Building Brands in an Own-Label Environment ~A shopper perspective Consumer Insights Team, Bord Bia March 2015 Growing the success of Irish food & horticulture AGENDA Page 1. 2. 3. 4. 5. 6. 7. The Study 3 Role of own-label in shopping 8 Shopper profile for own-label 28 Category dynamics 41 The balancing act 130 Implications for brand-building 140 Appendix 144 1. THE STUDY 3 The Study Paired depth-shopper safaris Interview Store visit Reflective interview 4 The Study Online study – 1,000 grocery shoppers • ‘Belts & braces’ understanding • Clarity on OB : Brand for 8 categories Visual assessment of shopper response • Own-label shelf in-store 5 Analysis of Sample (Base All Adults 18+ Household Shoppers n=1034) Sex % Male 49 Age % 18-24 11 25-34 21 35-44 Female 51 Social Class % AB 14 Dublin 18 C1 28 Rest of Leinster 26 C2 21 Munster 28 DE 31 Conn./ Ulster 28 21 45-54 17 55-64 14 65+ Region % 16 F 6 6 The Categories The following eight categories were included in the study: Tea Chilled Ready Meals Milk Porridge Sauces & Relishes Cheddar Cheese Gluten Free Cooked Sliced Ham 7 2. THE ROLE OF OWN-LABEL IN SHOPPING 8 Volume share In volume share, we see Own Label share of Total Food has grown from 42.0% at the end of 2010, to 48.4% at the end of 2014 – a big increase over a four year period. 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 9 Branded vs Own Label Share: Category % BRAND SHARE % OL SHARE 87.9% 12.1% 79.1% 20.9% 70.8% 29.2% 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% By categories the level of own label share varies quite a bit; 2014 from those that are dominated Crisps by manufacturer brands, such as: crisps, chocolate Chocolate Confectionery confectionery, baked beans, sausages and mineral water; to Baked Bean those that are dominated by Fresh Sausages own label: cheese, meat and fish, and eggs. Source: Kantar 10 The evolution of Own Label In most categories Own Label has shaken it up for shoppers and has changed how manufacturer brands operate to compete. Own label brands are no longer viewed simply as low-cost alternatives to manufacturer brands; they’re increasingly high-quality products that fulfil consumer needs across a variety of price points. 11 Reaction to Retailers Own Brand Offerings (Base All Adults 18+ Household Shoppers n=1034) Q.9a Looking at this list of stores in which you shop regularly, can you please select the statement that best describes your view of their range of “own brand” products in general? I prefer to see regular brands Some retailers and own brand Some retailers have removed options side by have too many too many regular side on the shelf own brand brands to make so I can easily products on their space for own compare prices shelves brand options % % % Strongly agree 29 52 Agree somewhat Somewhat disagree Disagree strongly I have found As long as there myself avoiding I question the are a couple of stores because quality of stores regular brands they have too that have too alongside the many own brand many own brand own brand products in place options on their options I don't of regular brands shelves mind % % % 36 1 12 10 32 33 10 6 16 52 29 7 11 31 31 16 11 36 31 3 21 37 NET: Agree NET: Disagree Don’t know 88 8 3 44 48 8 44 43 14 22 73 5 38 53 9 81 14 5 13 Attitudes Among those who visit Stores (Regularly/Most Often) Q.10 Looking at this list of statements that other people have made about various grocery stores, can you please select the stores to which you feel each of these statements applies, if any? (Base All Adults 18+ regularly visiting stores) They tend to have all the brands I like in one place The own brand products they offer are great quality I would prefer if they had a better range of regular brands available I have noticed their ownbrand products a lot more recently Their ownThey lead the brand options way when it are great value comes to own for what you brand get products % % % % % % % 40 22 44 18 33 51 39 32 28 None of these think they focus too much on their own-brand products 35 14 36 19 14 39 18 60 24 22 27 60 39 19 41 23 39 22 34 14 Description Of Own Brand In Store (Base: All who visit shop regularly) Total % Way too much A little too much 5 Q.9a Looking at this list of stores in which you shop regularly, can you please select the statement that best describes your view of their range of “own brand” products in general? A Local Independent Supermarket % % % % % 5 6 10 6 3 17 14 Just the right mix 58 Not quite enough Not enough at all 12 4 % 2 23 22 10 14 16 65 67 62 51 56 52 10 2 16 13 8 4 8 16 1 3 5 5 % % 2 4 19 19 49 % Other Convenience Store Other % % 4 4 3 5 3 6 40 31 41 53 24 20 21 21 6 11 15 8 8 21 NET: Not Enough 16 NET: Too Much 21 Don’t know 5 Mean Score 12 20 3 3.11 17 13 3 2.97 19 16 4 2.96 19 27 3 3.13 12 28 4 3.19 13 29 7 3.18 23 21 6 2.92 30 23 7 2.91 31 8 30 2.57 42 8 9 2.42 30 9 8 2.72 15 Description Of Own Brand In Store - Brandies (Base: All who visit shop regularly) Q.9a Looking at this list of stores in which you shop regularly, can you please select the statement that best describes your view of their range of “own brand” products in general? Total % A Local Independent Supermarket % % % % Way too much A little too much 6 22 1 19 5 12 1 19 Just the right mix 54 61 70 68 Not quite enough 7 2 3 2 6 1 0 5 % % % 8 9 - 31 32 34 11 % - % Other Convenience Store % 38 17 - 5 54 45 40 45 8 3 7 3 4 3 7 4 Other % 32 0 20 - 7 29 37 12 6 23 Not enough at all - 4 52 36 13 5 NET: Not Enough NET: Too Much Don’t know Mean Score 28 9 9 30 5 4 3.37 16 7 7 3.15 20 5 7 3.17 28 11 7 3.27 39 10 6 3.36 41 8 11 3.45 34 11 10 3.21 38 20 10 3.20 5 18 48 2.63 7 36 20 2.48 4 41 3 2.56 16 Description Of Own Brand In Store - Ownies (Base: All who visit shop regularly) Q.9a Looking at this list of stores in which you shop regularly, can you please select the statement that best describes your view of their range of “own brand” products in general? Total % % % % % % % % 8 Way too much A little too much 3 10 4 8 Just the right mix 61 2 4 3 9 61 62 54 Not quite enough Not enough at all 20 4 17 6 29 27 2 6 A Local Independent Supermarket % % Other Other Convenience % Store % 1 15 3 13 55 69 66 51 7 8 6 7 8 20 23 15 10 30 - 5 2 7 12 5 42 40 - 7 - 31 39 - 6 27 28 22 28 NET: Not Enough 13 NET: Too Much 23 Don’t know 3 Mean Score 12 6 24 31 3 1 2.88 2.74 12 34 16 16 7 19 5 33 7 14 16 35 33 27 1 1 3 7 6 28 2.77 3.38 2.97 2.94 2.58 2.82 2.69 7 56 27 6 34 2.17 2.26 17 Breakdown of Attitudes to Retailers (Base All Adults 18+ Household Shoppers n=1034) Lead the way in Own Brand 47% 33% 34% Focus too much on Own Brand 21% 11% 12% Noticed a lot more recently 39% 42% 33% All among regular store shoppers 18 From the Qualitative Research…. Tesco believed to lead the way in OB availability across all ranges Started at cheaper/ poorer quality but had come a long way from this Availability in all areas - all foods, wine, vitamins etc. Finest was the first high end range - now matched (and in some cases bettered) by premium OB ranges elsewhere But some push back in standard ‘everyday’ ranges where own label dominates, e.g. pasta Good own-brand experiences when positive result in a loyalty that exceeds that of traditional brands… 19 Retailers must balance the ratio between own brand and branded options. Stores are pushing own brands too much 39% On average stores have just the right amount of own brand options 59% I would hate to see brands disappearing due to own brands 74% (Base All Adults 18+ Household Shoppers n=1034) 20 Getting the right mix (Base All Adults 18+ Household Shoppers n=1034) Disagree Agree % % “Some retailers have too many OB products” 48 “Some retailers removed too many brands for OB” 43 “I question the quality of retailers with too many OB options” “I have found myself avoiding stores… too many OB” 44 73 44 53 38 22 21 Perception of Stores level of Own Brand options… % % 20 Too much Own Brand Right Mix Not enough Own Brand 13 67 67 % % 28 29 % % 21 23 49 40 16 62 12 17 % 19 51 56 12 13 23 30 For most regular shoppers The Balance is Right 22 Brands which don’t offer something more will struggle If you try it and its just as good but it costs a lot less, why would you pay extra for the big brand? 