March 18, 2010 

A recent survey concluded that recession-driven behaviors, including a shift to less-expensive store brands, are likely to continue even after the economy improves, with more than half (55%) of all respondents saying they would rather get the best price than the best brand.

According to the report, "New Marketing Imperatives: U.S. Consumer Spending & Shopping Behavior Emerging from the Recession," this "new frugality" is becoming entrenched among American consumers. 

To keep private label sales going strong, the report suggests that retailers should look for ways to better integrate store brands into in-store marketing programs, including collaborations with national brand manufacturers that allow private label items to be cross-merchandised with branded products. Retailers also should leverage frequent shopper data to improve their relationship marketing programs and drive trial of store brand products. 

Strong marketing programs that target consumers at every point along the path to purchase will also be particularly important since frugal consumers are more likely to do research before going to the store.

Full article