Store Brand is
broadly defined as “a product manufactured specially for a retailer and bearing
the retailer's name.” example: Minute Maid. In the other hand National Brand is
“The brand name of a product that is distributed nationally under a brand name
owned by the producer or distributor; brand name owned by a manufacturer or
other producer.” Example: Fiesta, Kroger, and H.E.B. These two brands can be compered
based on how consumers perceived them. In consumers mind, and for business, the
brand is what differentiates products in the competitive environment.
In their
studies, De Wulf, Kristof; Gaby Odekerken-SchröderView Profile; Goedertier,
Frank; Gino Van Ossel affirm that consumers have stronger preferences for
national brand than store brand. The consumers tend to see the national brand
as superior (which leads them to sell their product at higher prices). We can
all notice when we go to grocery stores that the store brand products are at
lower prices, poorly packed and are almost never advertising. Unlike, national
brands gamble on image, advertisement, and promises for quality to reach brand
equity to enjoy premium prices.
In their
studies, these authors took minute maid orange juice and a store brand orange
juice for a bling test taste. The result shows that the national brand and the
store brand orange juice; which have the same ingredients are both appreciated by
the customers. This study leads to the conclusion that consumers choices are
led by the image that the brand reflects. It also shows that once the customers (low
price sensitive customers) have brand loyalty for the store brand, they tend to
by the store brand in every store they go to.
After comparing
these two brands, we can list some other brands types:
Private brands: brand name placed on products marketed by
wholesalers and retailers such as Kleenex.
Captive brands: national brands that are sold exclusively by retail
chain such as Kmart.
Family brand: brand name that identifies several related
products such as Heinz.
Individual brand: unique brand name that identifies a specific
offering within a firm’s product line and that is not grouped under a family
brand such as Irish Spring.
Work Cited
De Wulf, Kristof, Gaby Odekerken-Schröder, Frank Goedertier, and Gino Van Ossel. "Consumer perceptions of store brands versus national brands."The Journal of Consumer Marketing. 22.4/5 (2005): 223-232. Print.
In the past I did not really consider store brands when I lived with my parents. Now that I am on my own, store brands is the way to go. The quality of the product is usually similar and the cost difference can add up.
ReplyDeleteI always say you get what you pay for and good quality products are always the best way to go.
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