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09.27.2006

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Organic2006
CONSUMER ATTITUDES & BEHAVIOR, FIVE YEARS LATER & INTO THE FUTURE

Organic2006 provides comprehensive analysis of attitudes and behavior by organic consumer segment, as well as insights on perceptions and language about organics, Organic2006motivators and barriers to purchase, pricing factors, purchase and use by channel, and consumer familiarity and usage of over 60 organic brands.

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For more Hartman Group articles on ORGANIC, click here...

06.07.2006 "Experience vs. Products: What Is the Value of Organic?"

06.07.2006 "Wmat Makes Food Organic?: The Twinkie Problem"

04.12.2006 "Wal-Mart Goes Organic"

11.18.2004 "The Branding of Organics: What Works & What Doesn't"

04.27.2004 "The Symbolic Power of 'Organic'"

07.12.2002 "The Organic Consumer May Not Be Who You Think It Is"

12.13.2002 "Hanging on to Your Organic Consumers" >


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Most Recognized Organic Brands

When it comes to store brands, Wal-Mart brands dominate the top four positions of the private label products consumers are "most likely to purchase." This finding, highlighted in Our Pulse Report, Private Label from a Consumer Perspective, illustrates how some stores have successfully leveraged their private label brands with consumers to close the gap with name brands. At the same time, as organic products continue their march across the store, organic private label remains a developing story in the traditional supermarket channel.

This is especially evident when looking at the resonance organic brands has with consumers. "Brand resonance" is a term used to describe the harmonious relationship between brand and consumer, a relationship that is nurtured over time to form a tight bond. Brand resonance can be seen as having three levels of acceptance: familiarity (awareness of the brand), trial (consumer has purchase the brand at least once) and adoption (continued, regular purchases of the brand).

As part of our most comprehensive organic study to date, Organic2006: Consumer Attitudes & Behavior, Five Years Later & Into the Future, The Hartman Group explored consumer resonance with organic brands. Consumers (both organic users and non-users) evaluated 66 brands of organic foods and beverages in terms of whether they (1) have heard of, (2) have tried or (3) are regularly buying any of the brand's products. The brands we tested quantitatively were the brands that consumers mentioned in extensive qualitative research. Trader Joe's was the only retailer to have its own store brand listed in the top ten (ninth place) of organic brands consumers "have heard of."

Brand Familiarity

The majority of consumers are not aware of most organic brands; in fact, only about 4 in 10 consumers have heard of the top five organic brands. Silk heads the list with the highest consumer awareness at 43% followed closely by Ben & Jerry's Organic (41%), Celestial Seasonings, Kashi, and Kettle Chips (each with 40%). Figure 1 depicts the top 5 organic brands in terms of overall consumer awareness.



Brand Trial Use

Of the 66 organic brands presented, only 6 have been tried by at least 1 in 5 consumers. Celestial Seasonings leads the list, with 29% of consumers having tried this brand at least once. (Figure 2).



Brand Adoption

Finally, the seven organic brands purchased regularly (adoption) by at least 11% of all consumers are (in order): Celestial Seasonings (highest at 16%), Kashi, Trader Joe's Organics, Silk, Kettle Chips, Morningstar Farms and Boca Foods (Figure 3).



Implications of Differing Levels of Brand Resonance

The importance of considering different levels of brand resonance is illustrated by the following example comparing two of the best-known organic brands (Table 1).

If one were to rely entirely on the familiarity aspect of brand resonance, these two brands - Ben & Jerry's Organic and Celestial Seasonings - would be regarded as having essentially equal standing in the marketplace (both are recognized by about 40% of consumers). But by also considering the aspects of trial (29% for Celestial Seasonings vs. 14% for Ben & Jerry's Organic) and adoption (16% vs. 4%), it becomes clear that Celestial Seasonings is the better known brand in terms of actual purchasing behavior.

This does not mean that Ben & Jerry's Organic is the "weaker" of the brands. These two brands provide different types of products - ice cream and tea - and don't directly compete with each other in the marketplace. It can be argued that Ben & Jerry's Organic ice cream is an occasional indulgence compared to Celestial Seasonings teas and is naturally less likely to be "adopted" by consumers as a regularly purchased product.

What this means

The Organic 2006 report highlights the opportunities for manufacturers, marketers and retailers to convert familiarity into regular purchases by first and foremost understanding how consumers understand organics, and their variety of reasons for buying and using organics.

Yet, before you rush headlong into exploring the potential for top organic name brands as well as other entrants into the emerging organic marketplace, such as organic private labels, it would be wise to remember that many key elements outside of the products themselves have led consumers to recognize, try and adopt organic brands. Whether it is authentic brand stories or unique retail experiences, today's consumers are hungry for things that are beyond the ordinary.

The full list of brands is available in The Hartman Group's, Organic2006: Consumer Attitudes & Behavior, Five Years Later & Into the Future.

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