Brands still think consumers are dumb

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IN SUMMARY: Private label sales are climbing and all of a sudden business people are asking “is branding dead?” The answer of course is “no” but for a lot of product categories branding is on life support.

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In addition, economic data shows that the GOP’s tax bill benefit to workers never materialized. The much-touted bonuses did little to boost workers’ paychecks. In the past 12 months, cash bonuses only gave workers an extra 2 cents in average hourly compensation, adjusted for inflation.

So what do brands do? They raise prices. Are they really that stupid? Yes.

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Brands that are feeling it the most are the ones who compete in the grocery aisles. Trader Joe’s is doing very well with their private label brand and grocers are adding more private label categories squeezing out national brands.

While brands are stuck doing PowerPoints, analyzing big data and trying to integrate AI into their marketing consumers are saying “we don’t care because you’re not worth my money”.

Originally published at www.newmediaandmarketing.com on March 5, 2019.

Written by

Marketing contrarian with over 15 years of developing leading edge and award winning digital marketing initiatives.

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