Promoting Brand Simplicity in Food and Drinks

Reducing Product Claims, Brand Dilution and Private Label Threat

Publication Date	October 2008
Publisher	Business Insights
Product Type	Report
Pages	91
ISBN Number	not applicable
Product Code	RBI00260

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Summary

The proliferation and diversification of brands has meant that there are many, sometimes conflicting, brand messages for the consumer to absorb. To counteract the many complexities that consumers have to deal with during the in shopping trips, manufacturers need to make purchasing decisions easier for consumers. This can be achieved by marketing simplicity as a premium benefit. Refining brand values, going back to original packaging and making packaging clearer are all ways that manufacturers are using simplicity in product and packaging formulation.

Promoting Brand Simplicity in Food and Drinks is a new report by Business Insights that analyzes the consumer demand for simplicity and how manufacturers can make the most of this opportunity through the production and marketing of food and drinks.

Enhance your strategies for building and maintaining brand simplicity using the actionable recommendations provided by this new report.

This new report will enable you to

Implement the best-practice brand strategies of leading innovators in the food and drinks market using this reports analysis of food and drinks companies including 'Innocent and 'Green & Blacks.
Improve the effectiveness of your product marketing with this reports analysis of claims on 15,000 food and drinks product launches between 2005 and 2008.
Understand the threat of private label based on this reports private label data in Europe and the US between 2006-2011, highlighting ways manufacturers can minimize threat by promoting simplicity.
Identify the key drivers of consumer complexity in the food and drinks market and quantify the new opportunities that emerge for manufacturers and retailers.

Key issues examined by this report

Complex food and drinks packaging. Product packaging is becoming more complicated and confusing for consumers to understand due to the increasing amount of claims and more scientific labelling on packaging.
Concern over artificial colors and flavors. Consumers are becoming more concerned about the effect of artificial colorings and flavorings. This is driving the increased demand for natural and organic food and drinks.
Brand extensions diluting core values. The increasing amount of brand extensions has meant that the core product message reaching the consumers is often weak and the products brand values are diluted.
Promoting simplicity in store. Retailers are promoting simplicity in store, by developing market place formats to replicate farmers and local markets to instill trust in consumers.

Your questions answered

How are retailers promoting simplicity in store?
What is driving the need for simplicity?
How can manufacturers promote simplicity as a premium product attribute?
How can manufacturers prevent the dilution of a products core brand values?
Who are the key players leading the way in brand simplicity in food and drinks?
How do private label brands add to consumer complexity?

Some key findings from this report

In 2007 5.9% of products launched in Europe and the US made at least one product claim, whereas 3.9% of products had at least six claims. This highlights the added complexities consumers are facing in terms of labelling when they choose a product.
Private label sales in Germany are set to rise by a CAGR of 4.8% by 2011; this is linked to the growth of discounters in Germany and the acceptance of private label. Private label brands are growing in popularity in the UK.
The amount of employed females in the US has risen from 69m in 2002 to 75m in 2008. The total figure for Europe has also risen from 178m in 2002 to 186m in 2008.
Natural was the second most popular product claim in 2008 with 7.8% share. Manufacturers can utilize the growing popularity of natural food and drinks by using the back to nature theme of simplicity to develop products that have a simplistic positioning.

Content

Promoting Brand Simplicity in Food and Drinks
Executive Summary
Introduction
- Drivers of complexity
- Consumer need for simplicity
- Promoting simple brand values
- Simplicity in retailing
- Conclusions
Chapter 1 Introduction
- Summary
- Introduction
- Definition of simplicity
- Simplicity in the purchase to consumption chain
- Simplicity over time
- Themes in simplicity
- The scope of the report
Chapter 2 Drivers of complexity
- Summary
- Introduction
- Private label
- Private label sales
- Brand extensions
- Packaging
- GDA and traffic lights food labeling
Chapter 3 Consumer need for simplicity
- Summary
- Introduction
- Consumer time complexities
- Number of hours worked per week
- Increase of women workers
- Demand for natural and organic
- Regaining consumer trust
- Simplicity by age
Chapter 4 Promoting simple brand values
- Summary
- Introduction
- Simple brand values
- Going back to simplicity
- Taglines
- Packaging
- Making packaging clearer
- Reducing claims
- Making claims easier to understand
Chapter 5 Simplicity in retailing
- Summary
- Introduction
- Retail propositions
- Market place format
- Carrefour
- Morrisons
- Farmers markets
- Local sourcing
- Private label brand values
Chapter 6 Conclusions
- Summary
- Introduction
- Manufacturers
- Promoting simple brand values
- Labeling complexity
- Retailers
- Store layout
- Longevity of the simplicity trend
- Index
List of Figures
- Figure 1.1: Definitions of simplicity
- Figure 1.2: Simplicity in the purchase to consumption chain
- Figure 1.3: Evolution of the Weetabix brand
- Figure 1.4: Themes of simplicity
- Figure 2.5: Private label, share of sales, by category, in Europe (%), 2006-2011
- Figure 2.6: Private label, share of sales, by category, in US (%), 2006-2011
- Figure 2.7: Examples of Coca-Colas brand extensions
- Figure 2.8: Heartfield Food Soy Crunchies
- Figure 2.9: GDA and traffic lights food labeling
- Figure 2.10: Cadburys Be treatwise labelling
- Figure 3.11: Good Nature All Natural Antibiotic Free Pork
- Figure 3.12: Level of consumer concern about potential risks related to food and drinks, 2006
- Figure 3.13: Arizona Diet Green Tea - Blueberry
- Figure 3.14: Simplicity for different age categories
- Figure 4.15: Marmite
- Figure 4.16: How Innocent promotes simplicity
- Figure 4.17: Pot Noodle brand lifecycle
- Figure 5.18: Wal-Marts Marketside Logo
- Figure 5.19: Simple store layout at Carrefour Market Banner store
- Figure 5.20: Market Street at Morrisons
- Figure 5.21: Number of operating farmers markets in the US, 1994-2008
- Figure 5.22: Reflets de France
- Figure 5.23: Example of a Whole Foods Market store
- Figure 5.24: Example of Tesco Value private label brand
- Figure 6.25: Green & Black's Organic Chocolate Bar - Dark 85% Cocoa
- Figure 6.26: The cyclical nature of simplicity
- Table 1.1: Simplicity for consumers, manufacturers and retailers
- Table 2.2: Private label food and drink brands of 5 leading retailers
- Table 2.3: Private label sales in Europe and US ($m), 2006-2011
- Table 2.4: Number of brand extensions of the top 10 leading global food and drinks brands, 2007-2008
- Table 2.5: Number of brand extensions of the top 10 leading global food and drinks brands, by type, 2007-2008
- Table 2.6: Claims on food and drinks packaging
- Table 3.7: Average number of hours worked per week in Europe, 2001-2007
- Table 3.8: Number of women in full time employment, in Europe and US (m), 2002-2008
- Table 3.9: Natural and organic food and drinks market value in Europe and US, by category ($m), 2000-2010
- Table 3.10: The level of trust consumers have in various claims made by packaged goods manufacturers, 2004
- Table 4.11: Beer brand share in the US, by volume, (%), 2002-2006,
- Table 4.12: Share of products launched with 1, 6 and 10 claims on packaging in Europe and US (%), 2005-2008
- Table 4.13: Average number of claims on packaging, Europe and US, 2005-2008
- Table 4.14: Top 20 claims on food and drinks packaging, Europe and US, 2005-2008
- Table 5.15: How top 10 grocery retailers are using simplicity in store