Heb Own Brands Analysis Essay

lift Price was recently made vice death chair of protest Brands, which was the private instigant of H-E-B. The chairman, Charles substructure, had a real interest in growing the sales of the proclaim Brand product line. At the time, witness Brand represented 19% of sales while national brands accounted for the rest, which was turnabout of 30 years ago when Charles took responsibility for the business. Charles gave Rob a object to increase the sales of Own Brands private label by 11% in the next five years to stimulate it up to a 30-70 ratio of private and national brands, respectively. The increase acquire to be across all product lines, provided Rob had a specific assignment regarding the Own Brands bottled body of water on a lower floor the label Glacia. The problem with the existing Glacia water was that it did not accurately market place itself as imported mold water from Canada, which would increase its market luck from the French imported water, Evian. Ther e were many things for Rob to consider as his research showed that consumers would be more believably to buy Glacia if they knew it was Canadian spring water.With the competitive grocery market at the time, especially with Wal-Marts uphill into the grocery scene, Rob needed to make a specific testimony on how to increase its sales in context of the overall Own Brand dodge. Initially, the problem was an undetected flaw in the marketing and labeling of the product. If consumers do not have something repeatedly pushed in their face, they will not likely remember it when asked. Other problems were caused by Wal-Mart and their huge ability to undercut determine of most other chains because of their national, even international supply-chain relationships. Wal-Mart had its own brand in Great Value products but, according to the case, was not as laid-back quality as the H-E-B Own Brand products. Great Value compared to the hummock Country Fare tier-3 generic that H-E-B put out. Rob kne w that his contender was with Wal-Mart but he wasnt sure yet how to properly fight. He wanted to defy their pricing model of Every-day Low Prices but the pricing against Wal-Mart was problematic to match because of other national brands pricing positions.I think the options that Rob had to decide between were whether to place Glacia in contender with Evian as comparable imported spring water or keep it positioned against Ozarka, which is where it was, and add the Canadian value to help boost sales by points-of-difference? One of the reasons why they should consider a direct market-comparison with Evian is because there isnt a enemy right now. Evian has far out wrongd itself among its foes and Glacia scored equally as high in a double-blinded taste test showing that it didnt actually need to change the product, just the positioning. Own Brand could significantly increase the pricing to be more related to the pricing of Evian. This would get rid of Glacia off the shelf next to Ozarka and next to Evian. This could possibly allow Own Brands to create a Hill Country Fare product to compete with Ozarka. However, Evian was a good premium national brand brought in money for procurement revenue. If the new Glacia began beating out Evian in sales and profit, Evian could close in its product from the H-E-B stores and then they would lose the procurement revenue derived from a national brand.National brands also help bring in consumers who end up buying other Own Brand products in the store. This was a conclusiveness bases for the entire Own Brand product line. The options of pricing, promotions, positioning, and the overall corporate strategy were all involved in this first decision regarding Glacia. According to Butts target goal to Rob shortly after he became VP, only 30% of a stores products should be their own, with a 70% mix of national brands. If Rob decided to simply erect the existing position of the Glacia against Ozarka to increase their market sh are, they could grow sales and not have to compete with the national brands. I think this would be useful considering the low cost of refining their label and less hassle in re-configuring pricing and moving the product closer to Evian.A third initiative was to reposition Glacia as domestic spring water, which is what Ozarka was. I dont see the logic behind this because they were already a direct competitor with Ozarka and their only point-of-difference was the source of their water. Why would they go through all the lying-in and cost of relabeling, promoting, and re-launching to get more of the same? If I were in Robs position, I would re-launch Glacia to be a somewhat generic competitor to Evian and create a Hill Country Fare product with purified water to be placed just below Ozarka. Evian needs some competition and according to their profit data in Table B, Glacia could increase their priceand profit significantly without changing the product, only the labeling.Also, Evian us ers indicated preference for the Canadian water over France. If Evian users began to prefer Glacia water instead, and thats what H-E-B stores carried, what would be the downside if Evian eventually pulled their product out of H-E-B stores? It wouldnt be in demand anymore, so the loss would be some procurement revenue, but the benefit off the increased price of Glacia would seem to overcompensate for that.