Value range skimmed milk-what could possibly be the difference?

[Guest]

http://www.mysupermarket.co.uk/tesco-price-comparison/Shelf_Milk/Tesco_Everyday_Value_Skimmed_UHT_Milk_1L.html

 

http://www.hotukdeals.com/deals/asda-smartprice-uht-skimmed-milk-for-39p-asda-instore-online-1335747

 

http://www.morrisons.co.uk/Global/MSavers/wc04_02/m_savers_uhtMilk_under1pound.jpg

 

That's UHT. You never mentioned UHT anywhere in your original post.

[angos]

I had no idea Chernobyl was in the Philippines.

 

Neither did I.

[cgksheff]

.........Like I said, what can possibly be different? If anything, I would have thought the UHT process would add to the cost.

 

Thanks for ALL the replies.

 

Someone must know. We are all guessing, including me

 

 

If you look at the Nutritional Data for the different types at the same supermarket, you can see slight differences.

Ay ASDA, whilst they both have the same fat content, the value brand has slightly less protein, calcium, salt ... but not enough to make it worth paying twice as much for the 'standard'!

 

Don't forget that this is the same environment where people are happy to see the price of broccoli doubled just by wrapping some clingfilm round it.

[uncle eddy]

Its dogs milk lol

[Rupert_Baehr]

Packaging costs. - Rather lower for an 'unbranded' product.

 

Purchasing costs. - A supermarket (or other bulk buyer) may be able to buy a product for re-sale under an 'own name' brand rather cheaper than a brand name owner would sell it for.

 

Market size. - There is a finite size for the market of any brand - but if you market the product under another brand name [and particularly if the items you sell under that brand-name are cheaper] you may tap into a different market segment.

 

'Customer perception' (especially when the customer is Mr Jones, or is trying to keep up with Mr Jones.) Some people are unwilling to buy a 'low-priced' product. It doesn't 'fit in with our image'.

 

There was a thread on this forum about German supermarkets. Somebody said: "But Aldi doesn't sell 'brand-name' products (implying that the groceries they sell are somehow 'inferior')

 

Aldi does sell brand-name products - but British consumers are not familiar with those brand names.

 

(No, I don't work for Aldi - nor am I a shareholder- but I do shop there... and I also shop at Lidl, Pennymarkt, Rewe, Tengelmann, Edeka and a few others.) I shop for 'quality' not band-names.

 

(I don't shop at Tesco ... it's a long way to go and your car is likely to be bashed in the car park.)

[cgksheff]

.........

Purchasing costs. - A supermarket (or other bulk buyer) may be able to buy a product for re-sale under an 'own name' brand rather cheaper than a brand name owner would sell it for.

 

.........

 

The comparison is between "own brands".

 

e.g. Tesco UHT Skimmed Milk v Tesco "Value" UHT Skimmed Milk

or ASDA UHT Skimmed Milk v ASDA "Value" UHT Skimmed Milk

 

The 'value' products are around half the cost. 3rd party brands are even more expensive.

Your suggestion of expanding the market makes sense.

 

Having said that, paying for skimmed milk is a waste of money to me.

You might as well get a jug of water and get a cow to fart over it!

[Rupert_Baehr]

The comparison is between "own brands".

 

e.g. Tesco UHT Skimmed Milk v Tesco "Value" UHT Skimmed Milk

or ASDA UHT Skimmed Milk v ASDA "Value" UHT Skimmed Milk

 

The 'value' products are around half the cost. 3rd party brands are even more expensive.

Your suggestion of expanding the market makes sense.

 

Having said that, paying for skimmed milk is a waste of money to me.

You might as well get a jug of water and get a cow to fart over it!

 

There is a factory in Japan (there is probably more than one which makes Outboard motors.

 

The motors which come out of one end of the factory are marked 'Yamaha'.

 

Yamaha outboards are excellent.

 

The motors which come out of the other end are marked 'Mariner'.

 

Mariner outboards are every bit as good as those which come out of the other end of the factory.

 

The factory owner is aware that the market for Yamaha outboards has a finite size.

 

He makes outboards. Not just Yamaha outboards.

 

There is also a market (not the Yamaha market) for good-quality outboards.

 

It may be that the factory owner makes x% profit on a Yamaha and x/2% profit on a Mariner.

 

x/2% profit is better than no profit at all, and if there is capacity to manufacture and sell into the cheaper market, why not do it?

 

The market for Tesco UHT Skimmed Milk has a finite size.

 

There is, presumably also a market for good-quality skimmed milk at a lower price.

 

The profit margins might be lower, but profit is profit.

 

If Tesco was to sell out all its premium skimmed milk on a regular basis, do you not think that - until they could find another supplier - the cheaper variant might be in short supply?

 

Whether you like skimmed milk or not is irrelevant. It appears that a number of people do like it - and it sells.

[Pixie824]

I don`t follow you regarding the advertising bit . Can you tell me what you mean there regarding value skimmed milk & advertising?

 

 

 

Brand names advertise. A lot. And they cost more. And while supermarkets advertise to an extent you don't see many adverts for the shop's own brand stuff and they're not on at every ad break. Which means lower advertising costs leading to lower cost for the product.