Does digital open doors for private label marketing?
Through a special arrangement, presented here for discussion is a summary of a current article from the monthly e-zine, CPGmatters.
Private label manufacturers can help grocery retailers boost sales of their store brands by working together on digital marketing programs. This is an opportunity that retailers typically are not taking advantage of.
That’s the message that Colt Reichart of Red Gold gave as part of a panel discussion at the annual trade show of the Private Label Manufacturers Association (PLMA) in Chicago.
"Regardless of what digital program or platform the retailer is activating, the manufacturer can provide real substance," said the director of digital and creative media for the provider of store brand tomato products. "No one knows the product better than the people who made it."
Recipes, photos, stories, videos, product information, claims, studies and consumer feedback that most manufacturers already have could be used for digital programs.
Source: Red Gold Facebook page
"This will drastically reduce the amount of time and resources needed by retailers as well as give credibility, quality and accurate content to whatever digital program they implement," Mr. Reichart said.
As an example, a manufacturer could provide product images, copy, recipes, claims and information to support a new ketchup launch. A retailer could then do some consumer testing to generate additional content to provide to their customers.
"Let’s say they did a taste test and found nine of ten consumers preferred the new healthier ketchup over the leading national brand," he explained. "Now we have enough content to create some digital media. The retailer would then take these assets and post relevant content across their various platforms like Facebook, Instagram, Twitter and e-newsletters, driving them to their website where consumers can see all of this information and be enticed to try [the product] the next time they are shopping. Perhaps they can load a coupon directly to their loyalty card and be reminded when they are shopping the aisle."
Hurdles include private label partners generally working with retail buyers who aren’t involved with digital marketing. With manufacturers already working on the lowest cost possible, funding would have to come from retailers.
"But that doesn’t mean the manufacturer is not interested in helping," Mr. Reichart added.
Are grocers missing an opportunity by not collaborating with their private label suppliers on digital marketing programs? Is online marketing and social media offering greater opportunities for private label marketing overall?