Reasons to be positive – Ensuring your brand meets consumers needs in 2010: Wed 13th January 2010

After an uncertain 2009 for consumers and brands alike, The Oxford Research Agency predicts that 2010 will see an uplift in consumer confidence providing opportunities for brands to take a positive approach for the year ahead.

2009 was encapsulated by uncertainty reflected in a cautious consumer which in turn led to brands reigning back on NPD and product development.

As predicted by Mintel in its recent report on global consumer trends, 2010 should see a return to consumer confidence.

Re-evaluating expenditure against value: Many consumers in 2009 spent the year in a state of financial uncertainty and therefore re-evaluated their expenditure on all aspects of their lives from where they went on holiday (if at all) to what they bought in the supermarket. How many of us changed supermarkets, downgraded from our favourite brands and even switched to own-label products? Even worse, who cut back on their favourite treats?

IGD figures from last October highlighted that more than 54% of shoppers will be more careful when spending money in the future. Whilst consumers will still be cautious having assessed outgoings and tightened their belts, consumers in 2010 have a more positive outlook and are in a stronger position to decide where they shop and what they will spend their money on.

This means that with a more positive outlook in 2010 your brand needs to engage consumers to stay ahead of the competition. Whilst value will still play an important part in consumers’ lives, others will be looking to increasingly spend more, whether it’s buying back into their favourite brands, or buying those luxury items they had put on hold. If consumers are to pay more they must be convinced that they are getting value for money.

Social networking: Brands values are increasingly being critiqued by the consumer (hence the run on adverts focussing on nostalgia and playing on brand values) and then communicated on social networking sites such as Facebook and Twitter. This has developed from customers simply criticising poor customer service, to Coca-Cola’s recent unveiling of a new flavour for its Glaceau Vitaminwater drink called Connect after a promotion run on Facebook. The internet has also seen the development of numerous comparison sites and on-line forums and going forwards those brands who work in harmony with new technology will only come out stronger for it with greater consumer trust.

The ethical & green consumer: With a more positive outlook and perceived greater financial security consumers will increase their demands on brands to be both more ethically and environmentally responsible. IGD highlighted that by 2012 that, from an ethical stand point, 37% expect to be buying more local and regional foods and 34% will be looking to buy food with higher animal welfare standards. 31% also expect to buy more Fairtrade with 15% expecting to be buying more organic foods.

Nestlé’s announcement that Kit Kat bars are to be Fairtrade-certified from early this year as well as Starbucks moving to 100% Fairtrade coffee in September 2009 (thus increasing the amount of Fairtrade coffee sold in the UK by 18%) are two recent examples where brands are meeting these consumer demands.

Those companies that embrace ethical and green issues can expect to prosper and develop a greater sense of loyalty as they increasingly connect with consumers.

Providing increased choice: Those companies willing to develop and enhance ranges to provide increased choice at different price points and with different benefits should appeal to those consumers who are now feeling more confident about 2010 and are willing to spend more and emerge from a more cautious and frugal 2009.

Here at The Oxford Research Agency we are already working with a number of forward thinking clients who are also predicting that there is a need to be positive going forwards with a need to identify new opportunities to meet consumers’ needs for the year ahead.

Your brand will need to ensure that it is performing at the highest level in terms of its offering: from being a superb product with fantastic packaging and standout, to hitting a competitive price point. To do this you will need to make sure that you understand your product and how it relates to the competition.

At The Oxford Research Agency and Mimosa we use a fully integrated NPD approach for screening, evaluating and optimising new product Launches. Used by over 20 of the Top 50 FMCG companies in the world, it helps us generate more successful product launches - over 4 times the average measured by Nielsen.

Find out how we help you get ahead by contacting John Whittaker on +44 (0)1865 72 82 72 or at john.whittaker@tora.co.uk, or visit our website at www.tora.co.uk

For qualitative understanding call Sunita, Emma or John on +44 (0)1865 20 84 03 or contact info@mimosa-qual.com.