You Can Pry Coke, Tide and Kraft From Consumers' Cold, Dead Hands

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

Doug Pruden, Customer Experience Partners says:

I agree it's a bit counterintuitive. You have to believe that their really is some kind of calculation of value that consciously and/or sub-consciously runs in each of our minds as we make buying decisions. We have to be trading off some collection of image and/or experiential benefits that Tide or Coke delivers against what I assume is a lower price for store brands.

I'll agree with the article that for Coke it is likely the taste. In the case of Kraft (a brand name not a product as you point out), without any facts on which to base this opinion, I'll throw out the idea that study respondents were thinking about Kraft Mac & Cheese when they saw the name with all its comfort food benefits - no difference in ingredients perhaps, but hope for a different emotional impact. In the case of Tide we could look at the smell of the product, the viscosity of the product, the color of the product, the feel of the clothes after washing, the brightness of the logo colors, the perception of cleaning power --- or something that links it to the days when mom took care of our dirty clothes (using Tide) and most of life's other challenges. But probably nothing spelled out as ingredients on the label.

October 28, 2009 12:15 PM #

Mike Hecklinger says:

Mr. Pruden,
I would put Coke in a unique category. Here in Denver where salsa is heralded, I, a mass affluent 38-year old male consumer, would not hesitate to offer and boast about store bought salsa to friends and families. I wouldn't hesitate to offer them my generic Advil the next morning either.
However, for vanity sake, even if I found the perfect Coke Zero replica in generic form, that would be downright embarrassing to hold in my hand or have in my shopping cart. Shopping can be so social.
I think this engages us in the willingness and ability to go to the store/generic brands while staring at the super-Brand. I never see the Coke alternative "generic" right next to the Coke. This might be more an issue of product power and placement than brand loyalty. Plus, I don't think the beverage world can compete much on price so the savings is miniscule compared to the Tide or Advil examples. I would disagree that it's the taste. I remember failing the Pepsi challenge. Darn it; I am a Coke drinker despite those competing cola sips 20 years ago.
Remember the days when there was a generic aisle (black & white packaging) in the grocery store? Fortunately that embarassment went away and I think product placement and its packaging has a big role in our decision-making process. Brand has to battle that.
I'd enjoy anyone's commentary on NASCAR and it's role in amazing brand loyalty. I've been to the Daytona 500 (awesome brand research) and if you are a Jeff Gordon fan, you would rather be bull whipped than drive back to Georgia in a Ford.
-Cheers, Mike

October 30, 2009 02:48 PM #

Claire Ratushny says:

Hi Abe,
The findings of this study don't surprise me in the least. Some brands are enviable for the way they own their categories. Coke clearly continues to be one of the top global brands. It transcends its category and in loyal consumers' minds, nothing can replace it. Many of Kraft's products in numerous categories have earned long-time trust among consumers, as well. As for Tide: this isn't really a head scratcher. This P&G behemoth brand owns a staggering 51% of the laundry detergent category. Many brands have come and gone in the marketplace as would-be challengers to the Tide brand, including store brands. The simple fact: consumers trust Tide and its brand promise to clean and whiten better than its competitors. As long as dominant brands like these live up to their promises, they will continue to lead.

October 28, 2009 12:37 PM #

Gayle Falkenthal, APR says:

Doug, you're right about the comfort and familial associations with Kraft and Tide. Most women use the same household products their mother used. Who among us didn't grow up with Kraft M&C and associate it with home? If your mom used Tide, you do too. I'm in my 40s and I am living proof. I buy generic almost everything else EXCEPT sodas (Diet Pepsi for me), certain cosmetics, Tide, and certain convenience foods - Uncle Ben's Rice and Best Foods Mayo are two good examples.

October 28, 2009 02:02 PM #

Paul Wilson, Chief Strategy Officer, Felder Communications Group says:

Tide's loyalties are easy to understand. It requires no head-scratching at all to understand Tide owns the most important category benefit: it cleans better than others. For junkies of objective performance reviews, this advantage has been well documented in over a decade of head-to-head comparisons with other leading brands by Consumer Reports. Tide has always shown a significant advantage in the objective lab environment; word of mouth has promoted its superiority; and personal experience has reinforced belief and loyalty. I am a career brand strategist with no dog in this fight for P&G, but buying anything besides Tide is a non-negotiable in my brand loyal household.

October 29, 2009 01:36 PM #

Leon Botha CEO Rallystar Motorsport Academy says:

Studies such as this one simply amaze me. Not so much for the detail but the fact that you are blessed with the numbers that make such a huge marketing difference. Locally, in South Africa, we are battling to find out who the remaining market is as for instance 50% of whites living here pre-1994, have apparently left for greener Coke, Kraft and Tide filled fields!

Local advertisements are sometimes aimed at the wrong sector, even 'insulting' some groups.

The only forced brand currently is the 2010 Soccer World Cup! No matter how we look we can not find a 'role model' market on which to base strategies - South Africans truly seem to think different from most other people.

Pizza Hut tried of force the local issue a few years back and predictably dissappeared from the local scene. Ford and GM do not really impact the market which is dominated by Toyota and Volkswagen with the luxury car market belonging to Mercedes and BMW - at least that was the case yesterday!

