Brand Tax And IIts Margin

[The Hooded Claw]

Re: Brand Tax And IIts Margin

Kellogg’s have always advertised that they don’t make cereals for anyone else.
Even if they did, they wouldn’t simply repackage the premium product. It would be a diluted one, because the own labels have wafer-thin profit margins.
The reason for this is that supermarkets are not relying on the own-label products to make profits. They are there to tempt you in to store, so that you buy the branded products, which have much higher margins.
The comment about Tesco not allowing the use of ‘Tesco’s’ is standard practice for brand management across any business, which will have strict guidelines around logos, fonts and “tone of voice”, which is the language used in all their communications.

[Taunton Blue Genie]

Re: Brand Tax And IIts Margin

Kellogg’s have always advertised that they don’t make cereals for anyone else.
Even if they did, they wouldn’t simply repackage the premium product. It would be a diluted one, because the own labels have wafer-thin profit margins.
The reason for this is that supermarkets are not relying on the own-label products to make profits. They are there to tempt you in to store, so that you buy the branded products, which have much higher margins.
The comment about Tesco not allowing the use of ‘Tesco’s’ is standard practice for brand management across any business, which will have strict guidelines around logos, fonts and “tone of voice”, which is the language used in all their communications.

Similar to 'Kellogg's' (a brand that includes the genetive form in the first place), 'Thatchers' cider company (and whose brand name is in the genetive form despite the dropping of the apostrophe, the company belonging to the Thatcher family) refuse to sell any form of their products under any supermarket brand - and despite requests to do so.

[J R Hartley]

Re: Brand Tax And IIts Margin

Aww boo-hoo, the man who shows little sympathy for others having a bottom lip quiver because the price of Heinz baked beans has gone up.

Spare a thought for those who already could only afford to shop the cheapest own store brands who have seen prices sky rocket percentage wise way above the percentage increase on branded items.

You seem like the type of guy who would tell others they can make a delicious meal out of 19p per portion so suck it up.

[J R Hartley]

Re: Brand Tax And IIts Margin

Oh dear, oh dear. Reputable companies use brands and trademarks to convey to their consumers a particular quality of their goods and services and should enjoy a good reputation if they satisfy the consumer. Budget brands of baked beans could contain more salt or sugar, have lower quality values all round, the provenance of source materials may be questionable and hygiene processes may be inferior.
If you buy an M & S sandwich you pay a premium but you are aware of the quality of the item. A free market permits you to choose alternative brands but to imagine that they are always identical are obviously highly misguided.
I'm stating the bleedin' obvious really.

Whilst I agree with much of what you say (especially the M&S sandwiches!) some of Aldi’s rip offs of major brands are unbelievabley similair in taste and you’d be hard pressed to tell the difference.

Their alcohol rip offs of Peroni, Birra Moretti.etc are superb and in the case of their Rossini I think it’s a nicer lager than Peroni.

Their condiments are also very good, their rip off Bullseye BBQ sauces are identical. They must spend a lot of time and money on their research and development.

That said, I shop in both Aldi and Tesco and Aldi is no longer as cheap as it used to be in comparison.

[North Cardiff Blue]

Re: Brand Tax And IIts Margin

Having tasted Tesco /Asda own brands stuff I would agree they are very poor substitutes .

However I found very little taste difference / quality of Aldi's against the better real brands

Aldi retails : Tomato Sauce 70P v £2.79 Heinz
Seeded Bread £89P v £ £1.85 Hovis
Baked Beans 32P v 80p Heinz
Pasta 75P v £1.30 Napolina
Own brand lite salted spreadable butter £1.89 v £4 Lurpack .
Real Lemonade 39p v £1.20 Schweppes
Welsh Strong Cheddar Cheese £2.15 v £3.50 Pilgrims Choice /Cathedral
Filtered Semi skimmned 4 pint milk £1.09 ..v £2.10p

The branded stuff is hugely different in price but not in taste ,not worth the extra costs in my book.

You can save £20 a week on a family shop at the Lidl/ Aldi's shops and I noticed some packs are bigger in size making the saving even better

Worth a read :

https://www.mashed.com/232679/aldi-brand-products-that-are-better-than-the-originals/

Save some dosh try the test once ?

Tomato soup in aldi lidl is also almost identical but miles cheaper, agree with the rest you are probably better changing supermarkets for some shops (limited choice) than buying own brand watery stuff in tesco etc.

