TEXT OF STORY
Renita Jablonski: Campbell Soup Company reports earnings today. Analysts expect the company turn a profit — though not quite as mmm, mmm good as a year ago. That’s because competition is heating up. Wal-Mart plans to make over its private food label in the next few weeks to attract more shoppers as an example. Danielle Karson has more.
Danielle Karson: Retailers’ private brands rake in more profits than national brands. For consumers, private label products save them money. Analysts say Wal-Mart’s decision to spruce up its Great Value food line with new packaging and store ads is a shrewd move.
John Stanton: Their target market is really the group who’s searching desperately to save money. So they’re more or less obligated to give people this kind of a value choice.
John Stanton teaches food marketing at St. Joseph’s University. He says lots of shoppers are scrambling for good deals, and Wal-Mart’s label facelift should attract more of them. But he says other food makers shouldn’t be nervous.
Stanton: People are searching everywhere to save money. But it doesn’t mean everyone is going to give up convenience, taste in order to save money on the private label brand.
Stanton says the success of brand name companies comes from developing new products and innovating — not from dollar for dollar price competition.
I’m Danielle Karson for Marketplace.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?