MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth. The RDE composite strongly relates to – and helps explain – CCPreference which itself is a validated predictor of market share.

Comparing RDE Assessment taken before the pandemic to comparable assessment from May 2021 reveals one brand in the Subscription Video Streaming Services category that has emerged as a winner – HBO Max.

• HBO Max was launched in May 2020 well after the COVID pandemic was underway. It essentially replaced the previous HBO streaming service, HBO Now, but with a huge amount of new content from a variety of WarnerMedia brands.
• Despite RDE levels being generally depressed as a result of the pandemic, HBO Max RDE levels easily surpass HBO Now pre-pandemic levels.
  • HBO Max easily outstrips HBO Now on all three RDE dimensions.
  • HBO Max is particularly strong in terms of relevance meaning that SVOD consumers feel that the HBO Max service is for someone like them.

• HBO Max also far exceeds HBO Now in terms of CCPreference – the percent of consumers preferring HBO Max over competitors in the subscription streaming services category. This suggests that HBO Max should be performing well in the marketplace. How has it done?
• HBO Max’s strength is its large and varied TV and movie catalog. In addition, Warner Brothers has been releasing its 2021 movies on HBO Max simultaneous with the theatrical release which has proven very popular.
  • At the end of the first quarter of 2021, HBO and HBO Max totaled 44.2 million domestic subscribers – far exceeding the 33.1 million subscribers a year ago (before HBO Max).
  • A report from Reelgood indicated HBO’s share of streaming activity rose from 2.0% in Q1 of 2020 (pre-HBO Max) to 12% in Q4 2020, placing HBO Max ahead of Disney+ and behind only Netflix, Prime Video and Hulu.
• This success – mirrored by extremely strong CCPreference growth – has come despite a soft launch which slowly added support for many popular streaming devices, the COVID pandemic and accompanying economic downturn, and ever-increasing competition in the streaming video space.

The RDE composite is strongly related to brand preference in this category, with a correlation of 0.96

MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth.  Our ongoing Chart of the Week series is dedicated to sharing RDE results for a variety of categories.      

If you have questions about your category or want your own Chart of the Week – give us a call.      

This TBSM / RDE assessment among major Facial Moisturizer brands was taken among 750 women and led to the following insights:

• Olay is the category leader in terms of both RDE Composite and brand preference.  It leads all other brands for each of the three RDE dimensions, with its lead being largest for Relevance and smallest for Differentiation.  Olay is particularly strong among women age 55+ in terms of both preference and RDE.
• In general the category is emotionally driven, with the Emotion dimension being highest for all but one brand.

• Both Aveeno and Neutrogena have very similar RDE profiles and Brand Preference levels, with Aveeno having a slight edge in Differentiation and Neutrogena a small lead in both Relevance and Emotion. as well as brand preference levels.  Both brands are more driven by medium to light category users versus most of the competition.

• As luxury brands, both Clinique and Lancôme have somewhat higher brand preference levels than expected from RDE Composite, which is not uncommon for premium brands.  Both brands lag in terms Relevance in comparison to Emotion (especially for Clinique) and Differentiation (especially for Lancôme).  Both brands also fare well among younger, higher income and better educated women who are heavy users in the category.

• L’Oreal and Cetaphil have very similar RDE profiles (L’Oreal is slightly stronger on all three dimensions), with the least variation between the three RDE dimensions.  However, Cetaphil is stronger among the 18-34 age segment while L’Oreal draws the most support from respondents age 35-54 and draws more support from higher income respondents than does Cetaphil.

• The RDE composite is strongly related to brand preference in this category, with a correlation of 0.88

MSW’s RDE Analytic Framework rests on a study that found that three equity dimensions (Relevance, Differentiation, Emotion) are responsible for driving a significant portion of brand growth.  Our ongoing Chart of the Week series is dedicated to sharing RDE results for a variety of categories.

If you have questions about your category or want your own Chart of the Week – give us a call.

TBSM / RDE assessment among major Chocolate Candy brands was taken among 1,000 men and women. Out of eight brands tracked, the leaders for each of the three equity dimensions (Reese’s, Hershey’s and Godiva) were examined, leading to the following insights:

• The Hershey Company’s eponymous chocolate brand leads all its competitors in terms of Relevance.  This is likely related to the company’s heritage, being founded in 1894, and wide array of Hershey’s branded chocolate products.  However, the brand is not perceived as different, particularly among older respondents.

• Godiva is the leader in Differentiation.  While premium brands have a tendency to be perceived as different, Godiva outpaces the other premium chocolate brands included in our study (Ghirardelli and Lindt).  Godiva’s strong equity position, particularly in terms of Differentiation, is driven strongly by women, and preference for the brand is much higher among the more mature (age 55+) demographic.  However, as more of a niche, premium brand, Godiva lags behind the mass appeal brands in terms of Relevance.

• Reese’s enjoys a fractional advantage over Hershey’s for category leadership on the Emotion dimension.  This emotional connection was likely built over time through clever and memorable advertising campaigns.  These ranged from early “Collision” ads (“Hey, you got peanut butter on my chocolate!”), through the tie in with the release of E.T. the Extra-Terrestrial and the long running “How do you eat a Reese’s?” campaign.  Reese’s shows strength in each RDE dimension, resulting in the category’s highest composite RDE score.

• Reese’s leadership in RDE corresponds to its category leadership in brand preference, with Hershey’s the runner-up on both metrics.  Godiva leads the premium segment in terms of brand preference, thanks to its strength in terms of perceived Differentiation.