the

inside the in-store experience

shopper
marketing in focus: private-label brands
Whether it’s Trader Joe’s or Rancher’s Reserve, Kirkland or Kroger Value,
update private-label products are increasing in both share and stature. This month,

%
we explore how people are shopping this important category.

Store-Brand Buying Habits

? = Which statement about store brands best describes you?

buying more store brands,
and will probably buy even more 7

buying more store brands, and

will probably stick with them 19
(%)
buying more store brands, but will
probably switch back to name brands 10

buying store brands about the

same amount as last year 56

buying fewer store brands

than last year 8

store brands are not so bad after all

Shoppers buying more store brands than last year outnumber those buying fewer by more than
four to one (36% versus 8%). And among those who are buying more, three in four say they won’t
return to name brands. Two exceptions are those over age 65 and those with incomes over
$100,000: 64% of each group report buying store brands the same amount as last year.

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name brands must reward shoppers or lose them

Two ways for name brands to keep customers are consistent delivery with a long track
record (which builds trust), and financial reward (couponing and discounting). Shoppers
over 50 years old are more responsive to brand coupons and sales. And women and those
with incomes over $100,000 list “trust” more often than men and those earning less.

Reasons for Buying Branded Products

? = Iftoyou’ve seen a store-brand option for some of your groceries or household goods but decided
stay with a name brand, what are the reasons for not buying the store-brand option?

the name brand

is one I trust 35 53 12
always
a reason
I can get coupons
sometimes
for my brand 28 52 20
a reason

never my brand is
a reason 27 62 11
often on sale

(%) the regular price of

my brand is fine 17 70 13

my brand has special versions or varieties

that I can’t get from store brands 15 65 20

doubts about quality of

store-brand product 14 67 19

I use the product so little

that it’s not worth switching 8 52 40

I don’t like the

store-brand packaging 4 32 64

other
3 48 49

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marketing works—to some extent

Though two-thirds of shoppers believe that name brands offer more novelty and innovation, less than half
believe that name brands also offer better or more reliable products. African-American consumers believe
in the higher quality and reliability of name brands more than other ethnic groups. Most shoppers (84%), not
surprisingly, report that name brands cost more than store brands.

Attitudes About Name-Brand Groceries and Household Goods

? = Compared to store brands, how much do you agree with the following
statements about name-brand groceries or household goods?

agree strongly agree

(%)
name brands are
more expensive 22 62 84 (total agree)

name brands offer more new

products, varieties, and innovations 9 55 64

name brands’ packaging

is more attractive 9 43 52

name brands are

better-quality products 4 35 39

name brands are

more reliable 4 33 37

name brands’ packaging

works better 3 19 22

name brands are what

my family expects to get 3 18 21

name brands reflect my

values and attitudes better 2 12 14

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price comparisons and shopping around are very common

$
Shoppers are looking for deals and are frequently assessing the price gaps among name-brand,
store-brand, and on-sale products. More than eight in ten shoppers report seeking products on sale
or comparing prices between name and store brands when buying groceries or household goods.
Only about one in four report just buying what they want without hesitation (be it name brand or
store brand). Those earning less than $25,000 and those aged 18–24 are more likely to go right for
the store brands. They also get information from friends and store associates before choosing.

Shopping for Store-Brand Groceries and Household Goods

? = How much do you agree with the following statements about

shopping for store brand groceries or household goods?

agree strongly agree

(%)
I’ll look at what’s on sale first and
then compare that to other options 24 57 81 (total agree)

I regularly compare prices between

name brands and store brands 26 54 80

I look for my usual brand on the shelf, then

look around for store-brand alternatives 9 59 68

I’ll look for what I have coupons for first,

then compare that to other options 18 45 63

I go right for the name brands

and get what I want 4 23 27

I’ll try whatever’s being featured by the store

(such as in a display on the end of the aisle) 3 20 23

I go right for the store brands

and get what I want 2 20 22

I get information from friends and family

about store brands before trying them 2 19 21

I ask sales associates which brand

offers the best quality for the price 279

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store brands in the spotlight

Kroger, Walmart, and Target are perceived as carrying some of the best store brands. Specific brands
mentioned frequently include Walmart’s Great Value and Equate, Kirkland (Costco), Archer Farms (Target), and
365 (Whole Foods). The name brands shoppers are least likely to trade out of include Kraft, Coca-Cola, and Tide.

Store Brands That

The Best Store Brands Beat Name Brands
? = In your opinion, which store brands
are the best right now? ? = In your opinion, which store brands are
better than name-brand alternatives?

Kroger Walmart Kroger Walmart Target

Great Value Target Publix Publix Great Value Meijer
Meijer Safeway
Safeway Kirkland
Kirkland Giant Aldi CVS
Trader Joe’s CVS Wegman’s
Stop & Shop Wegman’s
Archer Farms Equate
Albertsons Costco
Equate HEB 365 Stop & Shop

Harris Teeter
Whole Foods
Hyvee
Name Brands That
Cannot Be Replaced
? = In your opinion, which name-brand products
cannot be replaced by store-brand alternatives?

Kraft Coca-Cola Tide

Heinz Del Monte Kellogg’s
Pepsi Campbell’s

Oreo General Mills Jif

Oscar Meyer Hellman’s

Charmin Miracle Whip

Nabisco

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most people are still spending less, especially women

Buying behavior for July closely resembles June, with more than half (54%) buying
fewer or cheaper items. Women continue to account for the largest portion of
shoppers trying to spend less. African-American and Hispanic shoppers are also
more likely to report buying fewer or cheaper items than Caucasians are.

