Author Topic: Big Brands Failing  (Read 692 times)

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Offline Michael Hardner

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Big Brands Failing
« on: May 21, 2018, 04:56:22 pm »
http://money.cnn.com/2018/05/21/news/companies/campbell-soup-general-mills-hershey-pepsi/index.html

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Large consumer goods brands lost market share to small competitors from 2011 to 2016 for the first time in 50 years, according to Jim Brennan, a senior partner at Boston Consulting Group.

We should have seen this coming when the small brand Republican and Democrats broke through in 2016.

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Offline kimmy

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Re: Big Brands Failing
« Reply #1 on: May 21, 2018, 07:48:53 pm »
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The growth of retailers' cheaper private labels and discount stores like Dollar General, Dollar Tree and Germany's Aldi have limited big players' ability to raise prices.

The existence of these "private label" brands isn't new.  We've had the "no name" yellow-label products at Superstore/Loblaws forever, and "President's Choice", and equivalents at other chains. What makes this suddenly a factor?

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Mass-produced brands are not the only game in town anymore. Scale is less important in the digital age when an entrepreneur with a new idea can reach a huge audience online through a viral ad on YouTube or Facebook (FB).

"Amazon provides a valuable platform for small brands to gain traction," said Bill Duffy, an associate director at consulting firm Gartner L2. "Brands no longer have to coordinate with local grocers and large chains to get visibility in store."

This sounds like something I was talking about in this thread:
https://canadianpoliticalevents.createaforum.com/general-discussion/bargain-culture/?message=12449

"The Amazon Effect" is a great leveler for smaller brands or new brands because it puts your product on the shelf right next to big name competitors, and they provide the shipping and logistics and promotion.

But I am not sure how many people do their grocery shopping on Amazon.

 -k
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Offline Michael Hardner

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Re: Big Brands Failing
« Reply #2 on: May 22, 2018, 06:23:19 am »
The existence of these "private label" brands isn't new.  We've had the "no name" yellow-label products at Superstore/Loblaws forever, and "President's Choice", and equivalents at other chains. What makes this suddenly a factor?

You mean why have they 'grown' ?  Because people aren't inundated by TV ads anymore to think that Tide is better than Kirkland.  It's not by the way.

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This sounds like something I was talking about in this thread:
https://canadianpoliticalevents.createaforum.com/general-discussion/bargain-culture/?message=12449

"The Amazon Effect" is a great leveler for smaller brands or new brands because it puts your product on the shelf right next to big name competitors, and they provide the shipping and logistics and promotion.

But I am not sure how many people do their grocery shopping on Amazon.

 -k

I stayed in a town in Michigan that only had a Wal Mart.  I have never been in a Wal Mart.

Offline kimmy

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Re: Big Brands Failing
« Reply #3 on: May 22, 2018, 08:21:34 am »
You mean why have they 'grown' ?  Because people aren't inundated by TV ads anymore to think that Tide is better than Kirkland.  It's not by the way.

I've never been worried about buying yellow-label products when I go grocery shopping.  The lesbianic wheat squares breakfast cereal and so on. In most cases there's not much difference.  Especially when it comes to products that just don't require a whole lot of thought. I often buy canned mushrooms...  I don't think anybody can tell the difference between "no name" and "Money's" canned mushrooms.  You can't screw up the recipe for mushrooms.  Lots of other goods are similar. Rice, pasta, butter...

One product where I've tried "no name" versions and gone back to the brand name is Campbell's soup.  I use mushroom soup in cooking, and find that "no name" versions are just too salty and don't taste as good.  Campbell's is one of the brands mentioned in your article, but IMO they're one of the examples where it's worth paying the extra. 

On the other hand, I really like many of the President's Choice products.  I've been buying the PC "Blue Menu" frozen lunches lately, and they're very good.  I prefer PC coffee and even "no name" coffee to Maxwell House and Folger's, and only buy the latter if they're on mega-discount.  And Hills Brothers coffee... if a truck carrying a load of Hills Bros coffee crashed and there were cans of Hills Bros coffee all over the road, I wouldn't even cross the street to pick one up. Yuck.


