Are Private Labels Leading the Race Against Major Brands?

Most consumers are aware of private label/store brand labels. You may have walked down the grocery aisle at Walmart and noticed their “Great Value” store brand. But how many people are actually differentiating private labels from the labels of major brands? Recently a panel research study was put out by Market Force Information tackling this issue. This study was intended to find out whether or not consumers are aware that they are purchasing a private label product and what private label products they are actually purchasing. Whitlam Group specializes in numerous printing capabilities, including private label printing, but today we want to share some helpful information from Market Force’s findings.
Market Force Information compiled a group of 6,100 consumers to find out more detailed information about the private label industry. According to their research, there is a direct relationship between private label brand awareness and the purchasing of products. The study was conducted primarily focusing on grocery categories and products. Apparently, out of all the private labeled products, consumers are most likely to purchase milk with private labels over all other products.
Eighty-four percent of the people contributing to the study were aware of private labeled milk products, and one-fifth of that group stated they purchase those milk products all the time. Forty-five percent of those consumers stated that they purchase private labeled milk every once and a while. Surprisingly, the taste of milk had little to no effect on the consumers’ decision to purchase milk. The major factor, with 81 percent of the study group mentioning it, was the price of milk. Walmart’s “Great Value” product line was the most recognizable private label noticed by the people within the group. In general, the majority of people in the study were aware of private label brands and could list multiple other private label brands besides “Great Value.”
“We discovered that the distinction between private-label and named brands is fading for consumers and they may not even know that certain brands are private label,” stated Janet Eden-Harris, chief marketing officer for Market Force Information. “This situation could pose some real challenges for the national brands who must maintain a distinct identity,” said Eden-Harris.
One of the biggest pushes organizations are trying to make popular in the market are private labeled green-friendly cleaning supplies. Unfortunately, Market Force Information’s study showed that more than one-third of the consumers within the panel study stated that they have never bought store brand cleaning supplies. This is primarily a trust issue with the consumers. People don’t want to risk trying a cleaning product they have never used before and risk the chance of buying a product that is worse than the brand they normally purchase. But this statistic may be skewed because 40 percent of the consumers were unaware if their favorite grocery stores carried private labeled cleaning supplies.
In the end, private label owners should be slightly excited. Now, more than ever, they are experiencing the high likelihood of being purchased over major brand products. If you need help with any of your private label campaigns, contact the people at Whitlam Group today they would love to help!