Promoting Brand Simplicity in Food and Drinks: Reducing product claims, brand dilution and private label threat

Published by: Business Insights

Published: Oct. 1, 2008 - 91 Pages

Table of Contents

Promoting Brand Simplicity in Food and Drinks

Executive Summary

Introduction

Drivers of complexity

Consumer need for simplicity

Promoting simple brand values

Simplicity in retailing

Conclusions

Chapter 1 Introduction

Summary

Introduction

Definition of simplicity

Simplicity in the purchase to consumption chain

Simplicity over time

Themes in simplicity

The scope of the report

Chapter 2 Drivers of complexity

Summary

Introduction

Private label

Private label sales

Brand extensions

Packaging

GDA and traffic lights food labeling

Chapter 3 Consumer need for simplicity

Summary

Introduction

Consumer time complexities

Number of hours worked per week

Increase of women workers

Demand for natural and organic

Regaining consumer trust

Simplicity by age

Chapter 4 Promoting simple brand values

Summary

Introduction

Simple brand values

Going back to simplicity

Taglines

Packaging

Making packaging clearer

Reducing claims

Making claims easier to understand

Chapter 5 Simplicity in retailing

Summary

Introduction

Retail propositions

Market place format

Carrefour

Morrisons

Farmers markets

Local sourcing

Private label brand values

Chapter 6 Conclusions

Summary

Introduction

Manufacturers

Promoting simple brand values

Labeling complexity

Retailers

Store layout

Longevity of the simplicity trend

Index

List of Figures

Figure 1.1: Definitions of simplicity

Figure 1.2: Simplicity in the purchase to consumption chain

Figure 1.3: Evolution of the Weetabix brand

Figure 1.4: Themes of simplicity

Figure 2.5: Private label, share of sales, by category, in Europe (%), 2006-2011

Figure 2.6: Private label, share of sales, by category, in US (%), 2006-2011

Figure 2.7: Examples of Coca-Cola’s brand extensions

Figure 2.8: Heartfield Food Soy Crunchies

Figure 2.9: GDA and traffic lights food labeling

Figure 2.10: Cadburys ‘Be treatwise’ labelling

Figure 3.11: Good Nature All Natural Antibiotic Free Pork

Figure 3.12: Level of consumer concern about potential risks related to food and drinks, 2006

Figure 3.13: Arizona Diet Green Tea - Blueberry

Figure 3.14: Simplicity for different age categories

Figure 4.15: Marmite

Figure 4.16: How Innocent promotes simplicity

Figure 4.17: Pot Noodle brand lifecycle

Figure 5.18: Wal-Mart’s Marketside Logo

Figure 5.19: Simple store layout at Carrefour Market Banner store

Figure 5.20: Market Street at Morrisons

Figure 5.21: Number of operating farmers markets in the US, 1994-2008

Figure 5.22: Reflets de France

Figure 5.23: Example of a Whole Foods Market store

Figure 5.24: Example of Tesco Value private label brand

Figure 6.25: Green & Black's Organic Chocolate Bar - Dark 85% Cocoa

Figure 6.26: The cyclical nature of simplicity

List of Tables

Table 1.1: Simplicity for consumers, manufacturers and retailers

Table 2.2: Private label food and drink brands of 5 leading retailers

Table 2.3: Private label sales in Europe and US ($m), 2006-2011

Table 2.4: Number of brand extensions of the top 10 leading global food and drinks brands, 2007-2008

Table 2.5: Number of brand extensions of the top 10 leading global food and drinks brands, by type, 2007-2008

Table 2.6: Claims on food and drinks packaging

Table 3.7: Average number of hours worked per week in Europe, 2001-2007

Table 3.8: Number of women in full time employment, in Europe and US (m), 2002-2008

Table 3.9: Natural and organic food and drinks market value in Europe and US, by category ($m), 2000-2010

Table 3.10: The level of trust consumers have in various claims made by packaged goods manufacturers, 2004

Table 4.11: Beer brand share in the US, by volume, (%), 2002-2006,

Table 4.12: Share of products launched with 1, 6 and 10 claims on packaging in Europe and US (%), 2005-2008

Table 4.13: Average number of claims on packaging, Europe and US, 2005-2008

Table 4.14: Top 20 claims on food and drinks packaging, Europe and US, 2005-2008

Table 5.15: How top 10 grocery retailers are using simplicity in store

Abstract

• Implement the best-practice brand strategies of leading innovators in the food and drinks market using this report’s analysis of food and drinks companies including ‘Innocent’ and ‘Green & Black’s’.
• Improve the effectiveness of your product marketing with this report’s analysis of claims on 15,000 food and drinks product launches between 2005 and 2008.
• Understand the threat of private label based on this report’s private label data in Europe and the US between 2006-2011, highlighting ways manufacturers can minimize threat by promoting simplicity.
• Identify the key drivers of consumer complexity in the food and drinks market and quantify the new opportunities that emerge for manufacturers and retailers.

• Complex food and drinks packaging. Product packaging is becoming more complicated and confusing for consumers to understand due to the increasing amount of claims and more scientific labelling on packaging.
• Concern over artificial colors and flavors. Consumers are becoming more concerned about the effect of artificial colorings and flavorings. This is driving the increased demand for natural and organic food and drinks.
• Brand extensions diluting core values. The increasing amount of brand extensions has meant that the core product message reaching the consumers is often weak and the product’s brand values are diluted.
• Promoting simplicity in store. Retailers are promoting simplicity in store, by developing market place formats to replicate farmers and local markets to instill trust in consumers.

• How are retailers promoting simplicity in store?
• What is driving the need for simplicity?
• How can manufacturers promote simplicity as a premium product attribute?
• How can manufacturers prevent the dilution of a product’s core brand values?
• Who are the key players leading the way in brand simplicity in food and drinks?
• How do private label brands add to consumer complexity?

• In 2007 5.9% of products launched in Europe and the US made at least one product claim, whereas 3.9% of products had at least six claims. This highlights the added complexities consumers are facing in terms of labelling when they choose a product.
• Private label sales in Germany are set to rise by a CAGR of 4.8% by 2011; this is linked to the growth of discounters in Germany and the acceptance of private label. Private label brands are growing in popularity in the UK.
• The amount of employed females in the US has risen from 69m in 2002 to 75m in 2008. The total figure for Europe has also risen from 178m in 2002 to 186m in 2008.
• Natural was the second most popular product claim in 2008 with 7.8% share. Manufacturers can utilize the growing popularity of natural food and drinks by using the back to nature theme of simplicity to develop products that have a simplistic positioning.

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