NEW YORK-Name brand? Or private-label product? The results of a study, published in The New York Times, said increasing price-based competition in the marketplace ``means brand marketing has diminished, causing brand depreciation,'' according to Frank Assumma, president and CEO of Bates U.S.A.
The New York agency's study said consumers have come to believe ``all brands are equal.'' ``When we say private label or store brand, a consumer sees a brand, not a cheap brand,'' Mr. Assumma said. In order for consumers to form a perceived value, ``all brands have to satisfy an equation,'' balancing price and quality, he told the newspaper.
Marketers of name-brand products must mount a counterattack on the inroads of private-label products, the study concluded. It advised manufacturers to choose between selling name-brand products and the often lucrative sideline of making and supplying private labels to retailers, which the study said only ``undermines the health'' of branded trademarks.
It also urged marketers to close the ``price gap'' between name brands and private labels ``to the point where a consumer can afford to remain loyal to the national brand.''