2018 Field Agent . Published and produced by Field Agent .

2018 Field Agent . Published and produced by Field Agent .
© 2018 Field Agent®. Published and produced by Field Agent®.
2018 Field Agent . Published and produced by Field Agent .
NEW WORLD. NEW CHALLENGES.
                     NEW OPPORTUNITIES.
             It's a new world for CPG companies and the brands they sell.

                      First, private-label, store brands have really upped their game in recent
                                    years, becoming more competitive than ever.
                       Second, retailers like Aldi and Lidl, that sell predominantly their own
                            private labels, are on the rise and growing aggressively.
                       Third, increasingly, private labels are available online, which means
                       shoppers can buy them for in-store pickup or delivery to practically
                                               anywhere in the world.                                                                                        TABLE
                                                                                                                                                               of
                      Fourth, at any time, a new hotshot brand—think Chobani, Halo Top, La
                       Croix—can come along and disrupt an established product category.                                                                   CONTENTS
                                               A new world indeed.
                                                                                                     Introduction                    p. 3            Brandless.com                  p. 14          EDITOR-IN-CHIEF
                      Of course, new worlds are meant to be explored. They invite discovery.
                                                                                                                                                                                                 Chris Medenwald, PH.D.
                       And while new worlds are certainly fraught with challenge, they also          Name Brands VS                  pp. 5-6         Buying Private Labels Online   p. 15   chris.medenwald@fieldagent.net
                                            abound in opportunity.                                   Private Labels


                        Which is why Field Agent has assembled this special report, “Brand                                                           Walmart.com &                  p. 16                     DIRECTOR
                                                                                                     Shopping Cart/Kitchen           p. 7            Amazon.com Private Labels
                      New World: Exploring the Critical Issues Facing Today’s Brands.” We’ve         Inventory
                                                                                                                                                                                                          Katherine Beebe
                       surveyed thousands of everyday shoppers to help brands understand                                                                                                        katherine.beebe@fieldagent.net
                                         the current branding landscape.                                                                             Brand-Switching                p. 17
                                                                                                     Generic Private Labels          p. 8
                                                                                                                                                                                                              DESIGNER
                      We’re excited to share this report with you, in hopes it’ll serve as a field
                                                                                                                                                     Head-to-Head Comparison:       p. 18                      Samuel Gray
                          guide as you make sense of the “brand new world” around us.                Aldi & the "Off-Branders"       pp. 9-10        Name Brand Yogurts
                                                                                                                                                                                                   samuel.gray@fieldagent.net

                                                                                                     Head-to-Head Comparisons:       pp. 11-13       Millennials & Brand Loyalty    p. 20
                                                                                                     Name Brands & Private Labels                                                               PUBLIC RELATIONS
                                                                                                                                                                                                               Cory Nelson
                                                                                                                                                     Methods & Demos                p. 21           cory.nelson@fieldagent.net


                                                                                                                                                                                               RESEARCH ANALYST
                                                                                                                                                 A                                                       Hannah Holloway
                                                                                                                                                 N                                             hannah.holloway@fieldagent.net
                                                                                                                                                 D
                                                                                                                 The Field Agent Blog, Endcaps & Insights, offers a
                                                                                                                steady stream of information and insights from the
                                                                                                                           ever-changing world of retail


                                                                                                                                 Subscribe to the Blog

3   Brand New World                                                                                                                                                                                  Brand New World             4
2018 Field Agent . Published and produced by Field Agent .
BATTLE                                                                                                                                                                                                                                                              VS
    OF THE BRANDS
    How name brands and private-label brands stack
    up in shoppers’ minds




    C
              ompared to their “generic” predecessors of yesteryear,               Why purchase name brand packaged groceries and                                                               And some retailers are capitalizing on the pull-power of private-        Notably, as shoppers look into the future, it’s easier for them to
              today’s private-label brands are altogether more evolved:            household consumables? (2)                                                                                   label goods more than others. Field Agent surveyed customers of          imagine purchasing more private labels than fewer.
              from a one-trick pony trumpeting the lowest price point                                                                                                                           specific retailers to determine how often they purchase private-label
              to a well-rounded, competitive product characterized                                                                                                                              packaged groceries and household consumables from these retailers.
                                                                                                                                                                                                                                                                         Do you expect to be purchasing more or fewer private-label
    by higher quality, a sleeker image, and more purposeful, strategic                                 60%                     49%                   47%                                                                                                                 groceries and household consumables in 5 years? (2)
                                                                                                       Quality                 Coupons                Trust
    management.                                                                                                                                                                                 % of this retailer’s customers who purchase private-label
                                                                                                                                                                                                brands from the retailer. (1)
    Yet, Field Agent’s research into consumers’ perceptions suggests
    shoppers still predominantly reach for name brands in search of
                                                                                   Among those who at least sometimes purchase name brands. (n = 1,997)
                                                                                                                                                                                                 Walmart                                             84%                                      39%              6%
                                                                                                                                                                                                                                                                                                               Fewer
                                                                                                                                                                                                                                                                                                                                     N = 2,007
                                                                                                                                                                                                                                                                                              More
    quality and private-label brands in search of cost savings. But the
    lure of lower prices is enough to convince many shoppers to fill their         Perceptions of higher quality and feelings of greater trust, which
                                                                                                                                                                                                   Kroger                                           83%
    shopping carts with store brands.                                              some shoppers associate with name brands, may also produce higher
                                                                                   levels of customer loyalty. Shoppers told Field Agent they’re more
                                                                                                                                                                                                   Costco                             78%                                Why such shopper optimism toward private-label groceries and household
                                                                                   likely to stay true to name brands (i.e., to purchase a specific name
                                                                                                                                                                                                    Target                         72%                                   consumables? Their free form remarks, which Field Agent collected from

    How often do you purchase store brands when shopping for                       brand and only that name brand) than they are to store brands.                                              Sam's Club                         71%                                    each respondent, suggest many shoppers have noticed improvements to
                                                                                                                                                                                                                                                                         private-label brands—in both product quality and variety.
    packaged groceries and household consumables? (1)
                                                                                                                  41%                                                                               Publix                        70%              N = 2,048


                          50%
                                                                                                                                                                                                 Amazon             27%
                                           42%                                                                                          16%                  N = 2,030 (3)                                                                                                “The quality of [private labels] are usually as good as the name brand.

