For some time now there has been a war between private and national brands and this is very evident in supermarkets in particular. It is an interesting battle that has had some surprising results in recent times, particularly with the popularity of private label goods compared to national brands. Here we will look at each to see the key differences in the war between these two.
The war between these two types of brands has not always been this way, particularly with traditional negative associations in quality of private brands, however this is quickly changing as more people and companies are adopting house brands because they see little differences in particular products. A really good example of this is sugar, it does not seem necessary to spend much more on a product that you know is effectively the same and people are really starting to notice this difference.
National brands are much more successful when the product itself is quite specific and have an established reputation for quality, and this has generally been developed over a significant period of time. For example a particular type of chocolate biscuit is likely to garner more attention and favour than private branded equivalents because it offers a familiarity in terms of taste, packaging, etc. These brands are not this popular by coincidence and they spend a lot of money on marketing and brand promotion with various marketing companies, such as Broadgate Mainland.
Private label goods are also interesting because they are good value for consumers and are not burdened by the normal costs that are involved with the normal marketing and promotion of the goods, particularly because they are offered directly through retailers. In a way they are promoted just because they are there as an option, which is an interesting concept also because retailers have a final say in the cost and can be offered at every attractive prices to customers. They are most successful when little innovation with the product is required, as they do not have the infrastructure to innovate or make good
The most interesting scenario terms of both these types of goods is how retailers like supermarkets are using the goods and in what combinations. In recent times supermarket chains in the UK have heavily promoted their house brands and some supermarket chains, like Marks & Spencer, have become incredibly successful by developing a prestige through their own private brands. This is great for consumers because national brands competing with private brands is a great step forward for competition in quality and price for consumers and can only mean good things.
It will be interesting to see what happens next in the war between these two, but it is something that we will all keep a keen eye on.