Here is a set of Category Development metrics for a category. It's just so interesting to parse this category!
Let's just go to the bottom of the table for today. The final three rows tell us a story. We observe the percentage of annual demand that comes from three customer groups ... the top row represents customers who bought from the category the year prior ... the second row represents customers who bought the year prior but not from the category ... the third row represents new/reactivated customers.
What do you see here?
This category does not generate sales from customers buying from the category the year prior, does it? 4%? It's virtually nothing.
47% of demand last year came from customers who, the year prior, bought from the brand but not the category. This category is fueled by customers previously buying from other categories.
49% of demand last year came from new/reactivated customers. This is a category that prospects consider.
Let's pretend you work in marketing, and are responsible for managing this category. Tell me what your marketing strategy is for this category?
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