Brands Dominate Kitchen Shelves

September 7, 2000

A new report for the Grocery Manufacturers of America (GMA) by Roper Starch Worldwide shows that brands continue to dominate the shelves of most U.S. consumers’ pantries, accounting for 80% of total food, drug and mass merchandisers' sales. And examining the shopping habits and demographic makeup of consumers who buy national brands may provide new insights for brand marketers looking to retain their share of consumer dollars.

According to the report, which explores what types of consumers buy national brands, nearly half of all Americans (46%) are "national brand loyalists." Defined as consumers who usually buy national brands when making a food or beverage and health and beauty care purchase, a national brand loyalists is "the ultimate consumer," according to the report.

As a group, these shoppers are:

--Better off economically. Their median household income of $41,700 is 35% higher than that of their store brand-buying counterparts.

--College educated. One in four (27%) has at least a bachelor's degree (11 points higher than store brand buyers), and 40% hold executive/professional or "white collar" positions (15 points higher than store brand buyers).

--Married and in two-career households. Fifty-nine percent (versus 54% of store-brand buyers) are married; a third of this group are in marriages where both partners work.

--Homeowners. Sixty-eight percent (vs. 49% for store-brand buyers) own homes.

--Personal computer users. Half of them own a personal computer or laptop (11 points higher than PC ownership for store brand buyers) and more than a third (37%) have accessed the Internet from home during the past month (10 points higher than store brand buyers).

"Clearly national brands are still king in consumers' eyes," said GMA President and CEO C. Manly Molpus. "Our partnership with Roper Starch on this report provides a wealth of revealing facts about today's brand loyal consumer, who is looking for a level of quality, innovation, and value that only brands consistently deliver."

The report shows that consumers are most likely to feel brand loyalty to brands that differentiate themselves from the other brands within a specific category. The Roper Starch research shows 47% of ice cream consumers say some brands are better, up five points from 1997; likewise, 37% of toothpaste consumers, up two points, and 31% of household cleaner purchasers, up three points, feel the same way.

"The common thread in these categories is the fact that marketers have offered innovative or distinctive products," the report says, which adds that improving products with anti-bacterial ingredients, fragrance varieties, cavity fighters, new flavors, and other "benefit bundles" may be the key to winning consumer brand loyalty.