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 (53%) 23 “I don’t care about brands really” The age profile of those agreeing that they do not care about brands is concerning younger shoppers have less brand allegiance. If the marketing adage of ‘get them young and they will stay with you’ is true, brands are in trouble. Two in three of all 18-24 year olds agree they don’t care about brands, while this figure more than halves for the 65 year olds and older. 24 Attitudes To Own Brand Products Q.14 Some stores offer products that carry the retailer’s name, or “own brand” products. For each of these can you please tell me the extent to which you agree or disagree. (Base All Adults 18+ Household Shoppers n=1034) When I buy own I love it when brand options own brand Most own brand I always feel that options are product's quality I am getting a available for the is just as good as good deal products I buy regular brands % % % Even though certain products I love special are available in a promotional offers for I feel good when I number of products and shop smartly; different brands, often choose and own brand I always tend to what's on offer options are a buy the same regardless of the smart option brand brand % % % Strongly agree 22 27 25 29 20 30 Agree somewhat 53 47 47 46 51 44 Somewhat disagree Disagree strongly 15 3 16 3 18 5 14 4 20 4 17 5 72 23 5 2.96 75 19 6 3.06 71 25 4 2.91 75 22 4 3.04 NET: Agree NET: Disagree Don’t know Mean Score 75 18 7 3.01 74 19 7 3.06 25 Attitudes To Own Brand Products (Base All Adults 18+ Household Shoppers n=1034) Q.14 Some stores offer products that carry the retailer’s name, or “own brand” products. For each of these can you please tell me the extent to which you agree or disagree. Own brand I would hate to I tend to buy options I've I would buy more I think stores are see brands stores “own I am buying more bought in the own brand goods pushing their disappearing brand” products own brand own brand past have lived if a better range because of own when I can, I options up to my brands taking don’t care about was available products too where I shop much nowadays expectations over brands really % % % % % % Strongly agree 27 28 20 38 17 10 Agree somewhat 44 52 Somewhat disagree Disagree strongly 17 6 14 4 48 19 4 30 36 36 37 14 6 31 11 12 NET: Agree NET: Disagree Don’t know Mean Score 72 23 5 3.00 79 17 4 3.06 68 23 9 2.96 39 48 12 2.43 74 19 6 3.14 53 43 4 2.62 26 3. SHOPPER PROFILE FOR OWN-LABEL 27 Own brand has come a long way Packaging cues mimic the original brand/ category ‘they are made in the same place ‘ more readily accepted Initial visual impressions cheap and nasty, inferior quality Own Brand now exceeding brand offer in some areas (eg ready meals) Adding a new and welcome dimension to grocery retail High end quality Improved range and quality ‘Yellow pack’ In addition, the economic climate and growing acceptability of Aldi/ Lidl offer (underpinned by Irish sourcing message) have all improved the perception of PL 28 Why has Own Brand grown? Historical stigma has lessened; now a smart choice for most. Choice has grown considerably with tiered quality offerings; now an exciting and innovative dimension to the grocery sector The quest for value for money remains; shoppers have learned from the downturn Own Brand Quality has improved and in some areas (e.g. Ready Meals and Relish/ condiments) has outflanked mainstream brands Word of Mouth fuelling growth “Its just the same thing with a different label” Own Brand has yet to catch-on in many grocery categories that are less commoditised with really strong traditional brands (e.g. porridge, tea) 29 Shopper Segmentation on attitudes to Own Brand Our study segmented shoppers into three groups: • ‘Ownies’ – those that will always choose own label when possible; • ‘Pragmatists’ - shoppers who have a balanced basket, featuring a mix of Own Brand and Manufacturer Brands; • ‘Brandies’ – shoppers that are strongly oriented towards manufacturer brands. 30 Branded vs Own Brand Products (Base All Adults 18+ Household Shoppers n=1034) Q.9 When you are grocery shopping, most types of food and drink have both “own brand” options and regular brand options. In general when this choice is available, where would you place yourself on this continuum? I tend to go for branded options, even if they cost more % 9 (+4) (+3) 4 (+2) 9 (+1) 14 9 (-1) 11 (-2) 11 (-3) 12 (-4) 8 I go for retailer's Own Brand options when they are available 14 Score distribution was divided into tertiles, with the upper tertile defined as Brandies, the middle as Pragmatists and the bottom tertile as Ownies. NET: Brandies 23% NET: Pragmatists 44% NET: Ownies 34% 31 For 8 in 10, own brand features in their basket (Base All Adults 18+ Household Shoppers n=1034) “I go for retailer own brands where I can” “I go for brands even if they cost more” 0 34% 44% Ownies 23% Pragmatists Brandies Ownies 50 45 40 35 30 25 20 15 10 5 0 37 37 Brandies 37 32 32 25 18-24 25-34 35-44 45-54 Age Group 55-64 65+ 50 45 40 35 30 25 20 15 10 5 0 37 13 18-24 17 18 25-34 35-44 23 45-54 28 55-64 65+ Age Group There is a higher emphasis on own brand especially for younger consumers. The challenge for brands now is to tackle this problem as it is likely to continue to grow as these consumers get older. 33 Those with kids are more likely to buy own brand (Base All Adults 18+ Household Shoppers n=1034) “I go for retailer own brands where I can” Ownies ANY KIDS? 45% 0 34% 44% Ownies Pragmatists 23% “I go for brands even if they cost more” Brandies Pragmatists Brandies 43% 36% 34 72% Buying more Retailer Own-Brand nowadays 35 Own Brand Is Here To Stay! Own Brand: A Smart Option Own Brand: A Good Deal Own Brand: Buy More Nowadays 75% 75% 72% Agree Agree Agree 36 ... As a consequence brands are under pressure I don’t care about brands really 53% Agree 70 66 67 57 60 52 46 50 40 Who? 30 30 20 10 0 18-24 25-34 35-44 45-54 55-64 65+ Age Group 37 Own Brand can command loyalty Own-brand experiences when positive result in a loyalty that exceeds that of traditional brands…. • Milk Own Brand loyalty the highest in the market with one third of buyers saying it the ONLY option they would choose • Qualitatively the argument is simple…. “If you try it and its just as good but it costs a lot less, why would you pay extra for the big brand?” 