http://www.mpdailyfix.com/the-chicken-or-the-egg/?utm_source=rss&utm_medium=rss&utm_campaign=the-chicken-or-the-egg Opinions. Commentary. News. Sat, 11 Feb 2012 13:14:15 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41029 Ted Mininni Mon, 27 Apr 2009 14:01:23 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41029 You've made an important point, Beth. As consumers we're willing to do some trade offs. We'll purchase value-priced brands for a number of commodity items if we think we're getting decent quality. There are, however, certain nationally branded items we will continue to purchase, no matter how sour the economy is. These are "little treats" we give ourselves and they make us feel better when times are tough. Good for you recognizing that. Thanks for weighing in, Beth. You’ve made an important point, Beth. As consumers we’re willing to do some trade offs. We’ll purchase value-priced brands for a number of commodity items if we think we’re getting decent quality. There are, however, certain nationally branded items we will continue to purchase, no matter how sour the economy is. These are “little treats” we give ourselves and they make us feel better when times are tough. Good for you recognizing that. Thanks for weighing in, Beth.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41028 Ted Mininni Mon, 27 Apr 2009 13:58:24 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41028 Hi Matt, In this economy especially, consumers care about value and price in a big way. Having said that, to your point: when customers have purchased store brands based on those two criteria, and those brands fail to impress them in a positive manner, they simply won't buy them again. Brand building takes time. The perception of good value and low pricing cannot carry the day if brands fail to deliver. Period. I do think we are in a situation at present where successful store brands can continue to make inroads and can launch innovative new products with success if they are well researched and brought to market. Thanks, Matt, for reminding us about how crucial delivering on the brand promise really is. Hi Matt,
In this economy especially, consumers care about value and price in a big way. Having said that, to your point: when customers have purchased store brands based on those two criteria, and those brands fail to impress them in a positive manner, they simply won’t buy them again. Brand building takes time. The perception of good value and low pricing cannot carry the day if brands fail to deliver. Period. I do think we are in a situation at present where successful store brands can continue to make inroads and can launch innovative new products with success if they are well researched and brought to market. Thanks, Matt, for reminding us about how crucial delivering on the brand promise really is.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41027 Beth Mon, 27 Apr 2009 13:02:31 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41027 I have become a big time bargain shopper. When you have a lot of mouths to feed you want your money to go as far as possible so I buy the cheapest brands which usually means the store's brand. The only name brand items I do buy are Oreos. There is no other cookie like them! Other brands have tried, but failed. I save money where I can, but when it comes to my family's favorite treat only the best will do. I have become a big time bargain shopper. When you have a lot of mouths to feed you want your money to go as far as possible so I buy the cheapest brands which usually means the store’s brand. The only name brand items I do buy are Oreos. There is no other cookie like them! Other brands have tried, but failed. I save money where I can, but when it comes to my family’s favorite treat only the best will do.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41026 matt Fri, 24 Apr 2009 18:16:36 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41026 I have to take issue with Lewis' intital statement "consumers care about value and price, not the brand on the label". I could right books on how wrong this is, but let me simply suggest that value and price contribute to the reputation of the brand on the label. I have to take issue with Lewis’ intital statement “consumers care about value and price, not the brand on the label”. I could right books on how wrong this is, but let me simply suggest that value and price contribute to the reputation of the brand on the label.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41025 Ted Mininni Tue, 21 Apr 2009 18:54:08 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41025 You're quite right, Paul. Costco has actively marketed its Kirkland brand and they've consistently managed it. I've cited this store brand on more than one occasion in published packaging articles. Costco demonstrates what retailers can accomplish when store brands are launched not as an afterthought, but as a centerpiece of the retailers' marketing efforts and positioning. Another excellent retailer is Trader Joe's in this regard. As you pointed out: shoppers have responded with their wallets. P&G CEO Alan Lafley once said that his brands are being voted on every day by consumers. Consumer vote with their wallets. Thanks for sharing your insights, Paul. I appreciate it very much. You’re quite right, Paul. Costco has actively marketed its Kirkland brand and they’ve consistently managed it. I’ve cited this store brand on more than one occasion in published packaging articles. Costco demonstrates what retailers can accomplish when store brands are launched not as an afterthought, but as a centerpiece of the retailers’ marketing efforts and positioning. Another excellent retailer is Trader Joe’s in this regard. As you pointed out: shoppers have responded with their wallets. P&G CEO Alan Lafley once said that his brands are being voted on every day by consumers. Consumer vote with their wallets.
Thanks for sharing your insights, Paul. I appreciate it very much.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41024 Paul Barsch Tue, 21 Apr 2009 18:39:36 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41024 Ted, I wish I could cite the source, but I read an article on Costco's Kirkland brand a few years ago. The main jist of the article was that the Kirkland brand was more than a "me-too" store brand. Costco buyers actively pursue the best products (cost/quality/features etc) to brand as Kirkland. And as you know, Kirkland brands are regularly juxtaposed with national brands to let consumers decide--with their wallets! Ted, I wish I could cite the source, but I read an article on Costco’s Kirkland brand a few years ago.
The main jist of the article was that the Kirkland brand was more than a “me-too” store brand. Costco buyers actively pursue the best products (cost/quality/features etc) to brand as Kirkland. And as you know, Kirkland brands are regularly juxtaposed with national brands to let consumers decide–with their wallets!

