Sunday, February 21, 2010

National Brands vs. Store Brands

Until recently, national brands have had a significant advantage over store brands, but today that is all changing. Today, store brand sales are increasing rapidly due to a number of reasons.

First off, Kotler describes a store brand (or private brand) as a brand created and owned by a reseller of a product of service (215). Store brands are also known as “generic” or “no-name” brands. Private brands have become successful in society because they offer a greater selection as well as providing higher quality than in the past. Selection and quality improvements have led to consumer confidence and acceptance. The majority of consumers feel that these generic products match the quality of their rival national brands. For example, as a college student I usually try to save money where I can. When I go to the grocery store to purchase some food I am almost always able to save a few bucks here and there by opting for the store brand products. Think of the cereal aisle in a grocery store. One entire aisle devoted to this product and there are literally hundreds of cereals to choose from. Often times, Tony the Tiger gets the best of me and has me flocking towards that delicious box of Kellogg’s Frosted Flakes, but when I see Kroger Frosted Flakes in a bigger box at nearly half the price how am I to say no? I feel that this doesn’t only apply to low-income college students, but rather everyone in society. During this recession, everyone is looking to pinch their pennies and store brands are a way for that to be accomplished.

Now, in order for national brands to compete with store brands they must invest valuable time and money into research and development to create new brands, features, and constantly improve the quality of their goods. They must also run strong advertisement campaigns to promote their product. With the world we live in today, it is becoming more difficult for these national brands to have an edge over store brands.

All in all, people have become more accepting of private brands because of the higher levels of quality and a vast variety of goods to choose from. Today, sales of store brand goods are growing much faster than the products of national brands. Store brands are a staple of the world we live in today, the world that is continually striving to satisfy customers by offering low prices and great products.



-Jon Honari, Section E

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