A study sponsored by the UK ad-industry group, Advertising Association, has discovered that own-brand food produce sold in the country’s top supermarkets is gathering a large market share: good news for the supermarkets but bad news for the advertising agencies that traditionally rely on market branded products.
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Through the years 1975 to 1999, the study, conducted by Stephen Buck, a non-executive director of Taylor Nelson Sofres, focused on 52 brands to establish how well own-brand goods were doing against branded products in 26 grocery categories.
It discovered that, on average, the top crop of traditionally branded goods have lost out on around 30% market share. Those products similarly branded but without the strong investments in advertising are, while still on the shelves, competing price-wise with the own-branded store products.
Looking at the best performing supermarket chains, own-branded products accounted for 22% in those 26 categories in 1975. Now, however, the same groceries make up 70% of the market.
Some argue that, conversely, own-branded products now carry brands in their own right. A spokesman for Tesco commented: “Tesco works hard to make sure that its brand is respected like any other which has been developing brand equity for years.”
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By GlobalDataThe study seems to suggest the British consumers are more influenced by price in their grocery selections than polished advertising.
Advertising and the Long-Term Success of the Premium Brand, by Dr Stephan Buck, is published by the World Advertising Research Center on 15 January (price £75, ISBN 1-84116-076-8).
