Through a special arrangement, what follows is a summary from a current article from Private Label Buyer, presented here for discussion.
Consumers have a lot of choices when it comes to brands, so what can you do as a retailer to make them see that your private label brand is the best? Increasingly, presentation and merchandising play a big role because that is the aspect that retailers uniquely control.
"Retailers have an opportunity to look at the entire store as a showcase for their private brands and to develop cohesive, store-wide presentation schemes that tell a story, rather than working category-by-category," Carol Spieckerman, president of newmarketbuilders.
As with all brands, it starts with having a product that meets a consumer need, Terry Lee, founder of Private Brand Advisors.
"Retailers have the opportunity to create products that are targeted towards their specific customer base versus the national audience," he says. "Creating awareness and trial is critical to the success of a good product. This is where retailers must invest and leverage better the marketing elements they control — for example, in-store, websites, print ads, etc."
Retailers can generate interest and trial of their private brands by doing several things, Jon Hauptman, partner at Willard Bishop says.
"Highlight private label items at the shelf so they're easy to find, for example, merchandising them at eye level and 'over-facing' to create a banner effect at the shelf," he says. "Quantify the savings associated with trading to private label versus purchasing corresponding national brands at the shelf via shelf talkers or through basket comparisons at the front of the store. Reduce the risk associated with trying new private label items by sampling private label products in-store, offering a money back guarantee on private label items, and highlighting private label items that are top-sellers in their categories."
Retailers also don't truly understand the value of great design, Todd Maute, partner at CBX. "Many companies have built their entire business on great design and clearly defined brand strategies," he says. "A consumer's reason to believe and behavior in a given category vary differently. Consumers' purchase intent in cereal varies greatly from that in frozen commodities. Understanding that behavior will allow retailers to effectively create relevant brands and appealing designs that will attract consumers.
"Additionally, retailers need to understand that packaging is not the only key driver in stimulating purchase intent at the shelf. Merchandising your brands in a proud and relevant way will present the brands role and purpose and stimulate trial. Smart pricing, promotion, and even store design will also enhance the perceived value and essence of that brand."