Wednesday, April 22, 2009

The Geography of Brand Shares

More mappiness via Matt Yglesias. He links to a post by Andrew Gelman that has these maps:



The maps are pertinent to an article (pdf), which Yglesias also links to, which argues that brands which are first to enter a given market are likely to maintain an edge in that market, even more than a century after their first competition from other brands:
We document evidence of a persistent “early entry” advantage for brands in 34 consumer packaged goods industries across the 50 largest U.S. cities. Current market shares are higher in markets closest to a brand’s historic city of origin than in those farthest. For six industries, we know the order of entry among the top brands in each of the markets. We find an early entry effect on a brand’s current market share and perceived quality across U.S. cities. The magnitude of this effect typically drives the rank order of market shares and perceived quality levels across cities. [...] Across 49 current leading national CPG brands, dating back to the late 1800s and early 1900s, we find that the current share in markets close to the city of origin, is, on average, 12 share (i.e., percentage) points higher than the national average of 22 percent.
You'll note that Starbucks was started in Seattle, and Walmart was started in Arkansas.

The paper itself includes these maps:


The joint geographic distribution of share levels and early entry across US markets in ground coffee. The areas of the circles are proportional to share levels. Shaded circles indicate a brand locally moved first.
As you can see, Maxwell House is the Biggie Smalls to Folgers' Tupac, with each brand performing stronger near the area that they started out (Nashville for Maxwell House and San Francisco for Folgers). Other examples of this phenomenon include Miller beer, which was introduced in Chicago in 1856 and still has a disproportionate share of that city's beer market, and Heinz ketchup, which started out in Pittsburgh and still does better in that city than elsewhere.

22 comments:

  1. I think people fear idea management and innovation because there's a significant number of ideas that simply won't plan out.......Nice statement.....keep posting

    ReplyDelete
  2. this day I've been searching for information on various issues, this I found very good and I would like to congratulate you for your work.

    ReplyDelete
  3. I think that this post is one of the best that i have read in my life, congrats you did a great job,.

    ReplyDelete
  4. the difference between the content spammers and most corporate innovators is that the smaller

    ReplyDelete
  5. I'm writing to you because I just came across a business that I think has great potential. It lets you save money on almost everything. Make money from almost everything,

    ReplyDelete
  6. If growth is important to a firm, and if growth is dependent on offering existing products and services to new customers

    ReplyDelete
  7. innovation is very natural and happens in the "real world" as new plants and animals colonize new ecological niches.

    ReplyDelete
  8. I wonder how you got so good. This is really a fascinating blog, lots of stuff that I can get into. One thing I just want to say is that your Blog is so perfect

    ReplyDelete
  9. We generally think most specifically about the risk associated with a new product introduction

    ReplyDelete
  10. I would be aware that as somebody who really doesn’t comment to blogs a lot (in actual fact, this may be my first put up), I don’t think the time period “lurker” is very flattering to a non-posting reader.

    ReplyDelete
  11. Hey, Really great work, I would like to join your blog anyway so please continue sharing with us,

    ReplyDelete
  12. Fascinating article- I must say. I'm glad to have found this blog. thanks very much for the share...

    ReplyDelete
  13. I think people fear idea management and innovation because there's a significant number of ideas that simply won't plan out.......Nice statement.....keep posting

    ReplyDelete
  14. this day I've been searching for information on various issues, this I found very good and I would like to congratulate you for your work.

    ReplyDelete
  15. I think that this post is one of the best that i have read in my life, congrats you did a great job,.

    ReplyDelete
  16. the difference between the content spammers and most corporate innovators is that the smaller

    ReplyDelete
  17. I'm writing to you because I just came across a business that I think has great potential. It lets you save money on almost everything. Make money from almost everything,

    ReplyDelete
  18. If growth is important to a firm, and if growth is dependent on offering existing products and services to new customers

    ReplyDelete
  19. innovation is very natural and happens in the "real world" as new plants and animals colonize new ecological niches.

    ReplyDelete
  20. I wonder how you got so good. This is really a fascinating blog, lots of stuff that I can get into. One thing I just want to say is that your Blog is so perfect

    ReplyDelete
  21. We generally think most specifically about the risk associated with a new product introduction

    ReplyDelete
  22. I would be aware that as somebody who really doesn’t comment to blogs a lot (in actual fact, this may be my first put up), I don’t think the time period “lurker” is very flattering to a non-posting reader.

    ReplyDelete