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THE ULTIMATE CPG DICTIONARY

Natural Monopoly Law

Larger brands gain disproportionately more light buyers, who 'default' to big brands when not highly engaged.

How it's Calculated:

Compare light buyer penetration between large brands and niche brands.

Example:

Bud Light has many 'occasional beer drinkers' who don’t explore the category much, whereas niche craft beers only attract engaged buyers.

Category:

Consumer/Market Metrics

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