Innovation and the recession- store brands gain power

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"Necessity is the mother of innovation"  and the recession has certainly been a situation of extreme need for organizations and individuals alike. Store brands have gained power during the recession.

Consumers are looking to save money and happy to buy store brands not only in the grocery stores for milk  but also in pharmacies for both prescription and OTC (over the counter) products. In the pharma market – the store brand production and marketing is quite straightforward. For an  (OTC) product like the allergy treatment Claritin the store brand ( Equate from Wal-Mart, Rite-Aid or CVS from the pharmacy chains) will be placed next to Claritin and will have the same out of patent ingredient (Loratadin 10 mg). In many cases the packaging or price label will mention "compare with ingredients in Claritin." The consumer understands  easily at the point of purchase and moment of truth! In better economic times, consumers would pay a price premium for a brand. The brand gives more comfort but the consumer becomes a risk taker ( and an innovator for the tough times) by trying out the lower priced store brand.

During recessions, brand marketers realize more sharply than ever, that their competitors are not really other brands but store brands which zoom off the store shelves. Therefore,this is the time to focus on innovation so that as things get better and consumers feel more confident, they'll try new value adding products from established brands. If no new products appear from established brands, many consumers who shifted to store brands during the recession, may not come back in better times.

Just check your local grocery  and pharmacy store shelves to see what I mean.

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