research enquiries · 2011-10-27 · research, we are ideally placed to offer your business...

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Research enquiries: Liz Hague, Sales Manager

email: [email protected] tel: +44 (0)1527 573 604

US toll-free: 1-866-545-5878 fax: +44 (0)1527 577423

• Evolution offer a range of products & services for clients in the field of shopper research:-

• Off-the-shelf research

– Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery

• Insight Plus

– Insight Plus offers your business the opportunity to engage in any of our regular shopper research projects in advance of publication, tailoring the scope to suit your needs

• Bespoke Consulting

– As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects – helping to better inform and shape any further research requirements.

Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke research for manufacturers, retailers and agencies.

Further information is available at our website http://www.evolution-insights.com

Visit and sign up for Reflections, our free quarterly newsletter offering analysis and commentary on topical issues

About Evolution Insights

3

As a leading publisher of shopper research, we are ideally placed to offer your business actionable shopper insight.

Our research and analysis helps clients develop targeted shopper marketing initiatives designed to influence shoppers at the point of purchase.

We use a range of research methodologies to discover genuine insights. Our research incorporates a broad spectrum of robust qualitative and quantitative research techniques.

www.evolution-insights.com

Contents

www.evolution-insights.com 4

Key findings and executive summary 5 Category brand rankings – repertoire by demographic 38 Category brand rankings – repertoire by retailer 39

Brand loyalty: key issues and category in perspective 8 Category brand rankings – brand normally bought 40 Definition 9 Repertoire 10 Reasons for purchase 41 The effect of recession 12 Overview of reasons for purchase 42 The role of private label 13 Reasons for purchase by demographic 43 The rise of price promotions 14 Reasons for purchase by retailer 44 Declining brand trust 15 The influence of range rationalisation 16 Shopper marketing initiatives 45 The role of shopper marketing 17 Overview of shopper marketing initiatives 46 Differentiating beyond price 19 Shopper marketing initiatives by demographic 47 Differentiating beyond price - packaging 20 Shopper marketing initiatives by retailer 48 Integrated marketing and the path to purchase 21 Integrated marketing and the path to purchase – digital media 22 Promotional buying behaviour 49

Promotion as a purchase driver 50 Shampoo shopper profile 23 Promotion as a driver of loyalty 51 Shampoo shopper profile by demographic 24 Impact of promotions on repertoire 52 Retailer share of shampoo shoppers 25

Loyalty and the role of private label 53 Brand awareness and repertoire 26 Private label and repertoire 54 Category brand awareness by demographic 27 Private label tiers and repertoire 55 Category brand awareness by retailer 28 Private label and drivers of purchase 56 Category brand repertoire by demographic 29 Category brand repertoire by retailer 30 Loyalty and the role of range rationalisation 57 Category promotional purchasing by demographic 31 Shopper reaction to range rationalisation 58 Category promotional purchasing by retailer 32 Range rationalisation, the repertoire and brand loyalty 60

Brand rankings 33 Methodology 61 Category brand rankings - awareness 34 Category brand rankings – awareness by demographic 35 Appendix 64 Category brand rankings – awareness by retailer 36 Category brand rankings – repertoire 37 Glossary 66

Brand loyalty: key issues and category in

perspective


• Evolution defines brand loyalty as the extent of commitment of a consumer or shopper to repeatedly purchase a particular brand, despite the efforts of competing brands to influence their behaviour otherwise.

• In addition to repeat purchasing behaviour, brand loyalty is also often demonstrated by the consumer or shopper endorsing the brand to friends and family through word of mouth.

• True brand loyalty can enable brands to command a premium over their competitors, in some cases even where there are alternatives of equal or even higher quality available at a lower price.

• Brand loyalty is driven by a number of different complex factors, ranging from heritage, perceived quality and consistency; to trust, image and satisfaction to date.

• Traditional brand marketing in food and grocery is centred around the use of mass media channels (for example television, radio, print) to reinforce the emotional connection between consumers and brands, focusing on the importance of heritage, image, trust and values.

Brand loyalty is the measure of a consumer or shopper’s commitment (or not) to repeatedly purchase a particular brand, despite the efforts of competing brands to influence their behaviour otherwise.

Effect:

Commitment despite alternatives

Action:

Repeat purchasing

Word of mouth endorsement

Satisfaction / experience to date

Perceived value of relative quality

Perceived value of reliability / consistency

Heritage / growing up with brands /

nostalgia

Trust in credibility of company

Perception of image by

association

Brand loyalty: definition


Source: Evolution Insights

Drivers of brand loyalty

• Food and grocery shoppers are very rarely entirely loyal to a single brand, nor do they often have a brand consideration set that incorporates all of the brands available to them at the supermarket fixture. Their brand consideration set instead typically encompasses a number of brands they are familiar with and would consider buying. This ‘repertoire’ often serves as an effective means to edit choice quickly for shoppers, particularly for categories where their predisposed mind-set (modality) is one of a grab and go mentality.

