An Update on the Battle of the BrandsPosted by joe
The battle of the brands is the “competition between dealer brands and manufacturer brand” (from our text books) over which will be more popular. Dealer brands, sometimes called private labels, are brands created by store chains (for example Safeway’s O Organics line of organic foods) and manufacturer brands are created by a producer (General Mills Cheerios). Dealer brands have been gaining share — boosted recently by economic downturn induced consumer price sensitivity.
This Bloomberg Businessweek article “Why Grocers Are Boosting Private Labels,” gives an update and some great examples. Dealer brands used to differentiate on price and then more recently offered comparable and sometimes higher quality. Now many retailers are adding brand managers and investing in more aggressive promotion. Surprising fact: in 2009, 8.7% of food and nonalcoholic drink new products were private label – by 2011 the number more than tripled to 31.4%.
What do you think of this trend? Will it continue? Have you noticed more aggressive promotion from dealer brands?
This entry was posted on Tuesday, November 29th, 2011 at 4:33 pm and is filed under Product, Promotion, Retailing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.