A category is defined as a distinct, manageable group of products and services that consumers perceive to be

interrelated in meeting a consumer need

What does “Category” mean?

What is Category Growth all about?

‘A’

Growing Market Share‘B’

Growing the Cake

Moving from business model ‘A’ to ‘B’

What is ``Category Growth’’ all about?

Motivating

more consumers

to consume moremore often

Motivating

more shoppers

to buy moremore often

Population

XNumber of available shoppers

(x millions)

Penetration

% shoppers purchasing

the category

(x%)

Frequency

Number of occasions

they purchase

(x times)

Weight

How much they spend

per occasion

($ AWOP)

Category size (value

purchased)

X X =

Shoppers

Sources of category growth are expressed in a “Category Growth Equation”

Exercise

Penetration

98%Total

MARKET X XPurchase, Frequency

Twice a year

Average weights of purchase

1 brush

Australian men on average change their toothbrush only twice a year, not 4x as advised. Which lever would you pull?

Growth Equation: Category Example

Penetration

98%

Purchase, Frequency

Twice a year

Average weights of purchase

1 brush

Total MARKET X X

Growth Equation: Category Example

(ThirstQuenching)

Pure HealthyHydration

First choice

Substitutes

Associated

Straws

Glass

Tap water

Ice lollly

Bottled water

Fruit

Ice cubes

Ice tea

Water bottle

For which products is “the dominant use” meeting the

identified consumer need

Defining the category

Sparkling water

Flavoured water

Everyday Tea bags

Biscuits Cake

Herbal Tea

BottledWater

Tapwater

Coffee

Hot Chocolate

Teacup

Tea pot

Sugar

Ice Tea

Loose Tea

Kettle

PremiumTea

Category Definition Exercise - Tea

Hot cup of tea

First choice

Substitutes

Associated

Category Definition Exercise - Tea

Thank You