38 4. CATEGORY DYNAMICS 39 The Categories The following eight categories were included in the study: Tea Chilled Ready Meals Milk Porridge Sauces & Relishes Cheddar Cheese Gluten Free Cooked Sliced Ham 40 Acceptance of Own Brand Differs by Category (Base: All buying product regularly) Tea % Sliced Relishes/ Cooked Ham Porridge Sauces % % % Gluten Free Bread % Cheddar Cheese % 62 61 Chilled Ready Meals % Milk % 77 67 66 65 53 % Prefer Brands % Prefer Retailer Own Brands 38 21 31 31 34 30 37 43 60 Excludes Don’t Know so some do not add to 100% 41 Statement that best describes preferred choice Q.11 Looking at this specific list of products which you buy regularly, can you please select the statement that best describes your preferred choice when you are buying these products? (Base: All buying product regularly) Total % I only ever buy a regular brands 27 Milk % 18 Chilled Cheddar Relishes/ Ready Meals Cheese Sauces % % % 22 13 27 PreCooked Porridge Sliced Oats/Hot Gluten Ham Cereal Free % % % 22 24 43 20 I prefer a brands, but I sometimes buy a stores own brand 42 39 30 I only ever buy stores own brand 8 NET: Top Two Box NET: Bottom Two Box Don't know 59 38 2 25 31 15 38 25 45 I usually buy stores own brand 52 40 39 32 Tea % 25 36 29 24 23 17 6 7 7 5 7 7 4 38 61 66 53 65 67 62 77 60 2 37 2 31 3 43 4 34 1 31 2 30 8 21 2 42 Do regular category shoppers feel there is enough own brand choice? (Base: All buying product regularly) Milk % Want more Own Brand Just Right Want less Own Brand Cheese % 19 18 67 66 10 12 14 74 7 Cooked Ham % Tea % 15 Relishes/ Chilled Porridge Sauces Meals % % % 18 Gluten Free % 29 29 37 22 63 59 54 50 16 16 17 16 23 Sense of equilibrium in the current mix 43 Why Choose Own Brand (Base: All buying product regularly) Q.12 For each of these products for which you prefer to choose retailers “Own Brand” options, why is this? You may choose as many or as few reasons as you like. Chilled Cheddar Relishes/ ready cheese sauces meals % % % Prepacked cooked Porridge sliced oats / hot Gluten Traditional ham cereals free tea % % % % TOTAL % Milk % 76 80 82 67 67 79 70 57 74 55 69 59 40 36 44 47 49 48 63 61 69 67 58 61 63 59 69 6 2 7 6 7 8 14 9 7 15 6 20 24 19 18 13 20 16 5 3 4 5 9 6 9 15 5 11 6 13 14 19 13 21 13 7 3 1 3 6 7 4 7 10 3 To get extra store points/loyalty rewards 5 5 4 7 9 7 7 6 3 Other 1 1 0 1 - 2 - 2 3 Don't know 1 1 - 2 1 2 - 3 1 They are much more affordable than regular brands I think it's exactly the same as the branded alternative The quality is really good They were recommended to me by friends or family I actually think it tastes better than the main brands They have a specific type of this product that regular brands don't They have a better range of options available The brand I like is often not available 45 Why Choose Branded (Base: All buying product regularly) They are much more affordable than retailer's own brands The quality is really good They were recommended to me by friends or family I think it tastes better than the retailer's own brand They have a specific type of this product that retailer's own brands They have a better range of options available than retailer's own brand The retailer's own brand alternative is often not available" They are often on promotion, so I buy the one on promotion If I could get a own brand version I would choose that" Other reason Don't know Q.13 And for each of these products for which you prefer to choose Regular Brand options, why is this? You may choose as many or as few reasons as you like. Cheddar Relishes/ cheese sauces % % Chilled ready meals % Prepacked cooked Porridge sliced oats / hot Gluten ham cereals free % % % Tradition al tea % TOTAL % Milk % 15 72 15 73 18 75 14 72 14 63 17 72 14 73 14 61 11 72 10 7 8 15 11 7 10 21 9 51 43 55 54 32 55 57 38 57 15 13 15 19 17 12 13 17 14 16 14 20 18 19 19 12 16 13 7 6 5 8 12 4 7 16 5 20 9 26 22 26 31 10 14 17 9 3 1 11 6 2 8 4 1 9 1 1 14 3 2 9 3 1 6 5 2 12 2 2 8 4 2 46 1. FRESH MILK 47 Milk At A Glance (Base: All Regular Milk Buyers; n=963 Top 3 Choice Drivers Favour Brands Based on claimed reasons for choosing among buyers 39 61 Prefer Brands Favour own label (+24% vs average) Brands Good quality Prefer Own Label Tastes better Range Male 51 Male 48 Female 49 Female 52 Own Label 81 43 80 Affordable Just the same 69 Good quality 14 Sex 61 Preference among shoppers for an even mix of own label and regular brands on-shelf Top Equity Gaps 35 55+ 29 35-54 35 35-54 39 18-34 31 18-34 33 55+ Age Own brands match or beat regular brands Smart choice +17 For people like me = Regular brands beat own brands Yes 41 Yes 45 No 55 Kids No 59 Really high quality Advantage (re benefit) Worth paying more fore +26 +12 +23 • Milk the most own brand oriented category tested. • 74% believe the current mix of branded vs. OB is just right. • Considered more commoditised “milk is milk”. • Brands need to fight back with innovation and added value. 48 Category Analysis: MILK Why? Favour Own Brand MILK Affordability 80 69 Same as branded 60% (Among Milk Buyers) Quality is great 61 Taste even better 6 Better range 6 49 Among buyers Price is the main driver but not the only one… I believe they are just the same (Average) Milk – 69% Cheese – 59% Gluten Free – 49% 49% 72% Tea – 48% Porridge – 47% Cooked Ham – 44% Believe “Most” Own Brand quality is as good as brands Relishes & Sauces – 40% Chilled Ready Meals – 36% 50 Why buy brands then? MILK Why? Favour Branded MILK Quality great 73 Better taste than Own Brand 38% (Among Milk Regulars) 43 Better range 14 Specific product 13 If I could get Own Brand I would 11 Among those milk buyers who choose branded options the reason is a perceived Quality and Taste advantage….. For the one in eight, a specific product or range from a brand are better than Own Brand. This highlights a need for innovation in the Branded sector. 51 Brand/Product Statements - Milk (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy NET: NET: Avonmore Supervalu ANY ANY Super Signature Tesco Dunnes TOTAL Brand PL Avonmore Milk Premier Supervalu Range Tesco Finest Store It's a brand for people like me and my family 20 38 38 26 20 14 20 8 30 19 22 Offers a real advantage over other brands 12 35 23 15 21 5 7 5 15 9 12 Is a really high quality brand 21 52 26 36 30 20 15 12 17 10 13 Is worth paying more for 11 37 14 17 22 7 8 4 8 4 5 It's not a brand I would consider 18 30 41 11 17 20 15 22 19 25 24 I would recommend this brand to friends and family 18 42 36 27 22 12 17 10 24 15 17 It is a smart choice for shoppers 19 26 49 16 13 9 30 10 39 18 29 I will buy this more in the future 12 29 27 17 13 7 13 4 17 10 16 It's the best brand out there 8 34 11 16 12 5 4 2 5 5 4 None of these 37 55 57 33 33 46 36 51 30 34 34 52 “Share of” Brand/Product Statements - Milk (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy It's a brand Offers a real Is a really for people advantage high quality like me and over other brand my family brands % % % Brand 51 49 PL I would recommend It's not a It is a smart Is worth brand I would this brand to choice for friends and paying consider shoppers family more for % % % % 73 75 66 57 41 52 55 68 45 32 27 It's the best brand out there % 34 43 59 I will buy this more in the future % 48 25 53 Finding the right balance – Milk OB Right Mix of Level OL/Brands Perfect range from which to choose Would put me off shopping there Low 32% 31% 25% Med 34% 38% 10% High 24% 20% 15% (51% None of these) On balance, shoppers are comfortable with level of own label currently available. 54 Milk: Equity Battle Any Private Brand Endorsed % For Me (affinity) 38 Advantage over others 37 Brands Brands 26 Brands 14 26 29 Who Wins? = 23 52 Worth more Momentum (will buy more) 38 35 Really high quality Smart choice Any Retailer Brand Endorsed % 49 27 O.B. = 55 Milk Correspondence Map Here we see a correspondence map whereby in shoppers’ minds SuperMilk sits way ahead of all competitors across all attributes, and is the only one that ‘Offers a real advantage over other brands’; is worth paying more for’ and ‘I would recommend this brand to family and friends’. 