MUST-HAVE BRANDS IN A PRIVATE-LABEL MARKET

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U.S. consumers are pushing their shopping carts past many of America’s national brands and feel little regret in doing so, according to Deloitte’s recent American Pantry Study. In fact, 88% of consumers now swear by store brands, and say they have found many private-label products are just as good (or even better) than their former favorites. And 71% believe they are spending less on their grocery bills, without sacrificing much.

Still, nearly a third (31%) say brands can be a “must-have,” something they’d buy whether it was on sale or not. So what seems to make the difference between the must-haves and the rest of the brands? The must-have brands are winning the loyalty game primarily based on trust, price positioning and product positioning.

Of the 85% of consumers who have gone with a higher-priced, must-have brand in the past year, 58% did so because it was a brand they trust, a healthier option (35%), a company they trust (35%) or skipped a lower-cost alternative for one that was easy to prepare or use (29%). Additionally, the majority (68%) of the top 10% of must-have brands have a more focused price positioning and outperform those that are relatively scattered.

 

Source: The 2014 American Pantry Study. (May 5, 2014). Deloitte.

Published by dkachiros

My purpose is simple – to identify the authentic potential in brands, discover their beautiful truth and inspire them to tap into their purpose or their raison d'être (reason for being). This is a brand’s beautiful truth. Establishing that truth opens the door for fresh approaches and ideas that are unmistakably true to brand, yet breakthrough for consumers – suited for building businesses. It’s all about shattering category conventions, finding permission for new territory and ultimately building relevance and more meaningful experiences at every moment along the journey. I pride myself on getting people to fall in love with the brand, be it for the very first time and or all over again. Feel free to reach out to me if I can help in any way. Dixie Kachiros dkachiros@gmail.com dkachiros.com 214-596-8468

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