                                                                                                                                                                                                It’s clear from Field Agent’s research, however, that some product        As more…variety…becomes available I expect I will purchase them.
                                                             8%                                           More loyal to name
                                                                                                          brands than store
                                                                                                                                      Less loyal                                                categories translate to private labels better than others.                Especially since the prices are usually better as well.”     - Agent Quote

                                                                                                               brands
                         Always         Sometimes           Rarely
                        or Often                           or Never                                                                                                                             For which categories do you primarily purchase
                                                                                   More specifically, really loyal customers* were more likely to cite a name                                   private-label, store brands? (2)                                         Top 3 reasons some shoppers expect to purchase more
                                          N = 2,048
                                                                                   brand, rather than a private label, as their primary brand of peanut butter                                                                                                           private labels in the future. (2)
                                                                                   and laundry detergent.                                                                                       Top private-label product purchases (in a basket of 19 goods):
    Why purchase private-label packaged groceries and
                                                                                                                                                                                                                                                                             #1 Improving quality of private labels
    household consumables? (1)
                                                                                   “I’m REALLY loyal to…”                (1)
                                                                                                                                                                                                               Milk                                 70%                      #2 Affordability of private labels                            n = 783


    The top 3 reasons are all price-driven
                                                                                                                                                                                                    Paper Towels                                  67%
                                                                                           46%          A specific NAME BRAND of peanut butter
                                                                                                                                                                                                    Glass Cleaner                              52%                           #3 Improving variety among private labels
    "They simply cost less"                                                  68%                                                                                         n = 1,908               Sandwich Bread                               48%
    "They're a better value"                                  48%                           24%         A specific private label

    "To take advantage of                                                                                                                                                                       Bottom private-label product purchases:
    store sales/coupons"                                   32%
                                                                                           46%          A specific NAME BRAND laundry detergent                                                        Toothpaste            13%                       N = 2,007
    Among those who purchase private-label at least on occasion. N = 2,029

                                                                                                                                                                         n = 1,985
                                                                                                                                                                                                         Shampoo              18%
                                                                                            38%         A specific private label                                                                          Pet Food             19%
                                                                                                                                                                                                         Tuna Fish               26%
                                                                                   *Those who said they’re absolutely or very loyal to a single brand of peanut butter and laundry detergent




5   Brand New World                                                                                                                                                                                                                                                                                                     Brand New World                6
2018 Field Agent . Published and produced by Field Agent .
WHAT'S REALLY                                                                                                                                                                                             GENERIC 'N
                                                                                                                                                                                                                                                                                   REAL. ACTIONABLE. DATA.            FOR BRANDS


      IN THE CART?                                                                                                                                                                                   photo
                                                                                                                                                                                              Take ae inside
                                                                                                                                                                                               of th shopping
                                                                                                                                                                                                  ur
                                                                                                                                                                                             of yo cart!
                                                                                                                                                                                                                ORGANIC
                                                                                                                                                                                                                                                                                          From display audits to shopper insights, Field Agent is a comprehensive
                                                                                                                                                                                                                                                                                        solutions-provider for CPG companies in search of fast, reliable, actionable
                                                                                                                                                                                                                                                                                          answers to pressing retail questions. We crowdsource over one million
                                                                                                                                                                                                                                                                                          smartphones to equip brands with a continuous, steady stream of data
                                                                                                                                                                                                                                                                                                              from inside stores everywhere.
                                                                                                                                                                                                                How often do you purchase organic groceries? (2)



       A
                    s seen, 92% of shoppers say they at least sometimes purchase private-label groceries
                    and household consumables.
                                                                                                                                                                                                                         Always         2%                             N = 3,121                    What Retail Questions Do You Have?
                    But do they really? After all, there’s sometimes a gap between what shoppers say they
                    do and what they actually do.                                                                                                                                                                         Often                      20%                           Are my displays properly executed in stores?      What do planograms look like in stores?

       So Field Agent went inside stores and kitchens to get a better indication. To determine the                                                                                                                  Sometimes                           35%
       prevalence of private labels, we asked shoppers to show us the insides of their shopping carts,
       snack cabinets, breakfast cabinets, and refrigerators. Because shoppers may have difficulty                                                                                                                       Rarely                       29%
       recognizing some private labels as private labels, the figures below are basic approximations.
                                                                                                                                                                                                                          Never                    13%
                                                                                                                                                     Agent Photo

                                                                                                                                                                                                  Agent Photo   How often do you buy private-label organic
       What % of the groceries/household consumables in the shopping cart are private-label, store brands?                                                                 (4)                                  groceries?(2)

       Participants were required to purchase at least $20 of groceries/household consumables from one of four retailers: Aldi, Kroger, Target, or Walmart.                                                              Always         2%
                                                                                                                                                                                                                                                                                   Are my products on-shelf and in stock?            What do shoppers think about my products?
                                 65%                                                                                                                                                                                      Often                            27%
                                                        43%                                 41%
                                                                                                                          37%
                                                                                                                                                                                                 0%
                                                                                                                                                                                                 1-10%
                                                                                                                                                                                                                    Sometimes                                          43%
                                                  33%                               35%                                                                                                          11-50%
                                                                                                                                 29%                               33% 29%
              16%          19%                                                17%                                 18%
                                                                                                                                         14%               15%
                                                                                                                                                                                                 51-90%
                                                                                                                                                                                                 91-100%
                                                                                                                                                                                                                         Rarely                 11%
                                            13%                                                                                                                                  13%
                                                              10%                                                                                                                      10%
         0%          0%                                               0%                              3% 3%                                     2%                                               N = 202                  Never                   17%
                Aldi (n = 26)                     Kroger (n = 30)                       Target (n = 29)                   Walmart (n = 117)                   Grand Total (N = 202)
                                                                                                                                                                                                                  Among those who buy organic groceries at least sometimes
                                                                                                                                                                                                                                        n = 2,204

