The Difference Between Home Brand vs Name Brands

Surbhi Tyagi 31/03/2016

Aside from the packaging, ever wondered what the real difference between home brand and name brand really is?

The red and white packaging that you associate with Woolworths homebrand seems to hold the stigma that the food quality is low. Regardless of the brand, many basic foods such as milk and bread are generally sourced from the same factories. For instance, you can’t alter the ingredients of milk substantially as the national health standards have set crucial guidelines that all brands must follow.

A little experiment that you can conduct is to blindfold yourself and have two samples of a product such as bread. One sample being home brand and name brand as the other. Ask yourself if your taste buds can really detect the difference.

If your argument is that it can be bad health purposes long term even if you can’t taste the difference then evidence suggests otherwise. However, many of these products contain an identical recipe and are manufactured in bulk. In other words, a home brand product is not gallons cheaper to make than name brand products.

Yet retailers strategically segment these products on based on price sensitivity. For example, a consumer with high income is not going to be sensitive to a few extra dollars for a loaf of broad. Whereas, a consumer that wants to save any dollar they can will without any hesitation select the home brand product.

This begs the question to whether the aesthetics of name brand is merely a materialistic and psychological notion that is clouding our judgement. Because if we think about it rationally, the unappealing packaging for home brand is one of the primary reasons for its lower cost. 

Consumers need to evaluate what they value more, temporary eye candy or cost effective products?

Leave a comment:

You must be logged in to leave a comment. Login here