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HEB

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steadfast commitment to consumer value

wide selection,

outstanding baked goods, produce, flowers, meats and seafood.

Customer-focused service and our growing Own Brand assortment

company leaders traveled worldwide seeking new ideas and best practices

H-E-B had high hurdle rates for its investment decisions,

commitment to internal manufacturing

automated replenishment in some categories, which provided better in-stock conditions and freed up shelf space for additional variety

self-checkout technology, which increased throughput at the front end

Convenience services like drive-through pharmacies and on-premise gas stations were commonplace.

The Meal Deal offered a central item surrounded by complementary products that together made an easy meal: H-E-B generally used one of its leading Own Brand products as the focal item and obtained complementary product at reduced cost from the national brands.

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particularly sensitive about its price reputation

a business made up largely of commodities undifferentiated to the customer

At H-E-B, most categories had Own Brand products, but the share of sales these products achieved varied widely.

The total gross margin of $450 million earned by Own Brand represented a disproportionately high percentage of H-E-B’s total profitability.

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low household incomes

create innovative products under the H-E-B brand that were tailored to the tastes of South Texans

five national brands along with seven specialty brands

carried H-E-B Brand products to compete against premium players like Classico and Five Brothers

Own Brand products did not require the same level of investment since H-E-B’s overall marketing activities created awareness and demand for Own Brand products. H-E-B’s captive manufacturing of highly profitable products. successful Own Brand products influenced some branded manufacturers to provide additional funding and reductions in cost to remain competitive on the shelf.

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