Making cool brands hot

In a study of 524 brands in 100 consumer-product categories from 1997 to 2001, the winning brands - 90 of them in all - dramatically and consistently outpaced their brand categories each year. They posted average annual-revenue growth rates above 10%; more than triple the average rate. Conventional...

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Bibliographic Details
Published in:Harvard business review 2003-06, Vol.81 (6), p.20
Main Authors: Blasberg, John, Vishwanath, Vijay
Format: Magazinearticle
Language:English
Subjects:
Brands
Consumer goods
Growth rate
Innovations
Online Access:Get full text
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Summary:In a study of 524 brands in 100 consumer-product categories from 1997 to 2001, the winning brands - 90 of them in all - dramatically and consistently outpaced their brand categories each year. They posted average annual-revenue growth rates above 10%; more than triple the average rate. Conventional wisdom holds that unlike nimble, little brands, the thinking goes, big, old leaders in slow-growth categories are hard-pressed to post impressive growth rates. But research found no correlation between these factors and a brands success. What did distinguish the winners from the pack were innovativeness and aggressive advertising. It should come as no surprise that innovation and advertising can goose sales; except to the surprising number of brand managers who complain that their categories are stale and that their brands are locked into their historical growth rates by factors beyond their control.
ISSN:0017-8012