Price is the Key Driver with Store brands and Private Label Brands
When it comes to store brands and private label brands, pricing is an extremely important factor in driving sales in order to compete with name brand grocery items.
But why is this? Well, consumers are more likely to pick up a branded product because they trust it. Not necessarily because they have tried it before, but usually because there is a certain unspoken promise of quality if something is branded.
However, popular branded products tend to be expensive, and for anyone who is on a budget, or just finds it unnecessary to spend twice the amount on a packet of spaghetti just to pay for brand, pricing is a very important factor when making a purchase.
Lower pricing for the store brands and private labels is what drive their sales – instead of reaching for a higher priced bottle of orange juice simply because it has ‘Tropicana’ plastered over the label, more and more people are now buying store brands to save money.
Statistically, more people prefer store brands because of pricing, but also many feel that the quality is also comparable. In fact, 50.2% of people believe that store brand products are just as good as named brands whereas only 7.8% will fill their shopping basket with only store brand items.
Gourmet Ads helps Supermarkets reach the right audience for Private Label Brands
For store brands, the Gourmet Ads network of sites is an ideal platform to advertise to the right audience since most of the Gourmet Ads audience are primary grocery buyers. Appealing to the right audience is an important part of advertising and using your budget well. More traditional forms of advertising are suitable for big brands with large ad budgets but for a smaller company that wants a more reliable and better value for money ad campaign, advertising with Gourmet Ads is a better solution.
It is important to remember that a cheap price if generally more appealing to a consumer than a popular brand name. They are better value for money and 9 out of 10 consumers recognise this as a fact. In terms of trust, consumers have said that they find store brands to be just as reliable if not more, than their brand name counterparts.
By using online advertising, store brands can increase sales with advertising campaigns featuring on Gourmet Ads network of sites. With the majority of Gourmet Ads users being the primary grocery shopper/grocery decision maker, it is important to influence the way they think about store brands in order to make them loyal customers.
Overall, price is the main deciding factor when it comes to making a final pudchase and if you can convince your buyers through online ads the good value of your store brands and private labels then you will increase sales and boost customer loyalty.