We hardly know the Kraft brand, Tide is not nearly the most popular while every Tom and his two friends drink Coke!

Anyway - I think I wrote out of marketing frustration rather than anything else.

November 17, 2009 04:19 AM #

payday loans says:

Just wanted to say thanks for this.

November 30, 2009 04:06 PM #

Beer club says:

I will have to agree with that. I love and am addicted to Coke. I can go without a lot of things, but now my Coke.

December 8, 2009 12:14 PM #

best weight loss pills says:

What exactly mixes in energy drinks and alcohol that kills you?

December 12, 2009 04:30 AM #

xuemiaoping@gmail.com says:

Christmas is coming soon, Your Christmas gift ready ? If you have’t decided what to buy , I advise you try to buy a <A href="http://www.latestrolex.com/" title="Brand Name replica rolex">replica rolex </A> as a christmas gift for your relatives or friends ,we provide cheap and high quality replica luxury watches, only need dozen of dollars you can enjoy the luxury watches, I believe they will like it .if you interested in you also can contact me directly. My skype is xuemiaoping1, welcome to add me any time .

December 13, 2009 08:02 AM #

best fat burning supplement says:

An international online exchange and resource about brand marketing and branding.

December 16, 2009 03:00 AM #

cellulite cure says:

what the best excercise to lose weight on your legs?

December 19, 2009 04:46 AM #

reduce belly fat says:

What is the medical treatment of the mail infertility? Can yoga help in this kind of matter...?

December 25, 2009 01:44 AM #

best acne body wash says:

How can I have a beautiful and healthy skin?

December 25, 2009 02:44 AM #

Goedkope relatiegeschenken says:

I love my kindle and find it very satisfying. I can see what you are talking about but for me it works great.

January 9, 2010 11:20 AM #

Disney world says:

Disney's Contemporary, Polynesian, and Grand Floridian Resorts offer monorail access to the Magic Kingdom, Epcot, and the Transportation & Ticket Center.

January 10, 2010 10:16 AM #

flash programming says:

Your blog really gives food for thinking over a lot of details and let me to reorganize all my life.

January 25, 2010 04:26 AM #

SEO India - SEO Company India says:

Great I like it

January 27, 2010 09:38 PM #

cellulite treatment says:

It's excellent! I found the interesting information and I agree with that, consumers trust Tide and its brand promise to clean and whiten better than its competitors.

January 29, 2010 06:40 AM #

Newest Sport Rankings says:

I've surfed the net more than three hours today, however, I haven't found such useful information like yours. Thanks a lot, it's really useful for me.

January 30, 2010 03:14 AM #

replica watches says:

online sales

February 1, 2010 03:20 AM #

February 1, 2010 03:21 AM #

Looking back, about two years ago, I couldn’t get any proper info on the topic but now I am just so happy to see all stuff revealed.

February 3, 2010 07:54 AM #

best top 10 fighter rankings says:

February 9, 2010 03:59 AM #

web design orange county says:

Hope to find more interesting facts on the topic you run and I am pretty much sure that I need to prepare by myself.

February 15, 2010 10:12 AM #

autism society of America says:

These were lovely moments spending on your blog as I’ve a knowledge which is worth thousands of bucks.

February 16, 2010 09:23 AM #

buy bmw car long island says:

The blog was absolutely fantastic! Lots of great information and
inspiration, both of which we all need!

February 19, 2010 05:41 AM #

natural stone flooring says:

Great stuff!!! You are the experts, your blogs are usually so interesting and useful! I am not a regular visitor of blogs but I should say that your posts have nothing in common with others, it is true! Good luck in your future work!!!

February 19, 2010 05:37 PM #

Carissa Putri says:

Dear guys, I've surfed the net more than three hours today, however, I haven't found such useful information like yours. Thanks a lot, it's really useful for me.

February 22, 2010 04:01 AM #

mma pound for pound fighting says:

Hello author, I've surfed the net more than three hours today, however, I haven't found such useful information like yours. Thanks a lot, it's really useful for me.

March 2, 2010 03:40 AM #

MMA Pound For Pound says:

Well, I should admit that after reading your awesom article, I got a lot of idea for my own site. Thanks for that, it's really inspiring me, and probably also for another people who also visit your site. Once again, thanks a lot.

March 14, 2010 05:58 AM #

Nowgoogle.com Adalah Multiple Search Engine Popular says:

Great posting about this issue. I got new knowledge here. Your article easy to understand. Keep writing and happy blogging.

March 31, 2010 07:46 PM #

Catatan Blogger Seo Matre Ajib says:

Thanks for posting this info. I just want to let you know that I just check out your site and I find it very interesting and informative. I can't wait to read lots of your posts.

replica bags says:

2222 Shoescommunications, but we Air Jordans Shoes and Nike Kicks and wholesale nike shoes did not want this issue to be held back over a battle over preferred technologies.So I introduce to you the shoes are,nike air kicks wholesale nike shoes wholesale cheap nike kicks nike kicks .Thank you for your attention.

April 12, 2010 10:55 PM #