What makes people buy? In our consumer world the concentration of income and investment at the top end of the supply chain drives the influences that make those split second choices when a product falls off the shelf into a shopping basket. Supermarkets pride themselves in choice. Choice that offers multiples of similar products flying the flags of different brands. Price is but one issue. This week I was intrigued as to the quality of Tesco economy brand corn flakes. A staple product, priced at a third the cost of the Tesco own brand – which in itself is half the price of a well known brand.
The quality was still good. The packaging as expected did what it needed to do. The price was eye wateringly low. A great piece of value for money for the consumer.
I reflected on this as I was reading this morning a blog by Janina – Too Strong coffee, exposing the recent merger of two global super coffee roasters. The story is all too familiar. The largest roaster,- Nestles, having its number one position in the world challenged by the marriage of no 2 and 3.
Does any of this matter to the end consumer?
It could be a good deal, bringing greater resources and buying power to favourite brands maybe providing improved flavour, quality or even price. It could also come at a cost as that greater buying power may not be to the advantage of coffee bean growers, creating a position similar to that of UK milk producers. But then coffee is not a supermarket loss leader. Coffee is a premium product characterised by source; taste; strength and brand. It also has achieved a successful on-the-go presence on the High street where so many traditional retail offerings have failed. Its branding secures its authenticity; its desirability and encompasses its quality into a value.
I mused over this while pouring over the multitude of brands of sea buckthorn oil capsules that now appear on Amazon and Ebay.
What is it that drives consumer preference of one brand over another ? It is said that it takes seconds for a consumer to make a product choice in a supermarket. Loyalty to brands provides preference but what drives the decision of a new customer? Price is a forked stick – too low might indicate poor quality; too high questions value for money. First impression on packaging may have a greater impact on a retail shelf, but on a virtual sales site the gloss provides less impact.
Of course the difference between a retail shelf and an internet site is that with the former there is exposure to new customers. Internet sales are serving a mature market. These customers have probably already established brand loyalty, so influencing a change of heart requires a radical offering. Brands in the sea buckthorn capsule market differ in source of product; size of capsule; quality of capsule; pure or mixture of oils. Pack sizes seem to grow and grow, offering convenience but discounts for volume are not as obvious as one might assume. Brands portray differing backgrounds – healthcare multi product distributors to dedicated specialists. The issue that comes across is how one views the actual product – is it like my pack of economy cornflakes and a product you can accept as always of a standard quality, regardless of price? Or is it like coffee, a product that comes with the guarantees that one associates with a brand you trust but you are prepared to pay a premium for?
There are a myriad of competing supplements on the market, each with a specific offering. Some come in with fashion, some have been there for generations. The issue has to be with all of them that consumers that want to take a supplement, care about their health. In this there lies a producer responsibility to ensure that the product the customer buys is of the quality that delivers what the customer wants. So this is not just about price – my economy packet of cornflakes being sold at such a low price, may be good value for money, but there can be no guarantees on quality. It is more about that branding – if quality is essential then its traceability is important; its functionality is important; its supply chain must be transparent.
So it is important to the consumer who runs brands and delivers the products they buy.
