NPD Group Brand-Link Study Links Music Fans with Consumer Brands

New study from The NPD Group uncovers subtle product purchasing patterns among music buyers

PORT WASHINGTON, NEW YORK, September 25, 2003 - According to a new Brand-Link Study conducted by The NPD Group, Old Navy is the apparel chain store most often shopped by consumers who also buy music from today's most popular music artists. But according to NPD Group Vice President Russ Crupnick, "it's only by looking more deeply at what products are owned and used by fans of specific musicians that we gain a useful view of the connections between music and marketing for particular artists and brands."

For example, NPD's Brand-Link Study found that 33 percent of Good Charlotte fans shopped Old Navy, while the same could be said for only 19 percent of Alan Jackson fans. Beyonce fans, however, showed the highest affinity for Old Navy: Over 45 percent of consumers who purchased a Beyonce CD also shopped at Old Navy.

"In consumer's minds songs create an emotional bond, and many artists have unique images that brands can leverage," Crupnick said. "The challenge is making the right match for particular artists or brands."

NPD's Brand-Link: A Study in Surprises

Sometimes the relationship between an artist and a brand appears obvious because of demographic or geographic differences; however, the Brand-Link study shows that patterns are sometimes subtle, and stereotypes often do not hold true. "Following stereotypes and 'gut-feel' can lead to missed marketing opportunities for both consumer brands and musical artists," said Crupnick.

For example, it might not be surprising that fans of cross-over country-music artist Alan Jackson are likely to be loyal Bud drinkers who also enjoy Jack Daniel's. And it wouldn't be surprising that Beyonce's fans prefer Corona beer and premium Vodka brands such as Grey Goose and Skyy. Belying the expectations, however, the Brand-Link data shows that fans of Beyonce show a higher incidence-rate for purchasing Jack Daniel's than do fans of Alan Jackson.

Knowing the incidence of purchase can also help marketers make decisions about product marketing in segmented markets. In the Carbonated Soft Drink category, for example, Good Charlotte buyers' preference for Sprite or Mountain Dew is as much as 50 percent higher than for 7Up. According to Crupnick, "this preference data might represent an opportunity for 7Up to expand its reach into a key segment of the youth market."

Music Meets Marketing

Brand-Link provides direct links between the music buyers and the brands they own and/or use. More than 500 artists and 600 brands are represented. Using this information consumer brand managers, record label executives and others can use Brand-Link information to support the following business applications:

• Pitching an artist to promote a specific brand
• Identifying a sponsor brand for an artist tour
• Identifying opportunities for branded compilations (e.g., Starbucks or NASCAR)
• Understanding how buyers brand usage varies by demographic groups (e.g., age or gender).
• Identifying artist/genre crossover opportunities
• Identifying co-appearance or co-performance opportunities
• Understanding who purchased music by a particular artist, or similar artists, in past 12 months

"NPD's Brand-Link Study is a study in surprises," Crupnick said. "Whether we're talking cars, hotels, video games or candy bars, Brand Link provides the facts to help ensure a successful brand promotion or music cross-over opportunity."

Methodology Note: NPD MusicWatch Brand-Link collects information once a year in June from NPD's Online Panel of consumers. NPD interviews nearly 30,000 music buyers (past 12 months) and 10,000 non-buyers in order to understand overall behaviors and strategically find ways to capture less active music consumers. The data is projected to represent the total U.S. population (aged 13+).

About NPD Music
NPD Music, a division of The NPD Group, provides reliable in-depth perspective on the most important issues facing today's music industry. MusicWatch and MusicWatch Digital are the flagship information services from NPD Music that reports on what consumers buy, as well as where -- and why. These two complementary services provide a detailed look at today's music consumers, covering such critical issues as consumers' habits related to downloading music and burning CDs, key influences on music purchases and customer viewpoints on specific retailers. NPD Music provides the consumer information needed to understand today's music marketplace and discover where music consumers are today - and where they'll be tomorrow.

About The NPD Group, Inc.
Since 1967 The NPD Group has provided reliable and comprehensive sales and marketing information for a wide range of industries. NPD provides critical knowledge on what is selling, where, to whom and why to help our clients make more successful, fact-based business decisions. Today more than 1,300 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their business and positively impact sales and revenues. Information from The NPD Group is available for the following major vertical sectors: apparel, appliances, automotive, beauty, cellular, consumer electronics, food and beverage, foodservice, footwear, home improvement, housewares, imaging, information technology, music, software, travel, toys and video games.