PL Buyer
  Home
  Subscribe
  Subscribe to eReport
  Subscription Customer Service
  Online
  In the News
  A Closer Look
  PL Buyer Voices
  On the Supplier Side
  People on the Move
  Feature Showcase
  New Products
  Webinars
  Current Issue
  Cover Story
  Category Reviews
  Departments
  Special Reports
  Resources
  Archives
  Digital Edition Archives
  Classified Ads
  Market Research
  Supplier's Sourcebook
  Category Merchandising Guidebook
  Events
  Events Calendar
  Contests
  Enter the 2009 PL Buyer Packaging Awards
  PL Buyer’s 2009 Private Label Packaging Awards
  PL Buyer's 2010 Retail Executive of the Year Awards
  PLB Info
  Contact Us
  About Us
  Media Kit
  Reprints
  List Rental
Search in: EditorialProductsCompanies
Editor's Insight
by Kathie Canning
May 14, 2009

ARTICLE TOOLS
EmailEmailPrintPrintReprintsReprintsshareShare



On Bargains … and Blogs

With price being the critical factor in many of today’s consumer purchase decisions, private label is riding an enormous growth wave. But the national brands are fighting back — in TV, radio and print advertising that attempts to sway public opinion in regard to pricing.

One ad for General Foods International coffees, placed in a mainstream women’s magazine, invites consumers to “indulge for 20 cents a cup.” Another, from Stove Top Stuffing, includes a recipe for an Easy Chicken Bake that costs less than $2.00 a serving. “Doesn’t your budget deserve a warm feeling, too?” the ad asks.

Sunday newspaper FSIs also are broadcasting branded bargains. Here, Stouffer’s Corner Bistro tells consumers to “take a bite out of your restaurant budget with our new restaurant-inspired Stromboli and Flatbread Melts.”

While these types of ads have been showcasing “regular” prices in attempts to dispel notions — true or false — about the high cost of national brands, deep discounting has been taking place simultaneously in-store. According to an April 6 AdAge.com article citing data from Chicago-based Information Resources Inc. (IRI), the percentage of volume sold on promotion was up 5.6 percent in the four weeks ending Feb. 22 versus a year ago. The danger for the deeply discounted national brands, of course, is that consumers will become accustomed to bargain-basement prices — and ultimately refuse to purchase their favorite products at “regular” retail prices.

The new ads and stepped-up promotions could have a negative impact on private label, however, if retailers fail to connect with consumers in terms of message and price point.


Moms Get Vocal

Last month, I was fortunate enough to be able to attend IRI’s Reinventing CPG and Retail Summit, held in wonderfully sunny and warm Las Vegas. Day two’s general session included a panel discussion that featured four “mom bloggers” with thousands of followers.

Although I don’t fully understand the blogger mindset — the compulsion to share the minutiae of everyday life with perfect strangers — I do comprehend the growing influence certain blogs have on purchase decisions. And these blogging moms convinced me that CPG manufacturers and retailers should be paying very close attention to what people are saying about them on blogs, as well as on Twitter, Facebook and other popular social networking sites.

Right or wrong, these mom bloggers and their followers have the power to influence opinions on topics ranging from “problem ingredients” to the most-effective private label baby diapers. (It’s worth noting that one panelist, in attempt to illustrate mom bloggers’ collective power, gave herself and her counterparts a pat on the back for forcing the removal of bisphenol A, or BPA, from U.S. food-contact products. The last time I checked, however, BPA was still perfectly legal here in the states.)

Companies that use social networking sites to connect with shoppers not only can respond to complaints or address misinformation quickly, but also can communicate a positive message about their brands and banners.


Kathie Canning
canningk@bnpmedia.com

|PrintEmail

Did you enjoy this article? Click here to subscribe to the magazine.


















BNP Media
© 2010 BNP Media. All rights reserved. | Privacy Policy