7 out of ten leading brands more expensive than their peers
Number 1 brands are not only big but their strength also enables them to command a price premium compared with other brands in their category. About 3 out of 4 leading brands sell at a premium relative to their branded peers – and sometimes a substantial premium: More than a quarter of leading brands charge 50% more than other brands in the category.
However, there remains a quarter of Number 1 brands that are not able to make their size count in terms of relative price. They are cheaper than the average brand in their category. The share for the Number 1 brand doesn’t appear to be a determinant – the average volume share for Number 1 brands in each segment is very similar.