Lessons for Brand Growth: Interview with Vittorio

In the dynamic world of marketing, understanding and adapting to consumer behavior is paramount for brand growth. Our very own Managing Director, Vittorio Raimondi, shares his expert views on how brands can strategically navigate their growth journey.

In this interview, he touches on some key lessons for growth, from consumer behavior analysis to effective segmentation and the integration of commercial and consumer strategies to achieve sustainable brand success.

Interviewer: Welcome, Vittorio. Thank you for joining us today to discuss a crucial topic for many marketers: how do brands grow? Let’s dive right into it. Your philosophy implies that there are different ways to grow a brand. Can you please elaborate on that?

Vittorio: Absolutely. Our philosophy is rooted in understanding consumer behavior and recognizing multiple consumer groups with distinct behaviors. Brands must identify these groups and decide which ones to target by assessing their ability to win them over and the value associated to that growth – we refer to these as consumer growth levers. Are you targeting occasional users of a specific product or category? Or heavy users that only rarely use your brand? Choosing which consumer growth levers to target and then how to win them over is the essence of a winning consumer growth strategy.

Interviewer: Great. But isn’t strong evidence suggesting market penetration is the only way to grow a brand? Do you believe there are other effective strategies?

Vittorio: It’s not the only way. For brands that have already saturated the market and achieved high distribution, focusing solely on penetration won’t suffice. The next step is to enhance reach in different ways. This can involve engaging existing consumers more deeply, finding new product uses, expanding the portfolio, or even premiumizing the brand. These strategies collectively contribute to growth beyond penetration.

Interviewer: That makes sense. How does this multifaceted approach benefit marketers?

Vittorio: It’s tremendously beneficial. Telling a marketer to focus solely on penetration is limiting and uninspiring. Instead, understanding whether to prioritize recruitment, frequency, premiumization or other levers provide direction and help identify the right mix of marketing programs.  This comprehensive approach ensures a well-rounded and effective brand plan.

Interviewer: Do you think this approach is only feasible for large brands with access to extensive data?

Vittorio: Not at all. Mapping consumer behavior and strategizing accordingly can be done with minimal data. It involves collaborative thinking and utilizing available information, even if it’s not extensive. Brands of all sizes can apply this approach by leveraging their collective knowledge and insights to identify focus areas and growth opportunities.

Interviewer: Let’s discuss commercial execution versus consumer insights. Which one do you think is more important?

Vittorio: Both are crucial and need to work in tandem to drive growth. At Foresight Strategy, we emphasize the three As: Affinity, Affordability, and Availability. Building affinity with consumers, offering products at an affordable price, and ensuring availability are all essential. These elements must be aligned and interconnected for a brand to grow effectively, and require clarity on which consumers you are trying to win.

Interviewer: And how can marketers ensure that their pack price architecture (PPA) aligns with their consumer strategy?

Vittorio: This is where consumer insights play a vital role. They offer important clues on where consumers will shop for your brand, the needs they are trying to satisfy, their level of loyalty, competitor strengths and weaknesses, and so on—all critical information to design the right PPA.  Many PPA strategies fail because they focus solely on transactional data (sales data for the brand vs. competitors, identifying weak areas for the brand) and forget to take into account consumer preferences.

Interviewer: Shifting gears a bit, how does what you’ve discussed relate to the debate on lower versus upper funnel investment?

Vittorio: Both lower and upper funnel investments are important. Strong communication campaigns (upper funnel) build brand equity and affinity, influencing consumer choices at the point of sale (lower funnel). When consumers face competing products on a shelf, having a robust brand presence and established affinity can make a difference in their purchasing decision. Most Marketing Mix Models only focus on the lower funnel and can result in shortsighted strategies. Our holistic models take into account both upper and lower funnel, providing guidance on how to maximize your brand budget.

Interviewer: Another key topic is segmentation. Why do you think many segmentation strategies fail?

Vittorio: Because they focus too much on grouping consumers by perceived values or attitudes rather than actual behaviors. These segmentations can become impractical and disconnected from actionable insights.

The key is to use the right type at the right stage of your strategy. Behavioral segmentation is highly effective for a sound quantitative strategy, particularly at the start. It groups consumers based on their choices and behaviors, supporting decisions on where to play and how to win.

Interviewer: How do you conduct effective behavioral segmentation?

Vittorio: Effective behavioral segmentation involves analyzing how consumers make brand choices and mapping these behaviors across different consumer pathways.  Sizing these segments with market data ensures that marketers can gain clarity on which segments to target and how to win them over, making the segmentation practical and actionable.

Interviewer: Thank you, Vittorio, for sharing your experience on brand growth and segmentation strategies.

Vittorio: Thank you. It’s been a pleasure!