With the increasing price sensitivity of German consumers, private labels continue to gain in importance in the food industry and the question arises as to how brands can convince customers to buy their brand products. A new consumer survey* by Degusta Box shows that, in addition to taste, quality and trust, brands can encourage customers to buy their branded products through pricing campaigns, points of contact, for example in-home sampling, or through a noticeable added value.
When consumers stand in front of the supermarket shelf, they have the choice between products from the discount brand or the classic brand. In the consumer survey conducted by Degusta Box in July 2019, 4 out of 5 respondents chose to buy their own brand on the basis of the product price and 1 out of 5 chose, based on habit. Consumers, on the other hand, particularly appreciate the better taste and quality of brand products. In addition, they buy those products because they trust the brand.
In the survey, the noodles, rice, cereals and pulses category emerged as the strongest category with the lowest brand loyalty. How can customers be persuaded to buy a branded product in categories with such high private label shares?
The first buying factor is price. 76 percent of respondents would switch to a branded product because of the price. This illustrates the low emotional attachment to private labels and how brands can draw attention to their articles through targeted price campaigns.
In addition to the classic price factor, contact points with products come in second place. According to the consumer survey, as many as 38 percent would switch to the brand counterpart after getting to know the product through in-home sampling, or 15 percent would have had the opportunity to try the brand product elsewhere.
For 27 percent of the respondents, the third strongest reason for change would be a noticeable added value of the branded product compared to the no-name article. Brand manufacturers can use their greater opportunities for innovation and trends to stand out and win new customers.
Reasons for changing from no-name to consumer branded products
Finally, classic advertising as well as online advertising do not seem to be sufficient for consumers to switch to a branded article. The study by Degusta Box shows that only under 10 percent of consumers would be convinced to switch through advertising or social media.
It is important to know that only 1 percent of respondents are 100 percent loyal to their private label. Therefore, brands can win the vast majority of consumers for their brands through the following strategies: While 76 percent are convinced by offers, 38 percent are open to switching to brand products if they have tested the product in a surprise box like the Degusta Box and 15 percent if they have tested it somewhere else. These opportunities open the doors for brands to convince consumers of their branded products, so that consumers end up on supermarket shelves with branded products instead of discounters. If there is no choice in adjusting the product price, In-Home-Sampling offers the most effective way to let customers discover the articles and make the first contact with the end consumers and convince them of the product.
The data used are based on an online survey of 2,048 Degusta Box subscribers in Germany from July 2019, which is not representative of the total population.
For more information:Christine Scheid
Degusta Box S.L.
Tel.: +49 (0) 4087 4086 96
christine@degustabox.com