A longing for lables returns - Top Brands 2002 - brand loyalty survey results

DSN Retailing Today, Oct 28, 2002 by Debbie Howell

Though a minority, 21% of respondents fell into a group considered highly brand loyal, meaning in at least 10 out of 17 categories they were unwilling to switch brands. Forty percent had low brand loyalty, indicating they would switch in 13 or more categories, while 39% could be considered of average loyalty, unwilling to switch from their preferred brand in five to nine segments.

The brand-loyal group skewed toward females and larger households with children still living at home. Those least loyal generally had smaller households and children who were grown or older. The mean age of the highly brand-loyal group was 42 versus 52 for those with the least degree of loyalty.

"The bigger the burden of consumption you are managing, the more you lean on brands," Rosenbaum said, explaining that larger families apparently depend on brands more and view them as a tool for efficient buying. Focusing on specific brands simplifies and speeds up the shopping trip.

The highly brand-loyal group showed greatest attraction to private label, with 68% willing to buy store brands in 10 or more categories. Only 10% of the low loyalty group fit this definition, while 19% of the average loyalty group was amenable to private label in 10 or more product categories.

Despite the stability of most No. 1 brands as continued leaders, brand preference shifts continued within the rankings as some brands dropped off the radar and others appeared for the first time. The firmly entrenched top brands in general secured stronger footing, with 12 out of 16 comparable categories gaining increased loyalty compared with results from the 2001 survey.

The four brands that remained No. 1, but lost a few percentage points from last year's survey, included Del Monte in Groceries & Canned Goods, Sony in Consumer Electronics, Suave in Health & Beauty Aids and Hallmark in Greeting Cards. In each case, however, the pint drop was slight, and Hallmark, in fact, remains the brand with the highest overall preference, at 78%.

More notable were strong gains in consumer preference by the top brands, such as Hanes rising from 35% to 43% as the top choice in Intimate Apparel, Kodak from 59% to 67% in Camera and Hanes from 19% to 24% in Men's Apparel.

Among the full tier of brands, several gained significant boosts worth noting. Those that gained at least five percentage points from last year's survey included Hershey's and M&M/Mars in Candy, Frito Lay/Lay's in Snacks, Victoria's Secret in Women's Apparel, Dockers in Men's Apparel, Just My Size in Intimate Apparel, Fuji in Camera and Film, Barbie and Hot Wheels in Toys, and Martha Stewart in Domestics.

A few genuine newcomers appeared this year, such as Hanes' Just My Size in Women's Apparel, Memorex and Disney in Consumer Electronics, Fruit of the Loom in Children's Apparel, Olympus in Camera, EA/EA Sports and Macintosh in Entertainment Software, and Aquafina in Beverages.

More than 80 brands dropped off completely, not named by anyone as a brand preference. On the no-show list were Alfred Dunner in Women's Apparel, Miller beer in Beverages, Gateway in Consumer Electronics, Nikon in Camera, Old Navy in Men's Apparel, Little Tikes in Toys, Sears and JCPenney in Domestics, and Maxell in Entertainment Software, to name a few.