Would you like some mascara with your coffee?

In an attempt to capitalize on their foot traffic, 7-Eleven is rolling out an exclusive line of cosmetics called Simply Me Beauty.  

Cosmetics are a $46 billion industry so it makes sense that they want a piece of it. 

But what will consumers think?   

The company notes that consumers often buy makeup products on impulse.  And that private labels and exclusive lines are growing faster than traditional brands. (Brookman, 2017)

Jet.com is of course another company jumping on the private label band wagon with their Uniquely J for Millennials.  They are counting on bright packaging, BPA-free plastic and product names like "Badass Espresso" to win over their hearts and minds.  And of course it doesn't hurt that the WalMart name is nowhere near the products, except maybe when they arrive. (Vena, 2017)

So, based on what we have learned this term about consumer behavior, what do you think?  Why do you think private label products are on a roll?  What kinds of items do you buy on impulse?  How will consumer perceptions of 7-Eleven impact the likelihood of people buying cosmetics there?  What about Uniquely J?  How important is packaging in decision-making?  Has it influenced your purchases?

Brookman, F. (2017, November 21)  7-Eleven Hopes Women Want Cosmetics With Their Coffee.  wwd.com.  Retrieved November 22, 2017, from

http://wwd.com/beauty-industry-news/color-cosmetics/7-eleven-hopes-women-want-cosmetics-11054772/

Vena, D. (2017, October 23)  Jet.com Launches Uniquely J to Target Millennials.  fool.com.  Retrieved November 22, 2017, from

https://www.fool.com/investing/2017/10/23/jetcom-launches-uniquely-j-to-target-millennials.aspx

Is it a smart strategy for Walmart to support two brands?

Last year Walmart bought jet.com.  Did you know that?

It's now apparent that they have decided to support both brands.  As the company has explained, jet.com is an urban Millennial brand and Walmart has not made any inroads with that target on their own. (Green, 2017)

While Walmart is experimenting with online ordering and customer pick-ups, jet.com is chasing wealthier shoppers and launching a private label brand called Uniquely J.  (Corkery, 2017)

It sounds interesting.  But I am reminded of a Director of Marketing at Uncle Ben's who told me that long term she couldn't afford to support multiple brands so they would all need to live under the corporate umbrella.

So what are the pros and cons of having two different brands?  If Millennials don't like your brand, should you buy one that they do like?  Can you reach out to different targets without appearing inauthentic?   

Would you use jet.com if you knew they were owned by Walmart?  Do you think the different brands appeal to different personality types?  Different business styles?

Green, D. (2017, September 29)  How Walmart turned its $3.3 billion acquisition of Jet.com into its greatest weapon against Amazon. businessinsider.com.  Retrieved October 17, 2017, from

http://www.businessinsider.com/jet-walmart-weapon-vs-amazon-2017-9

Corkery, M. (2017, October 6)  Shopping Without Schlepping.  The New York Times.  p B1.