There has been a lot written about consumers trading down to private label and value-priced brands during the current period of economic tumult, but a new study also points to large numbers of shoppers sticking to tried and true brands.
Research by the YouGovPolimetrix research company for BrandIndex found that consumers were sticking to brands such as Sears' Craftsman tools, Clorox, M&M's, Rubbermaid, Sony televisions and Whirlpool.
The BrandIndex poll asks consumers to rate brands based on six criteria: image, quality, reputation, satisfaction, value and willingness to recommend.
Michael Margolis, president of Thirsty-Fish, told Brandweek, that Craftsman's high marks are a reflection of consumer confidence in the brand. "People are wondering, 'What brands can I really trust,'" he said.
Ted Marzilli, general manager of the BrandIndex, said Craftsman connects with consumers not because it is "showy or flashy. But it is well-known, reasonably priced and good quality."
Among the brands making the biggest jumps in approval from the first to second half of 2008 were Craigslist, Southwest Airlines and Wal-Mart Stores. All three are known to appeal to the frugal nature of consumers.
"In a challenging economy, value is something consumers focus on," Mr. Marzilli told Brandweek. "In a down economy, people are more concerned about price than whether or not all Wal-Mart employees receive health care benefits."
Companies that saw the biggest drop, not surprisingly, included AIG, Goldman Sachs, Merrill Lynch, Morgan Stanley, Wachovia and Washington Mutual.
Discussion Questions: What does it take for a brand to be successful at a time like this? How does a brand without the history of those mentioned in the BrandIndex poll establish itself during periods of economic uncertainty?