QUOTE
At my B and B in Dunster on Sunday morning I get talking to some gentlemen who were down for the steam train rally. They told me that many products that are marketed as own brands by supermarkets are actually the same product as the more expensive ones but just re-labeled as this was cheaper than producing a new product. They seemed to know their facts so I want to know which ones. Does anyone here know?
Yes, they're mostly correct, though there may be cases where the cheaper product is not quite as high in quality, but I can't think of a good example.
The reason is simple. Say Tesco sells standard cans of beans for 1 pound and makes a profit of 50p. They know that some people on tight budgets may decide to buy fewer cans or look elsewhere.
So they price cans at 75p and give them a different label. That way, they:
a. Continue to make a profit - albeit lower- but a profit nevertheless.
b. Ensure the bean factory is working to full capacity. (This in itself should improve their profits!)
c. Keep customers happy.
Marketing experts are paid a fortune and I heard they spent ages to decide on the 'Economy' label. They wanted something that would appeal to people desperate to save money, but conspicuous enough to put the 'richer' customers off from trying them.
Snobbery is so important in advertising!!
Steve