               oto
      k e  a ph side
    Ta he in hen                                                                                                                                                                                                What organic groceries do you buy as private-
     of t ur kitc                                                                                                                                                                                               label, store brands? (2)
         o        !
    of y abinets
                                                                                                                                                                                                                                                                                   Are my products priced correctly inside stores?   How are my competitors marketing their goods?
        c                                                                                                                                                                                                       Fresh greens for
                                                                                                                                                                                                                          salads                               52%
                                                                                                                                                                                                                             Eggs
                                                                                                                                                                                                                                                              50%
                                                    Agent Photo                         Agent Photo                        Agent Photo                             Agent Photo                   Agent Photo
                                                                                                                                                                                                                 Frozen veggies/
                                                                                                                                                                                                                          fruits                          36%
       What % of the groceries/household consumables inside the kitchen (snack cabinet, breakfast cabinet, and refrigerator) are
                                                                                                                                                                                                                   Fresh carrots                          35%
       private-label, store brands? (4)                                                                                                                                                                                      Milk                        33%
                                40%                         40%                                           40% 39%                                                                  0%
                                                                                                                                                                                                                       Fruit juice
                                                                                                                                                                                                                                                       29%
                                                                                                                                           37%                                     1-10%
                                      28%                           29%                                                                              28%                           11-50%
                                                                                                                                                                                                                     Pasta/pasta
                                                                                                                                                                                                                          sauces                      26%
                                                                                                                                     22%                                           51-90%
                          20%
                                             9%
                                                                           17%
                                                                                 8% 5%            6%
                                                                                                                    14%                                    10%
                                                                                                                                                                                   91-100%                         Soups/broths
                                                                                                                                                                                                                                                     24%                                              Get Answers to Your Retail Questions
                                                  3%                                                                        1%                                      3%             N = 215
                                                                                                                                                                                                                   Condiments/
                                 Snack Cabinet                      Breakfast Cabinet                      Refrigerator                        Overall Kitchen
                                                                                                                                                                                                                      dressings                      23%
                                                                                                                                                                                                                           Spices
                                                                                                                                                                                                                                                     23%
7      Brand New World                                                                                                                                                                                            Among those who at least sometimes buy private-label organic                                                                    Brand New World              8
                                                                                                                                                                                                                                     groceries (n = 1,587)
2018 Field Agent . Published and produced by Field Agent .
LESSON #4
                                                                                                                                                                                                                                               The majority of Aldi shoppers don’t purposefully
                                                                                                                                                                                                                                               seek out private labels or name brands



    THE OFF-BRANDERS
                                                                                                                                                                                                                                               It’s a good question: Do Aldi shoppers deliberately seek out the
                                                                                                                                                                                                                                               retailer’s private labels, or do they bob-and-weave through the store
                                                                                                                                                                                                                                               cherry-picking the name brand goods. While most Aldi shoppers say
                                                                                                                                                                                                                                               they’re not that purposeful, those who intentionally buy private labels
                                                                                                                                                                                                                                               at Aldi outnumber those who intentionally buy name brands.
    Shoppers share their attitudes and behaviors toward Aldi
                                                                                                                                                                                                                                               Do you intentionally purchase private labels or name brands
                                                                                                                                                                                                                                                                                                      Agent when
                                                                                                                                                                                                                                                                                                            Photo
                                                                                                                                                                                                                                               shopping at Aldi?




    R
                                                                                                                                                                                                                                                                             8%
                                                                                          LESSON #2                                                                     LESSON #3
            ecent years have witnessed the dramatic proliferation of
            retailers, like Aldi and Lidl, that sell predominantly their own
            private-label goods. Whereas private labels comprise about
            30% of Walmart’s total number of stock-keeping units,                         Limited selection and private-labels are NOT                                  One-third of Aldi shoppers buy only or almost
                                                                                                                                                                                                                                                                      24%                                   Private-label brands
                                                                                                                                                                                                                                                                                                            Name brands
    about 90% of Aldi’s SKUs are store brands (Source: Reuters).
                                                                                          major deterrents from shopping at Aldi                                                                                                                                                       68%                  Neither

                                                                                                                                                                        only private labels when shopping with Aldi
    Thus, the nationwide multiplication of Aldi, Lidl, and other “off-
    branders” is a particularly compelling topic among CPG companies                      And then there are those with convenient, local access to an Aldi, who, for
                                                                                                                                                                        The data speak for themselves. Not surprisingly, those Aldi shopping
    and conventional retailers alike.                                                     one reason or another, do not shop there (n = 447).
                                                                                                                                                                        carts are teeming with private-label goods.
    To shed light on the accelerated rise of these off-branders, Field                    What are the top reasons for not shopping at Aldi? The top two reasons
                                                                                                                                                                        At Aldi I buy…
    Agent recently surveyed 2,030 U.S. adults about their attitudes and
    behaviors toward Aldi, the off-brander with the largest national
                                                                                          pertain to the power of existing shopping habits: 38% said “I’m happy with
                                                                                          the retailers I currently use” and 37% “I just haven’t tried Aldi before.”
                                                                                                                                                                           33%
                                                                                                                                                                                                                                               LESSON #5
    footprint.
                                                                                          In other words, non-use is the major reason for non-use.                                      30%          31%
                                                                                                                                                                                                                                               Shoppers envision shopping MORE with off-
    Consider 5 lessons we learned. For demographic information,
                                                                                                                                                                                                                      5%                       branders in the future
    reference study #3 on the methods and demos page.
                                                                                           Only 22% identified “limited selection” as a reason
                                                                                                                                                                                                                                1%
                                                                                                                                                                                                                                               Field Agent asked shoppers (N = 2,030) whether they expect to shop

