Best Brands: Colruyt is unbeatable
Colruyt is one of the most popular brands in Belgium, along with Coca-Cola. Both of these brands received two awards each in two competition entries. The soft drinks brand won Best Corporate Brand in 2016, and Best Product Brand in 2017. Meanwhile, Colruyt won Best Belgian Brand Award in 2016, Best Corporate Brand in 2017 and Best Omnichannel Brand in 2018.
However, how is Colruyt doing in terms of the best Product Brand?
Colruyt, which is ranked 31st in the general rankings, features in the retailers category, although it is not rated for its own brands (e.g. Boni). It is the retail brand that is competing with Delhaize, Carrefour, Aldi, or Lidl who make up the top 5, inter alia.
As we often note within each category, the real difference between Colruyt and its competitors is at the emotional level and in the KPIs linked to emotions. The differences observed at the rational level, regardless of whether they involve market share, price premium, or first choice, are not as important when we look at relationships, experiences, or loyalty.
Where Colruyt stands out more is in terms of activating its potential, which is calculated on the basis of brand equity. Brand equity is the sum of so-called strong relationships, cross-checked with individuals who consider the brand to be their first choice. Colruyt obtained a score of 49 in areas where the closest runners-up obtained scores ranging between 23 and 33.
The strength of the brand’s equity is naturally derived from the number of strong relationships that the brand maintains with its consumers or its customers. However, as has been explained previously, it is also derived from the fact that the brand is chosen as the first choice. This can make a difference. For instance, we could note that Aldi and Lidl record scores that are higher than Delhaize in this case.
In the mass retailing sector, it is interesting to note that consumers perceive Delhaize as the brand with which they flirt most. Meanwhile they perceive Colruyt, Aldi, and Lidl as brands that are considered as part of the family. Delhaize also features more among the Top 3 brands mentioned among high-risk relationships, regardless of whether those relationships are confrontational, or have ended.
This is certainly linked to Delhaize’s premium plus positioning compared with its competitors. Contacts when flirting are less frequent, but more intense. Let’s use a simple example to explain this: we all spend more money on a first date with someone we like than when we meet up with someone we see on a regular basis. This second type of person corresponds more closely to the relationship that we have with a close friend and/or family, and whom we see more frequently, without investing as much money in our meetings.
The type of relationship that binds us to a brand will specifically have this kind of characteristic feature. Where a brand is a flirt, we will observe a higher price premium for a lower market share. Where it is a best friend, the market shares will be higher, but the price premium will be lower.
See you next week to find out more about the other categories presented in the Best Brands survey, or feel free to contact Serviceplan or GfK.