Branding Loyalty: Big Brand Vs. Store Label

According to a study by the Integer Group® and M/A/R/C Research, 77 percent of general shoppers compare store brands to brand names. The downside? Most of them (90 percent) won't risk the change.

"Certain categories appear to be immune to the store-brand swap," said Craig Elston, senior vice president, IntegerTM.
"Categories that offer shoppers frequent innovations such as performance or variety, and categories where personal stakes are higher, are more difficult areas for private [store] label products to compete."

The study noted several exceptions across various demographics. About 76 percent of African-American shoppers (and 69 percent of shoppers, in general) will not swap laundry detergent. The brand is too important to them.

Health and beauty is also a category where shoppers prefer a brand name to a store label. Seventy-four percent of Hispanic shoppers (and 65 percent of general shoppers) will stick with their brand.

Trust and the perception of quality dominate decision making.

Part of the reason is associated with the perception of quality. As long as a brand can keep its brand promise, store labels will have a difficult time finding any leverage. In fact, trust accounts for 51 percent of a purchase decision, much higher than influencers, online reviews, or any other factor.

Store labels have an additional challenge too. Lower quality store labeled products have led to fewer store label shoppers than two years ago. And to compensate, retailers haven't done much more than building better brand identities (e.g., nicer packaging). They ought to focus on better products.

Case in point: When customers were asked if they thought the packaging had improved, 14 percent said that the labels do look better. However, even with better packaging, they prefer the brand they trust.

There is one exception highlighted by the study.

Sixty-eight percent of the shoppers prefer store label brands (generic) in the over-the-counter medicine category. But this unique outcome has much less to do with the identity and more to do with a cultural phenomenon tied to an external directive — insurance companies, health care providers, and some doctors have convinced consumers to look for generic first. Consumers have adopted this mindset across the board.

Without any external directive, implied or mandated, customers rely on brands that deliver on their brand promise. You can find the study here (which includes the common lead generation form).

While the study is interesting, it does miss some deeper issues related to consumer psychology as well as a holistic definition of brand loyalty in that it is much more than an identity. Ergo, the trust factor is directly tied to the relationship between the brand and the consumer. Identity only reinforces familiarity.

Where supermarkets and retailers attempting to introduce store labels frequently make a mistake is they try to entice consumers based on price points. With the exception of price point shoppers, most consumers are only motivated when their preferred brands break a promise (quality failure), do not meet a specific need, the product is temporarily unavailable and there urgency in finding a replacement, or there is an external driver (like health care policies).

If you focus too much on true price point consumers, marketers have to appreciate that they are only their customers for as long as the low price can be maintained. (Price point shoppers have no brand loyalty.)

Likewise, free samples aren't enough either. While customers will sometimes be receptive to a free sample, their purchase decision in the future will only be swayed when their preferred brand has been compromised by one of the four points mentioned above. In fact, many consumers accept free samples strictly to reinforce their brand loyalty to the preferred brand.

Frighteningly Good: Neil Gaiman

Rather than find some superficial tie-in for Halloween, I'd like to give a nod to an authentic one being promoted by author Neil Gaiman. It was an idea he had back in 2010. It was simple, straightforward.

Instead of filling sacks with sweets and other treats (although you can do that too), why not be part of All Hallow's Read and give someone or everyone a spooky book for Halloween. It doesn't have to be today. Make it sometime this week. Not only would such a gift be memorable, but it's a hit for literacy.

If you think a book might be too much to give, there are always comics instead. The point is that a book is safer than candy and it lasts that much longer. Who knows? Maybe it will last an entire lifetime.

The pitch for All Hallow's Read by Neil Gaiman. 

Let me be clear. This brilliant idea wasn't my own. It belongs to Gaiman and I was fortunate enough to learn about it as a fringe benefit to publishing an alternative review site call Liquid [Hip]. We do more than review the occasional author or artist. We listen to them long after they make the list.

Not only has Gaiman put together a website to promote the idea, but he also published this video to explain.



