Building Brand Desire In-Store
As we have stated before, in any given category, many of the top products or services are quite similar in performance, or are certainly good enough. For this reason, it is very hard to differentiate based solely on product performance.
Since 2009, Ipsos has been conducting annual global research to compare store brands to manufacturer (national) brands. For three years running, the results indicate that most consumers perceive store brands to be the same as or better than national brands on all attributes asked. Furthermore, across most countries globally, in 2011, consumers’ perceptions of store brand quality, innovativeness, uniqueness and packaging improved since 2010.
These are among the many reasons that private label store brands are growing, in all continents, even as we move further away from the 2008 Financial Crisis. The quality and value of stores’ own brands are challenging the manufacturer brands. Coupled with the increased influence of retailers, manufacturer brands might need to rethink their marketing approaches. In reviewing our Equity*Builder database we note:
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alue is Key, Not the Cost of Product.
As demonstrated below, cost has no strong relationship to purchase intent (cost also has no relationship to Brand Loyalty). The cost, and for manufacturer brands the potential premium cost, must be justified to create value. This value perception drives purchase intent.
