What’s new, copycat? How own-branded products confuse us

There are some interesting dynamics in this issue. The supermarkets cannot decline to stock the most heaviy advertised branded products – that would be commercial suicide. The brand manufacturers’ advertising and promotions also benefit the supermarkets’ own-label goods. The major brands can virtually dictate the merchandising of their lines but the supermarkets usually take the adjacent space with their own-label goods. Many supermarket own-label goods are made by the prime brand manufacturers – only Kelloggs and perhaps a handful of others actually proclaim that they do not make own-label products. Some own-label goods are made by the No 2 or No 3 brand manufacturer and are sold in competition against their own products although not usually through the same supermarket chain; for example, an Asda own-label product might be manufactured by Brand No 2 whose main sales are through The Cooperative Food or Farm Foods, say, and will not be stocked by Asda. Supermarkets often reduce the prices of the branded products [because of a heaviliy-advertised manufacturer’s promotion] but can’t discount their own-label lines to match – although the supermarkets probably beat the wholesale price down during such offers in order to compensate. The big brand owners do try to counteract the mimicry of their packaging by making unexpected changes to their design and graphics; it temporarily wrong-foots the supermarkets but it’s a tricky game to play – having invested enormously in a brand logo and identity they have to keep it recognisable. Kelloggs have done this most noticeably with their Crunchy Nut Cornflake boxes; this is a premium cereal that all the supermarkets are imitating at lower prices. None are as good in my opinion but they probably satisfy sufficiently to take a lot of sales from Kelloggs.

Incidentally, I came across a large shop in a prominent part of Lowestoft the other day where the entire area was occupied by large bins of cereals and other loose products, some branded, others generic, which customers scoop out into a bag and pay for by weight at the checkout. A good way to save if the quality and condition are acceptable [and if your kitchen cupboards have plenty of storage canisters].

Since retailing and advertising seems to be designed to misrepresent products, I am not sure if there is a problem. None of the examples I have seen are the sort of difficult to spot fakes that are common in electronics and clothing products.

If the manufacturers are not spending money on advertising, they can afford to give the consumer better value for money. Which? regularly reports examples of products that are better than the well known brands. I would prefer that retailing was based on honesty, but until the large manufacturers and retailers are not setting a good example, I’m not going to worry about the fact that similar products made by different manufacturers have fairly similar packaging.