I stayed in a town in Michigan that only had a Wal Mart.  I have never been in a Wal Mart.

I generally steer clear myself... there are occasions when I need a number of things and I'm in the area and it's just more convenient to get everything in one stop.  We could start a "Walmart Culture" thread for trashy videos about trashy things going on in Walmart.

 -k
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Offline Michael Hardner

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Re: Big Brands Failing
« Reply #4 on: May 22, 2018, 09:37:10 am »
  The lesbianic wheat squares breakfast cereal and so on. In most cases there's not much difference.  Especially when it comes to products that just don't require a whole lot of thought. I often buy canned mushrooms...  I don't think anybody can tell the difference between "no name" and "Money's" canned mushrooms.  You can't screw up the recipe for mushrooms.  Lots of other goods are similar. Rice, pasta, butter...

I am glad to buy it.  I have heard people say that you can't serve that stuff for company however I do.

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Campbell's is one of the brands mentioned in your article, but IMO they're one of the examples where it's worth paying the extra. 

Oddly, I ALSO buy Campbells along with Wheat Squares.


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I generally steer clear myself... there are occasions when I need a number of things and I'm in the area and it's just more convenient to get everything in one stop.  We could start a "Walmart Culture" thread for trashy videos about trashy things going on in Walmart.
 

Never been in a Wal Mart.  The system is a giant anti-trust machine.  You can buy better food cheaper and that has been happening and will continue to happen.

Offline TimG

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Re: Big Brands Failing
« Reply #5 on: May 22, 2018, 09:56:34 am »
I am not convinced "store brands" and "amazon" can be blamed for a shift in demographics: i.e. an older and more diverse population. Most of these companies already sell very different products in different countries but expect to be able the same product(s) to everyone within a single country. I don't think that is true anymore which makes room for specialty makers that target small markets and depend on the Internet to find their customer base.

Offline Queefer Sutherland

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Re: Big Brands Failing
« Reply #6 on: May 22, 2018, 10:57:38 am »
i just want to eat good stuff cheaply. 

Walmart "Great Value" store brand i generally steer clear of as it's very low quality unless it's something very hard to screw up, you'd think they'd market-test this stuff more before sending it out a gazillion stores worldwide.  PC brand obviously has always been very good quality.
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Offline Queefer Sutherland

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Re: Big Brands Failing
« Reply #7 on: May 22, 2018, 10:59:09 am »
You can buy better food cheaper and that has been happening and will continue to happen.

Where?  I go to No Frills and Dollarama and find similar prices, but not much any other place.
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Offline Michael Hardner

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Re: Big Brands Failing
« Reply #8 on: May 22, 2018, 11:30:49 am »
Where?  I go to No Frills and Dollarama and find similar prices, but not much any other place.

Sorry - I wasn't thinking about the sentence structure.  My comment about 'you can get it cheaper' referred to stores like Loblaws, who conspire with manufacturers to bilk you, not Wal Mart.

I love NF and Dollarama.

Offline ?Impact

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Re: Big Brands Failing
« Reply #9 on: May 22, 2018, 02:59:56 pm »
Sorry - I wasn't thinking about the sentence structure.  My comment about 'you can get it cheaper' referred to stores like Loblaws, who conspire with manufacturers to bilk you, not Wal Mart.

I love NF and Dollarama.

NF = Loblaws


Offline Michael Hardner

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Re: Big Brands Failing
« Reply #10 on: May 22, 2018, 04:17:57 pm »
NF = Loblaws

NF is cheaper Loblaws
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Offline Squidward von Squidderson

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Re: Big Brands Failing
« Reply #11 on: May 23, 2018, 09:12:54 pm »
I wouldn’t be caught dead in a Walmart or a dollar store.

I buy organic fruits and veggies.

I only eat meat from local, ethical sources. 

My coffee comes from a local organic roaster.

I catch my own fish. 

Life is too short to eat shitty food and animals deserve to be treated without cruelty.

