CPG Brand Share and Optimization Strategies

Capturing and maintaining brand share is essential for long-term success in the consumer packaged goods (CPG) sector. The CPG landscape is evolving, with brands constantly vying for a larger slice of the pie.

The global CPG industry is expected to reach a staggering $18.94 trillion by 2031, growing at a steady 5.1% CAGR. Despite this growth, CPG brands face increasing pressure to optimize their market share, particularly as consumer preferences shift towards direct-to-consumer (DTC) models and increased demand for sustainability.

With market leaders like Procter & Gamble and L’Oréal continuously dominating, smaller DTC brands are rising in prominence, bringing new challenges for traditional players. Consumers are now more conscious than ever of brand values and shopping experiences. Optimizing on-shelf availability and brand presence is crucial for not just meeting expectations but for staying ahead in an increasingly fragmented market.

So, how can CPG brands maintain or even grow their share amidst these challenges?

The key lies in optimizing brand presence on the shelf, ensuring that products are not only available but visible and strategically placed. In this article, we will explore the factors influencing CPG brand share, dive into strategies that can help optimize it, and provide insights into the tools and techniques that will enable your brand to thrive in today’s dynamic market.

Key Takeaways

• CPG brand share refers to the percentage of total sales within a category that a brand holds compared to its competitors.
• Competitive pricing, product quality, and consumer preferences all significantly impact a CPG brand's share. Brands must remain competitive by offering high-quality products and adapting their strategies to meet changing consumer trends.
• To optimize brand share, CPG brands must gather and analyze market data, employ strategic pricing, innovate new products, automate data collection, and use targeted marketing campaigns aligned with shelf presence.
• ParallelDots' AI-powered solutions like ShelfWatch help brands optimize on-shelf availability, monitor planogram compliance, and gain real-time insights for better decision-making, ensuring product visibility and customer satisfaction.
  

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What is CPG Brand Share?

Brand share in the CPG sector refers to the percentage of total sales within a particular category that your brand commands compared to your competitors, reflecting performance, consumer preference, and market dominance. Understanding your brand share is essential to identifying growth opportunities, making informed pricing decisions, and shaping marketing strategies.

Having a clear picture of your market positioning enables you to make data-driven decisions that help grow your market presence and increase sales as a CPG brand.

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What are the Factors Influencing CPG Brand Share?

To effectively optimize your brand share, it's essential to understand the key factors that influence product visibility and customer preference in the CPG industry. Various internal and external factors impact a brand's ability to gain market share, and focusing on the right areas can make a significant difference in sales performance and customer loyalty.

Here are the key factors that influence CPG brand share:

• Impact of Competitive Pricing: Competitive pricing plays a vital role in brand share. If your product is priced higher than similar products without offering a clear advantage, consumers may opt for more affordable alternatives.
• Significance of Product Quality and Reputation: Consistently high-quality products build customer loyalty and encourage repeat purchases. A strong reputation for reliability and performance increases your brand's visibility and share.
• Role of Consumer Preferences and Trends: Shifting consumer trends and preferences significantly impact brand share. Staying on top of these trends allows CPG brands to adapt and appeal to evolving demands, driving more sales.
• Importance of Retail Visibility and Shelf Placement: The strategic placement of products on store shelves—such as eye-level positions or end-of-aisle displays—directly influences customer purchasing behavior. Products that are easily visible and accessible are more likely to be picked up, increasing their market share.
• Also Read: Understanding the Role of Brand and Product Adjacencies in Retail Execution Strategy

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What are the Strategies to Optimize Brand Share for CPGs?

Optimizing brand share for CPGs requires a multifaceted approach that includes strategic pricing, innovation, automation, and effective use of marketing. By combining these strategies with data-driven insights, brands can improve their market positioning and achieve higher on-shelf visibility. 

The strategies given below are some strategies to help you optimize your brand share and maintain a competitive edge:

1. Gathering and Analyzing Data for CPG Brand Share

To improve your brand share, you need to gather data on market conditions, shoppers' preferences, and competitor strategies. Regular competitor analysis can give you insights into what works in the market and where you can make improvements. Consumer feedback and product reviews help understand what customers value most about your product and what areas need attention. Data analytics tools enable real-time monitoring of brand share and on-shelf performance, helping you adjust strategies as needed.

2. Strategic Pricing for CPG Brand Share Optimization

 Pricing is one of the most effective tools for optimizing brand share. However, collecting and managing pricing data is often a challenge, especially when dealing with multiple retail outlets and fluctuating market conditions. By analyzing sales trends and using best-seller insights, CPG brands can determine competitive and profitable pricing strategies. 

