The typical thought that comes after the mentioning of the words “no-name brand” is likely to be associated with cheap, low quality products, for those who cannot afford otherwise. As a part of Porter’s Five Forces generic categories, they’d be listed as a Cost Leadership brand. But recently, Target has come out with two store-branded lines of food that have become increasingly competitive with the larger national brands. Both of which are considerably healthy and high-end, yet affordable. Target has been able to change the perception of the “no-name brand” and has relocated their products into the Focus Strategy category.
The brands are specific to foods that are organic and are without GMO’s, allowing them to target a consumer market which is concerned with what they’re eating, but doesn’t want to break the bank to eat naturally. Their points of parity are having 40% of Simply Balanced’s foods being organic, and the majority of them being GMO-free. The main difference and selling point is that they are cheaper. The down-side, however, is that these products will only be sold by Target, since they are strictly a Target brand. Profits will be lower, but consumers will definitely be attracted.