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A drop in market share is not “failing”.  The title of this thread is hyperbolic.
« Last Edit: May 23, 2018, 09:16:30 pm by the_squid »
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Offline Omni

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Re: Big Brands Failing
« Reply #12 on: May 23, 2018, 10:02:00 pm »
I wouldn’t be caught dead in a Walmart or a dollar store.

I buy organic fruits and veggies.

I only eat meat from local, ethical sources. 

My coffee comes from a local organic roaster.

I catch my own fish. 

Life is too short to eat shitty food and animals deserve to be treated without cruelty.

—————————

A drop in market share is not “failing”.  The title of this thread is hyperbolic.

I am lucky enough to have a family run farm about a 20 minute drive from my house. The first time I stopped in there I came away with a couple of their free range chickens. I paid a little more than the grocery store but what a treat. When you brought it from the oven and sliced it, the skin was paper thin and crackly and the steam poured out filling the dining room with a lovely aroma, and what flavor! I go there often.  But I can't speak about that without relaying a story from years ago. A work buddy of mine and I were heading back to our hometown after a weeks work at King City. North on the 400 hwy. takes you across the Holland Marsh. I said "hey let's stop in here and see what they've got" He agreed so we took the off ramp and roamed around and finally stopped at one farm and shopped. We had lovely carrots, potatoes, beets, various vegetables. When we went to pay the farmer took us into his office which was essentially a desk, chair, and a cash register in a cubby hole which was part of his barn. There were ducks wandering around. As he was toting up my bill I inquired as to whether he sold ducks as well. Yes he said I do. So I said OK can I have one and tack that on the bill. "Of course" he replied. I expected him to go to the large chest freezer that was nearby and pull out a frozen duck. But nope. He got up from his chair, grabbed one of those ducks, took it over to a large block of wood, and chopped it's head off. Then he put it in some hot water, pulled the feathers off it, bagged it and added I think it was 5 bucks on the bill. Well we got back on the highway heading north and Ron couldn't contain himself..."You are a duck murderer" "You conspired in the killing of an innocent duck" "I'm telling everybody at the hangar next week how uncaring you are toward ducks" He had fun, I put the pedal to the metal, and enjoyed a duck dinner on Saturday night.       
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Offline cybercoma

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Re: Big Brands Failing
« Reply #13 on: May 24, 2018, 08:19:30 am »
I wouldn’t be caught dead in a Walmart or a dollar store.

I buy organic fruits and veggies.

I only eat meat from local, ethical sources. 

My coffee comes from a local organic roaster.

I catch my own fish. 

Life is too short to eat shitty food and animals deserve to be treated without cruelty.

—————————

A drop in market share is not “failing”.  The title of this thread is hyperbolic.
It's a god damned travesty that those things come at a premium when they should be the standard practice.

Offline TimG

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Re: Big Brands Failing
« Reply #14 on: May 24, 2018, 08:43:57 am »
It's a god damned travesty that those things come at a premium when they should be the standard practice.
Economics. Learn something about it. Organic farming is lower productivity which increases costs. Those costs have to be born by the consumer. The exact premium depends on the food.

https://allianceforscience.cornell.edu/blog/2017/11/organic-farming-can-feed-the-world-until-you-read-the-small-print/


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But the Mueller et al. paper carries another potentially even more fatal flaw, one that the authors do not sufficiently address. Most of the literature on which their model is based assumes the continued existence of what I call laundered nitrogen, which seriously biases existing assessments of organic vs. conventional crop yield gaps.

This happens because the vast majority of existing organic crops depend on imported nitrogen laundered from animal manures. This nitrogen is ultimately derived from artificial fertilizers used to grow crops to feed the animals on conventional farms. In a worldwide organic scenario envisioned by the researchers, this would not be possible, so the nitrogen scarcity would be critical.

This would lead to worldwide famine. In one of the few attempts to quantify this impact properly, Vaclav Smil concluded that only about half the current world population can be supported without the Haber-Bosch process for artificial nitrogen fixation. Mueller et al. do show a substantial nitrogen deficit for a 100 percent organic planet, but argue that this is a good thing because it reduces greenhouse gases and pollution of water systems.