Home Brands Winning the Fight Over Big Brands

Christmas is a great time to catch up with family and friends that you hardly see. This year I ran into a friend of mine who works for a chemical manufacturer. The organisation he works for happens to specialise in anti-bacterial hand washes and sunscreen creams.

After exchanging our greetings I asked how work was and he told me that manufacturing was tough and would only be getting tougher. The weather was hot (it is Christmas and summer in Australia at the moment) and so I took out the sunscreen my wife had purchased from our local supermarket to apply on my children’s skin. He asked why we had purchased that particular brand and my wife explained that she recognised the brand and that the bottle looked easy to open and close. He then began to explain that the difference between the brand offered by the supermarket “Home Brand” and the brand we had purchased was probably perfume only, ie one had a different aroma added to it than the other. In terms of the protection offered, there was no difference. The company he worked for made several brands of sunscreen and they where all pretty much exactly the same, differentiated by packaging and therefore price.

He extended his comparison to the anti-bacterial hand cleanser that his company also makes. Our local supermarket stocks a few brands and we have gotten used to the smell of a particular brand that we now buy regularly. The formula used was very similar if not the same across each of the brands that they packaged on behalf of other companies.

With all of this information at hand it got me thinking. Of late the press had been hammering the big supermarkets about their drive to have customers purchase “home brand” products by essentially giving them priority positioning on shelves as well as undercutting the competition on price.

Can millions of dollars invested in a brand disappear literally over night if you learn that brand A and brand B are essentially the same? Are you likely to switch to a “home branded” product offered by a supermarket simply because it is 30% lower in price than the traditional market leader. Should we as consumers care if big brands are being driven out of the market by cheaper alternatives with the distribution power to undercut them?

The large supermarket chains of Coles and Woolworths dominate grocery shopping in Australia. IGA and a few independents offer some competition but the shear distribution of these large chains means they control what we eat and what brands we buy. Or do they?

The press is telling us that if we don’t want our grocery shelves dominated by “Home Brands” we should be voting with our wallets, driving the dollars back to the big brands. Yet the big brands make us pay 30% more for what is essentially the same product as the “Home Brand” simply because this is how they make lots of money.

Look at your own shopping experience. Would you travel out of your way to buy a particular branded product if the local grocery store didn’t stock or stopped stocking it? Would you continue to go out of your way even after a few months. If you are time poor, you like most others are more likely to pick the easier option, just buy what the store offers.

In Australia the Coles and Woolworths range of “Home Branded” products are taking between 25% and 30% of all grocery sales. This is likely to rise to over 30% as has been seen in other countries like the UK. With a young family, I purchase 9 litres of milk each week. That is three times three litre containers. The difference between buying the “Home Brand” and the market leader is over $1.50 per container, equating $4.50 per week. I personally prefer the taste of the market leader’s milk but until my kids can tell the difference and ask for it, I would rather save the $4.50 per week.

Therefore the market leading retail milk brand in Australia who has spent so much over the years convincing us that their flavour and milk is better is now forced to compete primarily on price. It is a big challenge for them and it will require them to begin to think in a different way so that they can begin to win customers like me back. As I mentioned I prefer their milk but when the economy is facing tough times, we all reign in our spending where we can and make compromises to get by.

A few years ago a similar marketing challenge was presented to Panadol the leading paracetamol brand (head ache relief). A low cost, no frills competitor come into the market saying that it offered the same formula as Panadol without the premium price. Their advertising in fact focused primarily on this point of difference. Same formula, 30% cheaper.

What Panadol did was evolve their product range, developing products that worked quicker “Rapid” and were more focused on specific pain relief (eg kids). They developed marketing campaigns focusing on the tie that many Australians had with the brand and how they used it for specific pain relief. They used some real customers and made their advertisements focus on “testimonial.”

To date it has worked and Panadol is once again selling well. Whilst the other brand is still around, it hasn’t been seen on TV for years.

Create An Online Brand: Learn The Way To Build Your Online Brand Effectively

Learning tips on how to build your online brand and social media branding requires plenty of thought. Are you ready to recreate yourself or do you simply just want put it all together to produce a particularly effective online brand image?

When you reach adulthood, you’ve figured out who you will be in terms of character, values, personality and morals, but have you given much thought to your personal brand as it relates to the corporate world? How about the way you are perceived on the internet? What’s your online company brand stating about you? Consistency is definitely essential here. I will go into some detail about applying the consistency and how to put the pieces of the puzzle together.

Build Consistency When You Build Your Online Brand: Social Branding.

The very last thing that you want to do that would be entirely counter to creating your online brand would be to continue replacing your online brand. Having a tag line, mission and purpose is truly important. Be certain to communicate this text in all of your communications. For instance, you want to have the identical verbiage about yourself in Facebook as you do in your weblog. And don’t modify either without modifying the other. It is definitely not smart to continually alter your brand on a regular basis. You could tweak your brand in an attempt to enhance it over a period of years but preserve it the same. Now I’ve observed really winning re-launches do fairly well, but typically after the brand had an online presence and following to start with. This is a marketing approach that may boost your customer base significantly, however it is a technique that must be done properly, but that is getting off the topic and I will save that for another post.

