Word: productive
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Dates: during 1950-1959
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...their galluses about the marriage of a white and a black rabbit in a children's fairy tale might profitably turn their attention to the nearest liquor store. The label of a widely sold brand of Scotch whisky shows two little dogs, black and white, and, moreover, the product is described as a "blend...
Although many private brands sell at lower prices, they are really a long-range detriment to the consumer, charges Henry Abt, president of the Brand Names Foundation. Says he: "Private labels ride the coattails of makers' brands. No private label past or present has ever pioneered a new product or improved an existing one." National food brands last year spent $105 million on research and development of new products and $476 million to advertise them. An estimated 33? of every dollar spent in supermarkets goes into products that did not exist ten years...
...National-brand advertising draws the customer into the supermarket," says the marketing director of a national dairy-product maker. "But once in the supermarket, the customer can be subtly-or not so subtly-pressured into buying the same kind of food under a private-brand label...
...tough has the competition from private labels become that some national-brand makers turn out both, in the hope of lowering overall production costs and gaining a more favorable reception for the manufacturer's name-brand products. In many cases the quality is exactly the same, but the price is lower. B. T. Babbitt, cleaning-products maker, markets its Glim liquid detergent to some distributors to retail for 69? per 22-oz. bottle. It also supplies them with the identical product under the Sparkle label to retail for 49?. But in many a private brand, the lower price reflects...
Others are not so optimistic. The supermarkets and chains have become so powerful that they are often in a position to force a middle-sized producer to turn out a private label for his product for them at a lower price, or they will not buy from him at all. The real fear is that the supermarkets, in their increasing competition with each other, will put such a premium on profit margins that they will squeeze out more and more name brands to the ultimate harm of the consumer, who has benefited most from the new products that have been...