pebbles into the pitcher.
So, what can you do differently to drive category growth?
We’ve been talking about these things in recent weeks and thought it was worth summarising…
Go from Narrow to Broad. Think about the wider competitive set. If you’re a drink you’re competing with all drinks options. If you’re a snack you’re competing against all snacking options. If you’re used in a meal you’re competing against all meal options. As categories continue to blur, the competition increases.
Don’t just look to fight the category battle. Look to fight and win the wider (drinks, snacking, meals) war.
Go from Core to Extended. Think about how you can extend into new (relevant) occasions. If you’re a cereal it could mean going beyond breakfast to snacking occasions across the day. If you’re a drink it could be getting into the ‘Dine In’ meal deals. If you’re a toothpaste it could be trying to create a post lunch brushing occasion (it happens in other countries…)
Don’t just look at where you are currently used. Look at where you could be used.
Go from Share to Growth. Think about how you can grow the pie. More users – bringing more shoppers into the category. More often – building the habit of buying (& using). More spend – getting shoppers to trade up for better benefits.
Look at fabric conditioners. Two lead brands – Comfort & Lenor. Both focused on growth. Trading shoppers up the benefit ladder. From “fragrance” to “perfume”. Getting shoppers to buy additional products – e.g. scent boosters. The category grows. They both grow.
Don’t just look to grow your slice. Look to grow the pie.
Go from Recruitment to Retention. Think about how you can maximise the value of existing shoppers. Turning them from occasional buyers buying you on deal, to regular buyers buying when you’re not on deal. Make it easy for them to keep buying you. Make it rewarding for them to keep buying you. Most of your shoppers spend most of their money with other brands or retailers. There is a huge opportunity in getting them to spend more with you.
Don’t look to ride the hamster wheel of penetration. Recruiting again and again. Look to recruit once. Then retain.
Go from OR to AND. Think incrementality. Too often we focus on what our products can be bought instead of. When we need to think about what they can be bought as well as. Get into the mindset of “every time X is sold, there is an opportunity to sell Y.”
So, if you’re a cold drink… Every time a meal is sold there is an opportunity to sell our product. Every time a snack is sold there is an opportunity to sell our product. Every time a hot drink is sold there is an opportunity to sell our product.
Don’t just look for “OR” purchases. They limit opportunities. Look for “AND” purchases. They expand opportunities.
Rethink. Dare to be different.
Let everyone else keep sticking their heads in the pitcher.
Be the one calmly dropping the pebbles in.
Feel free to forward. Have a great weekend. Speak to you in a fortnight.