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Retailers, consumers and prices

March 2nd, 2009

Just how wonderful is your brand?

Posted by: Nicole Maestri

USA/Just how “wonderful” consumers think your brand is can help your stock price, especially in a recession, according to a study by market research agencies Kadence, Brand Care and So What Research.

The study looked at consumer perceptions of 650 leading U.S. brands and found there is a link between the affection consumers hold for a brand — or the “wonderfulness” of the brand – and its stock performance.  

According to the study, the ten most wonderful brands in the eyes of U.S. consumers are (in descending order) Hershey’s, Google, Sony, Kraft, Crayola, Kellogg’s, Scotch Tape, Wii, Rolls Royce and Johnson & Johnson.

The ten least wonderful brands are (from bottom up) National Enquirer, AIG, Botox, Kia, alli, Hummer, O The Oprah Magazine, Dress Barn, ChemLawn and Direct Buy.GOOGLE-YAHOO/

In terms of value, brands that were seen as offering the best ratio of wonderfulness to cost were Wal-Mart, Google, Amazon, Hershey’s, Target, Cheerios, Campbell, PBS, Yahoo and eBay.

Brands that were seen as offering the worst ratio of wonderfulness to cost were Hummer, Botox, Prada, Land Rover, Gucci, AIG, Saks Fifth Avenue, Louis Vuitton, Maserati and Ferrari.

“Detailed analysis of responses shows a strong correlation between the level of consumer affection and stock performance in 2008,” said Owen Jenkins, CEO of Boston-based Kadence Business Research, in a statement. 

“For example, corporations owning brands with a mediocre affection score of 4.5 out of 7 lost nearly 50 percent more stock equity last year than corporations owning brands with an affection score of 5.5.

In other words, a small difference in how much a brand is loved makes a big difference in how it performs on the stock market.”

The study was conducted online among 5,500 educated, affluent consumers aged 18-54 during the pre-holiday shopping period in December of 2008.

(Photos: Reuters)

November 19th, 2008

Check Out Line: Hannah Montana rising

Posted by: Brad Dorfman

Check out the marketing power of Hannah Montana.
 
Watch out Barbie. Hannah is clawing her way up behind you. At least as far as girl’s toys are concerned.
 
According the National Retail Federation’s 2008 top toy survey, Hannah Montana has moved up four spots to the number two position for girls’ in the Top Toys survey, trailing on Mattel’s Barbie.
 
Toys based on the Disney character, who is played by Miley Cyrus, knocked those scrappy Bratz dolls out of the number two spot. Bratz fell all the way to number four behind just-plain-old, everyday, no-specific-name dolls.
 
As far as boys are concerned, the list is similar to last year, with video games in general topping the survey and the Nintendo Wii in the number two spot. Legos, cars and Transformers round out the top five.
 
While the weak economy is leading to expectations of a dismal holiday shopping season, parents could find some bargains in toys.
 
“The good news for parents is that many retailers are featuring toys as loss leaders this year, heavily discounting and promoting these items to bring shoppers into stores,” NRF President and CEO Tracy Mullin said.
 
Also in the basket:
 
CPI drops at record pace in October
 
BJ’s Wholesale quarterly profit jumps
 
Why Doesn’t Costco accept food stamps? (N.Y. Times City Room)

(Reuters photo)

September 25th, 2008

Check Out Line: Pink iPod helps lead hot toy parade

Posted by: Aarthi Sivaraman

Check Out how the iPod finally made it into the Toys “R” Us hot toys list for the toysrus.jpgholidays.

This holiday season, Apple’s pink 8 GB iPod nano, Nintendo’s Wii Fit and the Fisher-Price Sesame Street Elmo Live toy are topping the list of most sought-after toys.

Even though iPods have topped holiday wish lists for years, Toys “R” Us said this is the first time it has included the portable media player on its hot toys list. Late perhaps, but a company spokesman said in an e-mail that the iPod nano in pink makes it “doubly hot” and that Toys “R” Us thinks the iPod appeal is starting to reach kids.

The main question though is, whether it will come loaded with Miley Cyrus tunes?

To avoid disappointing shoppers hungry for the popular Nintendo Wii Fit, which gives gamers some exercise, Toys “R” Us said it expects to get regular shipments of it.

Other top toy picks include EyeClops Night Vision Infrared Stealth Goggles from Jakks Pacific, Furreal Friends Biscuit, My Lovin’ Pup from Hasbro and the Pink Tag Reading System from LeapFrog.

The Toys “R” Us list comes as the holiday sales season is expected to be gloomy for both consumers and retailers.

Also in the basket:

Rite Aid Q2 loss widens; sees bigger FY09 loss

Holiday sales lose luster for inundated consumers

Longs says FTC is probing Walgreen bid 

Pilgrim’s Pride loss may put it in covenant default

(Photo: Reuters)

June 10th, 2008

Check Out Line: Here a Nerf, there a Nerf…

Posted by: Brad Dorfman

nerf.jpgCheck out that foam-rubber t-shirt!?!
 
Hasbro is putting the Nerf brand everywhere with a series of licensing deals announced today at the International Licensing Show in New York.
 
Among the deals is one for Nerf apparel with Fortune Fashion. The plan calls for an array of t-shirts for tween boys this summer, with an array of other items such as hoodies and track pants to follow. (Okay, the clothes will probably not be made of the same stuff as a Nerf ball).
 
Video game maker Electronic Arts will also come out with the “N-Strike” video game bundle for the Nintendo Wii, combining the fun of shooting foam-rubber weapons with the uber-popular video game. So your fake digital avatar can use your fake foam-rubber gun to shoot at fake stuff on your real television.
 
“This makes it the first time that Hasbro has put a forceful effort behind the licensing program supporting Nerf,” said Bryony Bouyer, senior vice president of licensing at Hasbro.
 
We’re guessing Hasbro could use some help in its push to expand the Nerf name. What would you like to see rendered in Nerf?
 
Also in the basket:
 
Dubai World buys Wal-Mart property firm Gazeley
 
Constellation sells some wine brands

(Photo: Reuters)