    LESSON #1
                                                                                                                                                                         Entirely or Mostly store About half Mostly name    Entirely
                                                                                                                                                                           almost      brands     store brands, brands     or almost           more, less, or about the same with off-branders like Aldi and Lidl in
                                                                                           for not patronizing Aldi, while 19% cited “not enough                        entirely store              half name            entirely name
                                                                                                                                                                           brands                    brands                 brands             five years time. Interestingly, right at half (49%) imagine shopping
                                                                                           name brands/too many private labels” as a deterrent                                                                                                 more with such retailers, compared to an almost immaterial 6% who
    Low prices are overwhelmingly the major                                                                                                                                                         N = 871
                                                                                                                                                                                                                                               expect to be doing so less.
    draw to Aldi
    Of 2,030 shoppers surveyed, 43% said they purchase groceries from                                                                                                                                                                           49% expect to shop MORE with off-branders like Aldi
    Aldi (Walmart = 86%; Target = 56%; Kroger = 33%). Buy why? As you
    can see, low prices dwarfed all other options.                                                                                                                                                                                              and Lidl over the next five years

    Why primarily do you shop at Aldi?          Among those who shop at Aldi. (n = 871)


                                                                                                          y
                                                                                                                                                                                                                                               Qualitative analysis identified 3 prominent
                                                                                                labels, b
       92%                                                                           Private s, are NOT                                                                                                                                        reasons why many expect to shop “off-brand-
                                                                                         s e lv e        Aldi
                                                                                   them         pull to
                                                                                    a major                                                                                                                                                    ers” more in the future:

                                                                                                                                                                                                                                               1. Better prices
                    40%           39%          38%
                                                                                                                                                                                   "We keep finding more and more things                       2. Products are just as good as other retailers
                                                               22%              17%                                                                                                                                                            3. Growing number of locations
                                                                                                12%                                                                                we like to buy from Aldi."               - Agent Quote


    Lower prices   Quality of    Convenient Simpler store   Smaller  Large number The brands
                   groceries    access to the  format     merchandise of private-  available
                                   store                  assortment label brands                                                                      Agent Photo                                            Agent Photo




9   Brand New World                                                                                                                                                                                                                                                                          Brand New World               10
2018 Field Agent . Published and produced by Field Agent .
BUY & TRY:                                                                                                                                                             AGENT                                  HEATING UP:

                                                                                                                                                                                                                   POP-TARTS VS
     NAME BRANDS VS                                                                                                                                                         TOAST-                                 MILLVILLE ( ALDI)
                                                                                                                                                                            IMONIALS                               TOASTER TARTS
     PRIVATE LABELS
                                                                                                         Agent Photo                    Agent Photo                                                                On a scale from 1-5, how would you rate this brand of toaster
                                                                                                                                                                                                                   pastry on the following dimensions?(8)
                                                                                                                                                                            I thought Millville tasted


     F
             ield Agent enlisted shoppers to “buy and try” a pair of
             competing brands—one an established name brand, the                                                                                                            good...Pop-Tarts [had] a little                                                                              4.73
             other a private-label, store brand—for each of the product
             categories below. Through photo verification, Field Agent
     ensured participants purchased and tried the requisite brands in each
                                                                                                          BEST TASTE?                                                       more 'strawberry' but not
                                                                                                                                                                                                                    4.67
                                                                                                                                                                                                                             4.33
                                                                                                                                                                                                                                      3.87
                                                                                                                                                                                                                                                              4.00
                                                                                                                                                                                                                                                                       3.73
                                                                                                                                                                            enough to offset the price                                         3.67                             3.47
                                                                                                                                                                                                                                                                                                          Taste

                                                                                                                                                        75%
     combination.                                                                                                                                                                                                                                                                                         Texture
                                                                                                          Smucker's                                                                                                                                                                                       Ingredients
                                                                                                                                                                                                                                                                                                          Price
     This buy and try demonstration, with its small but high-quality                                                                                                        increase to me."
     sample, simply captures the perceptions and judgments of a handful
                                                                                                         Great Value                17%                                           - Agent Quote
     of shoppers and is not meant to facilitate broadly-generalizable
     conclusions about competing brands.                                                                        Equal      8%                                                                                                  Pop-Tarts                        Millville Toaster Tarts


                                                                                                                                                                                                                   Participants (N= 15) were required to purchase, try, and rate the same flavor of Kellogg’s Pop-Tarts
                                                                                                                                                                                                                   toaster pastries and Millville (Aldi brand) toaster tarts, which they purchased from their local Aldi.
                                                                                                         “The Smucker’s had better acidity and color. Despite               “I slightly preferred the
                                                                                                                                                                                                                                                                                                                            Agent Photo

     A STICKY SUBJECT:                                                                                                                                                      Pop-Tarts brand on taste and
                                                                                                         preferring the Great Value ingredients, Smucker’s wins

     SMUCKER'S VS                                                                                        out on flavor.”     - Agent Quote
                                                                                                                                                                            texture. However, the price
                                                                                                                                                                            difference doesn't justify the
                                                                                                                                                                                                                       BEST TASTE?
     GREAT VALUE                                                                                                                                                            slight difference for me. I will
                                                                                                                                                                                                                        Pop-Tarts                                                          67%
                                                                                                          BEST VALUE?
                                                                                                                                                                                                                       Millville
                                                                                                                                                                                                                                                          13%
     FRUIT SPREAD
                                                                                                                                                                            purchase Millville from now on.”       Toaster Tarts
                                                                                                                                                                                                   - Agent Quote
                                                                                                                                                                                                                             Equal                          20%
                                                                                                         Great Value                                          83%
                                                                                                                Equal              17%
                                                                                                                                                                                                                       BEST VALUE?
     On a scale from 1-5, how would you rate this brand of fruit
     spread on the following dimensions?(7)
                                                                                                                                                                                                                                                                                                                            Agent Photo