Listed below are a few points to stick to on how you can build your online brand or social branding:

Username – Create your on-line brand with your username profiles. I recommend that you choose to use the same username with all of your online profiles as much as possible. As an illustration, I’m known online as Sharon Prosperity in over 100 sites. Consider all of the social media networks, article listing sites, blog networks, Facebook, twitter, and Skype. There are many more, but you get the idea. This is also known as social media branding.

E-mail Signatures – You may very easily develop your on-line brand simply using a good catchy Electronic mail signature that tells the world what you are all about.

Pictures – I imagine people are surprised by this one. You can build your on-line brand with pictures. If you have a company logo you’d naturally use that, but don’t discount the power of your own persona. If you have been following me then you know that I use the exact same picture in as many places (Web 2.0, other blogs, Facebook, Twitter, forums, etc.) as I can. This goes a long way to develop trust and consistency in the eyes of your audience. Your social media branding is personalized with images of you as part of your networking sites.

Design – This would be what your colors, fonts and theme look like. Again, maintaining your fonts and colors as consistent as possible is how you’ll be identified online.

Real – This is something that I have caught a handful of others on. Although it’s obvious that a person would act in a different way (e.g. not as professional in a personal relationship) it’s unfortunate that some people believe that they have to be fake. Their online brand is that of another person who’s rather different from their true self. It’s a matter of being authentic which will ultimately convert leads into sales. You have been perceived as someone who is adding value rather than somebody who has their own interests at heart.

Many people have a knack for this creative image creation and some don’t. So, if you find yourself feeling frustrated with being the non-creative type then understand that you’ll find tools out there which help with building your on-line brand. If it’s all about moving up the corporate ladder, getting out of college and seeking to get that first job or starting your own traditional or web based business, realizing resources like this exist is a life saver!

Now that you have an idea of the way you would like to construct your image, the final tip is actually very easy, but does definitely take a little time on your part, but will pay off as you construct your online brand.

Develop your online brand and social branding with networking…networking…networking.

You have to get the word out about who you are and what you offer as part of your online brand. I’m reminded of one of my first traditional companies. I didn’t want to start out advertising and marketing through the newspapers or yellow pages until I obtained the company logo, business cards, or tag line ready to rock and roll. It would seem un-businesslike to hit the net with the idea you will be in business without getting everything in place, but people do it every day. So many people have the wrong concept about a web-based business. An on-line business is a real business and it has to be treated as such. When you eventually have your image or online brand put together, get out and promote and form relationships with people. Allow your on-line brand speak for you and watch your business increase.

Why Risk Poor Precision Metal Stamping Quality? Automotive Industry Averts Risk With APQP

Precision metal stampings are a critical component of so many products. Automotive components, medical devices, electronic parts – all contain metal stampings. For the part or the device to function properly, the stamping needs to be free of defects and of perfect quality.We continue our metal stamping quality article series with a discussion on APQP.Automotive industry refuses to take chances with precision metal stamping quality.Poor quality is not an option with the automotive industry. That’s why the ‘Big Three’ (Ford, GM, and Chrysler) created Advanced Product Quality Planning, better known as APQP.So what is APQP? Technically, “it’s a guide in the development process and also a standard way to share results between suppliers and automotive companies.” More simply put, it’s a way of making sure the automotive companies are involved in every step of the development and launch process with their suppliers – to ensure nothing goes wrong. Why? Ultimately, to ensure the ‘Big Three’s’ customers are satisfied with their automobiles.APQP is typically deployed in 5 concurrent and collaborative phases:Plan and Define Program
Product Design and Development
Process Design and Development
Product and Process Validation
Launch, Feedback, Assessment, and Corrective ActionSome of the questions that can be addressed through the APQP process are:Can the product/process be error proofed?
Can the product/process achieve a higher level of capability through tolerance design and/or process variation reduction?
What controls must be developed to ensure that defects cannot reach a customer?The APQP process actually monitors 23 topics before production is even started. Topics like design robustness, design testing, quality inspection standards, product packaging, and more.Metal stamping companies need to be prepared.There are a lot of suppliers wanting automotive business. Automotive manufacturers and the companies that represent them can demand that their suppliers abide by APQP processes.And that requirement certainly applies to metal stamping companies as well. Automotive suppliers need to ensure the metal stamping companies they do business with are committed to APQP and should insist they:Establish and continually monitor company-wide APQP processes
Utilize APQP tools such as Failure Mode Effect Analysis (FMEA) to ensure quality
Utilize advanced technology to verify stamping quality, thicknesses, and dimensions (sensors and gauges)
Implement sophisticated quality control plans and tools to ensure consistency and zero defect parts (i.e. Statistical Process Control (SPC)
Adhere to the Production Part Approval Process (PPAP)With these controls in place, metal stamping companies can do their part to ensure the automotive manufacturers achieve their ultimate goal of customer satisfaction.Want to know more about APQP?For comprehensive details on the APQP process, refer to the AIAG APQP Manual available through AIAG (Automotive Industry Action Group).