Shopper Digest: Grow or Defend

If you have ever found yourself debating whether to focus on growing your brand or simply defending your market share-you are not alone.

We hear this all the time:

• "Should we focus on stealing share from competitors?"
• "Are we losing to the brands we think we are?"
• "How do we keep our loyal buyers while attracting new ones?" 

The Trap of Playing It Safe

Being the leading brand for example comes with clear advantages-scale, visibility, and consumer trust. But it also brings a unique set of challenges, especially when it comes to sustaining growth.

So, while challengers are busy finding ways to expand, leaders can fall into the trap of playing it safe: focusing on retention or narrow competition, instead of continuing to win new shoppers and grow the category.

Case Study: A Leading Brand in an Impulse Category

In this category, we are seeing a rapid influx of new players, alongside the growth of unconventional channels — both of which are prompting brands to rethink their strategies and plans.

As a market leader, Brand A began questioning whether these emerging threats were eroding its dominance:

1. Are these new players a genuine threat?
2. Are we missing out on emerging opportunities?
    

Drawing on insights from our panel of 4,000 households — where we continuously track purchasing behaviour — we found that Brand A’s growth was not solely driven by switching from competitors.

In fact, the key driver was category recruitment and repertoire expansion. In other words, rather than simply stealing share from rival brands, Brand A was attracting new shoppers who had previously not engaged with the category or the brand at all.

This is a significant achievement for a leading brand — demonstrating that Brand A is helping to expand the category, not just compete over the same pie.

The Real Threat Isn’t Always the Usual Suspects

Contrary to popular belief, Brand A’s performance was not primarily impacted by direct competition — either from established players or new entrants. Instead, the main issue was a decline in purchasing among its existing shopper base.

It’s not always just about defending market share or battling familiar rivals — it’s about keeping your brand relevant and engaging, both to loyal buyers and to new shoppers entering the category.

Understanding which penetration band your brand currently sits in enables you to choose a more targeted and effective strategy for growth within the category.

Two Principles to Consider:

1. Growth Isn’t Just About Stealing Share
   Many brands believe the only path to growth is by outpacing their closest competitor. However, Brand A illustrates that real growth can come from outside the category or brand — by bringing in new shoppers or by becoming a new addition to a consumer’s existing repertoire.
    
2. Your Competitor Might Not Be Who You Think​​​​​​
   It’s tempting to focus solely on brands that look similar or share the same shelf space. But in Brand A’s case, the most common switch-out brand was a product not typically seen as a direct competitor. This highlights the importance of looking beyond obvious rivals and understanding shifts in shopper behaviour.

Whether you’re a market leader — or aspiring to become one — don’t just concentrate on defending your territory. Think bigger. Grow the category. Recruit new users. Stay relevant to your existing base. And always keep an eye on unexpected dynamics.

This is a timely reminder that true growth comes from seeing the whole picture, not just the competitive set.

Penetration refers to the percentage of the population purchasing a specific brand over a defined period. It is a crucial metric used by leading industry players to assess the size of their existing customer base (versus competitors) and to identify opportunities for expansion.

At Worldpanel, we track penetration on a consistent 4-weekly basis, enabling you to monitor trended performance at both the category and brand levels.​​​​​​

Source: P13 2024 database, Worldpanel Malaysia