GMA Survey Touts Multiple Advantages of
'Brand Loyalists' vs Private Label Buyers.

Survey conducted by Roper Starch Worldwide for Grocery Manufacturers of America concludes "national brand loyalists" are "better off economically," better-educated, more likely to be married, more likely to own their homes and more likely to be computer-literate than private label (PL) buyers. "National brand loyalists" are defined as consumers who "always or mostly buy a national brand when shopping for both food and beverage and health and beauty aids." 46% of Americans are brand loyalists.

Details. Survey finds brand loyalists more likely to recommend to others restaurants, movies, TV shows, cars, magazines "and other products and services they like." Roper Starch president/COO calls brand loyalists "ultimate consumers" and notes: "By understanding what motivates these consumers to buy national brands, brand marketers are (better able) to attract new customers and retain (their) most loyal buyers."

Plus. Table below shows selected survey results. Also: 1) "(PL) buyers' propensity to live in the south and in rural areas corresponds with their lower income levels." 2) greater percentage of PL buyers are African-American or Hispanic.

Advertising. Brand loyalists are "more likely than PL buyers to agree with positive statements about advertising," says study. However, many brand loyalists take some dim views re ads. For example, 65% of brand loyalists says advertising "encourages people to use products that are bad for them."

Beverages. Among brand loyalists, 52% say product being "high quality brand" was "most important" in purchase decision on CSDs; compares with 42% PL buyers. Re orange juice, 54% brand loyalists look for "high quality brands" vs 34% PL buyers. Re bottled water, 41% brand loyalists cite "high quality" vs 30% PL buyers.

Reaction. Private Label Manufacturers Association (PLMA) president Brian Sharoff says GMA survey "shows that the national brands are out of touch with consumers." Notes brand loyalists are not a majority of US population. Adds: "Real world is made up of all consumers (including) unmarried and poor people." Says PLMA research indicates "big national brands" represent 45% of grocery volume, PL 20% and "smaller/regional/niche brands" 35%. Concludes: "There is ... an ongoing deterioration of the national brands' presence on the shelves of America's grocery, mass merch and drug retailers." PLMA says in 1999, PL outperformed national brands in sales -- PL +6.1% vs brands +5.5% -- and in unit sales with PL up +1.3% vs brands up +1.1%.