In April, the British Retail Consortium reported the highest level of food inflation for five years. Coincidentally, retailers’ own brands continue to go from strength-to-strength.
Whilst popular opinion may be that this is due to consumer loyalty waning from the manufacturer and residing more comfortably with the retailer; another reason could be due to clever re-marketing of tertiary brands which affirms consistent quality specifications and pricing – empowering shoppers to feel savvier.
This branding plays to the strengths of the UK’s three-tier: Good, Better, Best product strategy. From price-orientated, to quality orientated, to those who stick safely to the middle-ground; retailers own-brands encompass a well-balanced mixture of not only price and quality; but quaint familiarity to seal the deal.
Take Tesco for example. Back in 2018 ‘Everyday Value’ products were given a revamp. This meant the same products were re-marketed under new names and packaging such as “Hearty Food Co.” and “Stockwell & Co.”
Additionally in May 2019, Tesco stores were spotted stocking ‘Jack’s’ branded produce – A British discount supermarket chain owned by Tesco, named after Tesco founder, Jack Cohen.
Founded in 2018 by Tesco as a discount chain – the newly available Jack’s products include basics from crisps and cereal to water and juice, all priced within a consistently low and limited £0.55 to £1.50. Just one of Tesco’s attempts to tackle the rising threat posed by German retail-rivals: Aldi and Lidl.
Retailers providing produce under their own ‘branding’ which the consumer knows and trusts, enables shoppers to assimilate their loyalty to the store. The customer therefore not only feels they have received good value for money; but have also been able to remove themselves from the stigma which sometimes comes with purchasing the cheapest product.
Many brands are adopting this approach of broadening their scope and appeal by reshaping their tertiary brands. Ultimately it is these tertiary brands which appeal to savvy, brand-conscious shoppers while simultaneously easing any concerns with regards quality.
Other retailers have conducted a similar over-haul; with Asda reviving ‘Farm Stores’, and Sainsbury’s investing in ‘by Sainsbury’s’ brand. Sporting the advantage of not only being a trusty alternative, but being consistently lowcost – retailers are effectively offering the customer a pricing guarantee, whilst pertaining to their customers’ expected quality standards.
Ensuring consumer gets what they pay for, the supermarkets enable retailers’ home brands an arena within which to fight fairly with brand names, as store brands become increasingly recognised as offering value for money.
Clever marketing used as an avenue to re-brand loyalty, paves the way for the quality of valuebrands to be perceived as equivalent to those products which originate from manufacturers or national brands. As a by-product, the store names themselves become recognised as ‘brands’, which provides further catalyst to the loyalty with each stores’ own respective ‘brands’.
Whilst neither the value has changed, nor the physical product; more convenience, less compromise, seems to be the message which these tertiary brands are relaying, and it seems that this is righteously resounding between consumers far and wide.
THE SUPPLY CHAIN CONSULTING GROUP
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