Consumers Clinging to Old Favorite Brands

There is something comforting about a Craftsman wrench, Sony TV and Clorox bleach, according to the 1.2 million consumer interviews conducted in 2008 via the online BrandIndex poll.

When asked to rate the health of top consumer brands, mostly tried-and-true names rose to the top. Rubbermaid, Whirlpool and M&M's, for example, all fell within the top 10.

Craftsman scored well because "there is a feeling out there like the world may be screwed up out there, but I can depend on my tools," said Michael Margolis, president of marketing consultancy Thirsty-Fish. It is "an issue of confidence. People are wondering, 'What brands can I really trust?'"

Ted Marzilli, general manager of the BrandIndex, agreed. Craftsman is "not showy or flashy. But it is well-known, reasonably priced and good quality." The BrandIndex, conducted by the YouGovPolimetrix research company, polls 5,000 consumers over the age of 18 weekly. They are asked to rate six brand health indicators: quality, satisfaction, willingness to recommend, value, image and reputation.

While consumers love their Sony TVs, they apparently like their Discovery Channel even more. The same holds true for the History Channel as the two networks ranked first and second, respectively. "Our shows are either about blowing something up or watching someone get bit by something," said James Hitchcock, svp, marketing and branding for the Discovery Channel. "We do it in such a high quality way, at the depths of the ocean floor or at the highest peaks, that no one can touch us on that. The consumer acknowledges that."

The BrandIndex also broke out which brands' ratings improved the most during the second half of the year compared to the first. Wal-Mart saw the biggest jump, as did other frugal-friendly brands like Southwest and Craigslist. "In a challenging economy, value is something consumers focus on," said Marzilli. "In a down economy, people are more concerned about price than whether or not all Wal-Mart employees receive health care benefits."

Facebook, MySpace and YouTube also saw the boost in brand ratings during the second half of the year. "When my 55-year-old aunt is trying to make friends with me on my Facebook page, you realize you have reached a tipping point," said Margolis.

The companies with the biggest ratings drop off: AIG, Wachovia, Washington Mutual, Merrill Lynch, Morgan Stanley and Goldman Sachs. "When you see these companies dropping like flies, it hits home," said Margolis.