In keeping with the spirit of this exceptional idea, I've put together a quick list of books with a spooky slant. Some of them have been reviewed on Liquid [Hip] and others are part of a short list for any week when we haven't had a chance to find something new. (A couple just mean something special to me.)

Five titles that are great fun for Halloween.

Hobgoblin by John Coyne. Although meant for young readers, it is also one of Coyne's best before joining the Peace Corps. It's about prep school student Scott Gardiner whose love of fantasy role playing begins to blur with the real world. Despite some story problems, it's well worth the read.

It mostly holds a special place for me because I stumbled upon the book as a young teen while traveling alone. My flight was late on arrival, stranding me without any cash in Dallas. I couldn't convince the store clerk to give it to me on loan so I read as much as I could in the airport bookstore. It took months to track it down again because I had forgotten the author's name and Hobgoblin was so ubiquitous.

The Stand by Stephen King. The Stand is easily one of the heaviest horror books ever written. There are plenty of people who love it and hate it. But as far as end-of-the-world scenarios go, it's hard not to appreciate a mutating flu virus that paves the way for an apocalyptic confrontation.

As King was one of my favorite authors for many years, I had to include him. The Stand is my favorite, even if King had written other stories that were more frightening (It) and sometimes more disturbing (Survivor Type in Skeleton Crew). Ironically, I've only reviewed one of his books on Liquid [Hip]; a collection of short stories called Just After Sunset.

Heart-Shaped Box by Joe Hill. Although I have yet to read Horns, Heart-Shaped Box was an amazing debut about an aging death-metal frontman who decides to buy a ghost on the Internet. Mostly, he bought it because he wanted to believe he didn't believe in the supernatural or his former persona.

Besides being a great book that I had the privilege to review, I had no idea that Hill was also Stephen King's son until I finished the book (although it was obvious there were King influences). While it gets a little wonky at the end, it was great to find someone focused more on the supernatural and less on hack-and-slash horror.

Summer of Night by Dan Simmons. Although many people know Simmons for his science fiction and fantasy, he wrote one of the most riveting horror stories I've ever read. It's about five 12-year-old boys who would have been content to come of age riding bikes in their small town of Elm Haven, Illinois. Unfortunately for them, there is an old evil that is coming to life again under their quiet town.

Although I don't know if it would hold true today, I remember this book as the scariest I had ever read. In fact, it was the only book that once kept me up at night because the idea of going to sleep with the story still in my head was too much. It didn't help that the same night I was reading it, my apartment door (which I believed to be locked) blew open with such force that I thought someone was breaking in. While it does resemble an outline, it might be the better book.

Midnight by Dean Koontz. While Odd Thomas is probably his most memorable character, Midnight was one of his most memorable books. The transformation of the people who live in Moonlight Cove, Calif. — whether surrendering to their wildest urges or becoming affiliated with computer-enhanced intellectualism — is frequently nerve-wrenching with its frenzied pace and genre-bending bite.

While Koontz is likely too popular for review on my alternative site, Midnight will remain one of my favorites from this well-known author. The idea of chemically induced evolution is perhaps even more relevant today as what was once science fiction now resembles science fact.

There are countless more I could list. Several of them can be found on my growing online bookshelf, including one by Gaiman with co-writer Terry Pratchett. (One for now, I am certain). If you want to grab up something short, look for Roald Dahl or Rudyard Kipling. All of these gems can be considered lovely stuff. So I hope you will consider Gaiman's idea seriously. If not this year, the maybe next.

Special note to Neil Gaiman: Anytime you want to talk about creating an online campaign to support All Hallow's Read, do not hesitate to drop me a "note". While it already has strong grassroots support, a little push in the right direction would give a groundswell to make it permanent.

Building Brands: The Social Media Connection

There are three takeaways from a new report on social media and brand building by Forrester Research. Marketers might find them familiar. Some social media practitioners might not. But suffice to say that social might be more of a brand reinforcer than a builder, something we've said all along.

