29 May 2008

According to a new customer survey released by Marketing Week, the brand reputation of several big online companies has fallen.

In association with YouGov’s BrandIndex, the survey of 200,000 people revealed that utility companies have shaken off their negative image during current environmentally conscious times.

Scottish Power, Powergen and EDF were the top three highest climbers out of all UK brands assessed in the Research. Six of the top ten fallers however were online brands. Popular dotcom companies Friends Reunited, CDWow, Virgin.net and Egg.co.uk feature prominently in the list of brands that have taken a dive.

Top 10 risers 

  1. Scottish Power – Utilities
  2. Powergen – Utilities
  3. EDF Energy – Utilities
  4. Thomson – Electrical
  5. Southern Electric – Utilities
  6. Currys – Retail
  7. SWALEC – Utilities
  8. Matalan – Retail
  9. Co-op – Retail
  10. Shell – Oil            

Top 10 fallers

  1. Friends Reunited – Online
  2. Royal Mail – Services
  3. CDWow.com  - Online
  4. Telewest – Telecoms
  5. ING Direct – Financial services
  6. Virgin.net – Online
  7. Egg.co.uk – Online
  8. Caffrey’s – Spirits
  9. Wanadoo.co.uk – Online
  10. Smile.co.uk – Online

The survey measures consumers’ respect for major brands and has identified that people are losing confidence in the newer Internet brands and are installing their trust in the more established, ‘bricks and mortar’ businesses.

Technology businesses fared well, Amazon and Google hold first and second places respectively, whilst Freeview and Nokia were in fourth and seventh position.

At these high ranks, however, traditional brands that are well-established have done very well. The BBC hit third place, whilst Marks & Spencers were placed in fifth, Cadburys in sixth and Heinz, Boots and Kelloggs in 8th, 9th and 10th.

Stuart Smith, Editor of Marketing Week, said:

The rise of the utilities in the survey is something of a surprise – for a long time they’ve been the sort of brand everyone knows but no-one loves. It seems that they have done a lot to shake off their miss-selling, super-polluting image and to create a warmer feel for the consumer.

The comparison between their increasing popularity with consumers compared to the declines shown by some Internet brands tells us that simply being new and different doesn’t guarantee you any sort of lasting respect in consumers’ minds.


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