High volume growth in pasta & noodles indicates that consumers are opting for cheaper brands in this sector, according to a new study now available on ASDReports

Wednesday 25 June 2014, Amsterdam

Report description overview:

The new report, now available on ASDReports, Quality, Indulgence and Premiumization Strategies in Food – Defending Against Margin Erosion provides a comprehensive overview and strategic analysis of how brands can effectively defend their profits despite the emergence of value competitors. The report focuses on the strategy of premiumization, to encourage consumers to trade-up in terms of both price and quality. The growing popularity of private label alternatives is also addressed – and what brands can learn from them, and ultimately defend themselves against discounters by offering consumers the highest quality, and drive sales.

The difference:

• This report provides the knowledge and insight to aid branded manufacturers to defend against margin erosion from the competition and consumers value-seeking behavior.
• Identify new opportunities in the future directions for manufacturers to target changing consumption habits, as ethicality, quality, and craftsmanship become increasingly influential.
• The growing popularity of private labels can be detrimental to brands; this report will identify the key areas in which to defend against incursion from private label products, and regain lost market share.

Report highlights:

The global financial crisis has affected consumer spending, and despite economic improvement across much of Europe and the US, consumers have not reverted to previous spending habits. Manufacturers must consider the austerity needs of these consumers by providing value, not solely in terms of low cost, but also to trade-up for quality.

Taste and indulgence will continue to drive consumption across food categories, and manufacturers should ensure that their products offer consumers the best overall experience. Consumers are unwilling to sacrifice taste for other concerns, such as health, re-enforcing the need to offer products that offer uncompromised moments of pleasure and indulgence, particularly, in Non-BRIC countries.

Consumers, particularly in BRIC countries, are increasingly seeking products that offer assurances of quality, and manufacturers should respond by ensuring transparency in terms of sourcing, production, and ingredients to drive sales, as the desire for authentic and trustworthy products increases.

Many consumers no longer view private labels as cheap, lower-quality imitations of branded products, instead perceiving them to be of an equal, and sometimes higher, quality. Branded manufacturers can defend against the growing popularity of private labels by accelerating innovation, or to corner a niche market which holds no attraction to private labels. In addition, the growing premiumization of private label offers means that making private label products could improve the profitability of some manufacturers.