Consumers feel that high prices are right for major brands

Media & Marketing:  While Irish people like to grumble - silently of course - about the prices of food, clothes, mobile phones and other services, when it comes to major brands, they are prepared to put up with a certain amount of price inflation.

That is the conclusion of a new survey by Dublin advertising agency McCann Erickson. It conducted an online survey among over 500 consumers and asked them which brands they would pay more for.

Listening to the disciples of the 'Rip-Off Republic' school, there is a sense that branded goods have reached the end of the line and own brand items will triumph. This may prove correct in time, but the results of the survey suggest that consumers, while conscious of value, are prepared to go the extra mile for some brands.

Cadburys, Nokia, Superquinn and Google were the most prominent among the brands that could - if they wanted - command a price premium in Ireland. Kay McCarthy, deputy managing director, of McCanns said: "These brands are more likely to survive a future inflationary market. Despite the fact that Google is currently free, this survey would seem to indicate that consumers would be prepared to pay for it".

Other brands to feature were Dunnes Stores, The Irish Times, Kelloggs and Marks & Spencer. The survey in particular said a subtle re-branding by Dunnes appears to have worked. New fashion brands like Savida and a homeware selection with designs by Paul Costello had caught the attention of middle class shoppers, it found.

RTÉ scores again

The 404,000 audience achieved by the Leinster versus Munster match last Sunday probably underestimates the real audience. The number of people watching in pubs and other venues is not recorded in these figures and neither are those who attended the game at Lansdowne Road.

Another high figure was the advertising revenue the game pulled in for RTÉ2.

AFA O'Meara, the Dublin agency, believe RTÉ2 pulled in €80,000 with the station transmitting four minutes of advertising costing €20,000 a minute.

McConnells' woes

All the talk in Irish advertising circles is the amount of business being lost over at McConnells, the largest Irish-owned agency in the Republic.

The agency, which was reported to be a takeover target a few years ago, has suffered a major loss of business in the last three months. Its competitors claim it has lost €18 million of business, but yesterday chief executive Jarlath Jennings said it was closer to €10-€11 million.

The biggest and most public loss was the National Lottery account, which is believed to be worth about €6.5 million.

Another account to move was Masterfoods, which owns major brands like Mars, Snickers, Twix, Uncle Bens and Dolmio. It has moved from MCM, part of the McConnell Group, to McCann Erickson.

Kelloggs, another high-profile account, has left the McConnells Group and gone to Leo Burnett, although Mr Jennings said this was more the result of an international alignment than any lack of performance from McConnells.

Most observers believe McConnell's lack of an international partner is holding it back, but Mr Jennings said the company's performance was more complex.

He said it recently won the IDA account and was doing innovative work for the Pensions Board. Three members of staff - Pat Stephenson, Chris Upton and Ian Murray - have joined the board as the company seeks to recognise younger internal talent.

Mr Jennings said the ad industry was cyclical and the company needed "to keep its nerve". He said there was "ongoing contact" with international agencies, but any deal had to be good for McConnells.