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41023 Ted Mininni Tue, 21 Apr 2009 17:56:57 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41023 Great point, Claire. We tend to equate store brands with supermarket chains first, but there are many channels of distribution and private labels cut across many consumer product categories, as well. Do any DF readers have other examples of store brands they'd like to share? Thanks, Claire, for your input. Great point, Claire. We tend to equate store brands with supermarket chains first, but there are many channels of distribution and private labels cut across many consumer product categories, as well. Do any DF readers have other examples of store brands they’d like to share?
Thanks, Claire, for your input.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41022 Claire Ratushny Tue, 21 Apr 2009 16:32:08 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41022 Ted, Good post. I've done considerable work in the organic/natural product industry for some time now. Not only have mainstream supermarket chains developed store brands that compete well with national brands. Natural product stores have quietly created private label brands for some time as well. While many are familiar with Trader Joe's and Whole Foods' store brands, they may not know that much smaller operations also tout excellent store brands. They are also great innovators, to boot. Meijer, for example, has recently added to its PL assortments. Take a look at this short article in Progressive Grocer and you'll see what I mean: <a href="http://www.progressivegrocer.com/progressivegrocer/content_display/features/center-store/e3i5f7703273120b21d3efb4cc99da9e7e2?imw=Y" rel="nofollow">http://www.progressivegrocer.com/progressivegrocer/content_display/features/center-store/e3i5f7703273120b21d3efb4cc99da9e7e2?imw=Y</a> The ongoing move to bring more nutritional foods and beverages to more consumers is a win-win in my book. Ted,
Good post. I’ve done considerable work in the organic/natural product industry for some time now. Not only have mainstream supermarket chains developed store brands that compete well with national brands. Natural product stores have quietly created private label brands for some time as well. While many are familiar with Trader Joe’s and Whole Foods’ store brands, they may not know that much smaller operations also tout excellent store brands. They are also great innovators, to boot.
Meijer, for example, has recently added to its PL assortments. Take a look at this short article in Progressive Grocer and you’ll see what I mean:
http://www.progressivegrocer.com/progressivegrocer/content_display/features/center-store/e3i5f7703273120b21d3efb4cc99da9e7e2?imw=Y
The ongoing move to bring more nutritional foods and beverages to more consumers is a win-win in my book.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41021 Ted Mininni Tue, 21 Apr 2009 15:50:24 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41021 Exactly, Lewis. Smart retailers will use their real estate as well as their marketers to tap into what their customers ask for and respond well to. They can turn new ideas into new products quickly. They can also test products in a few, selective locations and then choose how many units to distribute them to initially. For all of these reasons, I believe retailers will lead the way for many new products in future. Thanks for kind words, BTW. I appreciate it. Exactly, Lewis. Smart retailers will use their real estate as well as their marketers to tap into what their customers ask for and respond well to. They can turn new ideas into new products quickly. They can also test products in a few, selective locations and then choose how many units to distribute them to initially. For all of these reasons, I believe retailers will lead the way for many new products in future.
Thanks for kind words, BTW. I appreciate it.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41020 Lewis Green Tue, 21 Apr 2009 15:18:21 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41020 Ted, What makes the retailers place in innovation, quality and value is that they own the shelf space, as your smartly pointed out. Ted,
What makes the retailers place in innovation, quality and value is that they own the shelf space, as your smartly pointed out.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41019 Ted Mininni Tue, 21 Apr 2009 14:41:16 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41019 I believe you're right, Lewis. We all like to save money, but at the end of the day, we do not want to sacrifice quality and value, do we? Personally, I'm keenly interested in seeing where retailers take their store brands in the near future. I think they're poised to really take off. I expect much more innovation. Since retailers are so close to the consumer, they have the perfect opportunity to experiment with new product ideas and test them easily and inexpensively. That gives them a terrific edge. Bottom line: it ought to keep the national brands on their toes, too. And that's good for the consumer, no matter what. Thanks for weighing in, Lewis. I always appreciate your insights. I believe you’re right, Lewis. We all like to save money, but at the end of the day, we do not want to sacrifice quality and value, do we?
Personally, I’m keenly interested in seeing where retailers take their store brands in the near future. I think they’re poised to really take off. I expect much more innovation. Since retailers are so close to the consumer, they have the perfect opportunity to experiment with new product ideas and test them easily and inexpensively. That gives them a terrific edge. Bottom line: it ought to keep the national brands on their toes, too. And that’s good for the consumer, no matter what.
Thanks for weighing in, Lewis. I always appreciate your insights.

]]> http://www.mpdailyfix.com/the-chicken-or-the-egg/comment-page-1/#comment-41018 Lewis Green Tue, 21 Apr 2009 14:36:05 +0000 http://www.mpdailyfix.com/the-chicken-or-the-egg/#comment-41018 Ted, Consumers care about value and price, not the brand on the label. And that is because through food purchasing experimentation, we have discovered that no brand owns quality. I recently switched from Starbucks coffee to a less well-known brand. While the flavors aren't as robust, the quality of the coffee is fine, especially at half the price of Starbucks. Granted, it required patience on my part, as it took four attempts at tasting other brands before I discovered one that offered the value and price I was seeking. I believe more and more, shoppers are taking the same route to discover savings while not sacrificing value. Ted,
Consumers care about value and price, not the brand on the label. And that is because through food purchasing experimentation, we have discovered that no brand owns quality.
I recently switched from Starbucks coffee to a less well-known brand. While the flavors aren’t as robust, the quality of the coffee is fine, especially at half the price of Starbucks. Granted, it required patience on my part, as it took four attempts at tasting other brands before I discovered one that offered the value and price I was seeking. I believe more and more, shoppers are taking the same route to discover savings while not sacrificing value.

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