Impact of Branding in the Food Market (The) - UK

Published by: Mintel International Group Ltd.

Published: Mar. 1, 2007 - 99 Pages

Table of Contents

Issues in the Market

Key themes

Definitions

Market in Brief

Leading brands make progress

Healthy growth

The niche riche

Big brands feeling the pressure

Changing brand strategies

Brand relationships

Future

Internal Market Environment

Exposure to brand advertising

Visual and audio entertainment

Figure: 1: Time spent watching TV/video, listening to radio, 2000 and 2005

Internet usage

Figure 2: Used Internet at home in the last 12 months, 2002-06

Newspaper and magazine readership trends

Sponsorship

Programmes

Figure: 3: Selected examples of TV Sponsorship on mainstream channels

Events

Product placement

OFCOM regulation

The branding of own-label

The rise of the ethical consumer

Figure 4: Changing consumer attitudes to food, 2001-05

Other

Overseas travel

Retail displays

Broader Market Environment

Demographics

Figure 5: Age profile of the UK population, 2001-11

Sustained growth in consumer expenditure

Figure 6: Changes in personal disposable income and consumer expenditure, 1997-2006

Competitive Context

Advertising regulation

Negative publicity

Strengths and Weaknesses

Strengths

Weaknesses

Segment Performance

Brands mainly gain ground

Figure 13: Categories included in each of three brand groups

Figure 14: Changes in brand shares by group, 2001-06

Brand leaders make progress

Second brands make largest gains in branded markets

Niche brands challenging for position

Brand leader and retailers slug it out

Brands - the ethical question

Mainstream brands don’t penetrate ethical segment

Fairtrade

Impact of Rebranding

Re-branding or re-formulation?

Re-branding is common

Figure 15: Example of re-branding, 2002-06

Successful re-brands

Less successful re-brands

To stretch or not to stretch

More successful brand stretches

Brand Imitation

Protecting the brand

Retailers less guilty?

Copycat products

Figure 16: Timeline of product introductions, hot microwaveable cereals 1999-2006

Healthy rivalry?

Brand Communication and Promotion

Investing in healthy growth

Figure 17: Advertising expenditure by food category, 2002-06

Adspend not so sweet

The link with new product development

Umbrella branding

Muller

Birds Eye

Hovis

Individual brands

Danone

Brand position focus

Flora

Kellogg bends the rules

Channels to Market

Retailers vary in development of own labels

Increasing strength and versatility of own-label brands

Figure 18: Own-label brands, 2007

Retailer activity is diverse and developing

Pragmatism rules

Local store formats

In-store promotions

Consumer - Brand Purchase

Figure 19: Topline types of food where branded option is normally purchased rather than own label, November 2006

Staples have it nailed

Indulgent opportunity

Links with consumption patterns

Shoppers key targets

Consumer Reasons for Purchasing Brands

Figure 20: Topline reasons for choosing branded food ranges, November 2006

In good taste

Pester power

Judging a box by its cover

Trust & tradition

Unattractive promotion

Better the devil you know

Appendix

Consumer research

ACORN

Advertising data

Abbreviations

External Market Environment

Figure 23: Trends and projections in UK population (‘000s), by age and gender, 2001-11

Brand communication and promotion

Figure 24: Main monitored media advertising spend on food, by top 20 brands, 2002-06

Consumer brand purchase

Figure 25: Most popular types of food where branded option is normally purchased rather than own label, by gender, age, social grade, marital status, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Figure 26: Popular types of food where branded option is normally purchased rather than own label, by gender, age, social grade, marital status, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Figure 27: Types of food where branded option is normally purchased rather than own label, by gender, age, social grade, marital status, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Figure 28: Non purchasers of branded foods, by gender, age, social grade, marital status, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Figure 29: Correlation matrix of branded foods, November 2006

Figure 30: Repertoire of branded food groups by demographic groups (row %), by gender, age, social grade, marital status, lifestage, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Consumer reasons for purchasing brands

Figure 31: Most popular reasons for choosing branded food ranges, by gender, age, social grade, marital status, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Figure 32: Common reasons for choosing branded food ranges, by gender, age, social grade, marital status, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Figure 33: Attitudes to branding by types of products for which branded options are purchased, November 2006

Consumer attitudes to brands

Figure 34: Common attitudes to branded food, by gender, age, social grade, marital status, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Figure 35: Attitudes to branded food, by gender, age, social grade, marital status, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Figure 36: Attitudes to purchase of brands by types of products for which branded options are purchased, November 2006

Figure 37: Most popular reasons for choosing branded foods by attitudes to brands, November 2006

Figure 38: Reasons for choosing branded foods by attitudes to brands, November 2006

Figure 39: Repertoire of branded food groups by attitudes towards branded food, November 2006

Figure 40: Clusters, by gender, age, social grade, marital status, age of own children, working status, region, ACORN group, technology use, newspaper, commercial TV viewing, and supermarket use, November 2006

Figure 41: Clusters by branded foods purchased, November 2006

Figure 42: Clusters by repertoire, November 2006

Figure 43: Clusters by reasons for purchasing branded foods, November 2006

Figure 44: Clusters by attitudes towards branded foods, November 2006

Abstract

While the food market overall is characterised by steady, if unspectacular, growth, certain categories of product are showing strong growth. This has attracted the attention of three main company types:

• Innovative speciality start-ups determined to make their mark with new-generation products and brands
• Well-known brands seeking to extend their brand into other product categories
• Retailers determined to develop compelling own-label brands.

This report examines branding strategies of manufacturers and retailers in using branding to create and maintain impact in the food market. It provides case histories of successful marketing initiatives, monitors the most powerful and innovative brands, and predicts changes for the future.

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