House Brands vs. Generic

A brand is a name, term, design, symbol, or any other feature that identifies one seller 's good or service

Everyone has his or her own personal preference towards buying generic or name brand products. When shopping in a grocery store does the type of pasta really matter to you? How about the type of macaroni and cheese you reach for? Same ingredients, same directions on how to mix and stir up the final manufactured goods but is it really the “same”. To a lot of people it might not make a difference, but like me, a lot of people prefer spending the extra 50 cents on a box of “Kraft Macaroni and Cheese” and it’s worth every penny.

The cereal industry is very adamant on using a differentiation strategy to make one’s brand stand out in the minds of certain people. The companies break down the public into different target markets; and then make products that will be attractive to their target markets. Companies make different brands for young kids, teenagers, adults, and people who are health conscience. Currently, there are 387 different brands of cereal sold in the United States and each family is estimated to purchase 17 different brands per year. (O’Connor, Amy) Companies continue to brainstorm for new product ideas to attract the various market segmentations.

is to target price-conscious consumers in the U.S through either private label products or a new mass-

The threat of customers finding substitute products from other manufacturers in the food industry is high. In the ready-to-eat breakfast cereals segment, General Mills’ primary business focus, there are a variety of similar products being

The grocery store shelves are filled with many varieties, sizes, and brands of the same item. There are numerous kinds of popcorn, large and small, produced by different manufacturers. Some people choose products based on need, some base their decisions on price and some base their decision on quality or brand loyalty. With all of these options it can be difficult to choose. You may want to save money but at what cost? In this experiment we will determine if generics are equivalent alternatives or if we really get what we pay for. (Bautista, 2006)

• Taste tests show that consumers consider Kayem products to be equivalent in taste and quality to leading brands.

As an individual, Brand name heavily influences my purchasing decisions. I am usually aware of current trends and popular brands and have a tendency to select these products. It applies specially to my selection of clothes and shoes. I believe this is due to very strong and present marketing campaigns from brands such as, Nike, Adidas ECT. As well as the influence of peers.

By not needing to maintain a high profit margin on the fooditems, this has allowed the supercenters to keep their food prices down in comparison with mosttraditional supermarkets.The recession, which started in 2008, has helped drive the need for private-label products,or as they are more commonly called, store brand products. These private-label productsgenerally cost the consumers about twenty-five percent less than the major national brands thatare offered. Throughout the supermarkets and other types of food retailers, the private-labelsales grew by more than 9% from 2008 to 2009, and these types of private-label sales accountedfor about 35% of Kroger’s overall sales. Most stores do not operate their own processing plantsfor these private-label items; Kroger does however operate their own plants for the private-labelproducts.

Jay Matheson is apple college representative and is also attending Lynn to earn his doctorate degree. He also spoke about the important of being able to set yourself apart from everyone else. The quote he said that stuck out to me was powerful personal brand will set you apart from the crowd. He spoke about how brands are not the label or product. He said that the brand is not what they say it is which is from the company’s standpoint and then said what the customers say is what they say it is. The last thing that I toke from what he said was the top five brands that impacted us are apple, Starbucks, Wikipedia, Google, and Facebook.

The cereal aisle analysis took place at Consumer Square West Shopping Center at the Kroger’s located on Soldano Blvd in Columbus, Ohio. The analysis was completed on Saturday, July 11, 2015 from 12:19 p.m. until 1:10 p.m. The cereal aisle was located in the middle of the store and was 6ft by 30ft. The store carried four brands of cereal. “A brand is a type of product manufactured by a particular company under a particular name” (Merriam-Webster, Incorporated, 2015). The three brands offered at Kroger’s were Kellogg, General Mills, Quaker and Kroger. The Kellogg brand had 18 different types of cereal with each cereal having 1 to 10 different varieties. The General Mills brand had 14 different brands with 1 to 12 different varieties.

as the older brands already existing in the market and those that they are familiar with.

According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”. However, as Keller highlights, a brand is also “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace”. Therefore, a brand is an identity created to differentiate itself from the competitors and to be remembered in consumer’s mind.

To understand the role of H-E-B’s Own Brands, we need to understand the role of private labels to a retail store. Retailers manufacture carry private brands since retail gross margins in the private labels are relatively high. Retailers are able to realize cost advantages since they do not have additional advertising and distribution costs associated with private labels. In addition to increasing profits, store brands help to attract and retain customers. Retailers however need the critical procurement revenue from national brands for ad space and displays on stores and hence need to maintain a balance between their Own Brands and national brands.

Inside the front doors of a grocery store, customers are presented with a diverse, vibrant display of fresh fruits and vegetables. With its inviting rainbow of bright colors, the produce section leads past the wafting, sweets smells of bread and pastries in the bakery and through winding aisles stocked with an assortment of goods. Linings the aisles and fillings shelves are rows and rows of boxes of pasta, pre-made meals, processed foods, and more snacks and sweets than one would know what to do with. Grocery stores present shoppers with a myriad of choices. The shelves and displays are filled with a variety of different brands and options to choose from, which offers customers a tough and potentially stressful decision when shopping. However, before a customer decides upon a specific brand or item, whether that happens to be a name-brand product, competitor, or store-brand, they are faced with an even more important choice; they must first make a decision on whether they want to buy whole foods and produce, such as fruits, vegetables, whole grains, and other healthy choices, or more processed “junk” foods like sugary drinks and snacks or enriched breads and pasta. Not only must costumers decide between specific brands and deals, but they must also choose which of these types of food is best for them and their interests. Consumers must constantly weigh the different factors that are presented when comparing foods; between price, ingredients, health, availability, and overall