Kids & Pets Inspire Less Brand Switching

July 14, 2009

This article is included in these additional categories:

Analytics, Automated & MarTech | Brand Metrics | CPG & FMCG | Financial Services | Retail & E-Commerce

Half of American consumers have defected from national brands to store brands for food, household, health and personal-care products, but most are still reluctant to switch to store brands for child- and pet-care purchases, according to research from ICOM, a division of Epsilon Targeting.

A May 2009 survey of 1,530 American consumers revealed key differences for store-brand switching by category by asking consumers whether they had switched away from national brands to store brands in the preceding six months.

The survey found that nearly 60% of consumers switched to store brands for food, while almost half switched for health and personal-care products (48% for each).

However, the incidence of switching to store brands for pet-care (23%) and child-care (12%) products is significantly lower.

epsilon-targeting-switching-store-brands-product-category-july-2009.jpg

ICOM said that this pattern of switching means that consumers are willing to swap out national brands for less-expensive ones in categories where they see less risk or the possibility of exposing their loved ones to products that they perceive as inferior.

OTC Medication Switching

The “less-risk-means-more-switch” trend also revealed itself in the category of over-the-counter (OTC) medicinal healthcare items. With these products, survey responses show a direct correlation between severity and specificity of ailment and openness to switch, ICOM said.

For example, more consumers have switched to general OTC pain relievers than have switched for cough and cold remedies, allergy remedies or heartburn medications:

epsilon-targeting-switching-store-brands-healthcare-otc-july-2009.jpg

ICOM said that less perceived risk by consumers is behind this brand-switching trend and that marketers in today’s economy must understand the nuances in consumer behavior and the trigger points that are causing the switching. “These results highlight that understanding customer psychology, and tailoring promotions accordingly, is a significantly more effective win-back strategy than scatter-shot, one-size-fits-all offers,” said ICOM Marketing Director Warren Storey.

About the survey: ICOM’s May survey was sent to 70,000 households nationwide. A total of 1,530 responded.

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