Building Brands in an
Own-Label Environment
~A shopper perspective
Helen King, Director of Consumer Insights
Growing the success of Irish food & horticulture
AGENDA
1. Role of own-label in shopping
2. Shopper profile for own-label
3. Category dynamics
4. The balancing act
5. Implications for brand-building
The Study
 Paired depth-shopper safaris
 Interview
 Store visit
 Reflective interview
The Study
 Online study – 1,000 grocery shoppers
• ‘Belts & braces’ understanding
• Clarity on PL : Brand for 8 categories
 Visual assessment of shopper response
• Own-label shelf in-store
1
THE ROLE OF OWN-LABEL
IN SHOPPING
Volume share
Total Food
2010
2011
2012
2013
2014
Branded
47.3
45.9
44.0
42.5
39.7
Own-label
42.0
43.6
44.5
46.1
48.4
Source: Kantar
% BRAND
SHARE
% OL
SHARE
Crisps
87.9%
12.1%
Chocolate Confectionery
79.1%
20.9%
Baked Bean
70.8%
29.2%
Fresh Sausages
47.3%
52.7%
Mineral Water
43.2%
56.8%
Total Food
39.7%
48.4%
Total Cheese
39.9%
60.1%
Fresh Fish
26.2%
73.8%
Hens Eggs
24.1%
68.8%
Fresh Poultry
22.0%
78.0%
Fresh Meat
14.2%
72.8%
2014
I am buying more Retailer
Own-Brand nowadays
I am buying more Retailer
Own-Brand nowadays
72%
Own-Brand is here to stay!
Own-Brand:
Smart Option
75%
Own-Brand:
Good Deal
75%
“Just the same
thing with a
different label”
49%
Own-Brand can command loyalty
 Own-brand experiences when positive result in a
loyalty that exceeds that of traditional brands…
If you try it and its just as good but it
costs a lot less, why would you pay
extra for the big brand?
I don’t care about
brands really
I don’t care about
brands really
53%
“I don’t care about brands really”
% agreeing – by Age
70
66
67
57
60
52
46
50
40
30
30
20
10
0
18-24
25-34
35-44
45-54
Age Group
55-64
65+
2
SHOPPER PROFILE
FOR OWN-LABEL
For 8 in 10, Own-brand is in their basket
“I go for retailer
own-brands
where I can”
34%
Ownies
0
44%
Pragmatists
“I go for brands
even if they cost
more”
23%
Brandies
Ownies - prevalence by age group
50
45
40
35
30
25
20
15
10
5
0
37
37
37
32
32
25
18-24
25-34
35-44
Age Group
45-54
55-64
65+
Brandies - prevalence by age group
50
45
40
35
30
25
20
15
10
5
0
37
28
23
17
18
25-34
35-44
13
18-24
Age Group
45-54
55-64
65+
Those with kids more likely to buy Own-brand
“I go for retailer
own-brands
where I can”
Do you have
any children?
Ownies
Pragmatists
45%
43%
“I go for brands
even if they
cost more”
Brandies
36%
3
CATEGORY DYNAMICS
Acceptance of Own-Brand differs by category
Tea
Relishes/
Porridge Sauces
Sliced
Cooked
Ham
Gluten
Free
Bread
Cheddar
Cheese
Chilled
Ready
Meals
Milk
77
67
66
65
62
61
53
% Prefer
Brands
% Prefer
Own-Brands
38
21
31
31
34
30
37
43
60
Is there is enough Own-Brand choice?
Regular category shoppers
Milk
% Want more
Own-Brand
Just right
% Want less
Own-Brand
Cheese
Cooked
Ham
Tea
Relishes/ Chilled
Porridge Sauces Meals
29
29
37
22
19
18
15
18
74
67
66
63
59
54
50
7
10
12
16
16
17
16
14
Gluten
Free
23
Among buyers
Price is the main driver but not the only one…
I believe they are
just the same
Milk – 69%
(average %)
Cheese – 59%
Gluten Free – 49%
49%
Tea – 48%
Porridge – 47%
Cooked Ham – 44%
Relishes & Sauces – 40%
Chilled Ready Meals – 36%
When Own Label Wins : MILK
MILK
Favour
Own-Brand Milk
Why?
Affordability
80
Same as branded
69
Quality is great
60%
(Among milk buyers)
61
Taste even better
6
Better range
6
Why buy brands then? MILK
Favour
Branded milk
Why?
Quality great
73
Better taste than Own Brand
43
38%
(Among milk regulars)
Better range
14
Specific product
13
If I could get Own Brand I
would
11
Correspondence Map
2
Avonmore Super Milk
1
Offers a real advantage
over other brands
Is worth paying more for
I would recommend this
brand to friends and family
Is a really high quality brand
Dunnes Stores
Tesco
Tesco Finest
It is a smart choice
for shoppers
It's a brand for people like
me and my family
0
Supervalu
Avonmore
Supervalu
Signature Range
-1
-2
Premier
-3
-3
-2
-1
0
1
2
3
CHILLED READY MEALS
CHILLED READY MEALS
Favour
Own-Brand CRMs
Why?
