A winning brand is more than well-known. It is understood, believed, and preferred by the people who matter most. Its value shows up in customer behavior, employee conviction, commercial performance, and the way the market responds to it.
“Companies can boost profits by 75-100% by retaining as few as 5% of their current customers.”
Over the past 20 years, retail brands have significantly increased their leverage over consumer product brands because (1) they increasingly control access to products and (2) the environment in which the products are sold and (3) they have point of sale data to which manufacturers are not always privy.
Everything else being equal, people are less sensitive to price changes for brands with large market shares than for competing brands with smaller market shares.