2 Avonmore Super Milk 1 Dunnes Stores Tesco Tesco Finest Offers a real advantage over other brands Is worth paying more for I would recommend this brand to friends and family It is a smart choice for shoppers It's a brand for people like me and my family 0 Is a really high quality brand Supervalu Avonmore Supervalu Signature Range -1 -2 Premier -3 -3 -2 -1 0 1 2 3 56 2. CHILLED READY MEALS 57 Ready Meals At A Glance (Base: All Regular Ready Meals Buyers; n=208) Top 3 Choice Drivers Based on claimed reasons for choosing among buyers Favour Brands 55 Prefer Brands Male 59 45 Favour own label +7% vs average Prefer Own Label Male 61 Sex Female 55+ Age 35-54 18-34 Yes 41 16 47 37 60 Female 55+ 35-54 18-34 Yes 39 40 No Good quality Tastes better Often on promotion 63 32 26 Own Label 67 Affordable 58 Good Quality Exactly the same 36 Own Brand are more endorsed than Brand 40 Smart choice +26 for Own Brand 38 50 50 Preference among shoppers for more own brand than regular brands on-shelf Top Equity Gaps 22 Kids No Brands Regular brands just beat own brands Momentum Affinity +13 +8 • 50% believe the current mix of branded v OB is just right. • 29% want more own brand label chilled ready meals • Less brand loyalty evident as shoppers are open to trying new variants • Own brand really strong in this category and buyers want more own brand 58 Category Analysis: CHILLED READY MEALS Favour Own Brand CHILLED READY MEALS Why? Affordability 67 Quality is great 43% (Among Chilled Ready Meal Buyers Regularly) 58 Same as branded 36 Better quality 19 Better range 19 59 Category Analysis: CHILLED READY MEALS Favour Branded CHILLED READY MEALS Why? 63 Quality great 32 Tastes better than Own Brand 53% (Among Chilled Ready Meals Regulars) 26 Often on promotion Better range 19 Specific type of this product that own brand don’t have 17 If I could get Own Brand I would 14 60 From the Qualitative Research…. Strong own label offering here – in many stores the OB offer is leading the field in quality and range (especially ethnic and new Gastro tastes) High end OB mimicking M&S quality and packaging: • Dine in Deals offer real value that is relevant and contemporary….and is unmatched by a branded offer. Performance of OB here has helped to lift the profile and perceptions of these high end ranges across the store. I love that SuperValu deal of dinner, veg and dessert…it very tasty and really good value. It’s better value to buy it all together! 61 Brand/Product Statements - Chilled Ready Meals (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy Carrol Superval NET: ls u Tesco Bran NET: Cuisin Bombay Cully Superval Signature Fines Dunne TOTAL d PL e Pantry & Sully u Range Tesco t s Store It's a brand for people like me and my family 26 46 54 19 23 29 22 28 31 32 29 Offers a real advantage over other brands 15 34 36 13 13 18 12 15 20 23 11 Is a really high quality brand 21 48 41 24 20 30 17 21 14 25 16 Is worth paying more for 15 44 30 13 17 24 12 12 11 18 10 It's not a brand I would consider 18 42 32 18 24 18 14 18 13 15 18 I would recommend this brand to friends and family 27 50 52 24 23 30 21 27 31 34 24 It is a smart choice for shoppers 18 31 47 12 11 19 13 23 28 30 20 I will buy this more in the future 19 34 47 13 13 18 18 24 24 24 22 It's the best brand out there 8 28 21 7 8 13 4 7 9 9 5 None of these 28 47 42 33 33 29 31 27 25 16 25 62 Brand/Product Statements – Chilled Ready Meals (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy It's a brand Offers a real Is a really for people high advantage like me quality over other and my brand brands family % % % 46 48 57 Is worth paying more for % 59 I would It's not a recommend It is a this brand to brand I smart friends and choice for would family consider shoppers % % % 56 48 38 I will buy this more It's the best in the brand out future there % % 40 58 Brand 54 PL 52 43 41 44 52 62 60 42 63 Finding the right balance – Chilled Ready Meals OB Right Mix of Level OL/Brands Perfect range from which to choose Would put me off shopping there Low 26% 25% 23% Med 26% 23% 15% High 37% 42% 16% (46% None of these) Own label is credible and has driven greater variety of options available. 64 Ready Meals: Equity Battle Any Private Brand Endorsed % Any Retailer Brand Endorsed % 46 54 For Me (affinity) Advantage over others 34 Really high quality Worth more Smart choice Momentum (will buy more) 44 31 34 O.B. = 36 48 Who Wins 41 Brands Brands 30 47 O.B. 47 O.B. 65 3. TRADITIONAL TEA 66 Traditional Tea At A Glance (Base: All Regular Traditional Tea Buyers; n=606) Favour Brands 21 Favour own label -16% vs average LOWEST! 79 Prefer Brands Top 3 Choice Drivers Based on claimed reasons for choosing among buyers Brands Good quality Prefer Own Label Male 50 Male Female 50 Female 41 72 Tastes better Often on Promotion Own Label 57 17 74 Affordable Good quality 69 Just the same 48 Sex 59 Top Equity Gaps Age 18 Own brands match or beat regular brands 48 NONE! 55+ 35 55+ 35-54 38 35-54 18-34 28 18-34 36 Yes 57 No 43 Yes 44 Regular brands beat own brands Kids No 56 Preference among 51% of shoppers for branded options to heavily outweigh own label on-shelf Really high quality Advantage (re benefit) Worth paying more for Best available +52 +44 +43 +40 • Least amenable category to Private Label. • Younger profile indicates that this may not be the case forever. • 63% believe the current mix of branded v OB is just right • Tea has really strong local and traditional brands that are staving off own-label alternatives. Emotional brand connections are strong. • Continued support needed to maintain brand salience and relevance. 67 Category Analysis: TEA Favour Own Brand TEA Why? Affordability 74 Good quality 21% 69 Same as branded 48 Tastes better (Among Tea Regulars) 16 Recommended 7 Better range 7 68 From the Qualitative Research…. Strong resistance to OB offering here Tea brand choice is seen to define families in Ireland - emotional connection and habit selections This is strongly supported by brand activity (advertising in particular) Belief in brand superiority of taste (or familiarity) limits any interest in trial of alternatives aw – my lovely Barry’s I’d never change 69 From the Qualitative Research…. OB presentation of offer on shelf does little to match the familiar appeal of brand Brands dominate the on-shelf impact - little reason for shopper to look outside their own brands that looks awful – who would buy that? You’d have 79 bags to throw in the bin after the first cup! 70 Category Analysis: TEA Favour Branded TRADITIONAL TEA Why? 72 Great quality 57 Tastes better than Own Brand 77% (Among Tea Regulars) Often on promotion 17 Specific type of this product that own brand don’t have 14 Better range than Own Brand 13 71 Brand/Product Statements - Traditional Tea (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy TOTAL Supervalu NET: NET: Robt Signature Tesco Dunnes Brand PL Barrys Roberts Bewleys Supervalu Range Tesco Finest Store It's a brand for people like me and my family 20 59 26 49 11 23 11 14 8 19 11 Offers a real advantage over other brands 13 49 15 36 9 17 7 8 4 5 6 Is a really high quality brand 21 66 14 50 19 39 2 9 3 10 6 Is worth paying more for 13 54 11 39 8 20 2 7 2 3 4 It's not a brand I would consider 24 33 52 7 24 14 38 32 37 25 33 I would recommend this brand to friends and family 16 55 17 45 10 21 7 9 6 11 3 It is a smart choice for shoppers 17 40 30 31 8 19 13 13 14 19 14 I will buy this more in the future 12 41 22 31 5 13 10 8 8 11 6 It's the best brand out there 9 47 7 33 3 11 1 3 1 4 2 None of these 35 50 55 17 42 30 35 42 43 40 40 72 Brand/Product Statements – Traditional Tea (Black or Breakfast Tea) (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy It's a Is a Offers a brand for really real people advantage high like me over other quality and my brand brands family % % % Is worth paying more for % I would recommen It is a It's not a I will buy d this smart brand I brand to this more It's the choice best would friends and in the for brand out consider future family shoppers there % % % % % 31 58 Brand 69 77 86 65 78 85 87 69 PL 42 31 23 14 15 22 35 13 73 Finding the right balance – Traditional Tea OB Right Mix of Level OL/Brands Perfect range from which to choose Would put me off shopping there Low 51% 59% 16% Med 22% 20% 12% High 18% 14% 28% (34% None of these) Tea is dominated by strong local brands. 