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STUDY CALLS FOR STORE, NATIONAL BRAND MIX

TAMPA, Fla. -- Store brands give supermarkets an overall sense of variety, although they don't meet the needs of all consumers, a shopper study revealed. There's room for both national brands and store brands, but creating the right mix requires category-by-category analysis of customers' perceptions and buying patterns.Those are some of the results of a consumer study commissioned by the Food Marketing

TAMPA, Fla. -- Store brands give supermarkets an overall sense of variety, although they don't meet the needs of all consumers, a shopper study revealed. There's room for both national brands and store brands, but creating the right mix requires category-by-category analysis of customers' perceptions and buying patterns.

Those are some of the results of a consumer study commissioned by the Food Marketing Institute in cooperation with Dr. Pepper/Seven Up Cos. The survey evaluated the attitudes of shoppers in six market areas toward store brands and national brands in five categories. Preliminary results were released here last week at MarkeTechnics, FMI's second annual convention on integrating state-of-the-art technology with merchandising and operations. The study, conducted by Marketing Spectrum, Atlanta, surveyed shoppers' views of store brands in carbonated soft drinks, cereal, plastic food-storage bags, toilet paper and condiments. It compared shoppers who usually buy store brands in at least one category with those who don't. The markets sampled were Buffalo, N.Y., Orlando, Fla., Indianapolis, Dallas, Portland, Ore., and Los Angeles/Orange County, Calif. Regarding the incidence of store-brand usage, 49% of all respondents reported using store brands from at least one of the five categories, according to the study. Thirteen percent reported usually buying one or more store brands in three or more of the five categories. The incidence of store-brand usage ranged from a high of 26% for carbonated soft drinks to a low of 14% for condiments. Store-brand buyers were found to purchase a greater variety of both store and national brands, and they compare and

switch among brands more often than the national brand buyers surveyed. They also are more price-conscious, and they compare prices within a given brand more frequently. The study concluded that store brands are a relatively weak tool for building store loyalty. Store-brand buyers are more likely to be lured to other stores by specials and promotions. Also, they aren't loyal to the store brand they "do" buy. Fewer than 5% of respondents named a store brand as the cereal or soft drink they buy most often. Plastic bags scored the highest with 11% The dynamics of store-brand shopping vary by category, according to the study. The demographic profile of the "typical" store-brand user differs for each category. This can affect the role store brands play within the category, as well as the variety of offerings necessary. For example, soft drinks demand a wide variety of size, packaging and flavor combinations to meet consumer needs, while plastic bags do not. Therefore, store brands must be managed on a category-by-category basis. According to the study, there is room for both national brands and store brands in most categories. Store brands fill a real need, but they do not meet all the needs of all consumers. The study concluded with these implications for both manufacturers and retailers:

· A solid understanding of the role of store brands in various product categories is necessary to best serve the needs of consumers.

· Opportunities exist for mutually beneficial research conducted jointly by manufacturers and retailers to understand these roles better.

· Manufacturers and retailers who form such strategic research partnerships will be those best positioned to serve their customers, whether their customers are traditional consumers or wholesalers and retailers. FMI will release a final report of the study, "Consumer Perspectives on National and Store Brands," at its annual convention in May. A 1993 FMI study on variety and duplication of products also showed that consumers view different product categories in different ways. "Projects such as these two studies can play a significant role in retailer/manufacturer strategic partnerships," said Clay Collier, FMI's director of research. "They are part of an ongoing process to learn more about consumers and improve customer service throughout the industry."