The off brand products often appeal to a wide range of demographics. For example, they are appealing to millennials on a budget and early retirees who want to save money. However, there are certain factors to consider before launching an off-brand: customer inclinations, perceptions, price-quality ratio, and the organization’s reasoning for starting an off-brand. Moreover, a poorly executed off-brand can end up cannibalizing branded products.
Why store brands are better than name-brand products
Whether you’re a foodie or just trying to cut your grocery budget, store-brand products are a great alternative to name-brand products. They have the same quality, but they’re considerably cheaper. Store-brand products also don’t require as much advertising as name-brand products. Instead of creating a special campaign for them, stores simply include them in fliers and specials. That way, they require less advertising, which saves the company money.
One reason store brands are cheaper than name-brand products is because major food companies market their products under multiple brands. In fact, one in five store-brand products is produced by a private label manufacturer. This way, they appeal to people paying at either price range. And because store brands are often cheaper than name-brand products, they’re becoming increasingly popular.
Woochoel Shin, a professor of marketing at the University of Florida, has studied store brands and found that they often offer name-brand quality at lower prices. While many consumers regard store-brands as inferior, Shin argues that this mindset is an old one that dates back to the 1980s, when many of today’s shoppers were growing up. Back then, there were a lot of generic products that had poor quality compared to name-brand products.
Store-brand items can compete with name-brand products in quality and innovation. In fact, they’ve even won awards for innovation. In a recent study, a company named Kroger was able to sell a store-brand item that compared favorably with its national brand counterparts.
Even though store-brand products are cheaper, they can still perform well in taste tests. For instance, store-brand shredded wheat and sandwich cookies scored well against name-brand products. Wal-Mart’s sandwich cookies and raisin bran also outperformed top-selling brands. Store-brand colas are stronger than Coke and Dollar General’s cheese crackers are comparable to Cheez-Its.
Dynamic in nature
While many consumers prefer name-brand products, others prefer apple brands. This can help cut the grocery bill without sacrificing quality. Food town believes store-brand products can rival name-brand products in price and quality. A few examples of popular generic store brands are cereal, paper towels, and ice cream.
Although store-brand products are cheaper than name-brand ones, you should always do your research before purchasing a product. The best way to compare prices is by comparing the cost per ounce. Don’t be fooled by sales. Sometimes, name-brand products are cheaper during sales than generic versions.
Many store-brand foods are identical to their name-brand counterparts. However, the brand name packaging may differ. While the quality of store-brand products may be inferior, they usually perform as well as their name-brand counterparts. Oftentimes, store-brand foods are sold next to name-brand items, so it’s easy to compare prices and ingredients.
Store-brands also save grocery retailers money. Many grocery stores want to offer more value-priced versions of popular items. They may need to offer several price tiers within a category to stay competitive. This way, they can use store brands as a competitive lever.
The decision to buy a store-brand versus a name-brand product is personal. Many people may feel that name-brand products have better quality, but sometimes it’s just part of a brand development. The decision is up to you. Sometimes, it’s a matter of trial and error. If you’re not sure whether a store-brand brand is better, try a generic version.