A recent research study into shopper behaviour by leading marketing agency Haygarth has 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.
The implication for household brands
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.
