Asisa Research Group Study Reveals that National Brands Lead the Market

Asisa Research Group Study Reveals that National Brands Lead the Market
Santo Domingo, Dominican Republic   26/09/2013

Confidence, price and quality position local products above others.

A study carried out by the Asisa Research Group (ARG) between September 2 and 15 with a sample of 662 surveys administered to residents of Santo Domingo showed preferences for locally manufactured products acquired in supermarket chains.

A phenomenon has been worldwide that is changing the way consumers select products in supermarkets, warehouses and department stores. Increasingly the national brands not only have to compete with imported brands but they also have competitors at the points of sale that pack or import “store” or “generic” brands in various categories.

The Dominican Republic has little information available on the impact that the introduction of these brands has had on the performance of national brands.

A study carried out by the Asisa Research Group (ARG) between September 2 and 15 with a sample of 662 surveys administered to residents of Santo Domingo showed preferences for locally manufactured products acquired in supermarket chains.

The surveyused the variables of monthly personal income, monthly household income and educational level, with a sample of 56.7% female and 43.3% male respondents from diverse social strata.

The results revealed that Yoki yogurt brand takes the lead in consumer preference with 64.7%, followed by La Yogurt with 23.10% and Activia with 17.30%.  Other brands that surpassed 10% are San Juan with 12.90%, Food Club with 11% and Elite with 10.60%.  Other brands did not obtain a score higher than 5%.

Despite price increases in most food products, 60.4% of consumers reported no change in the brands they purchased in the past six months.  Most consumers (82.3%) identify themselves as very satisfied/satisfied with the quality offered by the national yogurt brands.  The reasons for their preference are: variety of sizes and flavors, confidence in the brand, and the lower price in comparison with imported brands.

Similarly, 51.4% of respondents believe that national brands offer the best prices for these kinds of products, followed by 33.7% who mention brands imported directly by the supermarkets.  For this category most consumers become aware of sale prices while in the supermarket (45.10%) and others through newspaper inserts (36.3%).

In the case of rice, the leading brand is Arroz La Garza with 41.8% of the results in its favor, followed by Bisonó with 29.50% and Pimco in third place with 16.5%.  Other brands singled out by the consumers were Campos with 9.2%, El Molino with 5.7% and Lider with 4.2 %.

Supermarket-packed brands are mentioned by 10% of those interviewed and the “private” supermarket brands by 7.6%, that is to say, in this category 17.6% of consumers report buying brands handled by supermarket chains.

Of those interviewed, 62.5% revealed that they had changed their brand of rice in the last six months to reduce costs, showing the highest indices of satisfaction for national brands over generic products or private brands (92% v. 44%).

In terms of the best deals for the two brand types, opinions were divided between 50.6% that mentioned national brands and 48.7% the supermarket-packed or private brands.  Only 1.9% mentioned private imported brands.

Of those interviewed, 46% learn about rice brand sale prices from newspaper inserts, with SupermercadosNacional and Supermercados La Cadena scoring higher than 50%.  Another 35.7% learn about sale prices directly in the supermarket and through promotional displays on shelves. In the case of Carrefour, HipermercadosOlé and Plaza Lama, the percentage rose to 55% for rice.

In terms of canned goods, La Famosa leads with way with 37.20%, followed by Goya with 20.19%, Victorina with 10.09%, Linda with 9.16% and Jaja with 5.79%. The imported brands First Class and Food Clubobtained 5.23% each.

Of the respondents, 59.9% confirmed they had not changed canned product brands in the last six months, with the national brands preferred by 74.20% while 94% expressed being very satisfied/satisfied with their product quality. Only 51.30% indicated satisfaction with the quality of imported canned goods. 

In the case of canned goods, these percentages are due to confidence in the product (37.3%), price (19.40%) and availability in supermarkets (17.90%). Consumers believe that national brands offer better prices (56%). Mostlearn about sale prices in the supermarkets (46.6%) and 44.10% from newspaper inserts.

This study challenges the idea that “everything foreign is better than anything local.” The national brands stay competitive through a combination of factors that imply an upgraded modernized image, maintaining the level of satisfaction with the quality of the product, a competitive price and above all, rolling out an appropriate sale price strategy at points of sale.

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