How stupid do they think marketers are? — New Media and Marketing
QUICK READ: Some marketing reports issued online assume that brand marketers are stupid. The latest one is a report from Profitero which is an embarrassment.
Some companies should not issue market research reports. The latest one is Profitero which issued a report called “ The Cheating Consumer “. Among their findings “when the products a consumer loves become unavailable, they don’t sit around and do nothing or go without. They look elsewhere, seeking any product they can find that will get the job done. This kind of switching & substitution can cost retailers and brands millions of dollars in lost sales”. Really? Ya think?
Here is one of their top findings:
Brand loyalty is up for grabs: Brands must fight hard to retain shoppers because consumers won’t hesitate to switch products when their favorites are out of stock. The rate of consumers switching from their traditionally bought brands (typically large brands) grew by 75% to as high as 127% between January and April.
Let’s look at this a little closer. First, it really depends on the product. Someone who really likes DiGiorno pizza is not necessarily going to pay the money to try and a new brand that will disappoint them. On the other hand, consumers may not see a real difference between boxes of pasta and opt for store brands.
Then there is this nugget:
Out of stocks are making big brands invisible on the digital shelf, and smaller brands are moving in for the kill. A search for “toilet paper” in January revealed the long tail (i.e., niche brands and new challenger brands) captured 8% and by March it had jumped to 51%.
Uh did they ever think that people need toilet paper and it doesn’t really matter what brand it is?
One aspect of branding is that you can’t make generalizations about product categories. Frozen pizza is different than ice cream which is different from breads.
The most basic element of ANY brand promise is how that product performs/tastes. Some brands are great at that promise others are losing share to store brands because consumers don’t see a difference.
This report is a waste of printer ink…
Originally published at https://www.newmediaandmarketing.com on June 24, 2020.