      4.58 4.58                                                         4.58                             “I think they taste pretty much identical, but the Great                                                      Millville
                                                               4.17                                                                                                                                                Toaster Tarts                                                                        93%
                       3.92 3.75              3.92                                                       Value brand has less sugar and it is a lot cheaper.”
                                                       3.67                                                                                                                                                             Pop-Tarts                    7%
                                                                                         Taste
                                                                                         Texture                                                            - Agent Quote
                                                                                         Ingredients
                                                                                         Price




               Smucker's                               Great Value
                                                                                                          BEST OVERALL?                                                                                                BEST OVERALL?
                                                                                                                                                                                                                       Millville
      Participants (N= 12) were required to purchase, try, and rate the same flavor of Smucker’s fruit
                                                                                                          Smucker's                                   67%                                                          Toaster Tarts                                           47%
           spread and Great Value fruit spread, which they purchased from their local Walmart
                                                                                                         Great Value            25%                                                                                     Pop-Tarts                                        40%
                                                                                                                Equal   8%                                                                                                   Equal                        13%                                                               Agent Photo




11   Brand New World                                                                                                                                                                                                                                                                                                        Brand New World   12
2018 Field Agent . Published and produced by Field Agent .
The Bold and the Brand-Less
                                                                                                                                                                                                                           SHOPPERS SHARE ATTITUDES TOWARDS BRANDLESS.COM




                                                                                                                                                                                                                                              Imagine no brands, it's easy if you try.
     On a scale from 1-5, how would you rate this brand of shaving
                                                                                                                               BEST SHAVE?
                                                                                                                                                                                                    T
     gel on the following dimensions?(9)                                                                                                                                                                     his may sound like a John Lennon lyric, but it’s actually the   What about Brandless.com would make you most likely to
                                                                                                                                                                                                             basis for a new online retailer, Brandless.com.                 shop there? (11)

       4.42 4.42
                       4.33 4.25
                                                                                   4.42                                              Edge                               58%                                     Brandless.com sells packaged groceries, household            Among those even remotely likely to shop at Brandless.com (n = 901)

                                                    4.17 4.08                                           Shave quality               Equal                     33%                                   consumables, and small household goods—all online, all private
                                                                                                                                                                                                                                                                                                                                         74%
                                                                   3.83 4.08                            Texture/feel                                                                                label, all for $3 apiece. The company claims to sell high-quality,                        Lower prices
                                      3.58                                                              Scent
                                                                                                        Skin condition           Up & Up          8%                                                conscientious goods without the “brand tax” attached to national               Simple pricing structure
                                                                                                                                                                                                                                                                                                                                       64%
                                                                                                        Price                                                                                       name brands.
                                                                                                                                                                                                                                                                                     Product transparency
                                                                                                                                                                                                                                                                                                                             47%
                                                                                                                         “I would very slightly say that Edge shaving gel is the better product.    At the very least, Brandless.com is a bold                                     Conscientious products
                                                                                                                                                                                                                                                                                              (e.g., NON-GMO)               45%
                      Edge                                       Up & Up                                                 The Edge gel goes on thicker, and even with the price difference it        and interesting experiment. I mean, could                                 Feed America meal donations
                                                                                                                                                                                                                                                                                                                           41%
                                                                                                                         would be my preferred brand. It’s a very close call.”    - Agent Quote     shoppers really go for it?
     Participants (N = 12) were required to purchase, try, and rate the same type of Edge and Up & Up
                 (Target brand) shaving gel, which they purchased from their local Target.
                                                                                                                                                                                                                                                                                     High-quality products
                                                                                                                                                                                                                                                                                                                           40%
                                                                                                                                                                                                    Field Agent asked 1,025 shoppers to visit Brandless.com and then           Simple selection of products
                                                                                                                                                                                                                                                                                                                          38%
                                                                                                                               BEST VALUE?                                                          share their attitudes and opinions toward the new company. As
                                                                                                                                                                                                    you can see from the graphs below, attitudes were overwhelmingly
                                                                                                                                                                                                    favorable toward the business model.
                                                                                                                                                                                                                                                                                Website design/navigation
                                                                                                                                                                                                                                                                                                                   20%
                                                                                                                                                                                                                                                                              42% have a highly favorable attitude toward Brandless.com
                                                                                                                                 Up & Up                                     67%                    Despite the immense favorability reported by respondents, it
                                                                                                                                                                                                    should be stressed that positive attitudes and even stated purchase
                                                                                                                                     Edge                 25%                                       intentions do not necessarily translate to actual behavior. After
                                                                                                                                                                                                                                                                             What would you be most likely to buy from Brandless.com? (11)
                                      Agent Photo
                                                                                                                                    Equal         8%                                                all, shopping patterns and habits are often deeply engrained—an
                                                                                                                                                                                                    advantage, of course, for established name brands.
                                                                                                                                                                                                                                                                             Among those even remotely likely to shop at Brandless.com who felt they
                                                                                                                                                                                                                                                                             had enough information to answer the question (n = 829)


                                                                                Agent Photo
                                                                                                                         “Edge is a little better but the extra cost doesn't make it worth it.
                                                                                                                         I would buy the Up & Up because it costs less and gets the job done…”
                                                                                                                                                                                                    In general, what is your attitude toward Brandless.com
                                                                                                                                                                                                    and its approach to doing business? (11)
                                                                                                                                                                                                                                                                             TOP 5 CATEGORIES
                                                                                                                                                                                    - Agent Quote
                                                                                                                                                                                                                                                                                                                      61%
                                                                                                                                                                                                                                                                                                                                           #1
                                                                                                                                                                                                                                                                                  Snacks
                                                                                                                                                                                                                87%
                                                                                                                               BEST OVERALL?
                                      Agent Photo
                                                                                                                                                                                                                                                                                Cleaning
                                                                                                                                                                                                                                                  N = 1,025
                                                                                                                                                                                                                                                                                Supplies                            52%                  Snacks
                                                                                                                                     Edge                               58%
                                                                                                                                                                                                                                                                                 Food for
                                                                                                                                                                                                                                                                                   Meals                           50%
                                                                                                                                                                                                                              11%
                                                                                                                                                                                                                                             2%
                                                                                                                                                                                                                                                                             Hand Soaps/
                                                                                                                                                                                                                                                                                                                 44%
                                                                                                                                 Up & Up                25%                                                                                                                   Body Wash


