This economic recession is helping create a new marketing environment. It's happening atsupermarket chains and in our homes with the groceries we buy.

Here's the gist: Consumers on average spend 57 cents of every dollar for basic necessities. Not much money is left over for extras. Many have been forced to make lifestyle adjustments, cut excess and reduce high living costs. When grocery shopping, they're trading away from big-name national brands to store-brands. Most are pleasantly surprised to find the quality they desire. Big-name marketers beware.

It all started in the mid-1970s when Al Williams, a private label product lines manager at Albertsons in Boise Idaho, started his own business, Keynote Marketing. Using small contract manufacturers Williams created 20 generic products with plain white labels. His generics gave the consumer lower prices; retailers earned a better profit. Keynote Marketing successfully introduced generics to several grocery chains. Then major grocery chains created their own, many with packaging mimicking the market leader.

By the early 1980s, during a sharp economic downturn, consumers focused more on price than brand loyalty. The grocery chain's winning message: Our generic product is just as good as this big-name national brand, but cheaper. But consumers had doubts.

INNOVATION 2005

It was Tim Cox, director of Publix Super Markets' in-house creative-service department, that created another breakthrough in 2005. Publix would use its own name and perception to create a successful brand; a brand people relate to and consider as high quality. Products would have their own look: clean, clever -- with lots of white space and simple, crisp typography.

A powerful ongoing promotion -- buy-one-try-ours-free -- helps convince consumers. A selected national brand is matched with the Publix store-brand. They're together on the same shelf with a 20 to 30 percent difference in price. Both quality and price are critical to acceptance. This new value proposition requires a much deeper understanding of consumers, how they shop, how they use and consume the product, how they perceive brands.

Price and quality are only part of the Publix marketing story. That prize-winning perception is in all Publix communications -- clean, clever and informative, with lots of white space.

In the current issue of Consumer Reports, Todd Marks, senior project editor reports: ``Today's store brands are not the no-frills generics folks remember from the '70s. They enjoy more prominent placement on shelves, snazzier packaging, more promotion, and, in general, higher manufacturing standards than in years past.

``Our tests should erase any lingering doubts that store-brand packaged goods aren't at least worth a try. In many cases, you'll save money without compromising on quality,'' Marks added.

UPDATE 2009

A new grocery-marketing value proposition has materialized. The retailer rather than the manufacturer can provide the brand, quality endorsement and guarantee. As the perceived quality gap narrows, manufacturers will increasingly need to invest in product innovation in order to retain revenue and market share.

What's my take? This is a great time for new ideas. Al Williams recognized an opportunity to establish a new value proposition; Tim Cox gave it new meaning. Both helped create valuable industry innovations. Take time now to analyze your own value proposition. Does it really fit today's reality?

On the personal side: Condensed mushroom soup for meatloaf was on my shopping list. The soup shelf reminded me of Andy Warhol's famous 32 Campbell's Soup Cans. Even so I took two cans of Publix store brand and saved $1.36.

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