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Private brands, public brands- there are a lot of contradictory information published these past years on brands. There is no doublt about it, there are a lot of different types of brands for any one product. P&G (narisetti, Jan 15) observed the consumer did not want to be confused with lots of choices.
In 1996, Prepared foods (Anonymous, 199x) indicated that store brands grew 6.8% in dollar amount during the second quarter compared to 1995. This private label growth rate outpaced national brand growth for a 3 to 1 ratio or only 2%. Private brand labels have outperformed national brands in dollar sales growth in all but two of the last 14 quarters. This may be a continuation of the trend toward purchase of house brands. However, Fusaro (1995, January) indicates that the brands are back. The key appears to be quality. Consumers want to stay with a brand and hold onto it. Again, as P&G found, the consumer does not want to be confused by choices. Some of the brand strategies are:
- Private label: continue to force them to produce a product at a lower quality.
- Co-Branding: combining with other successful brands.
- Resuscitate a Brand
Brands themselves means a large number of considerations and facets to their use. These changes have meant some new food product development. A brand can see through co-partnering and such they can expand.
One of the problems may be that brands themselves are suffering an identity crisis! What is a butter finger, a skippy --- show candies and products in different forms?
Part of the affect on brands is the change in the supermarket itself. Private label (Loecke, J. 1994. Inside the News. Succeeding in a crowded marketplace. Prepared Foods 163(9):13.) has seen its supermarket share increase to 20% as of 1994. However, nationally 85% of the food products sold are name brands. There are some (Anonymous, 1997, April 17, 1997) that feel the increased use of supermarkets to sell prepared food, deli food, "instant meals", will enhance the ability of the supermarket to market their own private labels.
Updated: Friday, July 24, 2009.
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