Article Author: DANA FLAVELLE
Blog Post: Courtney Hanmer
The formation of this blog came from a recent conversation with my mother. She called me to ask “What in the world is Loblaw doing spreading that yellow No Name brand everywhere? I thought they were using Galen Weston’s haircut as the newest company fad?” I laughed because that dreadful haircut did get national attention.
Personally, I think that the print advertisement that show a basket full of No Name products is priced equivalently to a half full basket National brand highlights achieves the goal of highlighting the value of No Name products. Another TV commercial shows that a basket full of the top 26 selling No Name products costs $73.91, while the basket of 26 comparable national brands comes in at $100.38. Clearly, Loblaw is betting that promoting the price saving is critical in this new age of grocery shopping, where consumers are forced to save pennies on even the most basic of shopping trips.
The response from representatives of national brands is nothing less than expected. They are fighting back by highlighting their own RVPs, which place weight on experience and selection over low prices. Nancy Marcus of Kruger Products highlights the No Name ad “reinforces the view that No Name is a value brand that competes only on price.” They reinforce that there will always be people that will remain national brand loyal even during a recession because these people make sacrifices in other parts of their lives in order to have that specific type of Cashmere toilet paper.
However, after successfully seeing past the neon yellow advertisements, I have decided that I am definitely willing to play the No Name game. After all, as a consumer I see few perceivable differences in basic commodities like flour, butter, and salt.
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