Wednesday, April 22, 2015

Own brand loses space for lack of advertising and positioning

With 5.4% stake in Brazilian retail index, far below the market of Spain, with 42.9% shares, for example, own-brand products not only initiated in Brazil due to low advertising and branding little assertive.
In the view of the Brazilian consumer, these items have almost no variation in quality in comparison with the products offered by big industry, but companies do not seem to pay attention to that. "When retailers make blind tests with these items, the Brazilian can't distinguish what is his own brand of which comes from the industry," said market analyst from Nielsen, Davyancowboy.

The expert explained that even being a profitable retail category-today she represents 6.4% of sales in value of autosserviços-she is bit leaked and is concentrated in the hands of large retail chains. "94% of sales of own-brand comes from large-scale retail and is concentrated in Sao Paulo. While the major industry invests in marketing, while we see these networks doing the same, "argued Rosa.
It is worth mentioning that the Nielsen identified in São Paulo and in the South the locations in which the category of products that carry names of networks has had better result-with growth of 51% from 2013 to 2014.

Quality associate
Research conducted by the consultancy Nielsen confirmed the perception that the own-brand items are not considered to be of poor quality. Among the countries of Latin America, 56% of Brazilians have stated that such items have good quality. But even with the high perception, the country is still behind Mexico (64%) of Argentina (66%) and Peru (72 percent), for example.

"What drives the consumer to not have the habit of drinking is associated with the image that is passed in the presence of other people. In the survey, 57% say they don't want other people to think they don't have the money to buy the best brands, "explained Rosa, who added:" the consumer expresses himself through the purchase and that is very evident, currently ".

Investments
Improve customer perception about articles with the name of the network was the atacarejo flag strategy Assaí, of Grupo Pão de Açúcar (GPA). "Since 2009, the network operates in that niche and so far had more than 500 items in all categories. With the passage of time changes were made, "he told the commercial Director of DCI Assaí, Wlamir Angels.

Today more lean, the thread gets a new premium line, the Chef Assaí, geared toward the food service segment, i.e. for small and medium-sized entrepreneurs in the business of food. "Now are 20 food service only items on sale in stores Assai. By the end of the year, they can get to 50 different products. "

Angels explained that the network expects the brand to represent 1% of revenues, for being focused on quality with the proposal to retain the client processor. "Even being created for the food service segment, nothing prevents a reseller, or even consumers, buy Chef brand products", explained the Executive.

To attract attention to the launch, the Assai bet in marketing at the point of sale. "We want to create an identity. We started with direct mail to customers. Email with tips and promotions with the brand are already in action ".
Categories
Even though still timidly, the articles with the name of the networks begin to win more and more space in gondôlas. Before the own-brand items were more focused on food and cleaning products, but today networks such as Carrefour have a range that leads to the textiles and bazar. "The TEX count with apparel, Accessories products from bed, bath & beyond and aims to assist consumers in finding quality and affordable", informed the French supermarket.

Through the note, the network said that have betted on Carrefour, Home line of products geared toward the House. "In the mobile segment, the client finds sofas, chairs and benches. In Accessories for the kitchen, there are different options of pots, pans, cups, glasses of wine and dining appliances. The brand also offers items for bathroom and household appliances ".
Recently Chile's Cencosud Brazil invested in this area, when betting on Mark Prezunic, which received r $ 1.5 million for the release of 70 products. The goal is to triple sales in 2015, with 300 items that arrive at the gondola all flags of the network-GBarbosa, Prezunic, Bretas, Perini and mercantile Rao.
"They know the importance of the category, but don't hit as consumer loyalty," said rose, the Nielsen.
DCI
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