Shopping Behavior Compared to Three Months Ago

total men women

? 2 2 3 2 1 3
3 3 3

In the past three months,

how has your shopping 52 46 47
behavior changed? 48 43 43 45 41 39
buying more and buying
more expensive items now

shopping behavior
has not changed (%) 46 51 50
buying fewer and/or
50 55 54 53 58 58
cheaper items now

Indicates significant difference

from previous month at a 95%
confidence level.

Indicates significant difference

between males/females at a 95%
confidence level.
may june july may june july may june july

Note: Due to rounding, some figures may not total 100%.

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low prices catch up on convenience in everyday goals

Minimizing shopping trips remains the primary goal of shoppers, but not as strongly as in
June. Shoppers aged 65 and over are less price-sensitive than other age groups and are more
likely to value getting everything in a single trip and finding the best-quality items.

Everyday Shopping-Need Goals

?
When thinking about your everyday shopping needs
= (food, cleaning products, etc.), what would you say is the
goal you are trying to meet from each trip you take?

26
get everything in a single trip,
saving the need for more trips 31
27

23
to spend as little as possible 22
25

13 Women are more likely to place heavier

!
a comprehensive restocking
of the items I have used 10 emphasis on restocking items at home
than men (14% women versus 10% men).
12

quick fill-in trips to replace

10
the things I use as I go 9
11 april

to satisfy the needs of all

10
june
july
(%)
my family members 12
10 Indicates significant difference
from previous period at 95%
confidence level.
8
to find the freshest and
best-quality items 8
7

7 Men report higher levels of wanting to

to spend as little time in
the store as possible 6
6
! spend as little time as possible in the store
than women (8% versus 4%).

2
to be entertained
and have a fun time 1
2

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in-store aids feel the generation gap

Shoppers aged 35+ focus on prior planning: they tend to use more manufacturer coupons and circulars from
newspapers or in-store. Younger shoppers (18–34) want more on-demand help: they report higher usage of touch
screens, associates, posters, and self-checkout. Overall, shoppers are reaching for their mobile phones more
often for shopping assistance—usage increased 3 percent in the past month.

Shopping Aids
45
coupons from a 47
manufacturer 48

42
shopper-card discount 42
45
41
directional signs above aisle 42
39

37
newspaper circular 35
36
35
coupons from the store 34
35

32
self-checkout 33
33

circular from 24
inside the store 24
25

17
message on the shelf 15

(%)
15
13 may june july
in-store associate 13
9

? = trip
Thinking about your most recent shopping
7 for groceries, which of the following did
touch-screen 7
device 6
you use in the store to help you shop?

4
mobile phone Indicates significant difference from
3
previous month at 95% confidence level.
6
5
poster hanging from 7
the ceiling 5
5
leaflet 3
5

3
electronic kiosk 3
2

in-store PA 3
announcement 2
2
2
in-store TV 2
1

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price still trumps other criteria despite

signs of economic recovery
Consumers remain as price-focused in July as in previous months—willing to put off
purchases and buy products where they are offered at the lowest price. Interestingly,
shoppers less than 65 years old are more likely to seek out lower prices than those 65 and over.

Shopper Preferences (%)

? = Currently, where do you believe you fall between each of the following?
may 36 43 17 4
seek out
seek out lowest june 36 42 17 5 American-made
possible price
july 38 41 15 6

may 33 46 17 4

save money by spend more

shopping around june 28 44 23 5 but save time

july 30 45 20 5

may 33 45 18 5

save today, june buy now

buy tomorrow 29 45 19 7
on credit
july 32 45 16 7

may 24 45 25 7

stick with familiar switch brands or

brands or items june 20 50 25 5 try new brands
more often
july 22 46 26 6

may 15 37 35 13

buy individual-sized june 14 36 38 12 buy in bulk

items

july 14 35 39 12

describes more
Indicates significant difference from previous
month at 95% confidence level.

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The Integer Group® (www.integer.com) is one of
America’s largest promotional and retail marketing
agencies and a key member of the TBWA\Marketing
Services portfolio. The Integer Group resides At the
Intersection of Branding and Selling® and creates
strategic marketing solutions for clients in
categories that include beverage, packaged goods,
telecommunications, fast food, home and shelter,
and power sports. Join Integer® in a conversation
on shopping culture and brand strategy at
www.shopperculture.com
contact: The Integer Group
Craig Elston
Sr. VP, Insight & Strategy
celston@integer.com
7245 West Alaska Drive
Lakewood, CO 80226
tel +1.303.393.3474
M/A/R/C® Research is a brand development firm
dedicated to helping clients create, evaluate, and
strengthen their brands. Our teams design and
execute qualitative and quantitative, traditional and
online solutions while adhering to a client-service
ethic built on being easy to work with and delivering
what is promised.
Our core competency is measuring attitudes and
behaviors to accurately explain and predict market
share, revenue, and bottom line impact of a client’s
actions. We help our clients address consumer,
channel, and B2B marketing issues to launch better
products and services, attract and retain valuable
customers, and build stronger brands. Our proven,
marketing-issue focused solutions support clients’
brand building efforts.
www.MARCresearch.com/thecheckout
contact: M/A/R/C Research
Randy Wahl
EVP, Advanced Analytics
Randy.Wahl@MARCresearch.com

1660 North Westridge Circle

Irving, TX 75038
tel +1.972.983.0436

The Checkout is based on a nationally representative survey of 1,200

U.S. adults conducted monthly by M/A/R/C Research. Please contact
us to learn more about the data we collect or additional analysis.

©2009 by The Integer Group ® and M/A/R/C ® Research. All rights reserved.
The data contained in this report may be reproduced in any form as long as the data
is cited from The Integer Group and M/A/R/C Research. www.ShopperCulture.com.

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