This study was generated from a representative sample of 200 households throughout Beirut. Attitudinal and behavioral findings across relevant consumer segments include new product users, core users and non-users, conversion and retention of consumer segments, product usage, sources of influence and brand loyalty across many retail channels.

Fast moving consumer goods (FMCGs) were the focus of this study and this final segment will focus on a small excerpt from the full study that examines the mineral water and alcoholic beverages (whisky) markets in a general fashion, with a look at core users, brand loyalty, and behavioral trends. Users were segmented by duration of use, allowing comparisons between new and core brand users, as well as non-users, in an effort to assess opportunities and strengths within the marketplace for the different brands. Only women were targeted in this study, as households’ primary purchasing decision makers.

In a break with previously published consumer goods segments, the market for mineral water in Lebanon sees a high rate of unstable loyalty, as illustrated in Graph 1. While sole brand loyalty to the top four brands is presented in Graph 2, the remaining brands indicated in the survey were widely distributed among the domestically-produced labels and reflected the patterns of an industry flooded with small, local mineral water companies and brands. Consolidation is occurring as large multinational corporations expand their interests in the industry through acquisitions, such as the Swiss food giant Nestle group’s acquisition of the Sohat company, which holds over 50% of the local market for mineral water.

Loyalty to the Sohat label was high, with the majority of its existing customer base maintaining longevity of purchase for over one year. However, price sensitivities were recently detected as a conversion factor to other brands. The Nestle and Nada labels were perceived to be benefitting from the switch, with Nada also maintaining high customer retention, However, our sample revealed that the Rim and Sara labels were able to maintain the highest customer retention rates.

In terms of alcoholic beverages, the market for whisky products was likewise found to have a high percentage of unstable loyalty, according to our sample (See Graph 3). Out of those who did express allegiance, the top four brands identified can be seen in Graph 4. While competition in this market is not only between brands but also between categories, this study was concerned with the different whisky brand labels available. Consumption in this mature market, where branded products are well know, was found to be fairly static, with consumption trends favoring higher-end products.

The brand leadership position in this category belonged to Johnny Walker, which also maintained a high customer retention rate. The highest performer with regards to retention, however, was the Dewars label, in addition to being the most successful in recruiting new buyers. While J&B also maintained an above average retention, it lagged behind the two. The Black Jack whisky label maintained its own share of the lower-end market and scored the highest in terms of consumer price sensitivity.