Wal-Mart Brand For The Ages


Branding Strategy Insider:

What’s the biggest, fastest moving consumer goods brand in America?

The answer isn’t Coke, Gillette or Johnson & Johnson.

It’s Great Value, Wal-Mart’s own-label.

Thanks to its presence in every one of Wal-Mart’s 4100 US stores, and the fact that more than 5000 stock-keeping units are sold under the Great Value label, it is the biggest grocery brand in the US by both sales and volume.

According to market research group GfK, three out of 10 US shoppers are now ‘buying more store-brand products’ than they did a year ago, and 75% cite ‘current economic conditions’ as playing a big role in this decision.

Nielsen says sales of own-label goods rose by 10% in 2008, a trend likely to increase this year.

Despite lower prices, the reduced production costs and zero marketing expense of Great Value mean it will always deliver more profit per unit to Wal-Mart than the equivalent manufacturer brands.

And as the penetration and market share of Great Value increase, the space and sales available to manufacturer brands are reduced, and Wal-Mart’s already legendary bargaining position with suppliers is strengthened.

Photo by ProgressiveGrocer.

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