• Brand repertoire therefore offers a perspective of loyalty beyond a single brand, whereby brands are categorised according to whether they are normally bought, or considered but only sometimes bought. The extent of brand loyalty differs depending on where a brand sits. Some shoppers are more loyal to one specific brand than all others yet still consider others, while others are not loyal to one single brand in particular at all and yet still choose from a brand consideration set.

• The brand repertoire is in many cases quite fluid and influenced not only by traditional brand marketing through mass media but also in response to in-store marketing that targets the consumer in ‘shopper mode’. In other cases it remains quite static where the shopper has a high degree of loyalty to a set of brands and is less susceptible to change.

• The factors that reinforce brand loyalty and constrain repertoire (typically heritage, satisfaction, reliability, ease, trust) do not necessarily equate to those that encourage shoppers to broaden their repertoire (for example promotion or desire to try something new). The challenge is two fold – firstly to get into the repertoire, and secondly to be the preferred choice.

Food and grocery shoppers typically shop with either a conscious or sub-conscious brand consideration set, known as their brand repertoire. A true measure of brand repertoire captures the number of brands in the shopper’s consideration set, not just those they normally buy.

Normally buy

Consider and sometimes buy

Aware of but don’t consider

Not aware of

Brand loyalty: repertoire


At Evolution we believe it is important to consider brand repertoire in the context of broader brand awareness, and identify differences in approach depending on where your brand lies.


A model of brand repertoire and awareness

• Laundry detergent is for example a relatively consolidated category with few brands available to the shopper at the fixture. Furthermore, laundry detergent shoppers have one of the largest repertoires as a proportion of all brands available, suggesting a relatively low degree of brand loyalty within laundry detergent as shoppers consider and sometimes buy over 52% of all brands available. This is perhaps a reflection of the largely commoditised nature of laundry detergent, and relative absence of those factors outlined on page 10.

• Crisps is in contrast a relatively fragmented category, with many brands available at the fixture. Yet crisps shoppers also have one of the largest repertoires as a proportion of all brands available. Crisps shoppers however exhibit a differing balance between the number of brands the normally buy versus those they sometimes buy, compared to laundry detergent.

• Coffee is a relatively consolidated category and yet here shoppers have one of the smallest repertoires as a proportion of all brands available, suggesting a relatively high degree of brand loyalty.

• While deodorant shoppers have for example one of the smaller repertoires as a proportion of all brands available (higher brand loyalty), the proportion of brands they are unaware of is relatively high. This suggests it will be particularly difficult for the less well established brands to gain a footing, and highlights the need to focus on building awareness before seeking to encourage brand switching through sales promotion or differentiation.

The size of a typical food and grocery shoppers’ brand repertoire varies by category. This reflects not only the extent of fragmentation within each category, but the extent of brand loyalty within the category.

The extent of shoppers’ loyalty to brands, and their reliance on brand consideration sets varies quite notably between different categories. Manufacturers should consider where there category sits when considering the best approach for defending and building brand loyalty.

Brand loyalty: repertoire (2)


Category Size of repertoire (number

of brands) Overall number of

brands in category* Repertoire as % of

category*

Laundry detergent 4.7 9 52.2

Bread 4.7 10 47.0

Crisps 11.8 27 43.8

Body wash / shower gel 7.6 18 42.2

Tea 4.8 12 40.3

Washing up liquid 3.2 8 40.2

Lager 13.1 33 39.7

Yoghurt 7.2 19 38.1

Deodorant 7.0 19 37.0

Shampoo 7.4 21 35.2

Coffee 4.2 12 35.0

* Based on list of all major brands available in the Big Four, and accounting for all private label as a single brand

35.0

35.2

37.0

38.1

39.7

40.2

40.3

42.2

43.8

47.0

52.2

48.4

47.1

44.8

49.2

45.1

32.6

42.1

43.6

41.2

32.0

44.4

16.7

17.7

18.2

12.7

15.1

27.2

17.6

14.3

15.0

21.0

3.4

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Coffee

Shampoo

Deodorant

Yoghurt

Lager

Washing up liquid

Tea

Body wash / shower gel

Crisps

Bread

Laundry detergent

In repertoire Aware of but not in repertoire Not aware of


Size of brand repertoire of UK main shoppers by category

Breakdown of category by repertoire and awareness

• Above the line brand marketing campaigns typically centre on building emotional loyalty among consumers; focusing on factors such as trust, association with image, heritage and nostalgia. In contrast, many in-store marketing campaigns target the shoppers’ desire to make informed, rational purchase decisions at the fixture.

