This week I've decided to tackle an "everyday" situation we face every day. Let's take a typical example--going to the grocery store. There are many of you out there that are anti- store brand types and there are some out there giving it the old College Try. I fall in the latter category and wanted to put up a few points for you to consider on your next visit to your grocery store.
- Although in many cases people claim to "know" their national brands and so claim a clear preference for them, a 2005 double-blind taste study found the opposite was true in many cases:
Testers (80 percent of whom claimed to "regularly" buy national brands) said snack foods were almost a toss-up, although store-brand chocolate-chip cookies got the nod, 56 to 44 percent, and national-brand potato chips topped the store brands, 53 to 47 percent.
What about the Quality? And what could this mean from a cost perspective?
What's stunning is that people are completely unwilling to try store brands because of upbringing, and misinformation about how the store brands and how their products are made.
Generally, the store brands are made by smaller manufacturers who use the same techniques and formulas. For example, think about orange juice. If you could buy juice concentrate from the same place as the big guys, and you can make the same type of product line as the big guys and get it to a grocery store with virtually no advertising expenditures, you can splurge a little on the packaging and undercut the national brand at the shelf. It's happening in large numbers.
A University of California, Davis, Graduate School of Management analysis published last winter in the Journal of Product & Brand Management found that for the one out of four product types (from tuna to soap to instant coffee) in which the store brand was higher in quality than the comparable national brand, the national brand cost 30 percent more.
Store brands have come a long way indeed. When I was little, stores generally seemed to have taken a very lax approach to presenting their product next to the Big Guys. I could see why people would shun the black-and-white box Honey Round-Os when compared to the Honey Nut Cheerios in the crisp honey and gold colored box. At some point though, the private labels decided to take a more forward position in their products and are now being rewarded.
In closing, I would urge you to consider experimenting with store brands and other private labels in the stores. Try substituting your garlic bread for the Kroger brand. Try the Wal-Mart Honey Nut Spins, Publix Orange Juice, or the Pathmark Chips. If you don't like it, you can switch back. You could really make a good dent in your shopping bill.
What do you all think? Share your experiences (positive, negative, etc.) with the brands you've tried at stores near you. Perhaps there are more of you out there than you think.
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4 comments:
The stores have also introduced a much wider variety of store-label products, which makes it easier to handle.
Growing up, we had store-brand Cheerios, Corn Flakes, and Rice Krispies or Fruit Loops...none of which were very good.
Now, you've got knockoffs of nearly everything.
I agree. I'm not saying that no national brand does anything better, but when it comes to most basic foods (veggies, dairy, and even some cereals and juice) they've lost their edge.
The store brands have begun releasing "premium brands" of their own, which I think can outrank the National Brands, even after factoring in the price!
And sometimes the "big guys" make the store brands. My wife works for a toilet paper/paper towel maker. Sold in Costco under the Kirkland brand is the exact same tissue that is sold under the name brand.
Hawk,
That's very true. I think the manufacturer for Peter Pan peanut butter manufactures for Wal-Mart's Great Value brand as well!
Oh, and thanks for stopping by. I didn't know you had me linked to your site. I have you on In my research section.
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