brand science
Posted by Abe Sauer on October 27, 2009 02:38 PM
Fascinating, counterintuitive data coming out of a year-long consumer behavior study finds that Kraft, Coca-Cola and Tide are the three brands least likely to be traded for store brands. The study should worry name brand owners, since "only 37% of consumers say name brands are more reliable, and 39% believe name brands are better quality products."
The data are edifying. Age breakdowns show consumers growing less brand loyal (and more price-conscious) as they get older. The huge numbers who are turning to private labels find Wal-Mart, Kroger, and Target to be the stores with the best selections.
An executive for the Integer Group, the conductor of the study, summarized the dilemma for many nationally advertised brands: "With this many shoppers doing price-comparison, name brands need to act now in order to keep consumers - and beyond the recession, entice consumers to return."
Of three strongest brands, Coke has long been seen as a brand consumers would be unwilling to trade on, despite the numerous cheaper alternatives. Coke drinkers can immediately discern a taste difference.
Kraft may share some of Coke's loyalty characteristics, based on product as well as brand identity, though it was unclear whether the study included Kraft sub-brands as drawing the most loyalty, or just Kraft-branded products (a stable that may expand soon if Kraft acquires Cadbury and adds its brand.)
Tide is certainly a head-scratcher. Given the bevy of private label laundry detergents on offer from almost every large retailer (including Wal-Mart, Kroger, and Target), and the difficulty of distinguishing Tide's cleaning properties from that of a private label (like a Pepsi "taste test"), the brand's string performance should leave brand owners scrambling to break down Tide's brand characteristics and aspriational qualities in a quest to adopt them as their own.
More about: Consumer Packaged Goods, Store Brands, Integer Group, Tide, Kraft, Coca-Cola, Coke, Cadbury, Wal-Mart, Kroger, Target, Pepsi, Market Research
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