                                      Agent Photo                              Agent Photo                                          Equal             17%                                                      Favorable      Neutral     Unfavorable
                                                                                                                                                                                                                                                                                 Kitchen
                                                                                                                                                                                                                                                                                 Supplies                       43%

13    Brand New World                                                                                                                                                                                                                                                                                                       Brand New World            14
2018 Field Agent . Published and produced by Field Agent .
PRIVATE LABEL BRANDS
                                                                                                                                                                                                                        TO P 5 P R I VAT E L A B E L S

                                                                                                                                                                                                 WALMART.COM & AMAZON.COM
                                        IN THE DIGITAL AGE
                                                Shoppers talk buying private labels online
                                                                                                                                                                                Which private-label brands have you purchased from
                                                                                                                                                                                Walmart.com? (6)
                                                                                                                                                                                                                                                           31% of Walmart.com customers say they've never




     P
                rivate-label brands are no longer just a brick-and-mortar             Why shoppers are LESS likely to buy private labels online(6)                                32%           31%                                                        purchased a private-label brand from Walmart.com (6)
                affair. Today, increasingly, traditional retailers are selling
                                                                                                                                                                                                              26%
                their own “store” brands through their websites, thus                       I normally go online to buy
                                                                                                 specific name brands                                     45%
                making them available for in-store pickup, same-day, local
                                                                                      I don't think to buy private labels
                                                                                                                                                                                                                            16%             14%
     delivery, or, significantly, package delivery anywhere in the world.
                                                                                                                  online                         36%                                                                                                     Which private-label brands have you purchased from
     At the same time, pure-play e-tailers like Amazon.com and Jet.com                                                                                                                                                                                   Amazon.com? (6)
                                                                                        I buy private labels on impulse
     are aggressively developing their own private-label brands. But what                                      in stores                   21%                                  Great Value   Mainstays      Equate      Sam's Choice      Parent's
     do shoppers think about buying private labels online? The graphs                                                                                                                                                                      Choice            30%
     and call-outs below, based on Field Agent surveys of thousands of
                                                                                      I need private labels immediate-
                                                                                          ly and can't wait for delivery              13%                                         Among those who have made purchases from Walmart.com (n = 2,508)
     shoppers, illuminate this timely and important question.
                                                                                                                                                                                                                                                                           13%             10%
                                                                                      Among shoppers who at least sometimes buy household consumables online and are      44% of Amazon.com customers say they've never                                                                                 6%
     Are you more or less likely to purchase private label brands
                                                                                             less likely to purchase private labels online than in stores (n = 295)                                                                                                                                                  3%
     ONLINE than when shopping in stores?                                                                                                                              purchased a private-label brand from Amazon.com                          (6)
                                                                                                                                                                                                                                                            Amazon        Amazon          Amazon     365 Everday Happy Belly
                                                                                                                                                                                                                                                             Basics      Essentials       Elements   Value (Whole
       All shoppers(1) N = 2,048
                                                                                                                                                                                                                                                                                                        Foods)
       Shoppers who buy household consumables online (6) n = 1,517
                                                                                                                                                                                                                                                             Among those who have made purchases from Amazon.com (n = 2,842)

                                             47%            47%
                                     37%
                       34%
                                                                                                                                                                                                                                 THE GOODS ON
               16%
               More likely          Neither more
                                                                     19%

                                                             Less likely
                                                                                                                                                                                                           AMAZON PRIVATE LABELS
                                    nor less likely                                                                                                      Agent Photo


                                                                                                                                                                                In general, how satisfied are you with Amazon’s                           In general, do you feel Amazon private labels are
     Why shoppers are MORE likely to buy private labels online(6)                                                                                                               private labels? (6)                                                       better, worse, or comparable to their name brand
                                                                                                                                                                                                                                                          equivalents? (6)
               Low prices are even more
                 important to me online                                      52%                                                                                                                  1%                                                                              3%
           I can check product reviews,
                     specifications, etc.                                  44%
            Greater selection of private
                                                                      32%                                                                                                                19%
                                                                                                                                                                                                                                                                                               31%
                                                                                                                                                                                                                                  Completely satisfied
                           labels online                                                                                                                                                                                          Very satisfied

                                                                                                                                                                                                            41%
                                                                                                                                                                                                                                                                                                                  Better
                                                                                                                                                                                                                                  Moderately satisfied
                                                                                                                                                                                                                                                                                                                  Comparable
             Easier to find and purchase
                                  online                             31%                                                                                                                                                          Not very satisfied                                                              Worse
                                                                                                                                                                                                                                  Not at all satisfied
                                                                                                                                                                                                                                                                          66%
       I can't buy them locally but I can
                                  online                  13%                                                      Agent Screenshot
                                                                                                                                                                                         39%
     Among shoppers who at least sometimes buy household consumables online and are
            more likely to purchase private labels online than in stores (n = 510)

                                                                                                                                                                                                                    Among Amazon.com customers who have purchased Amazon private labels
                                                                                                                                                                                                                                               (n = 1,591)
                                                                                                                                                         Agent Photo




15   Brand New World                                                                                                                                                                                                                                                                                     Brand New World       16
2018 Field Agent . Published and produced by Field Agent .
THE OL'
     SWITCH-A-ROO                                                                                                                                                                                                                                                                         CHOBANI
                                                                                                                                                                                                                                                                                                VS
     Shoppers talk switching brands and
     why they do it                                                                                                                                                                                                                                                                        OIKOS
     B
              reaking up is hard to do. Yet new research from Field Agent
              suggests it's also pretty common, at least in the world of                                                                                                                                                                                                                   GREEK
              shoppers and brands. We purposefully concentrated our                                                                                                                                                                                                                       YO G U RT
              questions on product categories, like yogurt and ice cream,
     that have been disrupted in recent years by powerful new players.
                                                                                                    How common is brand-switching in certain product categories? (2)
     Take a look.




