Writing in Brandweek, Tom Pirovano, director of industry insights, The Nielsen Co., listed ten ways for marketers to protect their brands from private label - including packaging changes, line extensions and cause marketing.
The first suggestion involved touting "Health Claims" such as "Now with More Calcium." Mr. Pirovano wrote, "First look for claims you can make without reformulations. Then consider adding nutrients to add perceived value."
The second emphasized using "Unique Packaging." He noted Dean Milk Chugs' success in a category dominated by private label. Mr. Pirovano also said older shoppers may appreciate packaging that is easier to open, re-seal and read.
For the third, "Line Extensions," he pointed out that the soda category has only 6.1 percent private label share. Wrote Mr. Pirovano, "Every year we see many new soda flavors, but very few really 'new' brands. In most stores, private label is left with limited SKUs and shelf space."
The remaining seven tips follow:
Promote a Cause: Avoid just donating a percent of profits to a cause. Focus on building brand awareness and getting customers involved.
Odd Ounces: Shifting a 12 oz. package to 15 oz. makes comparing prices to store brands harder.
Offer Your Own Value Brand: Mr. Pirovano pointed out that the hair care category (only 2.2 percent private label share) has worked this strategy particularly well.
Local Ties: Remind shoppers with packaging labels when a product is grown, processed or warehoused locally.
Differentiate Yourself: Do more to show "why it's worth more than the store brand."
Green Sizes: Formerly known as "value sizes" or "club packs," larger sizes provide a value as well as a green message since most large pack sizes use less packaging.
Keep Innovating: Whether packaging, labeling, health claims or new flavors, changes "make your brand difficult to copy" and "give shoppers a reason to spend a little more on your brand."
Discussion Questions: Which of Tom Pirovano's suggestions do you think are generally most effective for national brands looking to hold market share against private labels? Do you have additional suggestions of your own?