“The low recognition of pork brands creates a large opportunity for
retailers to achieve great success with their private-label products,”
Uetz says.
Price, meanwhile, remains a major factor in purchase decisions, the study found.
The respondents, on average, perceived the price difference between
branded and unbranded meats to be $2.40, and indicated that they are
only willing to pay an additional $1.60 for branded proteins.
Of those willing to pay more, 84 percent noted they would accept a
5-percent premium; 76 percent indicated they would pay 10-percent more;
and 55 percent noted they would pay an additional 20 percent.
“Price is always the top of mind for customers,” Uetz says. “If the
price goes up, they will buy less. But a strong brand can help
retailers overcome that barrier.”
Cost also is perceived at the most significant differentiator between branded and unbranded proteins, the study reports.
Among the 37 percent of consumers who stated that they believe branded
meats vary greatly from unbranded, 56 percent cited price as the
greatest variable. It is followed by value, quality, tenderness,
freshness, consistency and healthfulness.
It is important for merchandisers to stress such attributes in their
marketing, particularly because many shoppers cannot easily recall
brands.
Indeed, the survey reveals that only 42 percent of consumers could name a specific meat brand.
Just one brand, on average, was mentioned on an unaided basis.
Spontaneous recall of chicken brands was highest, followed by beef and
pork.
Consumers could recall an average of 4.8 meat brands when asked about
particular products, the study reports. Aided recall was highest for
beef and chicken and significantly less for pork.
Uetz says the biggest surprise from the research was the inability of many respondents to name a single beef or pork brand.
Yet, because most retailers market national poultry brands,
merchandisers are more likely to differentiate their offerings with
private-label beef and pork, he notes.
“With enhanced marketing of specific brands, retailers have a large
opportunity to stand out in the crowd,” Uetz says. “It is important in
a competitive environment to do anything to get a brand to top of mind.”
It is not sufficient, however, for merchandisers to merely offer
branded meats with little advertising and in-store marketing support,
the study reports.
“Simply applying and sticking to the principles of marketing—product,
placement, position and promotion—in a way the consistently conveys the
value proposition to the target audience has the opportunity to greatly
increase a brand’s awareness and increase loyalty,” the study notes.
Co-marketing by retailers and meat companies also can strengthen customer loyalty to brands, the report states.
“There is considerable room for marketers to build awareness of product
qualities and thereby improve the perceived value proposition of these
products to consumers,” the study concludes. “This will, in turn,
increase the price premium consumers are willing to pay for branded
products.”
