Higher Market Success with Category Entry Points (CEP)

22 August 2024

In today's era, almost all product categories are rarely dominated by just 2-3 brands. Some categories are even contested by hundreds of brands, which we can define as a red ocean. Categories like food and beverages, restaurants, skincare, and others seem to have entered this zone.

In the past, when there were fewer brand choices, consumers could easily differentiate between one brand and another. However, now it is very difficult, especially for new brands, and even long-established brands may struggle to demonstrate their unique identity. Despite this, marketers still rely heavily on KPIs to increase brand awareness and consideration, often forgetting the most critical aspect of brand selection: why consumers need the product category in the first place.

Byron Sharp and the Ehrenberg-Bass Institute team remind marketers to focus on the category by identifying the consumer entry points to the category, which we call Category Entry Points (CEP). It is crucial to understand these CEPs because if our brand is not in the consumer's mind now of a CEP, our brand will not be purchased.

CEPs are related to specific buying situations within a product category. For example, lunchtime can be a CEP for burgers or fried chicken, or hanging out with friends can be a CEP for buying a cup of coffee at a cafe. Some CEPs are general, while others are more specific. General CEPs that people commonly experience are usually dominated by the category's leading brands. Therefore, contenders must find other CEPs that can be leveraged and have a high likelihood of purchase.

Professor Sharp suggests that we must actively build associations between the appropriate CEPs and our brand, especially for brands with low or moderate awareness. Teh Botol Sosro consistently builds its association with the CEP of being the tea beverage consumed after meals. When people hear the slogan, "Whatever the meal, the drink is...," (“Apapun makanannya, minumnya….”) almost everyone answers Teh Botol Sosro. This association has helped Teh Botol Sosro achieve a significant market share in packaged tea drinks. Even if consumers choose other brands, Teh Botol Sosro remains a preferred choice. If just 30% of consumers drink Teh Botol Sosro after meals, and this moment occurs at least three times a day (morning, noon, evening) multiplied by 30 days a month, that's 3x30 = 90 moments multiplied by 30%, resulting in Teh Botol Sosro being purchased 27 times a month per person. If we scale this up to a district, a regency, a province, and nationally, the chances of Teh Botol Sosro being purchased are very high. This is due to the right CEP, which is frequently experienced and has a high frequency within a month.

Identifying which CEPs are formed and which are the most appropriate (most frequent and most common) is crucial to determine which CEPs to target and strengthen our brand's association with those CEPs. Mastering just one CEP and consistently campaigning for it is sufficient.

Clove has conducted several studies to detect these CEPs. One category can have dozens or even hundreds of CEPs, especially in a red ocean category. Clove's studies identify the right CEPs from various angles, such as the 7W – where, when, why, with whom, with what, how feel, and while. Once the CEPs are identified, they can be classified as general CEPs, specific CEPs, niche CEPs, seasonal CEPs, and others. The determination of CEPs will be checked with the client to decide on the most appropriate CEP based on the data. Then we develop a campaign strategy to associate our brand with the selected CEP.

So, let's find your CEP and associate your brand with it together with Clove.