Do Shoppers Need Designer Hotdogs?

Some of my friends are brand shoppers and some are value shoppers. My mother always told me that there is no difference between brand named foods and store brands, except for a few quality issues like color and other variations that don’t really matter once you season and cook the food. Yet some of my friends refuse to buy store branded packaged goods, no matter the temptation of more for less offered by private labels or lesser known brands, mostly because of how private labels make them feel — a little less than. But with the economy the way it is, some of those brand loyal friends are waffling.

Progressive Grocer reported that Giant Food, a large northeast grocer, recalled several of their private label bakery products. Apparently, some of the products contain nut allergies that were not declared on the packaging and could be lethal. No illnesses were reported but better safe than sorry. I can hear my brand conscious friends declaring, “That’s exactly why I only buy named brands.” So could this be a strategy for CPG’s?

With the flailing economy taking its toll on main street CPG’s are trying to figure out how to keep market share when people are so increasingly focused on value. Lowering cost is an obvious option. But another option to challenge private labels is changing the emotional trigger from brand consciousness to trust and safety. If the perceived benefit is not cachet but health and well being for one’s family, CPG’s could be at an advantage. With bigger budgets for research and quality controls, CPG’s do have something to offer besides the fancy package. Carrying that message from traditional advertising, through to the store, using the shelf to communicate this value proposition right when brand loyal customers are waffling, could make a difference in whether or not CPG’s are able to hold on to those relationships.