Growing up in Hawaii, one realizes quickly that swimming in a pool is vastly different from swimming in the ocean. In a pool, a pretty good swimmer can go wherever they want and doesn’t worry about much except for the other swimmers getting in the way. In the ocean, however, a pretty good swimmer has little choice but to go where the ocean current wants and has many things to worry about.
Unfortunately, grocers — like all businesses — build their plans in controlled and contained pools, but must execute them in the wild, as it were. A few times per year, grocers plan shelf resets, new products, annual plans and long-range plans of a few years.
These plans are unrealistic and short-sighted.
Recently, McKinsey & Co. completed a study across 822 companies for nearly 10 years deconstructing how businesses actually grow. The results show that more than 60 percent of any brand’s individual growth comes from the underlying momentum of the category. Competitive market share gain (e.g., most of advertising, distribution) drives less than 10 percent of a brand’s growth but often occupies 90 percent of a brand’s strategy and mindshare.
Unfortunately, grocers — like all businesses — build their plans in controlled and contained pools, but must execute them in the wild, as it were. A few times per year, grocers plan shelf resets, new products, annual plans and long-range plans of a few years.
These plans are unrealistic and short-sighted.
Recently, McKinsey & Co. completed a study across 822 companies for nearly 10 years deconstructing how businesses actually grow. The results show that more than 60 percent of any brand’s individual growth comes from the underlying momentum of the category. Competitive market share gain (e.g., most of advertising, distribution) drives less than 10 percent of a brand’s growth but often occupies 90 percent of a brand’s strategy and mindshare.
