Drivers of branded sales
Use your knowledge of grocery shopping in the UK to answer this question:
Which products have the highest proportion of branded sales vs. own label sales, and why?
You need to select 4 out of the 10 options listed below.
Drag them into the box on the right.
Answer: Drivers of branded sales
We asked you to use your own knowledge of grocery shopping in the UK, and select the products you thought have the highest proportion of branded sales vs. own label sales and why.
Here are our workings out to help you start to think like a Strategy Consultant. If you selected the right answer, you'll see a tick.
High branded salesTea is highly flavoured and has a large number of product brands across a range of price points so own-label products would face significant competition.
Ketchup has a 'category killer' in the market. This is term used when there's a strong rival brand that reduces competitor sales.
Quality is a key purchase criteria for wine. Branded sales are stronger than own-label.
Chewing gum has a very low price point so own-label products are less able to undercut.
Stock cubes have a “category-killer” brand which reduces own-label sales.
|
Low branded salesMilk is a highly commoditised product so there's little scope for brands to add value.
Vegetables are a natural products so brands may imply they're not fresh.
Pastries are often made onsite in a bakery so are unbranded.
Pasta is a low flavour, staple food. Consumers rarely need the security of a brand in this area.
Cake has high own-branded sales as there is a lack of prominent competitor brands in this segment.
|