Brands Are Still Bonza, Says Ehrenberg-Bass Institute

Brands Are Still Bonza, Says Ehrenberg-Bass Institute
SHARE
THIS



A new report released today by the Ehrenberg-Bass Institute rejects the popular opinion that the world is turning against big brands.

The report was released in response to mounting speculation that big global brands are losing out to small local brands, that young people today are less brand loyal, and that small brands have higher loyalty than large brands.

“When someone shouts that big brands are dying they get a lot of attention,” says Institute Director, Professor Byron Sharp, “because big brands pay the salaries of many, and make up a large chunk of our pension funds.”

“But the scary story that large brands are dying turns out to be wrong.

“These claims are dangerous because they are being used to justify hasty, ill-thought out marketing strategy.”

Using scientific research from published peer-reviewed journals, the report sorts fact from fiction.

One popular fiction is that consumers are rejecting ‘corporate’ brands and instead seeking eco/purpose/hipster brands.

Co-author of the report, Professor Magda Nenycz-Thiel explains the lack of substance behind the claim.

“Our analysis reveals that in more than 40 per cent of cases, leading brands actually do better among under-25 year-old consumers than they do selling to older consumers,” says Prof Nenycz-Thiel.

“While there is certainly a trend for brands to signal virtues like being eco-friendly, the idea that young people increasingly distrust and reject big brands is not backed by the evidence.

“Hipster coffee shops attract both young and old — and the same is true for Starbucks.”

The report shows that the ‘top five’ brands in any category are more likely to be growing sales than losing sales, in spite of competition from small brands as well as retailer’s own private labels.

Yet the report is also critical of some big brand marketing – it points out six big strategic mistakes that brands have made in the past 10-20 years, a result of knee-jerk reactions and a lack of evidence-based thinking.

“The good news is that these mistakes can be corrected, which in itself is one reason that the future looks bright for brands,” Prof Sharp says.

“Yes, the world continues to change, but overall this change isn’t favouring small brands over big.

“In fact, the resilience of leading brands in the face of much social and technological change is astonishing; the lists of top brands in many consumer goods categories look remarkably similar decade after decade.”

The full report is available here.

Please login with linkedin to comment

Ehrenberg-Bass Institute

Latest News

Aussie Shoe Brand TWOOBS Embraces Anti-Marketing In Push For More Consumer-conscious Shopping
  • Marketing

Aussie Shoe Brand TWOOBS Embraces Anti-Marketing In Push For More Consumer-conscious Shopping

After relaunching in September last year, TWOOBS has become a ‘kinda’ shoe brand by also focusing on making the world a ‘kinder’ place and creating more consumer-conscious shopping. The vegan shoe brand founded by sisters Jess and Stef Dadon changed its marketing approach last year and stopped using social media to push sales the old-fashioned […]

Visit Sunshine Coast Hires New Head Of Marketing
  • Marketing

Visit Sunshine Coast Hires New Head Of Marketing

Highly experienced tourism marketer Kelly Ryan has been appointed to lead the marketing efforts at Visit Sunshine Coast (VSC). During the past 12 years, Ryan has supported Canberra’s tourism industry in senior marketing roles, including as director of strategy and insights as well as director of marketing at VisitCanberra. Most recently, Ryan has been working […]

GHO Sydney And Family Planning NSW Launch ‘Planet Puberty’ Platform
  • Campaigns

GHO Sydney And Family Planning NSW Launch ‘Planet Puberty’ Platform

GHO Sydney has developed a new educational platform for Family Planning NSW to help parents and carers of children with disabilities navigate the changes to their bodies, emotions and social interactions. The project, ‘Planet Puberty’, was made possible through funding from the federal government’s Department of Social Services, and was co-designed with people with disability […]

JCDecaux Announces New Partnership With Bush Heritage Australia
  • Media

JCDecaux Announces New Partnership With Bush Heritage Australia

JCDecaux today announced conservation organisation, Bush Heritage Australia, as its major charity partner for 2021. The partnership is part of a series of ‘social impact’ initiatives the business is launching this year, under the banner of JCDecauxHEART. JCDecauxHEART focuses on three areas of social impact: health and mental health, environmental sustainability, and enriching urban communities. […]

Shameless Duo Michelle Andrews And Zara McDonald Launch New Podcast Exclusive To LiSTNR
  • Media

Shameless Duo Michelle Andrews And Zara McDonald Launch New Podcast Exclusive To LiSTNR

Shameless Media’s Michelle Andrews and Zara McDonald’s latest podcast, The Books That Changed My Life, will launch exclusively on LiSTNR on Tuesday, 15 June. Throughout the series Michelle and Zara will talk with guests including Kevin Kwan, Laura Henshaw, Jock Zonfrillo, Susan Carland, Hamish Blake and Delta Goodrem about the books that have had a profound impact […]

Business and technology concept.
  • Partner Content

Make Your CX Stand Out From The Competition

It's top tips to ensure your CX stands out from the competition. Then again, you could simply plagiarise their stuff.

Partner Content

by B&T Magazine

B&T Magazine
Why The Future of Work Is Hybrid
  • Opinion

Why The Future of Work Is Hybrid

This expert argues the future of work is hybrid. Which is sad news, as B&T'd preferred it was rhumba or the bossa nova.

Champion Launches Pride Campaign And Partnership With Queer Sporting Alliance
  • Advertising
  • Marketing

Champion Launches Pride Campaign And Partnership With Queer Sporting Alliance

In celebration of Pride Month, cult streetwear brand Champion has announced an Australia-and New Zealand-first Pride range, Champions of Pride, and ongoing partnership with the Queer Sporting Alliance. Championing a cause, celebrating community, and aiming to create real change, the capsule collection proudly heroes the Pride colours in a selection of signature Champion tees, iconic […]

UK Based BankiFi Expands To Australia
  • Marketing

UK Based BankiFi Expands To Australia

Following the successful deployment of BankiFi’s technology platform at The Co-operative Bank in the UK, BankiFi has appointed Lloyd Parata to lead their expansion into the Australian Financial Services market. BankiFi’s technology platform ensures banks remain relevant by offering SMEs an innovative solution to operate their business, whilst avoiding common challenges like late payment. Parata, […]

5 Gum Announces New Twitch Partnership
  • Media

5 Gum Announces New Twitch Partnership

Mars Wrigley 5 Gum has partnered with Twitch to launch Team CLUTCH, a team of Twitch streamers who will assemble on for three live squad streams tackling popular games like Fortnite while embodying the brand’s ethos of ‘life happens in 5’. This partnership builds on 5 Gum’s 2020 Twitch activation, and is set to create […]