what is a store brand? course hero

What are the advantages of store brands?

Store brands—those generic labels we often equate with bargain quality—are among the fastest growing and most popular items for sale today. They provide more choices, help us save money and have come a long way from the bottom-shelf, hokey-labeled products from decades past.

Are all store brands created equal?

Store brands—those generic labels we often equate with bargain quality—are among the fastest growing and most popular items for sale today. They provide more choices, help us save money and have come a long way from the bottom-shelf, hokey-labeled products from decades past. But not all store brands are created equal.

Is an in-house brand really worth it?

You may be surprised to learn that an in-house brand isn’t always what it seems. A typical generic product (also called “private label”) yields a higher profit for the store, even when it sells for a lot less than the similar national brand.

What is the store brand?

A store brand, often referred to as a generic product, is manufactured or acquired by a retailer for exclusive sale to consumers. Store brand examples include anything from jars of pickles to windshield wiper blades.

Why do store brands imitate national brands?

The reason? High quality, wherein new store brand products are better than center-store knockoffs from years ago. “Niche products and the expansion of retailers who are emphasizing their own brands — such as Costco, Kroger, Wegmans and others — have attributed to growth as well,” says Sharoff.

What is the role of store brands?

Every customer interaction builds up or tears down a brand. Private label products afford grocers control in the product sold. Perhaps even more importantly, private label products create an exclusive relationship with your customers.

Is there a difference between store brands and name brands?

Comparing Prices Store brands, also known as house brands, name brands, or private-label brands, are not manufactured by the stores that sell them. Instead, food companies make these products, sell them to stores at a low cost, and allow stores to put their own labels on them.

How much money do store brands save?

A recent study from the Private Label Manufacturers Association found that consumers save an average of 33 percent on the total grocery bill by buying store brands.

Why is generic product considered a private label?

That's because there are no marketing or advertising costs involved and why companies invest a good amount of money in creating private labels.

Do small companies develop store brands?

There are dozens of small companies dedicated solely to developing store brands and they work directly with the retailer to develop the item, label and price points. Even when an item is made by a large well-known brand, it's not exactly the same.

Does Martha Stewart sell at Kmart?

Martha Stewart once had products only available at Kmart, but today sells a variety of lines at multiple retail outlets including her own web site. Sears Craftsman tools, Die Hard batteries and Kenmore appliances are store brands with arguably more cache and shopper loyalty than the store that started them.