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Saturday, July 24, 2010

The Value of House Brands Vs Name Brands

The Private Label/House Brands landscape has changed in the recent years. Today Private Label/House Brands are all the rage, especially in the current economy. With people not eating in restaurants as much as they were and cooking their meals at home, grocery stores and mass-market retailers are gaining wallet share with their House Brands. Challenges in the economy have driven more shoppers across social economic groups to purchase Private Label/House Brands and recognize the value of house brands vs. name brands.

80% of the purchasing decisions are made at the shelf. The consumer is shopping for products that are high value or offer increased cost benefit. Successful retailers have been listening to the needs of consumers. Strong, differentiated, well merchandised private label programs have resulted in increased foot traffic and profits. Private Label/House Brands have become a way for retailers to build customer trust and loyalty. Retailers have experienced an upside by adding Private Label programs that encourage trail and repeat purchases across food and nonfood categories.

The addition of organic and natural lines has become a strong differentiator in the "Private Label/House Brand equation. Grocery stores and mass market retailers are using their private organic and natural brands to build equity with consumers. Shoppers have found value across several categories, and have come to rely on several products making stores like Whole Foods, and Trader Joes their destination. A J.D. Power and Associates report on the private label industry found that while pricing is a key factor for consumers, the quality and flavor of Private Label Organic items drive much of shoppers' purchasing habits.

Natural and Organic House Brands don't have the same competition on the shelf that traditional Private Labels do (vs. a strong national brand). In world of organics the brand landscape doesn't have dominate national brand players on the scale of Kraft or Nestle. As organic brands have become more popular in the last few years more companies like Health Valley, and Arrow Mills have taken a place on store shelves.

Organic House Brands have become a new stream of revenue for retailers. Many of them have taken this source of income as seriously as the set of national standards that the United States Department of Agriculture (USDA) has put in place on food that is labeled "organic"- whether it is grown in the United States or imported from other countries.

Grocery and Mass Market stores like Safeway, SUPERVALU (Jewel & Albertsons) Target, Meijer, Whole Foods and Trader Joes have added Organic and Natural Private Label/House Brands to the categories that they offer. The manufactures of Organic and Natural Private Label/House Brands can range from, national brand manufacturers that have taken a strategic direction to supplying house brands to small/midsize manufacturers who specialize in particular product lines.

Premium Private Label/House Brands thrive as shoppers gain sophistication and expect both quality and value. Brands like 365 Everyday Value® and 365 Organic Everyday Value® products are a range of products from everyday for the pantry to gourmet products that includes natural to organic products. Target has also become a designation for its Archer Farms, gourmet quality foods that are at an affordable price. Traditional grocery stores have also added a wide range of organic fruits and vegetables to the Organic category.

The rule of thumb with house brands is that the retailer will guarantee their product and will refund your money if you do not like it. The most important thing to remember when purchasing organics and gourmet Private Label/House Brands you are purchasing a product that is just as high quality as name brands at a competitive price, that won't put a dent pocket book.

Green, Organics and Gourmet Private Label/House Brands

Safeway Store/O Organics

O Organics food line is produced and handled in accordance with all USDA organic standards--without the use of synthetic pesticides, genetic modification, growth hormones or antibiotics. O Organics products are sourced from a variety of carefully selected organic growers using earth-friendly farming practices. The food line has grown to include more than 300 products, and is currently sold by other retailers.

SUPERVALU / Wild Harvest

Wild Harvest Natural and Organic products are created with one philosophy in mind-food that's natural and delicious. With the highest standards for taste, quality and health, Wild Harvest is not just a house brand it's also an entire department that carries natural grocery, dairy and frozen food sections.

Target / Archer Farms

Many Archer Farms products sold in Target Stores are Certified Organic such as applesauce and oatmeal. Their slogan is Tasty Food, Tasty Price.

Meijer / Meijer Organics

USDA Certified Organic product packed with unmatched purity, unbelievable flavor, and undeniable quality - all at a competitive price.

Meijer Naturals™

Wholesome foods are minimally processed products that have no bioengineered ingredients (GMOs), no hydrogenated oils and no artificial additives.

Meijer Gold

Unique foods from unique places, Meijer Gold supports local businesses in the states and communities in which Meijer's operates, as well as striving to bring a collection of products produced by family owned businesses.

Whole Foods Market / 365 Everyday Value® and 365 Organic Everyday Value®

From the everyday to the gourmet, the 365 family of brands offers a wide selection of natural and organic products. Exclusive to Whole Foods Market, all of their products meet strict Quality Standards - that means no artificial ingredients or hydrogenated fats. Whole Foods Market is the forerunner of creating new standards for defining what natural/organic means in the marketplace.

I am a Marketing and Sales professional, with over 15 years of experience producing integrated marketing that resonates with the target audience and breaks through the media clutter. My strength is in expanding a customer base, by blending strategic business development practices and driving results through clear, actionable and choreographed business plans. Adept at strategizing, organizing, simplifying, and negotiating business deals.

I have extensive experience in social networking and regularly conduct workshops on the strategic use of tools like LinkedIn, and Blogs for inbound and outbound marketing.

I enjoy creating partnerships, sponsorship opportunities, lead generation, interactive/traditional marketing strategies and working on tradeshows (including events and sampling programs). I am available for consulting assignments as well as a full time marketing or an account director position. I can be reached at laurenbrill@sbcglobal.net

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