sample extract shopper perceptions of brand equity

www.evolution-insights.com

Shopper Perceptions of Brand Equity 2014

Sample Extract

Evolution Insights LtdProspect House

32 Sovereign StreetLeeds

LS1 4BJTel: 0113 389 1038

http://www.evolution-insights.com


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© Evolution Insights Ltd 2014


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DefinitionsBrand Equity Brand Loyalty Brand Repertoire Brand

Primary ResearchProxy 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 BrandEquity

7891011

1213141516171819

202122232425

262728293031

Contents

Butter & SpreadsBrand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity

Carbonated DrinksBrand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite BrandEquity

Chocolate BarBrand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite BrandEquity

CrispsBrand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite BrandEquity

323334353637

383940414243

444546474849

505152535455


Instant CoffeeBrand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite BrandEquity

Premium Ice Cream TubsBrand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity

Tea BagsBrand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity

Washing Powder/LiquidBrand Repertoire Brand Awareness Favourite Brands Price Perception by Favourite Brand Equity

565758596061

626364656667

686970717273

747576777879

Contents

Summary of FindingsOverall Summary of FindingsCategories Regularly on OfferSpecial Offer Price Vs. Normal Selling PriceFavourites RepertoireFull RepertoireBrand Equity

Methodology

80818283848586

87


Brand Equity

Brand Awareness

Perceived Quality

Brand Association

Brand Loyalty

BrandEquity

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’.


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.


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


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


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)


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


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.


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


£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


Methodology


Secondary and desk research

Preliminary quantitative survey

Main quantitative surveyInsights

• 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


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Evolution Insights Ltd

Prospect House32 Sovereign Street

LeedsLS1 4BJ

Telephone: 0113 336 6035

e-mail: [email protected]

Web: http://www.evolution-insights.com

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