• Particularly effective shopper marketing campaigns seek however to bridge the gap between emotion and rationale, and influence purchasing decisions at the fixture. Our research shows that the best campaigns are often those that seek to interrupt and engage the shopper by capturing their interest and imagination, offering added value beyond low prices.

• These types of initiatives range from simply differentiating your brand through quality and performance; to free gifts, in-store sampling and competitions; through to sponsorships, charitable tie ups and reinforced health and ethical credentials. The suitability of these different stimuli vary according to category,

• A strong example is Proctor and Gamble’s Pampers promotion that offered to donate towards Unicef’s tetanus injections for mothers and babies in developing countries. P&G was able to connect with the shopper through an on-pack promotion at an emotional level, by promising to donate one job per item purchased.

• Competitions that offer desirable prizes convey a sense of association by image with the shopper that cannot be achieved through a straightforward price promotion. In-store sampling on the other hand actually engages the shopper directly at the point of purchase and offers the opportunity to reinforce first hand the taste and quality credentials of a brand over its competitors.

• Head and Shoulders and Duracell are two strong examples of brands that clearly differentiate their product in terms of messaging relating to performance.

The best shopper marketing campaigns not only look beyond price promotion but also seek to build emotional brand loyalty with shoppers.

Brand loyalty: the role of shopper marketing - differentiating beyond price


Differentiating beyond price – build improved perception of

value compared to alternatives

Health messages on

packaging

Competitions

In-store sampling

Quality/ performance messaging on packaging e.g. Lasts longer,

cleans better, tastes better

Ethics association

e.g. Fairtrade

Free gifts

Sponsorships, charitable tie

ups


Shopper marketing initiatives beyond price promotions

• Brand repertoire here is presented using its extended definition including all of the brands that shoppers buy or consider buying when standing at the fixture. Essentially these are the brands from which shoppers would typically choose , assuming they are available.

• In shampoo the typical shoppers’ brand repertoire is 7.4. In part this relatively high number reflects the fact that many shoppers buy for a number of people in their family who use different brands (shoppers with families have a repertoire of 8.8 brands). But perhaps more importantly is the large number of brands that people only buy on promotion. Indeed of the 7.4 brands in a typical repertoire 3.7 are bought only when the brand is on promotion. A large average repertoire combined with a high proportion of brands only bought when on promotion suggests weakness in brand loyalty in the category.

• Young adults stand out as the least loyal shampoo shoppers with a repertoire of 10.3. We know from our wider research that 18-24 are more likely to switch brands than their older counterparts. They are also most likely to switch to a brand on promotion due to their relatively low earnings.

The typical shampoo buyer’s repertoire is relatively large for a non-food category at 7.4 brands implying a lack of brand loyalty among many shoppers. Young adults have a particularly large repertoire (10.3 brands), reflecting their higher propensity to switch to brands on promotion.

Shampoo brand repertoire by demographic



Number of shampoo brands a typical shopper has in their repertoire *, by demographic

* Of 22 leading brands mentioned (see appendix) Base = UK adult shoppers aged 18-75 who regularly buy shampoo

7.4 7.5 7.3

10.3

8.2

6.7 7.2

6.6 6.3

8.0

7.0 7.7

7.1

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Total Male Female 18-24 25-34 35-44 45-54 55-64 65+ AB C1 C2 DE

Nu

mb

er o

f b

ran

ds

Brand awareness is high among major shampoo brands, as would be expected given the high level of advertising in the category. Well established brands Head and Shoulders, Pantene and Dove head the awareness table.

Shampoo brand rankings - awareness


Brands Awareness penetration %

Head & Shoulders 97.5

Pantene 96.7

Dove 96.6

L'Oreal 96.6

VO5 96.1

Herbal Essences 96.0

Sunsilk 95.7

Timotei 95.2

Elvive 93.7

Wash and Go 93.5

Tresemme 92.8

Vosene 91.3

Alberto Balsam 90.5

John Frieda 86.6

Charles Worthington 70.3

Aussie 65.5

Batiste 45.1

Andrew Barton 42.3

Hbm 32.9


Brand awareness penetration

• Nearly one-third (29.6%) of shampoo shoppers agree that ‘recent special offers have encouraged me to consider/buy brand I didn’t used to’. This implies that price promotions can indeed be an effective means for shampoo manufacturers to encourage shoppers to consider new products, however caution should be exercised – just because people will try new products, we show on the next page that trying does not by any means guarantee loyalty.

