Comment Response Store Brands 1) As a consumer, we strive to purchase the best products with the lowest price. Because of our target audience’s desires to

Comment Response Store Brands 1) As a consumer, we strive to purchase the best products with the lowest price. Because of our target audience’s desires to save money, the global competition is drastically increasing. Target is a company that has their own private brand, up & up. Their products include laundry detergent, baby food, sunscreen, and more. While comparing to known branded products such as Tide or Banana Boat, up&up sells similar products that serves the same purpose but for a lowered price.

Brand parity is when consumers are not favored to just one brand. Global competition impacts this by increasing more products with similar usage. It also decreases brand loyalty. When it comes to water, every brand generally tastes the same. There are hundreds of different brands such as Kirkland, Arrowhead, Dasani. Consumers tend to grab whatever is most convenient or cheapest because they all are similar.

As competition further grows, it also increases customer engagement. To ensure that consumers stay loyal to their brands, companies tend to try and communicate with their consumers more. For example, personalization is something that consumers enjoy because its customized to their likings. If you were to go to a milk tea shop, many places allow you to adjust your sweetness and ice levels.

2)Information technology and communication has increased the way consumers shop and has created a greater competition. Consumers now can shop at any store because the internet allows the opportunity to look at more brands and competitive prices. The area of competition has moved from domestic to global. Today consumers can learn about a product from social media or customer reviews on app (Yelp) rather than a commercial or actually going into the store. To be successful in new markets businesses need to understand that consumers are now informed and looking for the best value.

In brand parity consumers disregards the product itself and shop by grouping, quality becomes less of a concern. If the shopper doesn’t see a significant difference in a product they will usually abandon brands and buy what is more convenient. A example can be shown with the sunglasses Ray-Bans which can be $150 a pair. A consumer may abandon the brand name for a similar pair of sunglasses at a cheaper price.

With Channel power it’s easy to follow the value of a specific product through social media or an IMC program. Companies can now understand what consumers actually want and can also communicate with them directly.