• Social media is part of brand building, but not a standalone solution.
• Social media provides the story, leveraging emotional elements.
• Social media improves the relationship with engagement and loyalty.

All three takeaways point to the same assumptions, however. Organizations have to employ social media as an effective tool or tactic and not as a magical strategy simply designed to give awareness a lift. Too many companies view social that way today. They count likes and followers instead of brand reinforcement, repeat business, and customer engagement.

One of the best lines in the report is right up front. Principal author Tracy Stokes points out that many organizations are asking the wrong question. They are asking "what is the social strategy?" instead of "how does social media change the brand strategy?" Personally, I might even ask a different one all together.

Are we living up to our brand across every connection and contact?

Among marketing leaders, most of them get part of it. Ninety-two percent believe that social media has fundamentally changed how consumers engage with brands. But what doesn't add up is that only half of all marketing professionals see their social media efforts as strategically integrated into brand plans.

Part of the challenge is simply because social media is still in its infancy. Sure, social has come into its own as a tool, with almost every marketer (B2C and B2B) seeing it as a relevant marketing tool. But what I mean when I say it is in its infancy is that the tail still wags the dog or, in other words, social media and social networks control the brand.

It's not all that different from television when it first burst onto the scene. Advertisers would walk onto the show set with a product easel and talk about the product. These advertiser cameos were often stiff and unconvincing, but consumers didn't care because nobody had done anything different.

That slowly began to change, with one of the first examples being a 10-second spot that aired before a baseball game. The commercial, without any interference (a spokesperson and easels), was pretty shabby (even for $9), but what Bulova attempted to do was establish a brand message on its terms.

It took some time for most brands to catch on. Years after Bulova, even McDonald's struggled to break away from the idea that people wanted brands to have pretend dialogue with them. McDonald's did much better when it started advertising skits in the vein of Sid and Marty Krofft.

It isn't much different than how many social media practitioners act today. They jump on a network and then adopt the platform, sometimes trying to jump into trending conversations. Brands ought to work harder establishing what consumers can expect from their presence, making sure it reinforces the brand and not just coupons and gimmicks for the favor of a connection (unless it the brand is price-point driven).

And even then, it cannot neglect that brands are established by an integrated communication strategy. The Forrester white paper delivers a few good ideas. They range from humanizing a company and creating groundswell for riskier ideas to correcting a negative image and working toward common causes. You might notice that all four of these ideas are measurable beyond awareness and attention.

What will the future look like for social media?

The topic deserves a post on its own, but some ideas are already moving full steam ahead. Forrester is looking at the unification of corporate and brand identity, connection planning (not channel planning), and tent pole events that give brands a lift as opposed to trying to deliver 24-7 messaging.

All three are good ideas. Our own research shows that offline communication is critical for most organizations. It gives the company an opportunity to talk about events before, during, and after the fact. Because these conversations directly relate to consumers on their terms, it creates more touch points — from curiosity about the event to real-time reporting to post-event conversations, which give people who didn't attend an idea of what they missed and those who did attend some fond memories.

But all of it, regardless of what is done, will share a commonality. It will all tie back to the brand. And the brand identity, although some people argue otherwise, will be established and managed by the company (not by social media). Specifically, brand managers will be charged with making sure that everything done at every level of the company keeps the brand in mind. And if it doesn't, then the organization will adjust or adopt a new brand that they can live up to.

If you are interested in the white paper, you can find it online here. One word of caution. Like many white papers, it is being offered in exchange for including your name on a lead generation list.

Influencing And Being Influential: They Are Different

In 1917, Woodrow Wilson established the Committee on Public Information, which was headed by George Creel and staffed by several notable figures (and somewhat notorious) like Edward Bernays, who went on to become credited as the father of modern public relations. They were largely responsible for creating anti-German hysteria in the United States to promote war efforts during World War I.

Some of what they told the public was true. Some of what they told the public was made up. All of it was by design. And yet, despite exerting one of the most influential campaigns in history, one wonders whether the men themselves could be considered influential as the ghosts behind the propaganda.

