Consumer Corner - 2_Top 5 lists MENA

Intimacy serves Best

January 2018

Consumer Corner - 2_Top 5 lists MENA

Intimacy serves Best

January 2018
Consumers seek products and brands they have developed an emotional connection to. A recent study discovered that international brands are in the lead. The report by MBLM agency examined the brands that have the strongest bond with consumers in the country. International firms Kraft and Nestle came in the lead. Local and regional brands also had an impressive presence in the market and the study conducted, showed that consumers are willing to pay 20 percent more for products from region brands Americana and Almarai.

According to the study, "indulgence" is an important factor when it comes to the consumers' brand selection. Their choices would have to be based on a certain emotional connection they have with the brand and how well it serves them. The study also shed light on "identity" as another contributing factor, suggesting that consumers interact with the what the brand represents to the extent they adopt its values as part of their own. Jae Hwang, partner at MBLM, said: "As marketers, we cannot underestimate the power of emotions. They drive everything we do - from the people we choose to spend time with to the packages we pick off the grocery store's shelves. And because people pay attention to numbers, it's important to note that in the last 10 years, brands with higher intimacy have outperformed less intimate brands in both revenue and profit growth."

The top consumer goods brand in the UAE is Kraft of brand intimacy quotient of (47.1) followed by Nestle (46.9). According to Crunchbase, Kraft Foods Group is one of the largest food and beverage companies in North America with annual revenues of more than USD 18 billion. With the spirit of a startup and the soul of a powerhouse, they are on a mission to be the best food and Beverage Company in North America. They have a deep portfolio of beloved food & beverage brands in the beverage, cheese, refrigerated meals and grocery categories. Their products can be found in the pantries and refrigerators of virtually every household in the United States and Canada. Nestl is the world's largest food and beverage company. It has more than 2000 brands ranging from global icons to local favorites, and they are present in 191 countries around the world. Nestl 's purpose is enhancing quality of life and contributing to a healthier future. They want to help shape a better and healthier world and inspire people to live healthier lives. This is how they contribute to society while ensuring the long-term success of their company.

(.) its important to note that in the last 10 years, brands with higher intimacy have outperformed less intimate brands

Americana ranks in as number three (34.9) then comes Almarai (32.4). Americana Group's main lines of business are operating food & beverage outlets, as well as manufacturing food products. With a network of over 1,800 outlets, it is not only the largest operator of restaurant chains in the MENA region, but also one of the most successful franchise operators in the whole world. The Group's network encompasses 17 of the world's most recognized brands in the Quick Service, Casual Dining and Fine Dining categories, such as KFC, Pizza Hut, Hardee's, TGI Friday's, Red Lobster, Olive Garden, LongHorn, Costa Coffee, and Krispy Kreme, and Wimpy. Almarai has come a long way since their visionary Chairman, HH Prince Sultan bin Mohammed bin Saud Al Kabeer, recognized an opportunity to transform Saudi Arabia's traditional dairy farming industry to meet the needs of their rapidly expanding domestic market. That was back in 1977. Today, they are one of world's largest vertically integrated dairy company with a flawless reputation and a clear vision, which is to provide quality nutritious food and beverages that enrich consumers' everyday lives.

The list continues with Patchi (32.3), London Dairy (31.7), Al Ain (31.4), Lays (29.5), Sadia (22.0), and finally Marmum (19.7). The properties of the emotional connections people develop to their favorite brands - referred to by the study as 'archetypes' - are taken into consideration. Results showed that 'indulgence' is the top archetype, with most consumers seeking brands that satisfy them the most. Another archetype, 'Identity,' also had a high rank. 'Identity' suggests that consumers connect very intimately with the ideas or values embodied by a brand to the point that they identify with the brand as a symbolic part of their own personality.

The results of the study proved that personal and emotional elements play a significant role in the selection of food and other consumer goods. The study also showed the customers' willingness to pay more for the brands they are emotionally invested in. One of the crucial findings was that Americana and Almarai have above-industry averages for consumers willing to pay 20 percent more for their products - slightly outranking industry giants Kraft and Nestl . Jae Hwang, Partner at MBLM, said: "As marketers, we cannot underestimate the power of emotions. They drive everything we do - from the people we choose to spend time with to the packages we pick off the grocery store's shelves. And because people pay attention to numbers, it's important to note that in the last 10 years, brands with higher intimacy have outperformed less intimate brands in both revenue and profit growth."