                                                                                                                                                                                                                         F                                                                                    BEST TASTE?
                                                                                                    To understand brand-switching, Field Agent                                                                                 ield Agent asked shoppers (N = 14) to purchase, try, and rate
     How loyal* are shoppers to a single brand within the                                           asked shoppers to identify their primary                                                                                   two name brands of Greek yogurt: Chobani and Dannon’s
                                                                                                    brand of yogurt and ice cream today as well
     following categories...? (2)                                                                   as their primary brand three years ago.                                                                                    Oikos. Which name brand, we wondered, would they crown
     Among shoppers who purchase these products                                                     Depending on the category, brand-switching
                                                                                                                                                                                                                               King of the Greeks?                                                              Chobani                         43%
                                                                                                                                                                                         79%
                                                                                                    can be very common. Please note, the
                                                                                                    figures below reflect only respondents who
                                                                                                                                                                                                                                                                                                                                              36%
        Not at all loyal       Not very loyal       Moderately loyal
                                                                                                    buy yogurt and/or ice cream.                                                                                         On a scale from 1-5, how would you rate this brand of Greek                               Oikos
        Very loyal         Completely loyal
                                                                                                                                                                                                                         yogurt on the following dimensions?(7)

                               12%                  7%                 11%               6%
                                                                                                                                                                                         switched primary
                                                                                                                                                                                        brands of yogurt in
                                                                                                                                                                                                                                                                                                                   Equal                   21%
        16%


                               22%
                                                   10%
                                                                       18%
                                                                                        10%
                                                                                                    YOGURT                                                                                a 3-year period

                                                                                                                                                                                                                            4.36
                                                                                                                                                                                                                                   4.43 4.43
                                                                                                                                                                                                                                               4.5
                                                                                                                                                                                                                                                                       4.43 4.43                          "The Dannon [Oikos] yogurt was lacking in overall taste in comparison
        21%
                                                   25%
                                                                                        23%                                                                                                                                                                                        4.36
                                                                                                                                                                                                                                                                   4                                      to Chobani. I felt Chobani also has a better texture and consistency."
                                                                       28%                          3-year change                                                                                                                                                                          Taste
                                                                                                                                              9%                                                                                                                                           Texture                                                                   - Agent Quote
                               37%                                                      27%                                                                                                                                                                                                Ingredients
        35%
                                                   31%
                                                                                                                                                                                                                                                                                           Price
                                                                                                                                                                                 4%
                                                                                                                                                                                                                                                                                                              BEST VALUE?
                                                                       24%
                                                                                                                         0%                                       1%                           1%
        18%                    20%                                                      34%
                                                   26%                                                               Dannon                 Chobani           Private-label
                                                                       19%                            Yoplait*   (inclu. Activia, Oikos)    (incl. Flip)       store brand      Other         Fage          Stonyfield
         9%                     9%                                                                                                                                                                                                  Chobani                              Oikos
       Yogurt
      (n = 2,852)
                           Ice Cream
                            (n = 3,070)
                                                Carbonated
                                                 Beverages
                                                               Peanut Butter
                                                                  (n = 3,121)
                                                                                     Deodorant
                                                                                      (n = 3,087)                                                              n = 2,789
                                                                                                                                                                                                              -1%                                                                                               Chobani                       36%
                                                 (n = 2,951)


       *Operationally, we defined ”completely loyal” as the condition of buying only one brand
                                                                                                                                                                                                                                                                                                                   Oikos                   21%
        over time without considering switching to another brand, while we defined “not at all                                               34% name Yoplait as their primary yogurt
                   loyal” as never or very rarely purchasing the same brand twice.                    -15%                                   brand today, down from 49% three years ago                                                                                                                            Equal                        43%

                                                                                                     "Halo Top also has protein in it and is healthier overall                                                                                                                                            “Both had very good taste. The Oikos had a better strawberry flavor

                                                                                                     compared to...any other ice cream."                                                 - Agent Quote                                                                                                    and texture. Chobani was very creamy.”     - Agent Quote




                                                                                                    ICE CREAM                                22% cite Breyers as their primary ice cream
                                                                                                                                             brand today, down from 24% three years ago                                                                                                                       BEST OVERALL?
                                                                                                    3-year change
                                                                                                                                                                                                               5%                                                                                               Chobani                                       50%
                                                                                                                                                                   3%          1%                    2%
                                                                                                             Private-label
                                                                                                    Breyers* store brand             Blue           Ben &         Other       Haagen-     Edy's   Talenti    Halo Top
                                                                                                                                                                                                                                                                                                                   Oikos                    21%
                                                                                                                                     Bell           Jerry's                    Dazs


                                                                                                      -2%        -1%                -1%               -3%                                -3%                                                         Agent Photo                            Agent Photo
                                                                                                                                                                                                                                                                                                                   Equal                      29%
                                                                                                                                                               n = 3,010

17   Brand New World                                                                                                                                                                                                                                                                                                                           Brand New World              18
2018 Field Agent . Published and produced by Field Agent .
MYSTERY SHOPPING.
                    REIMAGINED.                                                                                                   HEY, YOUNG 'UNS:

                                                                                                   MILLENNIALS & BRANDS
                Field Agent has radically reimagined mystery shopping to offer
                 retailers of all kinds a simpler, faster, altogether better way to
                  collect customer experience insights. We crowdsource your
                 customers’ smartphones to gauge staff responsiveness, store
                        conditions, store experience, and product usage.


