But no parent wants to put their baby's health and nutrition at risk to save a few dollars, and they wonder if the store brand formula is nutritionally equivalent to the more expensive
national brand.
Offering store brands at lower prices than the
national brand offerings is especially important when launching new products, says Mike Pinkowski, president and owner of SatisPie LLC, Rochester, N.
HOW MUCH LESS EXPENSIVE DOES A PRIVATE LABEL PRODUCT have to be to get consumers to pick it over the
national brand equivalent?
In a traditional
national brand equivalency scenario, a product was tested and that data was compared to that of a corresponding
national brand," says Brett LaFrance, North America sales director for the consumer business unit at UL Verification Services Inc.
When a
national brand they wish to buy is not available at the shelf, four in 10 choose the store brand, one-third pick a different
national brand, and one in
To get some clarification on whether shoppers look at store brands through the same glasses they use with
national brands, we asked half of the shoppers we polled last month to rate the importance of 18 attributes when they were buying
national brand soup, then to rate the importance of the same 18 attributes when they were buying store brand soup.
Is it possible that some
National Brand Equivalents (NBEs) have really become every bit as good as the
national brands?
CHARTER CLUB
National Brand 15% Store Brand 24% Don't Know 61% ESSENTIAL HOME
National Brand 14% Store Brand 30% Don't Know 56% KITCHENAID
National Brand 81% Store Brand 9% Don't Know 10% CHRIS MADDEN
National Brand 21% Store Brand 19% Don't Know 60% GREAT VALUE
National Brand 13% Store Brand 48% Don't Know 39% MICHAEL GRAVES
National Brand 9% Store Brand 17% Don't Know 74% CRAFTSMAN
National Brand 44% Store Brand 50% Don't Know 6% HOMETRENDS
National Brand 15% Store Brand 34% Don't Know 51% RALPH LAUREN
National Brand 81% Store Brand 13% Don't Know 6% SOURCE: WSL STRATEGIC RETAIL Note: Table made from pie chart.
Madison Marquette announced that it has united and strengthened its tenant representation and specialty leasing capabilities under one
national brand name, Madison Retail Group.
It developed a
National Brand Competitiveness Index and self-assessment tool for companies to measure their brand equity and plan future strategy.
Today's
national brand loyalists are the ultimate consumers," said Edward Keller, Roper Starch Worldwide president and chief operating officer.
The authors propose three explanations for why retailers use store brands: to improve their negotiating position in relation to manufacturers; to price discriminate among consumers; and to take advantage of the marginal-average cost gap of
national brand manufacturers.