74 4. GLUTEN FREE 75 “Free-From” At A Glance (Base: All Regular Free From Buyers; n=321) Favour Brands 32 Favour own label -5% vs average 68 Prefer Brands Male 45 55+ Age 35-54 18-34 55 Based on claimed reasons for choosing among buyers Brands Good quality Prefer Own Label Male 48 Female 52 Sex Female Top 3 Choice Drivers 22 55+ 25 45 35-54 42 33 18-34 34 72 Tastes better Have specific Type Own Label 57 17 Good quality 59 Affordable 57 Just the same 49 Top Equity Gaps Own brands match or beat regular brands Smart Choice = ….but brand advantage weaker than in other categories (see below) Regular brands beat own brands Yes 51 Yes 48 No 49 No 52 Kids Really high quality Advantage (re benefit) Worth paying more for Best available +23 +19 +26 +25 Preference among 48% of buyers for branded options to heavily outweigh own label on-shelf • Interestingly affordability is not the number one driver: quality not questioned • Does not have the same demographic profile as other OB buyers: not younger, with kids • Only 37% believe the current mix of branded v OB is just right. In truth they want more of both! • In this category, while brands win, it is much more about choice and range to accommodate dietary needs. Brand building needs to continue apace to drive more loyalty. 76 Category Analysis: GLUTEN FREE Favour Own Brand GLUTEN FREE 30% Why? Great quality 59 Affordability 57 Same as branded Better tastes (Among Gluten Free Regulars) 49 20 Specific products 15 Better range 13 77 Category Analysis: GLUTEN FREE Favour Premium Branded GLUTEN FREE Why? 61 Great quality 38 Tastes better than Own Brand 62% (Among Gluten Free Regulars) Specific type of this product that own brand don’t have 17 Better range 16 Own Brand often unavailable 14 78 From the Qualitative Research…. OB welcomed here – can offer extra value in a category associated with expense ( speciality products) OB is given some credit for growing this category – ‘normalising’ the range and making it more mainstream. Offers reassurance of constant supply in-store Shoppers believe the branded offer is fragmented: brand tend to specialise in one area only or offer a very small range Packaging is sometimes challenging in information and product language: not very accessible or helpful. Brands that cut through this and help shoppers are favoured OB responded here by harmonising packaging cues I’d like more of the store offer here - it would bring it down in price! 79 Brand/Product Statements - Gluten Free or other Free From" Breads" (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy Superval NET: u Tesco Bran NET: BFree Pure Superval Signatur Fines Dunne TOTAL d PL Kelkin Foods Food u e Range Tesco t s Store It's a brand for people like me and my family 25 58 41 40 22 22 17 20 21 25 23 Offers a real advantage over other brands 17 52 33 33 17 13 8 16 17 13 10 Is a really high quality brand 21 58 35 43 21 16 12 20 14 17 14 Is worth paying more for 15 50 24 35 13 14 9 11 11 9 5 It's not a brand I would consider 15 31 39 12 12 15 21 15 16 16 18 I would recommend this brand to friends and family 22 58 38 40 20 18 18 23 17 17 19 It is a smart choice for shoppers 21 48 45 29 16 15 19 19 28 23 20 I will buy this more in the future 20 51 35 34 18 16 13 23 16 19 14 It's the best brand out there 10 43 18 29 7 7 3 9 7 7 5 None of these 34 55 50 21 40 44 32 36 30 34 35 80 Brand/Product Statements – Gluten Free or other Free From "Breads” (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy It's a brand Offers a real Is a really for people high advantage like me quality over other and my brand brands family % % % Is worth paying more for % I would It's not a recommend It is a brand I this brand to smart friends and choice for would family consider shoppers % % % 43 57 62 63 Brand 58 PL 38 37 57 69 70 57 43 48 I will buy this more It's the best in the brand out future there % % 42 31 52 43 30 81 Finding the right balance – Gluten Free OB Right Mix of Level OL/Brands Perfect range from which to choose Would put me off shopping there Low 48% 64% 19% Med 22% 16% 12% High 20% 12% 32% (37% None of these) Brands are preferred. Shoppers want more choice overall—range and variety. 82 5. PORRIDGE OATS 83 Porridge Oats At A Glance (Base: All Regular Porridge Buyers; n=261) Favour Brands 31 Favour own label -6% vs average 69 Prefer Brands Top 3 Choice Drivers Based on claimed reasons for choosing among buyers Brands Good quality Prefer Own Label Male 47 Male Female 53 Female 43 73 Tastes better Affordable Own Label 57 70 Affordable Good quality 63 Just the same 14 47 Sex 57 Top Equity Gaps 9 55+ 35 55+ Own brands match or beat regular brands 44 Age 35-54 35 35-54 18-34 30 18-34 None Brands Dominate 47 Regular brands beat own brands Yes 51 Yes 55 No 49 No 45 Kids Really high quality Advantage (re benefit) Worth paying more for Affinity (For people like me) +59 +33 +42 +43 Preference among 74% of buyers for branded options to heavily outweigh own label on-shelf: highest of any category • Own label porridge has not caught on to the same extent as other categories, but the growth in Own Label has been driven by younger buyers: need to ensure brand relevance with younger consumers and lifestyles. • There are powerhouse ingrained local brands with strong emotional connections and good innovation levels. 84 Category Analysis: PORRIDGE Favour Own Brand PORRIDGE Why? Affordability 70 Great quality 31% Same as branded Better range (Among Porridge Regulars) 63 Recommended 47 21 14 85 Category Analysis: PORRIDGE Favour Premium 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 86 From the Qualitative Research…. Emotional connection to the ‘start of the day’ remains strong….breakfast cereal is an area of notorious resistance Even though the product may seem ‘basic’ there is a reluctance to try anything else “own label ones are like sawdust’ Branded offers good value – an inexpensive item and lasts a long time so the motivation to try OB is less evident. it doesn't cost much and it’s the beginning of your day I can’t see any reason to change from Flahavans 87 From the Qualitative Research…. Product variants (flavour and delivery) and packaging variation keep shoppers interested and engaged in brand I have grown up with Flavahan's – I wouldn't change now and its very good value anyway Flavahan's is my brand –it looks lovely too 88 Brand/Product Statements - Standard Porridge Oats/ Hot Cereal (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy TOTAL Supervalu NET: NET: Signature Tesco Dunnes Brand PL Flahavans Odlums Special K Supervalu Range Tesco Finest Store It's a brand for people like me and my family 25 70 27 57 34 14 12 15 16 18 16 Offers a real advantage over other brands 16 54 21 39 24 8 4 10 10 11 7 Is a really high quality brand 24 76 17 60 40 19 10 7 9 10 10 Is worth paying more for 16 57 15 45 22 10 4 5 9 9 3 It's not a brand I would consider 22 43 47 6 14 34 23 22 26 25 31 I would recommend this brand to friends and family 27 72 28 60 34 20 14 9 22 15 15 It is a smart choice for shoppers 25 56 41 45 27 15 23 16 26 18 26 I will buy this more in the future 17 55 22 39 25 9 12 5 14 10 11 It's the best brand out there 11 56 8 40 9 7 3 2 3 3 3 None of these 26 36 48 11 21 28 34 35 33 37 26 89 Brand/Product Statements - Standard Porridge Oats/ Hot Cereals (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy It's a brand Offers a real Is a really for people advantage high quality like me and over other brand my family brands % % % I would recommend It's not a this brand It is a smart Is worth brand I would to friends choice for paying consider shoppers and family more for % % % % I will buy this more in the future % It's the best brand out there % 42 57 Brand 70 74 81 70 72 81 88 58 PL 43 30 26 19 19 28 30 12 90 Finding the right balance - Porridge OB Right Mix of Level OB/Brands (Range of stores used @ random) Perfect range from which to choose Would put me off shopping there Low 74% 75% 14% Med 14% 15% 9% High 8% 8% 56% (2% None of these) Brands perform strongly and when brand choice is unavailable it is