                                                                                      M
                                                                                                  any assume Millennials, ages 18-35, are less loyal to               In which of these categories is your primary brand a
                                     Case Study:                                                  brands, more prone to switching brands, and more open to            private-label, store brand? (10)
                                                                                                  private labels than Non-Millennials.
                        Mobile Mysery Shop of Next Generation                                             But is this really the case?                                30%                 33%                                      Millennials
                                                                                                                                                                                                                                   Non-Millennials
                                                                                                                                                                                    28%
                                  Walmart C-Store                                                                                                                           23%                  24% 23%
                                                                                      Field Agent surveyed 1,959 shoppers—905 Millennials and 1,054
                                                                                      Non-Millennials—to get to the truth about these young 'uns and their                                                      12% 13%       9% 6%
                                                                                      shopping attitudes and habits toward brands.                                                                                                         4% 3%
                                                                                                                                                                       Ketchup      Toilet Paper Potato chips   Tuna fish    Toothpaste       Beer


                                                                                      Do you prefer to buy one brand* consistently over time, or to
                                                                                      switch back and forth between brands? (10)
                                                                                      *We focused our questions specifically on packaged groceries and household
                                                                                                                                                                       In summary, our survey suggests Millennials and
                                                                                      consumables
                                                                                                                                                                       Non-Millennials are more alike than different

                                                                                           56%            of Millennials prefer to buy a single
                                                                                                          brand consistently over time




                                 Experience the Mobile                                                   59%                 of Non-Millennials



                               Mystery Shopping Difference
                                                                                      In which of these categories have you switched from one
                                                                                      primary brand to another in the past three years? (10)
                          Lower costs             Actual customer perspectives
                          Photos and videos       Real-time dashboard                                                                             Millennials
                                                                                      53%                                                         Non-Millennials
                          Shorter field time      Easier store-level execution              47%    47%               47%
                                                                                                         42%   42%
                          Shorter questionaires   No shopper training                                                         33%                                     Agent Photo
                                                                                                                                    29% 29% 28%
                                                                                                                                                         22% 24%



                                                                                      Toilet paper Toothpaste Potato chips       Beer     Ketchup         Tuna fish                                                                       Agent Photo




19   Brand New World                                                                                                                                                                                                        Brand New World             20
Methods & Demos                                                                                                                                                             Hungry for
                                                                                                                                                                                more insights?
     This Field Agent report encompasses 11 different mobile studies completed between January 17, 2018 and February
     14, 2018. All studies were conducted entirely through the Field Agent mobile app, and all participants were U.S. adults
     and smartphone owners at least 18 years of age.



                        Survey locations
               This report contains 13,187 unique survey submissions
                                                                                                     Audit/buy & Try locations
                                                                                                 This report contains 460 unique audit/buy & try submissions             Field Agent’s special report, Groceries 2.0 Revisited, investigates the
                                                                                                                                                                         rise of online grocery shopping. This free report examines grocery
                                                                                                                                                                           pickup, grocery delivery, meal kits, and several state-of-the-art
                                                                                                                                                                                                shopping technologies.




     Demographics
     Cross-reference the number assigned to each question throughout the report with the demographic information below.


     Study 1                 Study 2                     Study 3                      Study 4                     Study 5                      Study 6
     Female:     65%         Female:       66%           Female:        65%           Female:      77%            Female:        65%           Female:        66%
     Male:       35%         Male:         34%           Male:          35%           Male:        23%            Male:          35%           Male:          34%

     18-24:      5%          18-24:        5%            18-24:         5%            18-24:       1%             18-24:         4%            18-24:         4%
     25-34:      28%         25-34:        27%           25-34:         27%           25-34:       24%            25-34:         34%           25-34:         29%
     35-44:      36%         35-44:        35%           35-44:         36%           35-44:       40%            35-44:         37%           35-44:         35%
     45-54:      20%         45-54:        21%           45-54:         21%           45-54:       25%            45-54:         18%           45-54:         21%
     55-64:      9%          55-64:        10%           55-64:         9%            55-64:       9%             55-64:         6%            55-64:         9%
     65+:        1%          65+:          2%            65+:           2%            65+:         1%             65+:           1%            65+:           2%



     Study 7                 Study 8                     Study 9                      Study 10                    Study 11
     Female:     86%         Female:       53%           Female:        0%            Female:      63%            Female:        63%
     Male:       14%         Male:         47%           Male:          100%          Male:        37%            Male:          37%

     18-24:      7%          18-24:        7%            18-24:         0%            18-24:       7%             18-24:         5%
     25-34:
     35-44:
                 29%
                 36%
                             25-34:
                             35-44:
                                           20%
                                           40%
                                                         25-34:
                                                         35-44:
                                                                        21%
                                                                        43%
                                                                                      25-34:
                                                                                      35-44:
                                                                                                   36%
                                                                                                   28%
                                                                                                                  25-34:
                                                                                                                  35-44:
                                                                                                                                 27%
                                                                                                                                 39%                                                      Claim Your Free Copy Now!
     45-54:      7%          45-54:        27%           45-54:         14%           45-54:       19%            45-54:         19%
     55-64:      14%         55-64:        0%            55-64:         21%           55-64:       9%             55-64:         9%
     65+:        7%          65+:          7%            65+:           0%            65+:         2%             65+:           1%




     Key Definitions:            “Private Labels” are goods produced exclusively for and sold
                                 exclusively by a single retailer, often at a lower price than
                                                                                                   “Household consumables” include any non-grocery, non-durable
                                                                                                   goods like cleaning supplies, detergent, toilet paper/paper towels,
                                 national name brands.                                             pet supplies, baby supplies, personal care items, etc.




21    Brand New World                                                                                                                                                                                                                      Brand New World   22
A BRAND
                                                                         NEW WORLD
                                                               Unbelievable challenges, indescribable opportunities...


                                                                 Today’s brands are dealing with more complexity than ever.
                                                                Fortunately, Field Agent offers a full suite of services—display
                                                               audits, price checks, shopper insights, and more—to help brands
                                                                       soar above the competition and succeed at-retail.



                                                                                       Contact Us




© 2018 Field Agent®. Published and produced by Field Agent®.
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