[North Cardiff Blue]

Re: Brand Tax And IIts Margin

By the way, brands are considered to be a failure if they end up being used generically by the public for products and services available from rivals in the market - as any good reputation gained originally by the brand owner becomes diluted.
Examples being:
Escalator, Jet Ski, Bubble Wrap and Aspirin

P. S. Heroin was also a brand name.

Hoover

[RichardM]

Re: Brand Tax And IIts Margin

Branston are now the top baked beans, Heinz have removed too much sugar & salt. Likewise Hellemans tomato sauce is better.

By the way in many cases the Premium brand make the white label & vice versa.

I was listening to a salesman once bullshitting about the virtues of three different printers, they were all made by the same company just different plastics. Same now with the automotive industry, we make exactly the same part for mass production companies as RR, Bentley, Porsche etc. but they charge their customers x times more

I used to have a Land Rover Freelander from the time that BMW owned LR. It had an engine used in many BMW cars. Many spares were cheaper from BMW than from LR.

[The Hooded Claw]

Re: Brand Tax And IIts Margin

I used to have a Land Rover Freelander from the time that BMW owned LR. It had an engine used in many BMW cars. Many spares were cheaper from BMW than from LR.

This has been commonplace for decades. I could bore you for hours about the use of common platforms and components across car marques, meaning that a Bentley will have much similarity with a Porsche, Lamborghini, Audi and maybe even VW itself for the parts that you don’t see.

[North Cardiff Blue]

Re: Brand Tax And IIts Margin

This has been commonplace for decades. I could bore you for hours about the use of common platforms and components across car marques, meaning that a Bentley will have much similarity with a Porsche, Lamborghini, Audi and maybe even VW itself for the parts that you don’t see.

Actually it makes sense the more common the parts the cheaper the ned product, they should do it for morst parts.

[Taunton Blue Genie]

Re: Brand Tax And IIts Margin

Concurring with several people on this thread we know that many branded items are sold with good reason to expect consumers to pay more for them whilst simple items like lettuces are more generic and can be purchased elsewhere.
We also know that people will pay a premium for the kudos of a brand itself and that a sparkling wine from a plot of land 1 metre outside the legally designated Champagne region can be as good as champers but can't attract that nomenclature. (The Russians refuse to ignore such internationally recognised diktats and sell pomagne to their citizens at a £1 or so a pop).
At the end of the day, we are free to source alternatives to major brands and have the nous to evaluate when it's sensible to do so.
Taxing expensive brands unduly is a recipe bfor disaster (pun intended).

[blue matt]

Re: Brand Tax And IIts Margin

Posh git..
When you say "Sainer's ' do you mean Sainsbury's?
P.S. It's Tesco, not Tescos
😀

Not really that Posh, just love the fresh almond croissants from Waitrose, grab a free coffee from the machine, its a winner, go in my white works van and watch the faces of the elderly posh folk as I park, its a double winner

indeed I do mean Sainsbury's ( a few of my older daughters friends work in our local one ), they shortened it to " sainer's " its a habit

I always add a " s " on the end of Asda and Tesco, it winds my 2 daughters up no end, it entertains me

[blue matt]

Re: Brand Tax And IIts Margin

By the way, brands are considered to be a failure if they end up being used generically by the public for products and services available from rivals in the market - as any good reputation gained originally by the brand owner becomes diluted.
Examples being:
Escalator, Jet Ski, Bubble Wrap and Aspirin

P. S. Heroin was also a brand name.

Hoover

[blue matt]

Re: Brand Tax And IIts Margin

Hoover

beat me to it I hadn't got to page 2 though

[North Cardiff Blue]

Re: Brand Tax And IIts Margin

beat me to it I hadn't got to page 2 though

He's right too no one buys a hoover now, it's a dyson, shark, vax or gtech.

[Wash DC Blue]

Re: Brand Tax And IIts Margin

Groceries here are outrageously expensive compared to the UK.

The big chain stores are a disgusting rip off.
Aldi and Lidl have been making gains around here as a result, where as years ago...people were kicking off about one being opened so close to the neighborhood.

My favourite are the two local Asian Grocery Stores.
They are a full on sensory explosion.
Amazing Sights and Smells, often fruit and vegetables you've never seen or heard of before.

The produce seems to be of a higher standard than the big stores.
The spices and oils are amazing.

You see an incredible diverse mix of people shopping there.
It seems really exotic for a Suburban American Strip Mall and it is waaaaay cheaper than the dreaded big guns.