Affordability
67
Quality is great
58
43%
Same as branded
(Among regular
CRM buyers)
36
Better quality
19
Better range
19
CHEDDAR CHEESE
CHEDDAR CHEESE
Favour
Own-Brand Cheddar
Why?
Affordability
82
Quality is great
69
37%
Same as branded
Taste even better
(Among Cheddar buyers)
Better range
59
20
13
I like my Kilmeaden – I don’t
think anything else is like it.
My favourite brand is not
from where it says it is
anymore
When Brands Win: TEA
Category Analysis: TEA
Favour
Branded traditional tea
Why?
Great quality
72
Tastes better than
Own Brand
77%
(Among tea regulars)
57
Often on promotion
17
Specific type of this
product that own…
14
Better range than Own
Brand
13
Category Analysis: TEA
Favour
Own-Brand Tea
21%
Why?
Affordability
74
Good quality
69
Same as branded
48
Tastes better
(Among tea regulars)
16
Recommended
7
Better range
7
That looks awful! Who would
buy that? You’d just have
79 bags to throw in the bin
after the first cup!
Ah, my lovely Barrys …
I’d never change.
PORRIDGE
PORRIDGE
Favour
Branded porridge
Why?
73
Great quality
57
Tastes better than Own Brand
67%
(Among porridge regulars)
Affordability
14
Specific type of this product that own
brand don’t have
13
Better range
12
Porridge: Equity battle
% Any private
brand endorsed
For Me (affinity)
Advantage over others
% Any retailer
brand endorsed
70
54
Really high quality
Worth more
57
Smart choice
56
Momentum (will buy more)
55
Brands
27
Brands
21
76
Who wins
17
Brands
15
Brands
41
22
Brands
Brands
Own label ones are like
sawdust
I have grown up with
Flahavan’s – I wouldn’t
change now and it’s very
good value anyway
RELISHES/SAUCES
RELISHES/SAUCES
Favour
Own-Brand Relish/Sauces
31%
Why?
Quality is great
67
Affordability
67
Same as branded
40
Taste even better
(Among relish/sauce buyers)
Better range
24
14
I have to buy Chef for my
daughter and Heinz for the
rest – they really are different
and nothing else will do
The relishes are all different
tastes, so I’d have to try that
(OL) as it could be nice. But it
is dearer than the brand!
Brands getting in on the act…
COOKED SLICED HAM
COOKED SLICED HAM
Favour
Own-Brand CSM
34%
Why?
Affordability
79
Great quality
61
Same as branded
Tastes better
(Among cooked
sliced meat buyers)
Better range
44
18
13
GLUTEN FREE
GLUTEN FREE
Favour
Branded GF
Why?
61
Great quality
38
Tastes better than Own Brand
Specific type of this product that
own brand don’t have
17
Better range
16
62%
(Among Gluten-free
regulars)
Own Brand often unavailable
14
4
THE BALANCING ACT
Perception of Stores’ levels of OB options….
28
20
% Too much
Own Brand
Right Mix
67
% Not enough
Own Brand
12
13
16
67
62
17
19
29
51
56
12
13
21
23
49
40
23
30
Stores have just the right
amount of Own-brand options
59%
Little appetite for more own brand
They should
have more
own brand
18%
They have the
right amount
of own brand
63%
13%
6%
Should have
more branded
options
Don’t know
Stores are pushing
Own-brands too much
Stores are pushing
Own-brands too much
39%
I would hate to see brands
disappearing due to Own-brands
74%
I question the quality of
retailers with too many
Own-brand options
38%
I have found myself
avoiding stores with too
many Own-brands
22%
Feedback on Shelf Simulation Test:
Evaluating shopper response to varying degrees of
own-brand vs regular brand
Limited Own-Brand
Feedback on Shelf Simulation Test:
Evaluating shopper response to varying degrees of
own-brand vs regular brand
Maximum Own-Brand
Feedback on Shelf Simulation Test:
Evaluating shopper response to varying degrees of
own-brand vs regular brand
Balanced mix
Porridge – prefer minimal Own Label
Right mix
of
OL/Brand
s
74% Perfect
range to
choose from
75%
Ready Meals – more Own Label
Right mix of
OL/Brands
26% Perfect
range to
choose from
25%
5
IMPLICATIONS FOR
BRAND-BUILDING
Brands win when:
 High product differentiation
 High rate of innovation
 Strong marketing support
Own-label wins when:
 High price sensitivity
 High purchase frequency
 Minimal differentiation / brand equity
 Low innovation for category
Opt-in
Quality
Added-value
Connection
Are you sure?
Brand =
Brand =
OWNERSHIP
TRUST
WHY
HOW
WHAT
If you have an important point
to make, don't try to
be subtle or clever. Use a pile
driver. Hit the point once.
Then come back and hit it
again. Then hit it a third time a tremendous whack.
WHY
HOW
WHAT
Honesty is the best policy?
Well then, by a process of
elimination, dishonesty must
be the second-best policy.
“I don’t care about brands really”
70
66
67
% agreeing – by Age
57
60
52
46
50
40
30
30
20
10
0
18-24
25-34
35-44
45-54
Age Group
55-64
65+