Brand barometer - Price hike brings British Gas off the boil

Until it announced huge price rises, gas giant's campaign to lure back customers seemed to be working.

Media spend February 2006 TV: £456,133

Press: £772,126

Radio: £8,422

Overall: £1,236,681

Jan 1-Dec 31 2005: £38,044,935

Source: Nielsen Media Research

British Gas' switch last year from using celebrities like Ricky Tomlinson and Brenda Blethyn to a campaign featuring cartoon-style gas flames was meant to express the experiences of "real" customers.

To date, most of its campaign has concentrated on winning back the business British Gas has lost to rivals, with the anthromorphic little flames reciting tales of how they switched to other providers but were disappointed with the service or the lack of real savings ... and so switched back to British Gas.

Until recently, it seemed to be working - British Gas' figures on BrandIndex were showing a steady rise. Its value rating had recovered from -27 at the start of the year to -15, its quality rating has risen from -7 to -1 and its "buzz" had gone from -27 to -12.

But its announcement that it is increasing its prices by a staggering 22% has undone all the good work and, unsurprisingly, its ratings have slumped. And its announcement last week that owner Centrica enjoyed an 11% profit rise in 2005 is unlikely to have helped.

With gas fields in the North Sea dying as the planet's natural resources dwindle, it may be a harsh reality that prices are soaring, but that doesn't make the resulting increased prices any easier for the consumer to swallow.

But British Gas is tackling the problem head on. A new advert starting last week features a flame worried about the gas price increases being advised to get his gas price fixed online.

Time will tell if the adverts can persuade customers that British Gas is still good value. At present, its buzz rating has plummeted to -33, its quality is down to -14 and the value score has fallen back to -28.

Many of its rivals are yet to unveil their own price increases though. Until then, it is difficult to judge the overall impact of these enormous price increases on brand perceptions.

Taking into account its sharp decline in BrandIndex ratings and the environmental problems facing the planet, it could be the case that British Gas customers are a little guilty of shooting the messenger. Although, like most companies, the energy giant is in business to make a profit - so it will be hoping that the concerned discussions of two animated gas flames will help it stay on track to do just that.

METHODOLOGY

YouGov's BrandIndex is a daily measure of public perception of more than 1,100 consumer brands across 32 sectors, measured on a seven-point profile, with data delivered next day.

YouGov interviews 2,000 people each weekday, more than half a million interviews per year.

This means you can spot trends as soon as they happen, not when it's too late. Respondents are drawn from an online panel of more than 130,000.

The score is the net rating: people are asked to identify the brands to which they have a positive response, and then those to which they have a negative response, to whatever is the prompt measure. The net score is the positive minus the negative.

Each is taken independently - in any one survey, any individual respondent is asked about only one measure for the sector, not all seven. Therefore, none of the readings influence each other within the survey.

YouGov stresses the importance of this. The seven measures that make the complete profile are below.

1. Buzz

2. General impression

3. Quality

4. Value

5. Satisfaction

6. Recommend

7. Corporate reputation

In addition, Brand Index supplies an overall index score.

www.brandindex.com

Contact: sundip.chahal@yougov.com.

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