Why influence cannot be measured by actions. 

Most people include actions as a measure of influence, online and off. While there is some truth to the notion, it is becoming one of most misunderstood and misleading measures employed by marketers, public relations professionals and social media advocates. Any communication, after all, can produce a response, a.k.a. action. But not all actions represent a compelling force on an individual or group.

For example, if Subway drops the price of its foot long to $5 and I happen to buy one, it would be difficult to argue that Subway influenced me or had influence over me. Sure, some might say the price point did (and many marketers do). But the truth is that nobody really knows why I bought it (or if I would have bought it without the social media coupon). 

• Maybe I was already inclined to order a sandwich and stumbled upon the coupon after the fact. 

• Maybe I intentionally follow Subway on Twitter because it offers coupons from time to time. 

• Maybe I know someone who likes Subway and I'm increasing my so-called influence over them. 

• Maybe I ran out of salami and the lack of salami and proximity of Subway influenced me to go. 

• Maybe there really is something to the Mayan calendar and I'm stocking up.

You don't really know. Even when we measure using benchmarks and look for upticks along the social graph, we don't really know much more than what seems to be. But more important than that, even if I execute an action, it doesn't mean Subway has any influence on me whatsoever.

I will give Subway some credit in terms of marketing. It has successfully positioned itself as a healthier alternative to fast food. However, even that doesn't necessarily mean that it influences people to eat healthier. All it means is that it has positioned itself to meet the needs of people who are already influenced to eat healthier. Ergo, the action could be a result and not a persuasion.

Being influential is different from influencing. 

The same case can be applied when people click a link, share a tweet, or post story. Sometimes it might be the individual who shares it because of their reputation or popularity (not because they have direct or indirect influence over me), but sometimes it is the headline or topic. And then? Once I read the story, it could have any degree of an outcome — ranging from reading a sentence to subscribing to ... name it.

Online, most measures are tracked at the click or the share. The irony is that most compelling forces do not occur at the click or the share. They only occur at the compelling force (content), assuming the thoughts and opinions exert any influence. Not all of them do. And that is different from an influencer. 

Influencers, on the other hand, are something different all together. They are people who exert influence for any number of reasons. 

Oprah, for example, can consistently put a book on a best sellers list by merely recommending it (regardless of the author or subject matter) because she earned influence. Sometimes someone in a position of authority has influence regardless of awareness or the number of interactions they have with someone (and sometimes people with authority have no influence). Sometimes someone who has dedicated a lifetime in the pursuit of knowledge is influential. Sometimes nobody is influential until fate requires it. It all depends. 

What is missing from marketing and social media from being able to accurately and authentically account for influence is the immeasurability of the "compelling force" required to be influential, which is largely based on the charisma and possibly reputation of a person combined with their ability to deliver the right message within the right sphere, at the right time, in the right environment, to the right environment. 

What is happening all too often in communication today is that individuals are too worried about taking actions in order to give themselves the appearance of being influential rather than taking actions that elevate themselves to positions where people are known to become influential. And this simple fact is why I lead with Creel and Bernays. The pursuit of an influential appearance isn't communication or influence as much as it is manipulation and propaganda, which is the exact opposite of being influential.

Making News: Pizza Hut Tries Presidential Publicity

Author and public relations professional Gini Dietrich wrote a great article about the publicity stunt gone sort of wrong for Pizza Hut last week. The pizza chain promised one person a lifetime of pizza if he or she asked President Obama or Mitt Romney whether they liked sausage or pepperoni.

When Pizza Hut received some push back, it decided to skip the publicity stunt and came up with something else instead. Inexplicably, this decision divided some public relations professionals and journalists. Some thought that stunt was brilliant. Some thought the stunt was stupid.

What surprisingly few people did was distinguish public relations from publicity.

Sure, publicity sometimes works as a public relations function. And sometimes it operates under the umbrella of marketing. Either way, the idea is basically the same. If you don't have news, make some.

