Thursday, January 24, 2013

Why is this battery at Kal Tire?

DieHard battery at Kal Tire store
I was at a Kal Tire location to get a slow leak fixed. (Amazing service, but that is another story.) I saw this battery on the shelf. The DieHard brand is owned by KCD, a subsidiary of Sears. The letters stand for Kenmore, Craftsman, and Diehard. All three are three Sears brands.

Until I saw the DieHard battery at Kal Tire I had no idea that the brand was sold outside Sears locations. (Evidently the Diehard brand has been available at Kal Tire locations for a few years.)

Why would Sears sell its house brand of battery to other retailers? I can think of two reasons, one internal and one external.

Selling more batteries drives down the cost of production. (Bigger production runs are almost always cheaper.)

In the past many retailer's house brands have had a reputation for mediocre quality, while "national" brands were generally more respected. Almost everyone thinks that Heinz ketchup is better than the grocery store's house brand.

So, if Sears can transform Diehard from a house brand to a national brand it will increase sales volume and should help to keep costs in check. It might also help to improve consumer opinion of the brand and help sales all round.

Sears has also expanded the distribution channel for its Craftsman tool brand, I wonder if and when it will do the same with Kenmore appliances.


Labels: , , , , , , ,

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home