Top quality at low prices

Jo · 10-10-2003, 07:54

Posted this info in anything goes in response to another topic, but thought it could be of interest to some of our more serious members too:

Many unbranded goods are actually made by famous brandname companies. They launch low price alternatives to cover the whole market span without harming the image of their major brandname. The goods are often of decent quality, though maybe not quite as good as the more expensive version.

On the other hand, private labels in the supermarkets are a great way to save and get top quality - all supermarket chains have a brand name (eg. Tesco) and they get the top companies to produce the goods under this name. The manufacturing companies are forced to do so, otherwise the supermarket chain refuses to list their major brand in its stores.
So, for all supermarket named goods, always check the address of the manufacturer on the back (by law it has to be there) and then check the address of some of the top brands - you might be surprised. This is the best way to get top quality at low prices.  

Tealeaf · 10-10-2003, 08:04

There is one exception to own brand goods generally being of the same quality & sold at 5-10% cheaper......and that's razor blades. The market is either Gillette or Wilkinsons, if it is them that make the own brand stuff for someone like Boots then all they do is produce rubbish. I've tried maybe 6 or 7 own brand razors, and they've all been crap.......it just makes me wonder about the dunkeys...

Jo · 10-10-2003, 08:17

That's cos in that market there is almost a monoploy - used to work for the company that makes Wilkinson. The supermarket chains have no choice but to take on or the other, or both, so the two manufacturers have extensive bargaining power and can afford to make poorer quality private label or even not to make it if they prefer.
The above theory is particularly true for dynamic markets with high levels of competition, where retailers have intense purchasing power.
Returing to the original topic under anything goes, it's probably similar to razor market - there is pretty much a monopoly in "rubber products" too.

Tealeaf · 10-10-2003, 08:25

Hells bells Jo................I thought you were a linguist....where did you pick up all this market theory from?

Jo · 10-10-2003, 08:39

My dear, I am no linguist - whatever gave you that impression.
I'm a bog standard, down to earth marketing professional. Can give you as much spiel on the 4P's as you want .....

Tealeaf · 10-10-2003, 08:43

Price...Product...Packaging...Promotion?

Jo · 10-10-2003, 08:55

Hells bells Tealeaf - you a marketing expert too then? ;D
Actually it's Product, place, price, promotion. Place = Distibution. Packaging falls under Product!

Tealeaf · 10-10-2003, 09:08

75%.....thats enough for a triple AAA*** at GCSE these days.

Ah yes. Place. I thought that was "Location, Location, Location"

Jo · 10-10-2003, 09:18

At GCSE level today, it's enough just to know how to spell Marketing

Tealeaf · 10-10-2003, 09:31

in a few years time they'll be running courses in marketing crack cocaine...