The idea is lock step with some of the many stunts done by Edward Bernays, the man who is most often credited as the father of modern public relations. He advocated publicity stunts for all sorts of reasons (including making it less taboo for women to smoke in public), believing the news to be the very best carrier for any message.

Of course, public relations as a field (and many but not all practitioners) have grown up since the shift from propaganda to public relations. Specifically, it grew up when several professionals began to realize that public relations didn't have to rely on manipulation. It was much more effective when practiced with the organization and its publics in mind.

This, more than anything else, is the reason there was an insider kerfuffle over the stunt. Some praise it as creativity-minded public relations while others look as such cute or stupid stunts as diminishing the evolution of public relations as a management function. Honestly, the whole discussion is kind of silly. Except one thing.

Publicity that aims only for attention is a wasted effort. 

When employed by public relations, there is such a thing as good publicity and bad publicity. Most people, including myself on occasion, have a bad habit of evaluating stunts based on the measure of their creativity. The truth is that we ought to evaluate it based on its strategic substance.

What would Pizza Hut have gained had the stunt worked? Would it make you more inclined to buy their pizza or any pizza? Would have it have reinforced their brand or mission statement? Probably not.

Of all the pizza chains out there, Pizza Hut is the one that best exemplifies the shotgun approach to marketing and public relations. They mostly promote cheap pizza, big servings, limited time pizzas, exclusive sides, gimmick campaigns, crossover product offerings, world hunger, literacy, etc., etc. — more messages than toppings.

Pizza Hut doesn't always have marketing madness. Its communication tends to expand and contract. Two years ago, for example, it was winning with a tighter message. Right now, it has a loose message. The result? Domino's profit was up 18 percent in the third quarter. Pizza Hut sales grew too, by 6 percent.

Sure, there is no question it's still the leader, but it still struggles (as all big pizza brands do) against independents that continue to gain ground. Pizza Hut used to have an 18 percent market share. Nowadays, it's down to 15 percent in the United States as big chains continue to compete against each other based mostly on the price of their pies and gimmicks (while always hoping to shore up profits with side orders). Meanwhile, the independents have managed to capture 70 percent of the market.

All this information is just another way of saying that Pizza Hut (which I prefer in comparing the big three except when I have time for a tastier independent) wasted the effort on this publicity stunt because it didn't even reinforce the price point it actually competes on (despite all the noise). If they wanted a worthwhile campaign, maybe they ought to have "cut pizza pie deficit" instead of trying to make sausage and pepperoni a partisan issue. Or, if they wanted to serve themselves and the public, they could start talking about how gas prices must be killing their drivers and hurting pizza delivery.

Changing Conversations: Can We End Partisanship?

Because of the presidential race and recent debates, there has been plenty of conversation about the role of government. And frankly, it seems to me the national discussion often causes more confusion than clarity for anyone attempting to follow it.

Part of the problem is that there doesn't seem to be any real authority in reconciling the federal budget. If you want to give it a go, start with Wikipedia. Otherwise, you will find different sets of numbers that categorize how the government spends its money. Almost all Americans know is that the federal government spends more than it collects.

They also know that we can't keep doing that. It's a lose-lose proposition because not only do we continually lose every month, but the interest rates on debt erodes purchasing power. Ergo, if you have $100 and spend $110, borrow $10 to cover the difference, and then pay back $10 plus $5 in interest, you'll only have $85 the following month. So to maintain $110 of spending, you'll have to borrow $25 next time. And so on.

Except, in the case of the U.S. government, it's worse. It is more likely to ask for $115 the following month, thereby increasing the rate of the debt and its inability to catch up. We all know it has to stop.

Why what should be simple math becomes partisan and complicated.

The simple math problem illustrated above becomes complicated because in order to solve the debt spiral, the conversation centers around the question "how does the government find more money?" In other words, both parties want to find a way to collect the $110 it needs (maybe $112.50 to pay for past debt) so it doesn't have to borrow any more money.

