How Small Brands grow – Dirichlet Analysis of the Small Brand Syndrome

With 2022 being well underway, we're pleased to deliver another round of the LSBU Business School Professional Lecture Series and this time round, we're able to deliver these to a virtual and in-person audience!

With 4 new lectures in this new instalment, we welcome back some previous guest speakers along with some new faces as we continue to explore topics & issues to address the learning needs of our staff, students, local business communities & beyond by providing professional insight, sharing experiences & reflections and facilitating networks. Our events are open to all and everyone is welcome so please do share them with anyone you feel might be interested in attending.

How Small Brands grow – Dirichlet Analysis of the Small Brand Syndrome - Dr Katrin Franke

Description: Until now, too little has been known about how small brands compete. Where conventional marketing advocates segmentation, targeting and positioning to establish strong relationships with loyal buyers, there is almost no evidence whether this approach works for small brands. Instead, research focus has been squarely fixed on the titanic struggles of market leaders. Their small rivals are ignored to the point that there is cast disagreement on what a “small brand” is – let alone how their customers behave.

To better understand small brand competitiveness, an empirical-generalist approach was adopted using commercial consumer panel data provided by Kantar WorldPanel. The data include continuously reported FMCG purchase records of 15,000 UK households that were used to generate standard brand performance measures. The Dirichlet was utilised as theoretical foundation – as in prior studies on brand performance.

Repeat purchasing for small brands was analysed over the starting period of one year. Their brand buying patterns were near-stationary and replicated and generalised over a total 5-year period. It was found that niche brands are rare; so are change-of-pace brands. In fact, the majority of small brands underperformed their Dirichlet loyalty predictions yet managed to maintain the same market share size (+/-10%) over time. The few small brands that grew did so through significant increases in penetration (reaching new customers) – in line with Double Jeopardy expectations.

This provides comprehensive insights into how small brands compete which is vital as small brands vastly outnumber big ones. Plus, even today’s giants started out small. The findings run counter to dominant marketing beliefs and are therefore a major contribution to knowledge and practice.

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Structure

1pm - Welcome & introduction

1.05pm - Lecture: How Small Brands grow – Dirichlet Analysis of the Small Brand Syndrome

1.35pm - Q & A & discussion

1.55pm - Closing words & summary

2pm - Close

This event will take place at the LSBU Business School AND virtually via Zoom. We will be sending all registered guests the joining details closer to the time.

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Biography: To follow

To check out the other events in the LSBU Business School Lecture Series, see the schedule below and click to register.

29 March, 1pm - 2pm: What is Placemaking? Will it help local high street recovery?

26 April, 9am - 10am: Developing your Business Potential – Access to Consultancy models to grow your business through Help to Grow

24 May, 1pm - 2pm: Giving employees a ‘voice’ in small and medium enterprises: Benefits for individuals and organisations

29 June, 9am - 10am: How Small Brands grow – Dirichlet Analysis of the Small Brand Syndrome

Event Venue & Nearby Stays

LSBU Business School, 105 Borough Road, London, United Kingdom