Viewpoint: Brand loyalty is (almost) officially dead
Further evidence of the demise of consumer loyalty to FMCG brands comes with the publication of a new report from the Institute of Practitioners in Advertising that uses data from Dunnhumby and the Tesco Clubcard.
It shows that while promotions have increased in some categories by as much as 80 per cent (between the fourth quarter of 2007 and the same period in 2008), levels of loyalty have declined.
Although the fall equates to around only one per cent in each category this equates to a significant amount in terms of value and volumes of product sold. The IPA reckons the solution to this dire situation is for brand owners to work more closely with retailers on their promotional activity. Otherwise the supermarkets will likely continue to slowly kill off any remaining brand loyalty.
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