likely to put shoppers off. 91 Porridge: Equity Battle Any Private Brand Endorsed % Any Retailer Brand Endorsed % For Me (affinity) Advantage over others 70 54 Really high quality 57 Smart choice 56 Momentum (will buy more) 55 Brands Brands 21 76 Worth more 27 Who Wins 17 Brands 15 Brands 41 22 Brands Brands 92 Porridge – prefer minimal Own Label Right mix of OL/Brands 74% Perfect range to choose from 75% 93 6. COOKED SLICED HAM 94 Sliced Pre-packed Ham At A Glance (Base: All Regular Ham Buyers; n=789) Favour Brands 34 Favour own label -3% vs average Top 3 Choice Drivers Based on claimed reasons for choosing among buyers Brands 33% Own Label 66 Good quality Prefer Brands Prefer Own Label Male 50 Male 51 Female 50 Female 49 72 Tastes better Often on Promotion 55 79 Affordable Good quality 61 Just the same 31 Sex 44 Top Equity Gaps Age 19 Own brands match or beat regular brands 35-54 49 Smart Choice 18-34 32 55+ 32 55+ 35-54 39 18-34 30 Near equal Brands Dominate Regular brands beat own brands Yes 49 Yes No 51 No 59 Kids 41 Best Brands Really high quality Advantage (re benefit) Worth paying more for Affinity (For people like me) +45 +55 +32 +47 +43 35% Shoppers want to see a good balance between Own Label and Branded options in Cooked Sliced Ham • Own Label has made inroads in prepacked cooked sliced ham among the important high volume family lifestages in particular. • 2 in 3 believe that there is now the right balance between Own Brand and Regular Brand options. • Packaging and innovation are key to maintaining brand value at one end of the market, but there is a value market in ham that means price promotion will continue to be a necessary evil . • Olde World cues and traditional brands have strongest equity. In fact brands in this sector are really strong but the allure of Own Brand pricing is significant 95 Category Analysis: COOKED SLICE HAM Favour Own Brand COOKED SLICE MEAT Why? Affordability 79 Great quality 34% Same as branded Tastes better (Among Cooked Sliced Meat Regulars) 61 Better range 44 18 13 96 Category Analysis: COOKED SLICE HAM Favour Premium Branded COOKED SLICED HAM Why? 72 Quality great 55 Tastes better than Own Brand 65% (Among Cooked Ham Regulars) 31 Often on promotion Better range 19 More affordable 17 Specific type of this product that own brand don’t have 12 97 From the Qualitative Research…. Great variation in quality in this sector –some ability to judge visually gives the shopper control Traditionally OB was seen as a lower quality but now delivering strongly at higher end Added flavour variants (Cajun etc.) have been copied by some OL 98 From the Qualitative Research…. Brand response to OB with multiple pack deals is appreciated and allows both easy selection and renewed brand presence in home Brands still offering uniqueness in speciality ham Packaging style can differentiate quality standards- those mimicking ‘old-fashioned packaging emerge positively that pack reminds me of old fashioned paper pack –like something you would buy from a real butcher shop years ago 99 Brand/Product Statements - Pre Packed Cooked Sliced Ham (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy TOTAL Supervalu NET: NET: Brady's Signature Tesco Dunnes Brand PL Denny Family Ham Shaws Supervalu Range Tesco Finest Store It's a brand for people like me and my family 27 62 33 36 39 37 17 16 17 21 12 Offers a real advantage over other brands 18 55 23 25 26 31 12 8 11 10 5 Is a really high quality brand 28 77 22 34 48 55 13 8 8 13 6 Is worth paying more for 18 61 14 23 35 35 7 5 6 6 3 It's not a brand I would consider 20 27 55 14 11 11 25 32 32 23 26 I would recommend this brand to friends and family 26 70 27 33 42 40 12 14 12 16 14 It is a smart choice for shoppers 24 48 43 28 30 25 25 17 21 20 24 I will buy this more in the future 18 55 27 22 29 24 10 12 8 15 11 It's the best brand out there 10 53 8 17 17 20 7 3 1 4 0 None of these 28 35 54 24 20 20 35 34 28 37 38 100 Brand/Product Statements – Pre Packed Cooked Sliced Ham (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy It's a Offers a real Is a really brand for high advantage people like over other quality me and brand brands my family % % % Is worth paying more for % I would It's not a recommend It is a I will buy brand I this brand smart this more It's the to friends choice for would in the best brand consider and family shoppers future out there % % % % % 30 56 Brand 69 75 83 69 74 85 86 70 44 PL 31 25 17 26 15 31 14 101 Finding the right balance – Cooked Sliced Ham OB Right Mix of Level OL/Brands Perfect range from which to choose Would put me off shopping there Low 35% 41% 19% Med 33% 29% 12% High 25% 23% 28% (46% None of these) A reasonably balanced shopper approach to own-label and brands. Those with kids and a higher frequency of purchase lean towards own label. 102 7. CHEDDAR CHEESE 103 Cheddar At A Glance (Base: All Regular Cheddar Buyers; n=829) Top 3 Choice Drivers Based on claimed reasons for choosing among buyers Favour Brands 38 62 Prefer Brands Favour own label +1% vs average Prefer Own Label Male 50 Male 46 Female 50 Female 54 Sex Brands Good quality 75 Tastes better Often on promotion Own Label 55 82 Affordable 69 Good Quality 26 Exactly the same 59 Top Equity Gaps 55+ Age 35 35-54 38 18-34 27 55+ 22 35-54 42 18-34 36 Own brands match or beat regular brands Smart choice +4 Regular brands beat own brands Yes 42 Yes 53 No 47 Kids No 58 Really high quality Advantage (re benefit) Worth paying more for +50 +23 +37 Strong preference among shoppers for more regular brand than own brands onshelf • 67% believe the current mix of branded v OB is just right. • Greater willingness to use OB cheese as an ingredient where the brand differential ( if there is one) is not noticed. • Cheese brands need to continue to drive brand strength to thwart the rise of own brands 104 Category Analysis: CHEDDAR Why? Favour Own Brand CHEDDAR Affordability 82 Quality is great 37% Same as branded Taste even better (Among Cheddar Buyers) 69 Better range 59 20 13 105 From the Qualitative Research…. Some loyalty to local brands But less confidence in the origin of some brands Strong OB offer given prominence in store • positioned at eye level in Tesco ,dominating shopper experience, and offering appreciable savings Greater willingness to use OB cheese as an ingredient where the brand differential (if there is one) is not noticed. in lasagne cheese is cheese - there is no point in spending lots more for that cheese 106 Category Analysis: CHEDDAR Favour Branded CHEDDAR CHEESE Why? Quality great 75 Better taste than Own Brand 61% (Among Cheddar Cheese Regulars) 55 Often on promotion 26 Better range 20 Affordability 18 Specific product 15 107 Brand/Product Statements - Cheddar Cheese (Base All Adults 18+ Household Shoppers n=1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy Supervalu NET: NET: Signature Tesco Dunnes TOTAL Brand PL Kilmeaden Dubliner Charleville Supervalu Range Tesco Finest Store It's a brand for people like me and my family 27 57 36 41 32 36 15 14 24 21 18 17 45 22 27 27 19 7 10 10 9 10 Is a really high quality brand 25 68 18 51 41 37 6 11 6 8 7 Is worth paying more for 17 50 13 35 29 21 5 12 1 6 2 It's not a brand I would consider 20 24 54 7 15 12 37 20 32 26 29 I would recommend this brand to friends and family 25 59 30 40 35 30 15 13 20 11 13 It is a smart choice for shoppers 21 37 41 25 21 22 17 20 21 20 23 I will buy this more in the future 17 43 28 24 20 19 10 13 12 12 12 It's the best brand out there 9 44 8 20 15 10 3 4 4 3 1 None of these 26 34 50 16 21 22 33 42 31 31 29 Offers a real advantage over other brands 108 Brand/Product Statements – Cheddar Cheese (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy It's a Offers a real Is a really brand for high advantage people like over other quality me and brand brands my family % % % Is worth paying more for % I would It's not a It is a I will buy recommend brand I smart this more It's the this brand would choice for in the best brand to friends consider shoppers future out there and family % % % % % 28 53 Brand 66 64 71 72 85 84 84 72 47 PL 34 29 28 15 16 36 16 109 Finding the right balance – Cheddar Cheese OB Right Mix of Level OL/Brands Perfect range from which to choose Would put me off shopping there Low 12% 19% 37% Med 32% 25% 6% High 46% 44% 18% (10% None of these) High level of Own-Label is preferred. 