Store Brands have grown in popularity with retailers over the past few years.
Budget conscious shoppers are increasingly turning to store brand food items as a way to lower their grocery bill while still creating nutritious, tasty meals for their families. Consumers have become increasingly savvy about the benefits of purchasing store brand goods, and are willing to try these products in lieu of national brands. In many cases, store brands have developed such a significant reputation among shoppers that consumers recognize the names of store brands.
As with any other food purchase, consumers want high quality products. More retail consumers are conscious of labels, and spend time finding out whether a store brand is comparable to a national brand before making a purchase. This means that for retail chains to attract customers to their brands, they must create products that have the same quality ingredients as more expensive national brands. Consumers have come to realize that purchasing store brands can be a hit or miss proposition though, and many are reluctant to purchase a store brand item again if they have a negative experience. In order to keep customers coming back for more, store brands must offer consumers both quality and value.
Many retail store brands have taken advantage of the groundwork laid by national brands. Packaging for store brands comes in two varieties – look-alike and individually recognizable. Some chains choose to use packaging for store brands that looks similar to the large national brand of the same item, often choosing similar color schemes, label layout, and even logos. This can lead consumers to associate products as being similar, but can also prevent a store brand from developing its own reputation. Retail brands that use packaging design that is unique to the store brand are more often able to create a retail brand that is identified by customers. This can include the creation of a specific store brand name, logo, and color scheme that is used across all products. While it may take customers longer to become accustomed to the store brand, this strategy can lead to increased brand loyalty.
Store Brands provide consumers Value for Money
Customers have developed a keen eye for products that offer the quality of name brands at the lower price of store brands. By offering high-quality store brand products, retail chains are able to attract customers who shop specific stores in order to buy these products. Marketing retail brand products is an effective strategy to increase customer loyalty as well as improving the overall profitability of grocery chains.
The majority of retail stores market their brand of products primarily by placing it next to the national brand item on supermarket shelves. However, an increasing number of retail chains are recognizing the value of creating a specific brand and marketing it directly to customers through retail advertising campaigns. To keep advertising costs down, opposed to advertising individual store brand items, Gourmet Ads can develop a program to lift the brand awareness of the store brand. This way there is a long term gain in the store brands overtime.