28 September 2011

A recent research study into shopper behaviour by leading marketing agency.
Haygarth has revealed that shoppers place Tesco’s own label ranges over
and above those offered by Sainsbury’s, Waitrose, Asda, M&S and Morrisons.
 

Both the Tesco’s Finest and Tesco Value ranges topped a poll asking
shoppers to name their favourite supermarket own label products.
Sainsbury’s Taste the Difference and Basic ranges were ranked as
shoppers’ second choice whilst Waitrose’s Value and own brand labels
ranked bottom in both the premium and value ranges.

The study revealed that 71% of shoppers now say that they see little or no
difference between brands and own label products, whilst almost 60% say they
are buying more own label than they did two years ago. Only 8% of consumers
would reject an own label product.  With supermarkets offering sophisticated
own label ranges, this has led to these increasing shifts in perception of
own label.

This notable shift in perception means that brands now have to work
increasingly hard to compete with the supermarket giants – with an
ever-more prevalent need to ensure stand-out and drive customer loyalty. The
Haygarth study shows that inspite of the increasing success of own label
there are certain brands that hold an unshakable position on the nation’s
shopping list. Heinz Baked Beans came out on top as the brand that consumers
‘would never sacrifice’ for supermarket own label, followed closely by
Gillette razors, Walkers crisps, Heinz tomato ketchup and Kellogg’s
cereals.  Other brands that fared well in terms of consumer loyalty include:
 Head & Shoulders, Colgate, Cadbury and Warbutons.

Haygarth’s findings show that in order to succeed in this changed
landscape brands need to develop strategies that re-educate consumers on the
benefits of a product as well as the emotional space that a well-known brand
can occupy. The findings also show that the retail space itself is where
this battle is fought most keenly. A space where retailers themselves often
have the upper hand.

Anthony Donaldson, Head of Planning of Haygarth comments: “Our research
has highlighted the growing competition that brands now face.  The onslaught
from retailers’ own label has forced many traditional brands to
re-evaluate their appeal to consumers. The clever brands that remain in the
nation’s psyche, such as Heinz, Walkers and Kellogg’s have been
consistent in their communications and re-expressed the values that have
made them so popular in the past. To compete with the ever popular
supermarket own label market, households brands need to focus on the
emotional reasons why people buy, renew their focus on clear messaging and
provide inspiration for their customers”.

Haygarth’s shopper behaviour study is based on both qualitative and
quantitative research carried out amongst over 2000 consumers. The research
was carried out in partnership with specialist shopper research agency
Retail in Action and YouGov.

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