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Why do customers still buy branded food products in supermarkets when the retailer's own label is often of similar quality and cheaper?
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| Submitted: Mon Dec 22 2003
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Why do customers still buy branded food products in supermarkets when the retailer's own label is often of similar quality and cheaper? TO: Sainsbury PLC FROM: Mr Bloggs DATE: 24/01/2003 SUBJECT: Customers prefer to buy branded food products in supermarkets when the retailer's own label is often of similar quality and cheaper INTRODUCTION: A supermarket acts as a medium for customers to exercise choice over the vast amount of products that are on offer. For example, Sainsbury, well-known supermarkets offers both brand and own brand products whereby customers can make a choice between "Kellogg's" crunchy nut corn flakes and Sainsbury's similar version. Although strategically placed on the supermarket shelf, the choice of picking up, Kellogg's cornflakes is sometimes an automatic procedure whereas to pick up Sainsbury cornflakes may require more thought in the customer's eyes and it is this distinction in choice which determines why customers buy branded food products in supermarkets. ANALYSIS: 1.1 DIFFERENTIATION:...
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