Tuesday, May 5, 2009
Loyalty Declines Along with the Economy
If you are like me you are probably getting a little tired of hearing all the economy doom and gloom. However we can't deny the effect the current economic trends are having on food trends, in particular how the average American shops for food. Various surveys and reports have shown there has been a huge shift in how we shop. Brand loyalty is on the decline while deal shopping is all the rage. Coupon usage is way up (so if you happen to be a brand manager issuing those coupons I hope you are keeping a close eye on that redemption budget....the old estimates will not apply!), promotional activity is up and purchases of lower priced private label items is up. What is down? Brand loyalty. According to a survey by Universal McCann only about a third of shoppers are planning to remain brand loyal with about an equal number stating they will only buy a grocery item that is on discount.