BRANDED ITEMS VERSUS OFF BRANDS
Webster’s dictionary defines the term “brand” as a “mark or label of identification, grade, etc. on merchandise; a trademark; hence, the kind or make of a commodity”. Private labeling or branded names have emerged as a hot topic today. Branded names are highly recognizable by customers because the brands spend millions of dollars marketing themselves. Off brands, which are smaller labels or imported from overseas, have no name recognition.
1) Price matters big time. 22% of respondents will purchase non-branded products if they get a discount of 11% to 20%.
2) Private-label offerings by distributors are expected to grow due to national chain product sourcing efforts, industry consolidation, and the need by larger regionals to compete against national chains and margin pressures.
3) The importance of brands in the incentive marketplace is essentially an extension of the power and importance of brands in the consumer marketplace.
4) Loyalty and price do not go together. Buying an off brand item because it is cheap does not usually lead to satisfaction. Most off brand items are much lower priced for it is of poor quality.
5) Advertising and marketing agencies believe that a brand can be created through marketing–an effective logo, great advertising campaign and clever promotions–and these techniques play an important role.
Credit:ivythesis.typepad.com
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