INTRODUCTION
Generic brands are a rapidly growing part of the market today. Increases in costs to suppliers and distributers have caused a decline in profit for national brands. In the interest of lowering costs and increasing profit, it is beneficial for North Star to consider the potential of generic brand sales.
To ensure that North Star is equipped to make the best decisions regarding entering the generic brands market, sales manager Paul Gettisfield authorized this report on July 8, 2011.
Purpose and Scope
In this study, the problem addressed was the question of consumer acceptance of generic brands for the products that North Star produces. Soap, deodorant, ammonia, chili, canned ham, and frozen vegetables are currently produced by North Star as national brands. If generic brands are to be used, the market sales for generic products must be assessed along with consumer perception.
Procedures
To answer these questions, the following methods were used: 1. A mail survey of 1500 consumers in California, Texas, and Arizona with the following questions: a. Have you purchased a good generic product? b. Have you purchased a nonfood generic product? c. If you could save at least 30 percent by purchasing a generic brand rather than a national brand, would you purchase a generic brand? (Products listed in alphabetical order) 2. 20 randomly selected chain supermarkets located in California, Texas and Arizona were audited in August. 3. Research was conducted using secondary sources to gather data regarding market sales and statistics of generic products.
This information was analyzed to find the market share of generic products as well as likely customer acceptance of specific products.
FINDINGS
According to mail survey answers, consumers have purchased generic brands and national or private brands of North Star products.