ASDA, Sainsbury and Ocado have just strengthened their already strong store brand strategies, says MarketingWeek.
For ASDA alone, store brands are worth millions of dollars in annual turnover--with higher profit margins than on nationally-advertised manufacturers' brands. Not only is ASDA enlarging its "free from" store brand food range, it's also developing products to be marketed in parent Walmart stores worldwide.
Even as the global economy recovers and moves toward sustained growth, many consumers will stick with store brands for ordinary purchases while returning to manufacturers' brands for selected items, speciality products and so on. During the recession, these shoppers learned that store brands represent value and their newly-acquired shopping habits may linger on for years. For the big brands, a battle is brewing--which means more marketing communications will be needed to explain, educate, persuade and remind buyers of brand promises and benefits.
