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The Effect of Generics on the Food Market Structure

Author

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  • Wills, Robert L.
  • Mentzer, Rosanna L.

Abstract

Generics-products in plain packages whose stark labels read "GRAPE JELLY,'' ''P APER TOWELS,'' or "SHORTENING"-have steadily grown in number on supermarket shelves since being introduced to U.S. consumers in 1977. Sales of generic products have expanded while breaking all the rules of successful branded food marketing: extensive advertising, enticing packaging, and a manufacturer's or retailer's logo. How have generics done it? Their appeal is price. Generic products are usually priced 15 to 40 percent below the private label (store brand) and branded competition. The phenomenal success of these no-frills alternatives has shaken up their product markets.

Suggested Citation

  • Wills, Robert L. & Mentzer, Rosanna L., 1982. "The Effect of Generics on the Food Market Structure," Food Review/ National Food Review, United States Department of Agriculture, Economic Research Service, vol. 0(1), June.
    • Handle: RePEc:ags:uersfr:280816
    DOI: 10.22004/ag.econ.280816
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    Marketing;

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