The Myth of the Generic Brand

Remember when generics were just that? Brands without identity, poorly presented and private labeled so that consumers who didn't care about quality or performance or status could buy cheap - and get what they paid for?

Where are they now? Wait a minute. I know. They're brands - promoted, packaged, priced, presented just like, well I guess, other brands.

So what's the difference? Not much really, except price.

Take a look at Costco. Now, that's a brand. A strong, powerful, well-developed brand that delivers - most of the time - on its brand promise. And how do they do it?

Listen to Jim Sinegal, Costco President and CEO: "We will always be known for name brands such as Michelin, Sony and Crest. . .but we will continue to augment our product offerings with our own Kirkland Signature items."

And just what are Kirkland Signature items? Private-label products equal to or better than national brands, so says Costco. Or as it says in the recent Costco Connection, a lifestyle magazine for Costco members, "in the traditional marketplace, (they are) brands built over the years with expensive advertising campaigns built around cornerstone products." (Oh, you mean like Kirkland Signature products promoted in national flyers, catalogs and Costco stores. . . to mention just a few marketing tactics?).

Who's kidding whom? Brands are brands. And they are all built the same way. Discover your claim of distinction, and continually provide the performance of your promise.

Don't kid yourself. The brands at Costco and Walmart and BJ's and all the others with inventory business models are built the old-fashioned way - with expensive advertising campaigns built around cornerstone products. The only difference is how they are positioned.

The brand business hasn't changed. Just the delivery vehicles.