110 Cheddar Cheese: Equity Battle Any Private Brand Endorsed % For Me (affinity) Advantage over others Any Retailer Brand Endorsed % 57 45 Really high quality Momentum (will buy more) 50 Brands 18 Brands 13 37 43 Brands Brands 22 68 Worth more Smart choice 36 Who Wins? 41 28 O.B. Brands 111 8. RELISHES & SAUCES 112 Relishes At A Glance (Base: All Regular Relishes Buyers; n=509) Top 3 Choice Drivers Based on claimed reasons for choosing among buyers 32 Favour Brands 68 Prefer Brands Favour own label -5% vs average Prefer Own Label Male 55 Male 47 Female 45 Female 53 Sex Brands Good quality 72 Tastes better Often on promotion Own Label 54 22 Affordable 67 Good Quality 67 Exactly the same 40 Preference among shoppers for more regular brand than own brands onshelf Top Equity Gaps 55+ Age 35-54 18-34 24 13 55+ 48 38 35-54 38 18-34 Regular brands just beat own brands Smart choice +21 for Own Brand 40 Regular brands beat own brands Yes 51 Yes 57 No 49 No 43 Kids Really high quality Advantage (re benefit) Worth paying more for +19 +6 +19 • 54% believe the current mix of branded v OB is just right • Own Brand Quality has improved and in some areas (e.g. Relish/ condiments) has outflanked mainstream brands. • Less brand loyalty evident as shoppers are open to trying new variants. • Brand advantage is slender over Own Label in this category 113 Category Analysis: RELISHES Favour Own Brand RELISH/SAUCES Regularly 31% Why? Quality is great 67 Affordability 67 Same as branded 40 Taste even better (Among Sauce/Relish Buyers) Better range 24 14 114 From the Qualitative Research…. OB offer is resisted in ketchup/ mayonnaise strongly distinctive tastes are well known and thought to be unique I have to buy Chef for my Chef has more vinegar and daughter and Heinz is quite sweet – they Heinz for the are nothing alike and you rest - they would definitely have a really are preference. If you bought different and that (PL) you wouldn't know nothing else what you'd get will do” OB in mayo/ ketchup ma be acceptable for sharing occasions (the work fridge!) or among some singles OB range on shelf is less impactful – overshadowed by brands and appearing to be a poor imitation 115 From the Qualitative Research…. Relish is less frequent purchase generally Less brand loyalty evident as shoppers are open to trying new variants Infrequent purchase can also limit price awareness Relish OB offer can be high end and OB may offer a route to trial of new tastes The relish are all different tastes so I’d be happy to try that (OB) as it could be nice. But that is dearer than the brand! 116 Brand/Product Statements - Relishes and Sauces (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy TOTAL Supervalu NET: NET: The Signature Tesco Dunnes Brand PL Follain Ballymaloe Scullery Supervalu Range Tesco Finest Store It's a brand for people like me and my family 21 42 45 14 36 6 13 26 20 35 22 Offers a real advantage over other brands 15 40 34 10 33 5 7 14 10 21 14 Is a really high quality brand 20 52 33 20 43 12 6 17 12 23 14 Is worth paying more for 14 44 25 12 36 5 1 14 8 17 8 It's not a brand I would consider 20 38 40 21 14 25 18 17 20 17 26 I would recommend this brand to friends and family 19 45 39 13 38 8 15 17 17 27 16 It is a smart choice for shoppers 20 31 52 13 23 7 22 29 25 28 26 I will buy this more in the future 15 35 40 12 27 5 10 21 10 23 17 It's the best brand out there 9 39 15 5 31 2 1 6 5 9 4 None of these 35 59 49 41 23 50 43 31 32 24 30 118 Brand/Product Statements – Relishes & Sauces (Base All Adults 18+ - 1034) Q.8b Here are some things other people like you have said about brands of <<INSERT CATEGORY NAME>>. For each of these can you please select the brand(s) to which you feel each of these statements applies, if any? We are interested in your opinions whether or not this is a brand you buy It's a Offers a real Is a really brand for high advantage people like over other quality me and brand brands my family % % % 45 36 54 50 63 Brand 55 PL Is worth paying more for % I would It's not a recommend It is a I will buy brand I this brand smart this more It's the would in the best brand to friends choice for consider and family shoppers future out there % % % % % 48 52 64 72 64 46 50 37 36 48 52 28 119 Finding the right balance – Relishes and Sauces OB Right Mix of Level OL/Brands Perfect range from which to choose Would put me off shopping there Low 54% 68% 18% Med 21% 16% 11% High 20% 12% 34% (37% None of these) A category where choice is preferred and experimentation between own label and branded options. 120 Relishes & Sauces: Equity Battle Any Private Brand Endorsed % For Me (affinity) 42 Advantage over others 52 Worth more Momentum (will buy more) 45 44 = Brands 33 Brands Brands 25 31 35 Who Wins? 34 40 Really high quality Smart choice Any Retailer Brand Endorsed % 52 40 O.B. O.B. 121 5. THE BALANCING ACT 122 Feedback on Shelf Simulation Test: Evaluating Shopper Response to Varying Degrees of Own Brand v Regular Brand Balanced Mix Limited Own Brand Maximum Own Brand 123 Perception of Stores’ levels of OB options…. 28 20 13 % Too much Own Brand Right Mix % Not enough Own Brand 67 67 21 23 49 40 16 62 12 17 29 19 51 56 12 13 23 30 For retailers and shoppers it is about getting the right mix. Here we see for most regular shoppers The Balance is Right. By and large shoppers are happy with what they are finding on shelf. There is some appetite for more Own Label in the convenience channel. 124 Stores have just the right amount of Ownbrand options 59% 125 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 But are there signs that we are beginning to see the balance being tipped? We see here there is little appetite for more own brand. 63% of shoppers believe retailers have the right amount of Own Label available. 126 Stores are pushing Own-brands too much 39% 127 I would hate to see brands disappearing due to Ownbrands 74% 128 I question the quality of retailers with too many Own-brand options 38% 129 I have found myself avoiding stores with too many Ownbrands 22% 130 Ready Meals – more Own Label Right mix of OL/Bran ds 26%Perfect range to choose from 25% 131 6. IMPLICATIONS FOR BRAND BUILDING 132 The approach to Brand Building needs to evolve! The retail environment has certainly changed over the past decades, and perhaps we have reached equilibrium level with own label and brands. Our approach to brand building equally needs to evolve. Today we are in a retail landscape where consumers are savvy, sceptical and wellinformed about products and choices; and we are in the digital era that offers new opportunities. 