Private Labels ARE Branded Product

Here's something that caught my eye during a recent trip to Target.  Note the Target's brand of jelly (Archer Farms) next to the tradition brands like Smucker's.

What do you notice?  

The first thing that caught my eye was the beautiful packaging and branding that Target has selected.

The square jar suggests "gourmet", while the label is inviting and intriguing.

But here's the kicker. 

Look at the price.  It's HIGHER than our traditional branded products. 

Target is positioning Archer Farms not as a low cost alternative, but as a product of higher quality!

Add this to the fact that the margins are much higher for internally branded products, and it's easy to see why branded products are in for one hell of a battle.

Comments

[Sharon Barkley]

I like saving money as much as everybody we live on a fixed income. but is it a good thing to give one company total control and even more powerful than they already are. and what about all the jobs that will be lost when private brands have to cut back on jobs because lack of stock truckers,packers,loaders etc will be out of a job and we have enough homeless already so quit taking away opportunities and is walmart going to employ all those people, and basic i am a little scares of great value brand