Google rules (so does Apple and Microsoft), as tech-savvy Aussies snub Vegemite and Toyota

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Australians have gone tech mad. They Google any and everything. They rely on Microsoft and Apple to get the job done, relax in front of their Sony TVs, keep in touch with their Nokias and iPhones and sell their stuff on eBay, while downing a Red Bull.

These are among the top brands in Australia according to the 2010 Brand Asset Valuator (BAV) study conducted by the global brand authority, Brand Asset Consulting.
Former perennial favourites like Tim Tam, Coca-Cola, Kit Kat and Nike are slipping as consumers become increasingly demanding and fickle. In 2000, 40 per cent of consumers were loyal to an individual brand. Today that figure is just nine per cent.

"Brands that are seen as betraying consumer's trust, that don't deliver on value and customer service, are being punished," says BAV research director David Evans.

"Toyota and BP had a shocking year with their product recalls and the Gulf oil spill while Australians proved that they were not-so-happy little Vegemites with the disaster that was iSnack. And chocolate brands which boomed as the GFC made us all depressed, are being cut from our list of favourite indulgences as we're feeling a lot more relaxed and comfortable."

Australians don't trust casinos; men's magazines or flavoured mineral waters, while Easy Off Bam, Fox Sports and Theo's Liquor are being trashed because they are seen as customer unfriendly.

"What's happened over the past 12 months is that too many brands have become commodities. Most don't stand for anything; they look and feel the same, which is causing consumers to choose brands based on price or convenience. In turn, this is forcing marketers to discount and bundle in a vicious circle of margin reduction and business decline. Take for instance the insurance market. Most of the main insurers are dancing on a price pinhead, with the exception of Youi which has an engaging story and service delivery to match."

Evans says that the flip side to this is "Who Dares Wins". And daring brands like Google, Apple, Virgin and Red Bull are reaping the rewards of increasing sales and engagement by being fresh, innovative and providing a great customer experience.

"Increasingly people are making purchases from companies that reflect their values. Even though Australia emerged from the GFC in relatively good shape, consumers are changing their buying behaviour. They are now much more circumspect, more aware of what they are buying and more questioning of the values of the companies from which they buy brands. They are demanding transparency and honesty. Status is no longer the point. Value is what really matters."

Evans said that marketers can use BAV to determine their investment priorities, brand by brand and category by category. The study also identifies new trends, such as the increasing demand for better customer service which companies are failing to deliver.

"Unlike other brand studies, BAV provides a more reliable marker for the behaviour of brands and consumers and overall brand health in a constantly shifting marketplace. It's the only study that provides both a diagnosis and a prescription for remedial action."

The 2010 BAV Study examined 1000 brands covering 120 different categories. More than 2000 Australian consumers were surveyed on-line as part BAC's database of consumer perceptions of brands which is conducted and compiled each year. The Australian database now has more than 1billion brand facts and opinions.

www.bacaus.com.au

4 Comments

Anonymous said:

In New Zealand, Cadbury went from about No 1 to 36 in a similar survey after trying to dupe consumers over palm oil additive and by downsizing bars without down-pricing them. Their main competitor meanwhile leapt from nowhere to the No 5 most trusted spot.

Anonymous said:

Another magnificent example of expensive research being used as a tool to discover what a little bit of common sense, intuition and very basic social observation could have led us too in about 3 minutes.

Which is the researchers way of saying, 'bit fucking obvious' isn't it?

Anonymous said:

Why isn't Campaign Brief on the Most Trusted Brands list?

Kirsty said:

Yes, all pretty much as expected. But curious as to why LinkedIn has appeared in the Least Trusted list... must have missed something.

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