Two partisan positions eventually surface: raise taxes (and who to raise them on) or increase the number of the employed people who pay taxes while decreasing the number of people who need help (via economic growth). Both have risks.

The risks associated with the first is that if you try collect $112.50 instead of $100, then the number of contributors might diminish revenue to $98. The risks associated with the latter are related to the speed of recovery. For every month more contributors aren't added to the labor pool, the debt spiral continues (perhaps at a faster rate if you temporarily reduce taxes to $98 in order to stimulate growth).

What is even more difficult is attempting to talk about the other side of the coin. Maybe you don't have to collect $110. Maybe you can collect $100. Most politicians don't like to talk about it because cutting $10 means that somebody will lose something. For example, some people think if $450 million is cut from PBS, then there might not be PBS. (The federal funds represent 15 percent of its budget.)

Although PBS would likely weather such a cut, the outcry is generally emotional. There are dozens (maybe hundreds) of expenditures just like PBS. All together, some estimates place federal, state and local governments near $1 trillion in welfare and social programs (more than $700 from the federal level and $210 billion on the state level). Depending on where you look, some consider it to be significantly higher and others significantly lower. Regardless, it's a big number and there is outcry with each program cut.

We need to change the conversation and evolve our culture.

I am not sure that we can change the conversation. In the last decade, politics has become overwhelming partisan — enough so that I avoid most political conversations unless I can tie it to a teaching opportunity for communication. (Political mistakes tend to make for pronounced examples on both sides.)

And yet, the conversation needs to change. We need to find ways to move more welfare and social programs away from government and make corporate and individual giving part of our culture.

This isn't partisan. It's math and morality. The return on investment for government-funded social and welfare programs is paltry compared to direct giving to fiscally responsible nonprofit organizations.

When people give $1 direct to a nonprofit, 80-90 percent of that dollar directly benefits the person in need (assuming the nonprofit is fiscally prudent). When we pay taxes, the value of that same dollar is diminished by bureaucracy and oversight on the federal side and nonprofit expenditures related to pursuing grants, lobbying efforts, and administration costs.

I'm not sure if there has been a study, but I wouldn't be surprised if the value of that $1 drops to 50 cents before reaching the program (and then another 10-30 cents is deducted by the nonprofit), leaving 20 to 40 cents for the people who need it. If we found out a nonprofit was delivering 30 cents for every dollar raised, it would be a scandal. When it's government, we expect someone else to pay more — even if government further erodes the benefit by borrowing to cover the loss of value.

It's also not uncommon for many government-reliant programs to think differently about government funding. They don't think of it as taxpayer money. They look at it as earned money. Earned money doesn't inspire the same frugality as charitable donations. It tends to be spent in the least efficient areas.

At the same time, for every tax dollar increased, people have less to give. It's not a coincidence that tax increases tend to reduce charitable donations, thereby driving more people to government programs.

Still, we won't see it during this election cycle, and maybe not ever. But it would make a lot more sense if the so-called millionaires for higher taxes started writing checks for social and welfare programs instead of insisting other people write checks to the government for a lower return on social investment.

If you can afford more taxes, then you aren't giving enough to charity.

If they and others started to donate more, maybe we really could reduce spending to a hypothetical monthly budget of government to $95 or $85 instead of $110, with $10 borrowed. And maybe, if other people follow by example, we could start to make charitable giving such a strong presence in our culture it would lower the need and demand on government.

As much as I like PBS, that might even be a good place to start. The $450 million in tax dollars it received is nothing compared to the $1.5 trillion or more that was spent on political campaigns this cycle. Maybe the government could ask the private sector (that already donates 60 percent of the PBS budget) to cover it. Or maybe consumers can just buy an extra Elmo. There is some very big money in Sesame Street merchandising. I've been an avid contributor over the years.

The more programs we could take off the government books with affluent individuals and corporations agreeing to adopt in lieu of tax increases makes much more sense. It would also empower people to prioritize their own giving instead of entrusting a third party to take some and spread it around.