Generics save you money, even if you don't buy them

May 28, 2010

People are especially interested in saving money at the grocery store now, due to the rough economy. Most know that buying the store brand or private label, also known as the “generic brand,” can save you cash. However, a new study from the W. P. Carey School of Business at Arizona State University suggests the simple presence of the store brand can save you money, even if you don’t buy it.

“Consumers benefit because the whole idea is for retailers to provide a value option to customers,” says Professor Timothy Richards, the Marvin and June Morrison Chair of Agribusiness and Resource Management at the W. P. Carey School of Business. “Also, when grocery stores offer these competitive store-brand products, it forces the brand-name companies to lower the wholesale prices they charge the grocery stores. Part of the savings is then passed on to the customers who buy the brand names.” Download Full Image

The new research by Richards and his colleagues is being published in the Journal of Agricultural and Resource Economics. The study notes that private labels now account for almost one quarter of all consumer spending on food, beverages and personal care items. It also explains that the more similar the “generic” product is to the brand-name offering and the closer it is on the shelf, the more profitable the sales are.

The study also says private labels are becoming a more common way for grocery stores to differentiate themselves in a crowded industry. If they offer really great store brands, they may keep customers coming back. Richards says Safeway grocery stores, for example, have done an excellent job creating and promoting store-brand products, which now account for about 25 percent of the stores’ total sales.

“Many stores also offer good, better and best labels, like a super-premium brand, to help cater to a wider variety of consumers,” says Richards. “All store brands offer the grocery chain a higher profit margin than the brand-name products.”

Richards explains that often the private label products are identical to the brand-name versions, even created in the same manufacturing plants when brand companies have spare capacity to cheaply rent out.

While the new study focuses on private label ice cream as one type of very successful store-brand product, Richards says his findings translate to all types of items, including cereal, dairy products, condiments and soda, that are also popular store-brand segments.

Track & Field advances 14 to NCAA finals

May 30, 2010

The Arizona State University track and field team turned in another solid day of performances at the NCAA Preliminary Round West meet in Austin, Texas, on Saturday as the Sun Devils qualified five individuals and two relays to the NCAA Championships in Eugene, Ore., in two weeks. With the competition in Austin coming to a close, the Sun Devils will send 14 competitors to the national finals, including nine in individual events and two relays as well.

Assistant Coach Kenny McDaniel’s women took center stage once again this weekend as his group qualified one more individual and one relay to the national finals. In the 100m hurdles, Jasmine">">J... Chaney finished third in her heat and 10th overall in 13.26 to automatically qualify for Oregon while equaling her personal-best and the fifth-best time in school history. With her qualification, she became only the fourth woman in the nation to qualify for the national finals in both relay events and the second from the West site. With Keia">">Keia Pinnick joining her in the 400m hurdle event in Oregon, ASU is one of only four schools that will have more than one entry in the intermediate hurdles. Download Full Image

Following her hurdle run, Chaney anchored the 4x100m relay to third in their heat and eighth overall with a time of 44.54 to earn the third automatic berth from their heat. The time, which was posted by the team of Dominique’ Maloy, Kayla">">Kayla Sanchez, Christabel"> Nettey and Chaney, was just 0.04 away from equaling the 10th best in school history. The 4x400m relay of Maloy, Sanchez, Pinnick and Chaney combined to run 3:37.41, but were the 13th team in the west, meaning they missed the national finals by spot.

The men also saw four individuals and one relay earn berths into the national finals with two of those individuals qualifying for a second or third event. Jason">">Jason Lewis led the way in the field as he was third overall in the discus with a top mark of 58.25m (191-01) to qualify for his third event while Ryan">">Ryan Whiting finished fifth in 57.45m (188-06) to qualify in his second event (shot put). Lewis entered the final three throws in 15th (only the Top 12 reach Eugene) and was ready for his fifth throw before a one-hour lightning delay took him out of the ring. While lightning didn’t strike around the stadium, Lewis made sure to strike right away as he took the first throw back from the delay and moved all the way up to third. With his qualification, he joins Southeast Louisiana’s Adonson Shallow as the only men to qualify in the shot put, discus and hammer.

Two other individual men earned national berths in the 5,000m run as Brandon">">B... Bethke finished as the fourth qualifier in 14:07.01 while Zeke">">Zeke Van Patten punched his ticket to return close to his hometown of Corvallis, Ore., as he was the eighth qualifier in 14:07.42. The pace of the race went out quick with one runner taking a 70m lead. But, with four laps remaining, the pack caught the lead runner and both Bethke and Van Patten took off with Van Patten taking the lead. At the end, both Sun Devils kicked strong to make sure they were in the Top 5 of the race to earn the automatic berth to the national finals.

Three more men earned a spot in the national meet as they came together to run 3:04.09 in the 4x400m relay to take the fourth qualifying position from the West. The team of Justin">">Ju... Kremer, Allante">">A... Battle, Donald">">D... Sanford and Joel">">Joel Phillip combined to run the fastest time on the season for the Sun Devils and put Kremer, Battle and Phillip into the national meet after Sanford had already qualified individually in the 400m dash one day earlier.

Several other Sun Devils competed on the day but did not advance. In the field, Samantha"> Henderson competed in the high jump while Jordan">">Jo... Clarke was 16th in the men’s discus with a toss of 53.20m (174-06). On the track, Jeff">">Jeff Helmer (14:38.80) and Daniel">">Da... Lovell (14:56.80) placed 28th and 36th, respectively, in the 5,000m.

The NCAA Championship Finals will be held in Eugene, Ore., June 9-12. The Sun Devils that have qualified to compete in the meet include men’s entries Battle (4x400m), Bethke (5,000m), Clarke (shot put), Kremer (4x400m), Jason">">Jason Lewis (shot put, discus, hammer), Phillip (4x400m), Sanford (400m, 4x400m), Whiting (shot put, discus), Van Patten (5,000m) and women’s entries Chaney (100mH, 400mH, 4x100m), Maloy (400m, 4x100m), Nettey (4x100m), Pinnick (400mH) and Sanchez (4x100m).

2010 NCAA West Preliminary Round - Austin, Texas
Day 3 Arizona State Results (Saturday)
Women’s 100m Hurdles
10. Jasmine">">J... Chaney - 13.26 - advances to national final in Eugene

Men’s 5,000m Run
4. Brandon">">B... Bethke - 14:07.01 - advances to national final in Eugene
8. Zeke">">Zeke Van Patten - 14:07.42 - advances to national final in Eugene
28. Jeff">">Jeff Helmer - 14:38.80
36. Daniel">">Da... Lovell - 14:56.80

Women’s 4x100m Relay
8. Arizona State - 44.54 - advances to national final in Eugene
D. Maloy, K. Sanchez, C. Nettey, J. Chaney

Men’s 4x400m Relay
4. Arizona State - 3:04.009 - advances to national final in Eugene
J. Kremer, A. Battle, D. Sanford, J. Phillip

Women’s 4x400m Relay
13. Arizona State - 3:37.41
D. Maloy, K. Sanchez, K. Pinnick, J. Chaney

Men’s Discus
3. Jason">">Jason Lewis - 58.25m (191-01) - advances to national final in Eugene
5. Ryan">">Ryan Whiting - 57.45m (188-06) - advances to national final in Eugene
16. Jordan">">Jo... Clarke - 53.20m (174-06)

Women’s High Jump
---. Samantha"> Henderson - no height

Lisa Robbins

editor/publisher, Media Relations and Strategic Communications