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Sample extract shopper perceptions of brand equity



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  • 1. Shopper Perceptions of Brand Equity 2014 Sample Extract Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Tel: 0113 389 1038
  • 2. Disclaimer Please note No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Evolution Insights Ltd. The content of this report is based on information gathered in good faith from both primary and secondary sources and is believed to be correct at the time of publication. Evolution Insights can however provide no guarantee regarding the accuracy of this content and therefore accepts no liability whatsoever for any actions taken that subsequently prove incorrect. © Evolution Insights Ltd 2014
  • 3. About Evolution Insights 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 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. As a leading publisher of shopper research, we are ideally placed to offer your business actionable shopper insight. 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. Sign up for Shopper Trend Report, our free monthly newsletter offering analysis and commentary on topical shopper issues.
  • 4. Definitions Brand Equity Brand Loyalty Brand Repertoire Brand Primary Research Proxy Categories & Sizes Key Findings Shopper Perceptions – Categories Regularly on Offer Shoppers & Price Promotion Shopper Perceptions – Promotion Price & RRP Brand Equity – Measuring it Within this Report Benchmark Prices Deodorant Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity Bread Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Contents Butter & Spreads Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity Carbonated Drinks Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity Chocolate Bar Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity Crisps Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
  • 5. Instant Coffee Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity Premium Ice Cream Tubs Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity Tea Bags Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity Washing Powder/Liquid Brand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 Contents Summary of Findings Overall Summary of Findings Categories Regularly on Offer Special Offer Price Vs. Normal Selling Price Favourites Repertoire Full Repertoire Brand Equity Methodology 80 81 82 83 84 85 86 87
  • 6. Brand Equity Brand Awareness Perceived Quality Brand Association Brand Loyalty Brand Equity Brand equity is made up of the following components... Shopper recognition of the existence and availability of a company’s product (or service). This is explored throughout this research. The perceived quality strongly influences brand associations, it may not be representative of a products actual quality. The feelings, beliefs and knowledge shoppers have about brands. Shoppers’ commitment to a brand and making repeat purchases. This is explored throughout this research with reference to ‘favourites’.
  • 7. Brand Loyalty 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 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. 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.
  • 8. Brand Repertoire This research examines 10 proxy categories (SEE PAGE 13), looking at the different aspects of brand equity. By looking at brand repertoire we are able to identify both the conscious and sub conscious consideration set, as well as both brand loyalty and awareness. Not Aware Aware But Would Not Buy Would Buy If Favourite(s) Not Available Favourites Food and grocery shoppers are very rarely entirely loyal to a single brand. 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. The challenge for brands is get into shopper’s awareness set, then into the repertoire and finally to be the preferred choice. FULL REPERTOIRE
  • 9. Brand A brand is a way of differentiating a product or service from others in the market, by using a brand name, symbol, logo etc. Powerful brand names have gained positive brand equity by resonating in the shopper’s mind, being associated with good quality and credibility. Each year the top brands are listed by Interbrand (and others such as Forbes), incorporating both macro and micro environmental aspects; such as the wider market and financial data. This research focuses solely on shoppers, however it is interesting to see the best performing global brands: Interbrand’s Best Global Brands 2013
  • 10. Proxy Categories & Sizes Carbonated Drinks (2 Litre Bottle) Butters & Spreads (500g) Premium Ice Cream Tubs (500ml) e.g. Ben & Jerry’s Deodorant (250ml) Chocolate Bar (Single) Crisps (Individual bag) Washing Powder/ Liquid (Laundry, 875ml ) Tea Bags (Breakfast Tea, 80 Bags) Sliced White Bread (Medium Sliced Loaf) Instant coffee (Small Jar)
  • 11. Shopper Perceptions – Categories Regularly on Offer The percentage of shoppers that think the following categories are REGULARLY ON OFFER: 61% of shoppers think that carbonated drinks are regularly on offer 46% 43% 40% 42% 41% 40% 40% 39% 37% Washing Powder/ Liquid Antiperspirant Crisps Butter & Spreads Tea Bags Sliced White Bread Instant Coffee Premium Ice Cream Tubs Chocolate Bar
  • 12. Shoppers & Price Promotion The higher the perceived regularity of the offer, the higher the chance that shoppers will buy the product when on offer. Some shoppers will wait for the product to be on offer before they purchase it, and in some cases believe the special offer price to be the normal selling price.
  • 13. Brand Equity – How We Are Measuring It Within This Report This research determines brand equity by comparing how much shoppers think branded goods cost in comparison to own label goods (apart from chocolate single bars). Brand equity is a product of shopper perceptions and attitudes, thus giving added value to a product. The following example shows how this research quantifies brand equity using price perception. 68p15p EXAMPLE If shoppers think that own label baked beans cost 15p and Heinz baked beans cost 68p, then Heinz has a brand equity of 53p. Therefore to calculate the brand equity we have taken the difference of the perceived product costs, so the product is 22% of the cost, and the brand equity is 78% for Heinz Baked Beans against the own label version. Brand Equity = 53p
  • 14. £2.00 Benchmark Prices Benchmark Price For each of the 10 proxy categories in this research we have taken the most popular brand (by sales) and used the most common price as the benchmark. The purpose of setting the benchmark is so that we can evaluate shopper price perceptions in comparison to the leading brand. This is in order to gauge a good understanding of brand equity, using both the benchmark price, and the perceived own label price. £0.80 £3.25 £4.00 £0.60 £2.00 £4.00 £2.50 £1.15 £4.00
  • 15. Methodology
  • 16. Secondary and desk research Preliminary quantitative survey Main quantitative survey Insights • Evolution carries out a preliminary survey of around 100 shoppers, to test questions for the main survey. • Detailed secondary and desk research is conducted to define the topic area, macro drivers and trends, scope and examples of within the research topic. • Initial insights gained are used to help further design the main survey. • A main survey is completed by at least 1,000 UK adults who are the primary household shopper for food & grocery. • Comprehensive and detailed assessment of all the data received was then used to discover insights. • Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary databases, national statistics, news and industry resources. Methodology Source: Evolution Insights Evolution’s methodology
  • 17. Contact us Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Telephone: 0113 336 6035 e-mail: Web: Company No. 07006001 Country of Incorporation: United Kingdom