Market research by Nielsen confirms that private brands account for 54% of UK grocery purchases.
Why? Because consumers perceive these as being good quality and good value. Retailers have carefully marketed their private brands as the equal of any manufacturer's brand--and maybe even superior. At one time, many shoppers believed that by buying private brands they were 'trading down'--but today, more shoppers buy these brands even when they can afford nationally-advertised brands, because of the quality and value.
Marketing plans for private brands place great emphasis on in-store visibility because that's where buying decisions are made. Thus, the packages for Tesco's private-brand bird seed and feeders (shown above) were recently redesigned for eye-catching attractiveness, targeting young families.
Yet the store brands are also doing well because their owners are investing in new varieties and new features that meet customer needs. 'As with manufacturer brands, retailers have, over time, successfully built equity into their own-brand products by investing in product innovation, further developing ranges and increasing marketing activity' says a Nielsen exec.
