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Brand growth 2.0: The only global language in a local dialect
Includes video content
Recommended by Warc editors
Raluca Răschip, Richard Herbert and Oliver Koll, ESOMAR, CEE Research Forum, Bucharest, March 2014
This paper explains what is driving brand growth and inspiring manufacturers and retailers towards profitable business in the FMCG sector, presenting findings from a study of brands across 70 categories in Europe.
This paper explains what is driving brand growth and inspiring manufacturers and retailers towards profitable business in the FMCG sector, presenting findings from a study of brands across 70 categories in Europe. Drivers of growth and causes of decline over the past five years are explained in the context of economic recession, with comparisons of European markets with the US and emerging markets. Whilst FMCG value has continued to grow, consumers have 'traded down' from brands to private label. There is concern that people who switched to private label purchasing due to financial constraints, may not go back to brands, making brand loyalty an important marketing challenge. However, this situation has also enabled some brands to grow, as it has provided an opportunity to create stronger bonds with core consumers. In each market the top three national brands have achieved strongest growth (+10%), as a result of penetration and adapting to changing consumer needs.
Closing the price gap: Retailers, brands and the future of private-label food
Includes video content
Recommended by Warc editors
Tim Eales, Warc Exclusive, IRI, January 2014
This article examines the enduring role that private or own label ranges can play for European retailers and manufacturers, following a rise in popularity during the economic downturn.
This article examines the enduring role that private or own label ranges can play for European retailers and manufacturers, following a rise in popularity during the economic downturn. During this period, retailers have managed to persuade shoppers, especially in the UK and Germany (but not in France), that private label products can provide quality as well as value. They have gained their own brand personalities, and by focusing less on low prices, have reduced the price gap between private label and national brands, which have seen promotional strategies increase. However, this has led to consumers beginning to find some retailers' propositions confusing, particularly in the case of the mid-ground supermarkets that try to appeal to every shopper. Introducing own label products in these supermarkets may jeopardise loyalty and it will be essential to differentiate from other private label brands. Equally, national brands must focus on innovation to differentiate from all private label ranges and justify their price premium.
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Private and own label brands
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Supermarkets and grocery stores
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