Blog: The importance of branding
Dean Best | 1 December 2008
For many of us, the troubled global economy is a serious cause for concern: something to be monitored carefully as we batten down the hatches and prepare to weather the storm.
As consumers look to cut costs, brand manufacturers are increasingly relying on brand loyalty and their established relationships with customers to maintain sales momentum. Those who lack this brand strength could find themselves falling by the wayside.
As Edward Jones analyst Matt Arnold told just-food last week, the strength of ConAgra's brands is proving cause for concern to some and, as a consequence, the group's share price has slumped.
"In most categories, ConAgra has the number two brand or worse. With that type of brand strength and in this consumer environment… they are more likely to fall victim to trade down than companies who have stronger brands and stronger relationships with their customers," Arnold said.
However, for others in the highly competitive food sector the downturn represents an opportunity to cash in on the weakness of rivals.
This is exactly what US convenience chain 7-Eleven is hoping to do with the nationwide rollout of a new range of private label snacks under the 7-Select brand name.
7-Eleven president and CEO Joe DePinto told just-food last week that the launch of a private label alternative to branded snacks was well timed. The company hopes to appeal to customers looking to trade down and, DePinto claimed, the line of 32 products – ranging from potato chips to confectionery – will be sold at a price 10-20% lower than the branded alternative.
Even as the private label offering in the US matures, own-brand alternatives in the snack sector remain relatively under-developed. 7-Eleven's bold move could change this, intensifying competition in the sector and challenging the status quo. However, as the retailer throws its hat in against established snack brands like PepsiCo's Doritos and Nabisco's Chips Ahoy, consumer trust in the 7-Eleven brand will be put to the test.
Katy Humphries, deputy editor
Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....
As the UK starts to ponder what kind of a relationship it wants with the European Union post-Brexit, EU leaders have been lining up to warn that Britain will not be allowed to "cherry pick" deals and ...
- Interview: Mondelez eyes sweet success in China
- The benefits of engaging staff in sustainability
- How food companies involve staff in sustainability
- What next for Bernard Matthews? - comment
- Why Danone is withdrawing Dumex from Vietnam
- Fonterra says value-added strategy paying off
- Ireland unveils national plan to tackle obesity
- B&G Foods acquires ABF's US spice business
- Nestle close to finalising Garoto deal
- Gen Mills uses NPD, renovation to heat soup sales
- Global Chocolate Confectionery Overview: Challenges, Opportunities and Risks
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Global Foodservice Market 2016-2020
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review
- Global Food and Drinks Closures: Performance and Opportunities