We see a classic “double jeopardy” pattern appearing. When Dove or Nivea has a smaller presence in a country, it is down to the fact they have fewer buyers who also buy the brand less often.
Penetration has a much greater range globally – from under 5% to over 70% buying the brand at least once a year. If either brand wants to grow in a country, they will need to find more buyers in one year than the year before. If they find a way to do that, increased loyalty is likely to occur as well. This is because when marketing campaigns attract more buyers, all types of buyers are affected.
What we also see is that the two brands are remarkably similar despite their different approaches. Dove wins the overall country reach and penetration battle, but only just. Dove also has, on average, a higher average frequency of purchase, but this is due to the different mix of categories as opposed to one brand being stronger than another.
In the countries labelled in the chart above, frequency is higher than expected given the penetration, which is due to how the category is purchased there. For example, in Indonesia or India, a high proportion of the soap and shampoo category is sold in sachets, which creates a faster repeat rate.
When looking at the penetration within selected countries with large populations, we can better understand both brands’ heritage. It is no surprise that the markets where the brands have a deeper connection are a point of strength. The locations where future growth is most likely to be found are clear too.
These are two highly successful established beauty brands that position and market themselves differently, with different geographical strengths and weaknesses to grapple with.
Arguably, the only thing they have in common is that they both decided that the brand wasn’t just a moisturising soap or skincare brand. That decision is the reason why they are now the size they are today, and why they have the potential to grow more in the future.
Dove and Nivea both have the necessary attributes of a brand that could effectively compete across a wide variety of different beauty categories. And they both provide great examples of what can be achieved by brands who want to win through more purchase occasions.
Given that the beauty and personal care sector struggled in 2020, will both brands have maintained their 100% record for year-on-year growth? We will find out this and much more when we launch the 2021 edition of Brand Footprint in May.
Download last year’s edition, Brand Footprint 202
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