Private Brand vs. National Brand

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This story from CBS News 12 in Mankato, MN seems to be told and retold by TV stations and newspapers all across the country. The question for retailers is really will they be able to convert this economy induced trial into regualar shoppers and private brand loyalists.

Amidst an economic crisis people are looking to save money in a variety of different ways.As News 12’s Bryan Piatt explains, your choices at the grocery store can be key in your budgeting efforts.As shoppers stroll the aisles at a grocery store, they have decisions to make. One of them being store brand….or name brand.Shopper says, “It’s a little tough”Is the rough economy enough to make people pick that store brand product a little more often now?Marketing professor Shayne Narjes says…absolutely.Shayne Narjes says, “If they trust their milk as a store brand will be about the same as a name brand they’ll probably buy the store brand. Particularly if thoughts about the economy are weighing on their family.”So how much money can you actually save if you choose the product with the store logo on it instead of the name brand?Here’s how prices compare at HyVee.If you go the store brand route with toaster pastries, oatmeal, cheese, milk and cream cheese you will save $ 5.44 dollars every time you shop.Assuming you shop once a week that adds up to $282.88 dollars a year.This entire shopping cart is filled with basic store brand products. It adds up to just 85 dollars.So what makes them less expensive?Narjes says it’s basically because store brands don’t have to spend as much on advertising and marketing.Shayne Narjes says, “As you walk in, the name is everywhere. If you are at a particular grocery store you see their name over and over again. They probably aren’t running a TV commercial for their macaroni and cheese the same way you would see Kraft.”Bryan Piatt says, “Store brand products look a little different than name brands. So does this affect customers from purchasing the product?”Shayne Narjes says, “There’s some proof that shows the packaging influences us. Kids who see McDonalds bag will believe it’s better food. That recognition goes along with some of those choices.”So appearance may deter people from store brands.HyVee store director Dan Olson says if people can see beyond the packaging. There’s really no difference.Dan Olson says, “It’s basically a copy cat of a brand name. Most of the items made for private label are made in the exact same plant a brand name is.”So all things considered: Store brands can save you a little cash at the checkout line. Whether it suits your taste… or is worth the money… is your choice.In Mankato, Bryan Piatt, News 12.

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Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.