Secret Of Store Brands
Many packaged foods that have a store label on them are in fact made by a
known brand name company. Look at the fine print to see if you recognize
the manufacturer. These products are generally the same as the ones under
their own label. They are simply relabeled and sold cheap for those that only
buy cheaper products.
This is a modern day technique that answers the age-old marketing problem:
How do you get people who are willing to pay more to do so while also
selling for less to others? Some people will pay $3.69 for a box of their
saltine crackers, for example. But what about the people who will only pay
$1.49? Assuming that the manufacturer can still make a profit at the lower
price, they don't want to lose those sales, but they also don't want to lose
$2.20 in profit on each sale to those who would pay more.
The answer to this seeming dilemma is to make two or more "versions" of a
product and let people believe here is a difference in quality. The "off
brand" ones are even purposefully put into less attractive packaging to
discourage sales to the "big spenders." They see the prettier packaging and
name brand and pay perhaps twice as much, believing they're getting
something of better quality.