3. Role of Innovation in Enhancing Brand Share

 Innovation drives brand share growth by introducing new products that meet evolving customer needs. Whether it’s new product features, packaging improvements, or entering emerging markets, staying innovative can boost consumer interest and expand your brand’s market share. Technological advancements, such as AI and machine learning, also help identify opportunities for new product offerings by analyzing consumer preferences and market gaps.

4. Automation in Brand Share Optimization

Automation plays a crucial role in streamlining data collection and analysis, which ultimately enhances brand share optimization. By automating the collection of competitor product data, your team can quickly identify gaps in your product lineup or promotional strategies. This enables real-time decision-making and more efficient resource allocation, helping you respond faster to market shifts and optimize your brand presence on shelves.

5. Utilizing Marketing and Promotions

Effective marketing and promotions can significantly increase your brand share by making your product more visible to consumers. Targeted marketing campaigns, special discounts, and limited-time offers increase product awareness and incentivize purchases. Promotions should be strategically aligned with product placement and availability on shelves to maximize the chances of customer pickup. Ensuring your promotional materials are aligned with your planogram and visible in high-traffic areas is key to optimizing brand share.

By implementing these strategies, CPG brands can optimize their brand share and stay ahead in a competitive market. This is where ParallelDots can help.

Also Read: What is Share of Shelf? Why CPG Brands Must Measure It?

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How Does ParallelDots Help CPG Brands with Brand Share and On-Shelf Optimization?

ParallelDots helps CPG brands boost their brand share by optimizing their shelf presence and ensuring products are always available for customers. With our AI-powered retail execution tools, including ShelfWatch, CPG brands gain real-time insights into on-shelf availability, planogram compliance, and promotional execution.

Here’s how ParallelDots can support your brand’s on-shelf optimization and brand share growth:

• Real-Time Shelf Monitoring: Our AI-driven platform continuously monitors stock levels, product availability, and compliance with planograms. This ensures that your products are always in the right place and visible to customers.
• Automated Shelf Audits: Save time and reduce errors by automating your shelf auditing process. ShelfWatch automatically captures high-quality images and provides actionable insights on stock levels and shelf conditions.
• Planogram Compliance: Ensure that products are placed according to predefined planograms, which optimizes shelf space and enhances visibility for high-demand items.
• Predictive Analytics: Using AI-powered analytics, you can predict demand trends and optimize product replenishment, preventing stockouts and overstocking.
• Competitive Intelligence: Monitor competitors’ pricing, promotions, and stock levels, allowing you to adjust your strategy in real-time and stay competitive in the market.

Case Study: High Accuracy Achieved for a Personal Care Company

A large personal care company with a presence in 2,000+ general trade outlets in an Asian market faced challenges with their previous image recognition vendor. Despite using the market leader for over three years, they struggled with low SKU-level on-shelf availability (OSA) accuracy, lack of flexibility in reporting dashboards, and a poor on-field user experience. Additionally, they used surveys to measure planogram KPIs instead of utilizing real-time image recognition, and lacked image quality feedback from the AI.

After running a like-to-like comparison between ShelfWatch and the incumbent vendor, the results were compelling. ShelfWatch delivered over 95% SKU-level OSA accuracy, compared to just 85% from the old vendor. The client also received more detailed breakdowns with SKU-level Share of Shelf (SoS) insights, which significantly improved reporting for brand teams. Field users found ShelfWatch easier and faster to use, leading to better audit outcomes and cost savings compared to the previous vendor.

Results:

• 95%+ SKU-Level On-Shelf Availability (OSA) Accuracy
• Best User Experience Reported by Field Reps
• Cost Savings With Better Features

For more details, read the full case study here.

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Conclusion

To stay ahead in the competitive CPG market, understanding and optimizing your brand share is essential. By integrating data-driven strategies, automating shelf monitoring, and ensuring that your products are always available and correctly placed, you can maximize your brand share and grow your market presence.

ParallelDots offers AI-powered solutions like ShelfWatch to help CPG brands enhance their on-shelf optimization, improve planogram compliance, and drive higher sales. By providing real-time insights and automating shelf audits, we empower brands to optimize their retail execution and maintain a strong brand presence in stores.

Book a demo with ParallelDots today to see how our AI-driven solutions can help you optimize your brand share and ensure your products are always available when customers need them.

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