SymphonyIRI: Brand value, not price, key to driving loyalty
CHICAGO — SymphonyIRI Group on Thursday released a brand report highlighting what elements help drive brand selection and brand loyalty.
“While most retailers and manufacturers will instinctively pull the lever to compete on price, it’s important to understand that consistently leading with price has significant negative impacts on brand equity,” SymphonyIRI SVP marketing John McIndoe said. “Rather, CPG leaders must harness the power of value. The battle for the shopper’s loyalty should not be dictated by low price, and winning CPG marketers are clearly getting this message.”
Brand loyalty actually has increased across 45 of the top 100 CPG categories during the past three years, SymphonyIRI Group reported. For instance, brand loyalty is quite high, at 87.6%, in the sports drink category. During the past three years, loyalty increased 6.5 points despite economic conditions and conservative purchase patterns.
Categories with the greatest lift in brand loyalty (2011 v. 2008) include:
Sports drinks (87.6% brand-loyal consumers);
Cleaning tools/mops/brooms (72.4%);
Shelf-stable dinners (66.9%); and
SymphonyIRI is offering a free webinar, entitled “Brand Loyalty: How Understanding Brand Equity Impacts Brand Loyalty and Delivers to the Top and Bottom Line,” at noon EST on Sept. 15. To register for the webinar, click here.
To download a copy of the report, click here.