But maybe we should be thinking of words like erosion, or crisis, or even hemorrhaging. Because that's what brand names in America are facing today-a hemorrhaging of their business. As the result of an invasion by store brands like President's Choice, Master Choice, 8 O'Clock coffee and Sam's Cola. Today store brands are a powerful $26 billion business. That's up 18% since 1988.
But while we are all familiar with the erosion that store brands Ms. Rosen is president-ceo of the Network Television Association. These remarks are excerpted from her speech to the Television Advertising Forum of the Association of National Advertisers earlier this year.
have wrought, we may not be aware of where store brands are making their strongest in-roads. We identified the leading product categories in which store brands represented one of the top five brands. We then divided the store brand users into cable and cable-free households and we found that store brand users skewed to cable-free households.
Thirty-eight per cent of homes in the U.S. are non-cable or cable-free. They account for 44% of the store brand users-an index of 116. Clearly, the place store brands have made their greatest in-roads is in cable-freehomes.
This is not simply a function of demographics. Store brands are flat on income, education and so on.
We can identify numerous reasons that have contributed to the growth of store brands. But what I would like to offer is a first step that might help stem the growth of store brands. Check your media schedule.
Check out the three primetime schedules and you can see that any media buy that places less than 90% of its weight on network television tends to over-deliver cable households (where brand names are doing well) and under-deliver cable-free households (where brand names are most vulnerable). In other words, if you are putting more than 10% of your media weight into cable, you just might be contributing to the erosion of your brand.