Store brands are getting livelier, tastier, and much better
looking. More shoppers in more demographics are accepting and buying
them, more retailers are putting more resources into them, and more
national brands and celebrities are partnering with them.
The Consumer Network has been looking at store brands through many
windows in the last two months, and their momentum seems almost (but not
quite) unstoppable. Big retailers are banking on them, and investing
more in them. Jeff Noddle of Supervalu told shareholders at their May
meeting that the company will "invest more effort in the
merchandising and development of private label offerings," adding
that they "see opportunities to target additional product
categories with our own brands, particularly in the natural and organic
area, where national brands don't have sufficient category
power."
We would add that national brands' "category power"
appears to be losing power faster than store brands are gaining it. In
what we called a "Responsiveness Survey," we asked a cross
section of our shopper panel how well 30 national brands and companies
were responding to consumer needs on five measures:
* Product quality
* Product safety
* Packages and labels
* Environment
* Advertising communications
The survey was time consuming and required thinking. The response
rate was even lower than we anticipated. The findings are no more
reliable or projectable than the findings of two or three focus groups,
and yet....
The responses we did get suggest that great American brands are
very vulnerable. Only two of the brands we surveyed got consistently
high marks on quality. Several major brands got high marks on quality
from less than 50 percent of our respondents.
On the other hand, every major brand had some believers who gave it
high marks on everything but environment. Most of our shoppers just
didn't know how most of the brands and companies are responding to
environmental concerns. Target was an exception; two thirds of the
respondents who rated Target on anything gave it high marks for
environment. In sharp contrast, only 15 percent of our respondents had
any opinion on the eco-responsiveness of Wal-Mart, in spite of the
company's industry leadership in eco-friendly store design and
eco-packaging scorecards. Could shoppers' respect for Target's
environmental awareness rest on their upscale image, their leadership in
promoting smaller and more eco-friendly detergents, and their on-target
brand symbol? Could Wal-Mart's industry initiatives with
eco-friendly stores and a packaging scorecard for suppliers be first
steps to challenging Target's greener image with consumers?
In summary, the response to our little survey helped us (and
hopefully will help our readers) to understand the growing success of
store brands, as more shoppers say "Why not?" or
"Whatever."
COPYRIGHT 2007 Consumer Network,
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Copyright 2007, Gale Group. All rights
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NOTE: All illustrations and photos have been removed from this article.