133 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 134 135 7. APPENDIX 136 Milk: equity detail for reference NET: TOTAL Brand Unweighted base Weighted Base Effective Base It's a brand for people like me and my family Offers a real advantage over other brands Is a really high quality brand Is worth paying more for It's not a brand I would consider I would recommend this brand to friends and family It is a smart choice for shoppers I will buy this more in the future It's the best brand out there None of these Avonm ore Avonm Super Superv ore Milk Premier alu NET: PL Superv alu Signatu re Range Tesco Tesco Dunnes Finest Store 1614 1542 1330 269 257 222 269 257 222 269 257 222 269 257 222 269 257 222 163 158 134 174 164 142 151 142 127 155 148 129 164 158 134 20 38 38 26 20 14 20 8 30 19 22 12 21 11 18 35 52 37 30 23 26 14 41 15 36 17 11 21 30 22 17 5 20 7 20 7 15 8 15 5 12 4 22 15 17 8 19 9 10 4 25 12 13 5 24 18 19 12 8 37 42 26 29 34 55 36 49 27 11 57 27 16 17 16 33 22 13 13 12 33 12 9 7 5 46 17 30 13 4 36 10 10 4 2 51 24 39 17 5 30 15 18 10 5 34 17 29 16 4 34 137 Cheddar Cheese: equity detail for reference NET: Brand TOTAL Unweighted base Weighted Base Effective Base It's a brand for people like me and my family Offers a real advantage over other brands Is a really high quality brand Is worth paying more for It's not a brand I would consider I would recommend this brand to friends and family It is a smart choice for shoppers I will buy this more in the future It's the best brand out there None of these Superval u Kilmead Charlevil Superval Signatur NET: PL en Dubliner le u e Range Tesco Tesco Finest Dunnes Store 1596 1584 1269 266 264 211 266 264 211 266 264 211 266 264 211 266 264 211 143 144 115 151 144 116 171 173 137 158 154 126 175 177 140 27 57 36 41 32 36 15 14 24 21 18 17 25 17 20 45 68 50 24 22 18 13 54 27 51 35 7 27 41 29 15 19 37 21 12 7 6 5 37 10 11 12 20 10 6 1 32 9 8 6 26 10 7 2 29 25 21 17 9 26 59 37 43 44 34 30 41 28 8 50 40 25 24 20 16 35 21 20 15 21 30 22 19 10 22 15 17 10 3 33 13 20 13 4 42 20 21 12 4 31 11 20 12 3 31 13 23 12 1 29 138 Relishes & Sauces: equity detail for reference NET: Brand TOTAL Unweighted base Weighted Base Effective Base It's a brand for people like me and my family Offers a real advantage over other brands Is a really high quality brand Is worth paying more for It's not a brand I would consider I would recommend this brand to friends and family It is a smart choice for shoppers I will buy this more in the future It's the best brand out there None of these NET: PL Follain Superval u Ballymal The Superval Signatur oe Scullery u e Range Tesco Tesco Finest Dunnes Store 1596 1615 1345 266 269 224 266 269 224 266 269 224 266 269 224 266 269 224 154 156 130 161 162 136 163 171 138 168 167 140 152 151 127 21 42 45 14 36 6 13 26 20 35 22 15 20 14 20 40 52 44 38 34 33 25 40 10 20 12 21 33 43 36 14 5 12 5 25 7 6 1 18 14 17 14 17 10 12 8 20 21 23 17 17 14 14 8 26 19 20 15 9 35 45 31 35 39 59 39 52 40 15 49 13 13 12 5 41 38 23 27 31 23 8 7 5 2 50 15 22 10 1 43 17 29 21 6 31 17 25 10 5 32 27 28 23 9 24 16 26 17 4 30 139 Chilled Ready Meals: equity detail for reference NET: Brand TOTAL Unweighted base Weighted Base Effective Base It's a brand for people like me and my family Offers a real advantage over other brands Is a really high quality brand Is worth paying more for It's not a brand I would consider I would recommend this brand to friends and family It is a smart choice for shoppers I will buy this more in the future It's the best brand out there None of these Superval u Carrolls Bombay Cully & Superval Signatur NET: PL Cuisine Pantry Sully u e Range Tesco Tesco Finest Dunnes Store 1272 1267 1132 212 211 189 212 211 189 212 211 189 212 211 189 212 211 189 136 134 120 119 115 107 126 124 113 119 120 104 136 140 122 26 46 54 19 23 29 22 28 31 32 29 15 21 15 18 34 48 44 42 36 41 30 32 13 24 13 18 13 20 17 24 18 30 24 18 12 17 12 14 15 21 12 18 20 14 11 13 23 25 18 15 11 16 10 18 27 18 19 8 28 50 31 34 28 47 52 47 47 21 42 24 12 13 7 33 23 11 13 8 33 30 19 18 13 29 21 13 18 4 31 27 23 24 7 27 31 28 24 9 25 34 30 24 9 16 24 20 22 5 25 140 Pre-packed Cooked Sliced Ham: equity detail for reference NET: Brand TOTAL Unweighted base Weighted Base Effective Base It's a brand for people like me and my family Offers a real advantage over other brands Is a really high quality brand Is worth paying more for It's not a brand I would consider I would recommend this brand to friends and family It is a smart choice for shoppers I will buy this more in the future It's the best brand out there None of these NET: PL Denny Superval u Superval Signatur u e Range Tesco Brady's Family Ham Shaws Tesco Finest Dunnes Store 1596 1658 1252 266 276 208 266 276 208 266 276 208 266 276 208 266 276 208 137 138 106 178 180 147 154 173 118 174 176 138 155 162 118 27 62 33 36 39 37 17 16 17 21 12 18 28 18 20 55 77 61 27 23 22 14 55 25 34 23 14 26 48 35 11 31 55 35 11 12 13 7 25 8 8 5 32 11 8 6 32 10 13 6 23 5 6 3 26 26 24 18 10 28 70 48 55 53 35 27 43 27 8 54 33 28 22 17 24 42 30 29 17 20 40 25 24 20 20 12 25 10 7 35 14 17 12 3 34 12 21 8 1 28 16 20 15 437 14 24 11 38 141 Porridge Oats: equity detail for reference NET: Brand TOTAL Unweighted base Weighted Base Effective Base It's a brand for people like me and my family Offers a real advantage over other brands Is a really high quality brand Is worth paying more for It's not a brand I would consider I would recommend this brand to friends and family It is a smart choice for shoppers I will buy this more in the future It's the best brand out there None of these Superval u Flahavan Special Superval Signatur NET: PL s Odlums K u e Range Tesco Tesco Finest Dunnes Store 1326 1404 1007 221 234 168 221 234 168 221 234 168 221 234 168 221 234 168 127 143 98 130 136 98 142 143 111 127 132 99 137 148 99 25 70 27 57 34 14 12 15 16 18 16 16 24 16 22 54 76 57 43 21 17 15 47 39 60 45 6 24 40 22 14 8 19 10 34 4 10 4 23 10 7 5 22 10 9 9 26 11 10 9 25 7 10 3 31 27 25 17 11 26 72 56 55 56 36 28 41 22 8 48 60 45 39 40 11 34 27 25 9 21 20 15 9 7 28 14 23 12 3 34 9 16 5 2 35 22 26 14 3 33 15 18 10 3 37 15 26 11 3 26 142 Gluten Free/Free From Bread: equity detail for reference NET: Brand TOTAL Unweighted base Weighted Base Effective Base It's a brand for people like me and my family Offers a real advantage over other brands Is a really high quality brand Is worth paying more for It's not a brand I would consider I would recommend this brand to friends and family It is a smart choice for shoppers I will buy this more in the future It's the best brand out there None of these BFree Foods NET: PL Kelkin Superval u Superval Signatur u e Range Tesco Pure Food Tesco Finest Dunnes Store 1344 1242 1121 224 207 187 224 207 187 224 207 187 224 207 187 224 207 187 135 121 114 137 130 113 133 125 109 131 118 113 136 126 112 25 58 41 40 22 22 17 20 21 25 23 17 21 15 15 52 58 50 31 33 35 24 39 33 43 35 12 17 21 13 12 13 16 14 15 8 12 9 21 16 20 11 15 17 14 11 16 13 17 9 16 10 14 5 18 22 21 20 10 34 58 48 51 43 55 38 45 35 18 50 40 29 34 29 21 20 16 18 7 40 18 15 16 7 44 18 19 13 3 32 23 19 23 9 36 17 28 16 7 30 17 23 19 7 34 19 20 14 5 35 143 Attitudinal Summary Q14. Summary Even though I love certain special products promoti are onal I feel available offers When I I love it good in a for buy own when Most when I number products brand" own own shop of and I am options brand" brand" smartly; different often buying I always options product' and own brands, I choose more feel that are s quality brand" always what's own I am available is just as options tend to on offer brand" getting a for the good as are a buy the regardle options good products regular smart same ss of the nowada deal" I buy" brands" option" brand brand ys" NET: Agree Strongly agree (4) Agree somewhat (3) Somewhat disagree (2) Disagree strongly (1) NET: Disagree Don't know 75 22 53 15 3 18 7 74 27 47 16 3 19 7 72 25 47 18 5 23 5 75 29 46 14 4 19 6 71 20 51 20 4 25 4 75 30 44 17 5 22 4 72 28 44 17 6 23 5 Own I would brand" buy I would options more I think hate to I've own stores see bought brand" are brands in the goods if pushing disappe past a better their aring have range own because lived up was brand" of own to my available products brands" expectat where I too taking ions" shop" much" over" 79 27 52 14 4 17 4 68 20 48 19 4 23 9 39 10 30 37 12 48 12 74 38 36 14 6 19 6 I tend to buy stores own brand" produc ts when I can 53 17 36 31 11 43 4 144