Brands invariably share buyers with competitors in line with size

Marketers are hearing more about the important idea of marketing ‘laws’, patterns in buyer behaviour or brand metrics that are seen repeatedly.

As an example, the double jeopardy law states that smaller brands suffer twice – fewer buyers, but also a bit less loyalty. This is useful knowledge as it tells us what is and isn’t achievable in terms of brand loyalty.

Duplication of purchase is another marketing law, which is that brands share customers with competitors in line with their size. This is a blow to traditional marketing theory that says the overlap in a brand’s customer bases should align with positioning, segmentation and targeting.

While many marketers are comfortable with the idea of marketing laws, not everyone is happy. Some suggest they are applicable primarily to FMCG brands, that they might only apply to big brands, or that since marketing involves humans, it cannot have universal ‘laws’.

So, there is a good rationale to keep gathering evidence as to where these laws hold, or perhaps don’t. We have looked at whether the duplication of purchase law applies to sportswear brands of in the US, for example. It follows a study from around 15 years ago in the UK. But achieving generalised knowledge in marketing means researchers need to keep looking at the evidence.

Another reason to pick sportswear is that we might think such marketing laws surely could not apply to brands that have very strong identities, or that are reported as appealing to a particular segment. Sportswear appears to be like this. Take these statements about sportswear brands from their management teams.

Reebok’s focus consumers are “game changers”, described as fitness-centric individuals that share four qualities: self-betterment, perseverance, confidence and non-complacency. They blend fitness into their lives, care about style and are passionate about what they do.

Converse calls its target group “gamechangers” too but describes them differently. It says gamechangers are driven by a “new reality for young consumers”, who demand meaning from the brands they align with, and don’t just want to “rebel against authority”.

Then we have Under Armour, which identifies its key consumer as the ‘focus performer’, primarily team sport athletes aged 16 to 24. Puma, meanwhile, looks for “inspiring self-expressers” and “convivial belongers”. While Fila says it is made for the club sport athlete of today.

Interestingly, Adidas appears to have walked back from segmentation. In 2019, it said: “The Adidas brand targets key consumer groups and influencers to create brand desirability and momentum through a well-defined consumer segmentation strategy.”

But in a more recent statement, Adidas says it “caters to all, from elite professional athletes and teams to any individual who wants to make sport part of their lives”.

Read the full article in Marketing Week.