Concerns: Is there too much information packed into the first part of the body? I assume I will find more information for the 2nd and 3rd parts of the body as I do more research, but I have a feeling there will be much more information for the 1st part regardless.
I. Introduction
a. Thesis- In times of economic uncertainly, consumers become even more interested in obtaining value-for-money in their everyday shopping and private labels know this, and so customers' brand loyalty are continually being tested each time they enter the grocery store.
i. Private labels vs. Brand names
ii. Rewards Programs
iii. My Insight
II. Body
a. Consumer's attitudes, beliefs and motivations behind private label versus famous brand purchases.
i. Consumer trends have shown an increasing interest in private labels.
a. Private label sales grew 10.2% in 2008, while brand name sales increased only 2.6%. For example, one consumer says “the only difference is the label on the package”.
b. Any worries that consumers have about the economy only serve to strengthen private label spend because store brands are seen as an important way of achieving value for money.
c. Marketing fatigue potentially enhances the appeal and relevance of private label brands, especially as advertising is a key defense tactic for famous brands. Across the 15 countries surveyed by Datamonitor in August 2008, 47% of respondents 'strongly agreed' with the statement, there is too much advertising today.
ii. Another factor that is interesting is that sometimes when you have a whole bunch of different brands out there and not a lot of differentiation among some of them or not a lot of knowledge about them, people get frustrated and confused and end up just picking the private label
a. We studied this in the pod cast about choices. Sometimes, choices are not the best thing for companies.
iii. Furthermore, seeking to combat stiffer competition from cheaper store brands- big-name food manufacturers, including Kraft Foods and General Mills are joining forces with retailers to promote their brands alongside private-label goods.
a. In the past, big food companies didn’t worry too much about cheaper store brands encroaching on their turf, because consumers were more loyal to name brands and generally believed better quality justified their higher prices. But now, retailers have improved their store brands and have mimicked the innovations that brand names have introduced (such as cheese with extra calcium).
b. Rewards Programs- Brands better keep members by instilling reward programs.
i. A new study from Colloquy finds that customers who participate in loyalty-building efforts are 70% more likely to actively recommend a product, service, or brand than the general population.
a. Examples: MyCokeRewards and the Best Buy Reward Zone
c. My Insight
i. “Branding is so much about psychology it’s almost frightening”.
a. For example, the Miss Clairol feeling was the girl next door but just a little prettier and L’Oreal made women feel sophisticated and worth it (hence the tag line “because you’re worth it”).
b. If brand names want to keep their profits and popularity high, they need to figure out what consumers want to feel when they buy a product- the psychology that is attached to their product, and then how to position it.
III. Conclusion
a. In times of economic uncertainly, consumers become even more interested in obtaining value-for-money in their everyday shopping and private labels know this, and so customers' brand loyalty are continually being tested each time they enter the grocery store.
b. Topics covered
i. Private labels vs. Brand names
ii. Rewards Programs
iii. My Insight
c. Companies, private labels or brand names, need to rely on product innovations and value marketing to drive growth behind its brands.
Monday, April 13, 2009
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Christina - I think the basics of your outline are fine. One side note - I'm a little worried about your writing, but that is just based on the outline. Perhaps you will clean things up for the paper. For example, I really do not like the phrase 'a whole bunch...' in a paper (in a blog is ok) and this sentence, 'Brands better keep members by instilling reward programs' has some problems with... well, there are a whole bunch of problems here. ;-)
ReplyDeleteI also think your paper lacks focus/direction. Are you writing from the perspective of private label brands or brand names or both. Your outline just seems to randomly meander between points about both without a real, underlying point/theme. To answer you question, yes, it is a little top heavy. What research have you done on private labels? I recognize one point from an Advertising Age article (or at least the same point that I have read before), but what else are you using? You have a good topic and some good seeds here, but you just need to work more to organize it in a way that provides clear direction and, ultimately, tells a story.
Let me know if you want to talk more in-person.