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FOR IMMEDIATE RELEASE

Copernicus Reports Brand Study Results: Most Products and Service Becoming More Similar Than Different

January 1, 2001, Newton, Massachusetts

To see summary tables of brand trends study results, click here.

Despite billions spent on marketing and branding every year, most companies have commoditized their product and service brands, according to a new brand trends study, "The Commoditization of Brands and Its Implications for Marketers," by Copernicus Marketing Consulting.

None of the 51 product and service categories analyzed in this brand trends study are becoming more differentiated over time and 90 percent are declining in differentiation, with banks, bookstores, bottled water, credit cards, discount stores, and fast food restaurants leading the pack in becoming much more similar and having the least brand differentiation. By "commoditized," Copernicus means a company's products and services are amazingly similar to competitor products and services in features, advertising, and price.

The study also found that consumers view low price as more important than brand name in 28 out of 37 product categories, particularly when selecting bookstores, bottled water, gas stations, office supply stores, pet supply stores, and rental cars.

"It's astounding to see the huge range of products and services that are becoming commoditized," explains Dr. Kevin J. Clancy, chairman and CEO of Copernicus. "Consumers can't see differences between major brands in most categories, and as a result, many are buying based on price. If companies want to increase their margins—maybe even survive—they must learn how to develop value-add brands that set them apart from the competition in their customers' minds."

Copernicus asked consumers to rate the leading brands in each of 48 product and service categories in terms of whether they are becoming more similar or different over time. Copernicus translated the measures of brand differentiation into a scale that ranged from +100 (much more similar) to -100 (much more different). More positive scores indicated increasing similarity between brands and a move towards commoditization. The leading brands that received the highest similarity scores:

The study also asked consumers to evaluate the brands in general in 51 product and service categories. The categories receiving the highest similarity scores include:


The categories perceived as least similar—or most differentiated—include:


Study Methodology
Conducted among a nationally-representative sample of 615 men and women, age 18 or older, from Market Facts' Consumer Mail Panel, the study investigated the performance of 51 different product and service categories in terms of whether they are becoming more homogenous (i.e., the brands are becoming more similar or commodity-like) or heterogeneous (i.e., differentiated) over time.

The questionnaire used three different measures: the first asked respondents to evaluate whether the two leading brands in a category were becoming more similar or different; the second queried respondents about the category as a whole; while the third focused on whether a low price vs. brand features or benefits were becoming increasingly more important to respondents.

To receive a copy of the Copernicus brand trends study, "The Commoditization of Brands and Its Implications for Marketers," please send an e-mail to ami.bowen@copernicusmarketing.com.

For more information, contact:
Ami Bowen, Director of Corporate Communications
(617) 449-4179 or ami.bowen@copernicusmarketing.com

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