The consumer switch to own-label and, more recently, 'basic' ranges, has been one of the most alarming developments of the economic downturn for many leading brands. For marketers seeking to protect their biggest asset - their brand - consumers' willing-ness to ditch products for cheaper, unbranded alternatives is a major concern.
However, it is not the case that consumers are shunning branded goods en masse. Exclusive research conducted by BrandHouse reveals that as the recession continues to bite, an emotional connection with consumers is the only way to ensure longevity. In short, the first brand to be culled from the shopping basket is the brand consumers care least about.
Meanwhile, consumers will continue to be loyal to, and even pay a premium for, brands with which they have an emotional connection and provide them with much-needed security in uncertain times.
Many studies of consumers' shopping baskets have shown that, despite the recession, shoppers are not cutting back and trading down in every category. While it may seem irrational for them to buy basic ranges, yet continue to pay a premium for the most-loved brands in other categories, this trend makes it vital for marketers to understand how consumers connect with products.
Notably, the research revealed that very few brands have succeeded in building a strong emotional attachment with consumers. For most brands the levels, though positive, were low. Warwick Cairns, head of strategy at BrandHouse, believes that understanding consumers' emotional relationship with brands is key to surviving the recession.
'In a downturn, it is the small pleasures of everyday life which people enjoy the most and brands need to capitalise on that,' he says. To this end, the group has interviewed 2000 consumers to determine exactly how they form emotional relationships with brands. The resultant study aims to help marketers better measure a hitherto intangible part of their brand.
The study identified the importance of 'Emotional Competitive Advantage', a term that describes the simple fact that, for all sorts of reasons, people's feelings toward brands vary greatly. 'In business, as in life generally, emotion makes all the difference in the world. Being associated with the right emotions in the right degree gives you a massive competitive advantage over your rivals,' adds Cairns.
The consumers who participated in the study were asked to measure 100 leading brands on seven emotional principles: contentment, belonging, compassion, pride, enjoyment, excitement and desire. Interestingly, when respondents were asked how important they felt each was, contentment, belonging and compassion took the top three spots. While generating desire and excitement is often the key aim of advertising campaigns, those surveyed ranked these two attributes as the least important.
While technology brands scored highly - Google and Sony topped the chart - consumers also recorded high emotional connections to brands with heritage and longevity, such as Heinz, Kellogg and Marks & Spencer. In contrast, brands such as Red Bull, which offer novelty and excitement, scored relatively poorly, underperforming both the sector and the survey average for excitement.
Other brands that suffered from poor contentment ratings included Facebook and McDonald's. The fast-food brand, which is no stranger to the lower end of such rankings, has experienced a renaissance in sales as consumers continue to seek out cheaper eating options. However, according to the research, more than half of those surveyed still believed a social stigma was attached to the brand.
While the research does not claim that brands with a low emotional connection to consumers are destined for economic failure, it is clear that brands fostering strong bonds have a genuine competitive advantage against their rivals.
Some sectors were better at connecting emotionally with consumers. Those brands offering a tangible product, such as food or drink, scored higher than service-based brands. Relatively low scores were awarded in the airline, tour operators, hotels and resorts, restaurants and coffee shops sectors. The food sector achieved the highest compassion scores despite the fact that brands in this market, particularly those high in fat, salt and sugar, have had a very hard time in the press. In retail, brands perceived as dependable, such as John Lewis and Marks & Spencer, performed strongly.
The internet sector out-performed the survey average across all emotional dimensions, with the exception of desire. In short, consumers were not prepared to pay a price premium for their favoured internet sites. Search giant Google was the undisputed champion of both the sector and the survey. However, Facebook failed to make much of an impression, ranking 84th in the table. Attitudes to the site were clearly delineated by age: 16- to 24-year-olds had a strong connection with the brand, while those aged between 55 and 64 did not. By region, the Scots were least attached to Facebook, going so far as to give it a negative score.
The survey also revealed problems for the mobile telecoms sector, which was the worst-performing in terms of desire. It faces a huge marketing challenge in the shape of a lack of consumer willingness to pay premiums for services. O2 was the top-performing mobile brand, scoring particularly well with younger age groups.
However, the considerable marketing spend of mobile phone brands has failed to translate into emotional engagement, a fact demonstrated by O2's appearance as the sole mobile brand in the overall top 50.
Some categories had greater emotional resonance with men. For example, in the car category, all brands with the exception of Ford and Mini were more highly rated by men than women. The biggest score differential was for Honda, with men scoring the brand 1.49 points higher than women.
The research suggested that automotive brands as a sector need to work harder to connect with women, who ultimately are responsible for the lion's share of household purchasing decisions.
Mark Rae, business development director at BrandHouse, says: 'In tough times it is vital that brands understand exactly how consumers view them and build on that relationship.' In short, building and maintaining a genuine emotional connection with consumers is the key to surviving the recession.
Key findings
- Brands that offer steady contentment retain more long-term loyalty than those that seek to provide novelty and excitement.
- Consumers have belief in brands with good intentions, which will go out of their way to meet their needs.
- Consumers were more positive toward brands that offered a tangible product. Contentment was lower for service sector brands such as airlines, tour operators, restaurants and coffee shops, while it was highest within the food and household sectors.
- Women showed more contentment with brands than men. The biggest difference of opinion was in the retail and food sectors, where women were significantly more contented.
- Women and younger consumers are open in demonstrating emotions toward brands, while men and older consumers tend to be more circumspect.
- The only field in which men were more contented than women was the automotive sector.
- Contentment tends to decrease with age, and varies by region. Those living in Scotland were the least contented, while those in the Midlands were the most contented.
- Very few of the brands measured would be strongly and actively missed if they ceased to exist.
Methodology
The BrandHouse Emotion 100 report, in conjunction with The Centre For Brand Analysis, is the result of an empirical study conducted among a nationally representative sample of 2000 UK consumers, aged 16 to 64, of 100 of the nation's 'most significant brands'.