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	<title>brandXpress blog &#187; wall street journal</title>
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		<title>Brands in Time of Crisis</title>
		<link>http://www.brandxpress.net/2008/11/brands-in-time-of-crisis/</link>
		<comments>http://www.brandxpress.net/2008/11/brands-in-time-of-crisis/#comments</comments>
		<pubDate>Tue, 11 Nov 2008 18:06:39 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Brand Management]]></category>
		<category><![CDATA[brand loyalty]]></category>
		<category><![CDATA[brands]]></category>
		<category><![CDATA[crisis]]></category>
		<category><![CDATA[national brands]]></category>
		<category><![CDATA[retail]]></category>
		<category><![CDATA[retail brands]]></category>
		<category><![CDATA[store brands]]></category>
		<category><![CDATA[wall street journal]]></category>

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		<description><![CDATA[Retailers are also sensing more shopper experimentation. This fall, supermarkets Safeway Inc. and Kroger Co. noted that sales of their store brands are on the rise.overall sales of name-brand goods are still higher than those of store brands. Still, about 40% of primary household shoppers said they started buying store-brand paper products because "they are cheaper than national brands," according to a September report by market-research company Mintel International, which interviewed 3,000 consumers


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			<content:encoded><![CDATA[<p>When Summer Mills visited her local CVS drugstore recently, to save a few dollars she bought the store-brand facial scrub rather than the Olay version she normally uses.</p>
<p>&#8220;I thought I&#8217;d be able to tell the difference, but I couldn&#8217;t &#8212; I looked at the ingredients and they seemed almost the same,&#8221; says 30-year-old Ms. Mills, a stay-at-home mother of two in Ardmore, Okla. On her next shopping trip, &#8220;I&#8217;m going to buy the store-brand moisturizer and cleanser &#8212; it&#8217;s less money.&#8221;</p>
<p>Many Americans are changing their everyday purchases and abandoning brand loyalty, prompted by the persistent financial pressure of rising food, gasoline and electricity prices. </p>
<p>Retailers are also sensing more shopper experimentation. This fall, supermarkets <a class="companyRollover link11unvisited" href="http://online.wsj.com/public/quotes/main.html?type=djn&amp;symbol=SWY">Safeway</a> Inc. and <a class="companyRollover link11unvisited" href="http://online.wsj.com/public/quotes/main.html?type=djn&amp;symbol=KR">Kroger</a> Co. noted that sales of their store brands are on the rise. &#8220;In this economy, customers are much more willing to try a private-label item, and we&#8217;re seeing signs that this is happening more and more as the year progresses,&#8221; Kroger CEO David Dillon said on a conference call.</p>
<p>To be sure, overall sales of name-brand goods are still higher than those of store brands. Still, about 40% of primary household shoppers said they started buying store-brand paper products because &#8220;they are cheaper than national brands,&#8221; according to a September report by market-research company Mintel International, which interviewed 3,000 consumers. Nearly 25% of respondents reported that it is &#8220;really hard to tell the difference&#8221; between national brands and store brands of paper products. Store brands on average cost 46% less than name-brand versions, Mintel found.</p>
<p>The above paragraphs are extracted from todays WSJ&#8217;s article <em><a href="http://online.wsj.com/article/SB122592835021203025.html" target="_blank">At the Supermarket Checkout, Frugality Trumps Brand Loyalty</a> .</em></p>
<p>Crisis provides brands a challenge and an oportunity. Is the time that most of the brands will be put to test by tougher buying conditions or pricing beyond brand as a final buying argument.</p>
<p>It&#8217;s the time new brands can made their way up into the consumers minds and benefit later from surviving these harder times.</p>


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