• Demographic analysis shows considerable variation among the key segments. Females are notably more likely to consider/buy a brand they have never bought before on promotion than males. Also, young adults are significantly more likely than other age groups to be influenced by promotions – 40.7% agreeing. It is worth pointing out that we established earlier that 18-24 year olds have a significantly larger shampoo repertoire than average and buy more brands only when they are on promotion – we suggest that together these factors can be viewed as a proxy for lower levels of brand loyalty.

Sales promotions can act to encourage some shoppers to try brands they have never bought before. Young adults emerge as particularly influenced by promotions.

Promotion as a purchase driver


14.2 13.6

42.7

21.9

7.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Strongly disagree Slightly disgaree Neutral Slightly agree Strongly agree

% o

f sh

amp

oo

sh

op

per

s

Responses to the question: Please consider this statement for the following items – Recent special offers have encouraged me to consider/buy brands I didn’t use to Base = UK adult shoppers aged 18-75 who regularly buy shampoo, n=1,017

Role of special offers in encouraging consideration and purchase of shampoo brands not previously bought

29.6 24.7

33.7

40.7

30.6 30.0 31.4

24.1 21.5

31.7 29.1

33.9

23.4

28.6 32.3

25.9

31.4

0.05.0

10.015.020.025.030.035.040.045.0

% o

f sh

amp

oo

sh

op

per

s w

ho

ag

ree

or

stro

ngl

y ag

ree

Responses to the question: Please consider this statement for the following items – Recent special offers have encouraged me to consider/buy brands I didn’t use to Base = UK adult shoppers aged 18-75 who regularly buy shampoo Source: Evolution Insights

Role of special offers in encouraging consideration and purchase of shampoo brands, by demographic

• Following many years during which retailers built increasingly large stores designed to house a growing number of SKUs, the issue of range rationalisation has crept onto the agenda for manufacturers in recent times. Retailers – most notably Asda – have been cutting back ranges in certain categories with a view to provide shoppers with a better edited selection of products, while simultaneously delivering supply chain efficiencies. The argument essentially works along the principal of less is more. For obvious reasons many manufacturers, including those in the shampoo category, have been given reason for concern and are keen to gain a better understanding of the potential implications for themselves, shoppers and retailers alike.

• In this section we seek to go some way to understand better how range rationalisation affects brand loyalty and whether ultimately range reduction can influence a shoppers’ store choice. We do this by asking shoppers the question: if the store you normally use for your main food and grocery shop stopped selling the particular brand/item you normally buy, what would you do?

• The graph to the left shows to top line findings to this question specifically for regular shampoo buyers. While majority state that they would switch to an alternative brand without concern or reluctantly pick an alternative, almost one-third (29.2%) would shop at a different store for the item or actually switch to a different store for their entire shop. We suggest that these shoppers are some of the most brand loyal and the brands they buy should not be culled from retailers’ shelves without careful consideration.

Almost one-third of shampoo shoppers say they would shop at a different store if the store they normally used stopped selling the brand they normally buy.

Shopper reaction to range rationalisation


37.1

33.7

27.3

1.9

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

1. Switch to analternative brandwithout concern

2. Reluctantly pick analternative

3. Shop at a differentstore for the item

4. Switch to adifferent store for

your shoppingaltogether

% o

f sh

amp

oo

sh

op

per

s

Reaction to retailer’s withdrawal of shampoo brand normally bought

Responses to the question: If the store you normally use for your main food and grocery shop stopped selling the particular brand/item you normally buy, what would you do? Base = UK adult shoppers aged 18-75 who regularly buy shampoo, n=1,017


Shampoo brands included in this report are those major brands which were listed for sale on Tesco.com, Sainsburys.co.uk and Asda.com in May 2010. Category coverage is based on a combination of market size and degree of brand penetration.

Brand and category coverage


Alberto Balsam

Andrew Barton

Aussie

Batiste

Charles Worthington

Dove

Elvive

Hbm

Head & Shoulders

Herbal Essences

John Frieda

L'Oreal

Pantene

Sunsilk

Supermarket own brand

Timotei

Tresemme

VO5

Vosene

Wash and Go

Biscuits

Breakfast cereals

Chilled juice

Chocolate

Crisps*

Deodorants*

Dishwasher tablets

Ice cream

Instant coffee*

Lager*

Pet care

Shampoo*

Shower gel/ body wash*

Sliced bread*

Soft drinks

Spirits (alcohol)

Tea*

Washing powder*

Washing-up liquid*

Yogurt*

Shampoo brand list Category coverage

* Detailed brand level coverage

Research enquiries:

Liz Hague, Sales Manager

email: [email protected]

tel: +44 (0)1527 573 604

US toll-free: 1-866-545-5878

fax: +44 (0)1527 577423

mailto:liz.hague%40just-drinks.com%0D?subject=Research%20Enquiry

research enquiries · 2011-10-27 · research, we are ideally placed to offer your business...

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