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Study: CPG brands grow slightly but battle consumer defection, loyalty erosion

BY Antoinette Alexander

ST. PETERSBURG, Fla. — Total revenues of the top 100 brands in the nationwide Catalina Network of food, drug and mass grew by just 0.7% during the 12-month period ended in early July, according to new research by Catalina. The report also demonstrated that brand defections and reduced share among previously highly loyal consumers represent a major drag on individual brand performance.

“The 2011 Mid-Year Performance Review is a strong argument for making loyalty a more significant part of brand strategy,” stated Todd Morris, EVP brand development for Catalina. “Staying close and in touch with the changing needs and purchase behaviors of your brand’s most valuable consumers is the best way to retain loyal customers and grow revenue.”

The average brand in the top 100 grew revenues 2.2% during the past 12 months. However, the average brand also experienced a lost opportunity equal to 8.5% of revenues because of defections and reduced share among shoppers who had been highly loyal buyers a year earlier. For the average brand, 46% of previously highly loyal consumers either completely left the brand (20%) or reduced their loyalty (26%).

The study also showed that the fastest-growing brands tended to hold on to more of their loyal consumers, while large revenue decliners tended to lose more loyal consumers. On average, the lost opportunity because of loyalty erosion equaled 11.1% of revenues for the five largest revenue decliners in the top 100, versus 6% for the top gainers.

Brand defection often occurs suddenly, according to the study. One-out-of-3 shoppers who were 100% loyal to a brand in the first year of the study completely abandoned the brand for the next year after just one competitive purchase.

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Naturade intros Sam’s Club exclusive adult nutrition shake

BY Michael Johnsen

ORANGE, Calif. — Naturade on Wednesday announced the mass-market introduction of HealthSmart, a doctor-formulated daily protein shake mix that will serve as a comprehensive source of nutrition for active adults. 

Endorsed by baseball hall of famer George Brett, HealthSmart contains 18 g of whey, soy, pea and rice protein isolates, and is fortified with omega 3s and antioxidants for heart health, probiotics and fiber for healthy digestion, and 24 vitamins and minerals.

In an exclusive distribution arrangement, HealthSmart initially will be available for purchase at select Sam’s Club locations across 25 states.

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Walgreens rolls out two new videos touting Web pickup service

BY Michael Johnsen

CHICAGO — Walgreens on Tuesday and Wednesday posted two new 30-second spots touting its pharmacies’ Web pickup capabilities.

In the first spot, titled "The Pickup," a man is sent on a mission by his wife to pick up a product most men would find embarrassing to bring to the checkout counter. (To view the commercial, click here.)

"Web Pickup makes life even easier. Just shop your local store online and we’ll have your order ready to pick up in as little as an hour! Bagged and ready to go," the company wrote in the copy supporting the YouTube video. "And it is perfect for those instances where you might be too embarrassed to shop the aisles for those unmentionables or to send your significant other to the store to pick up just the right items."

The second commercial, "Walgreens Web Pickup — Quick and Simple," stresses the convenience a Walgreens Web Pickup can afford a mom who can multitask shopping and taking care of her children. For that video, click here.

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