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17/06/2010

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Kishore Budha

Great post and some great condensed ideas.


Me-too brands are indeed parasitical and hope to exploit the ad spend of the host brand. We have no means of evaluating how they fare. But let us take a sideways glance:

If you examine the prices of own store brands (let us take bran flakes for quick illustration), you don't a significant difference between branded/advertised cereals vs own-store ones. Unlike Kellog's, the own store cereal does spend on advertising. Kellog's, on the other hand, has to have an advertising outlay to constantly be on the consumer's mindshare.

Anecdotal evidence suggests that there is little taste difference between say a Tesco or ASDA bran flakes Vs. say Kellog's. I am no food technology expert but I would presume that a blind consumer sampling of the two cereals would be inconclusive.

When we cast a glance at own-store brands, we note that the game might be significantly different.

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