Target, Why Pay More?
By · Nov,08 2009; CommentsIf you're new to My Private Brand, get FREE updates when you subscribe. Thank you for visiting.
This weeks Target circular (November 8-14 2009) features its new brand Up & Up in a full-page price comparison to national brand. This is a not a new tactic for Target, I have written posts about it before however it continues to feel fresh and a bit daring. Note the significant price differences on each of the products.
What are national brands really worth to you and your family?
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Private Brand, “It’s a Brand”
By · Nov,08 2009; Comments
Convenience Store/Petroleum magazine recently hosted its CSP’s 2009 Consumer Insights Forum in Phoenix. The conference featured a series of presentations including one from Al Meyers, senior vice president of business development for Retail Forward, Columbus, Ohio. Addressing the group of about 75 retailers and suppliers, he said that consumers post-recession will still be making “mindful” choices, opting to remain frugal in ways they find meaningful.
In his concluding statements, Meyers focused on the boom of private brands, which mega-retailers, such as Bentonville, Ark.-based Wal-Mart, and c-store giant 7-Eleven, Dallas, have embraced. He said companies are wisely choosing not to focus on private “label,” which had the stigma of being a second-rate product, but private “brand.” He said companies are investing in store brands, improving taste profiles and giving personality to their brand identities.
“It’s not just a label slapped onto a product with cheap ingredients,” Meyers said. “It’s a brand.”
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By · Nov,08 2009; CommentsDuetsBlog posted this fascinating look at product naming in the nations top three drug retailers, it is a nice analysis of the various naming conventions used by the big three (Walgreens, CVS, and Rite Aid).
If you are unfamiliar with DuetsBlog it is written by attorneys form the Minnesota law firm of Winthrop & Weinstine. Take a moment and check it out. Here is an excerpt from their “About Us” page that sums up their purpose.
DuetsBlog was born out of the chasm that can divide legal and marketing types. Sometimes this separation can be explained by the difference between left and right brain dominance. Sometimes it is driven by arrogance or rigidity. Sometimes Dr. No is the root of the problem, standing in the way of progress and stifling important business goals. Other times, simple oversight is the culprit. Whatever the reason, this divergence can be a formidable obstacle to early coordination, planning, and dialogue between legal and marketing teams. When this happens, most certainly the opportunity for an organization to be strategic, create and own great value, and protect it, is diminished, if not lost altogether. DuetsBlog is our effort to facilitate a more ambidextrous approach and promote early—and very graceful—collaborations among legal and marketing teams.
I have dealt with many trademark and copyright attorneys over the years so I can certainly attest to the chasm they speak of but when the partnership is successful it can create some great brands.
Naming the Store Brand
Every Sunday I go through the circulars in the paper looking for new products. I usually spend a lot of time with the ads from the national drug store chains (Walgreens, CVS, and Rite Aid). Recently, I observed that each chain seems to have a radically different philosophy on store brand naming. And while this observation isn’t earth shattering, it exposes the marketing strategies (or lack thereof) of each chain.
For example, check out the allergy section. The big brand names like Benadryl®, Claritin® and Zyrtec® all have store brand/private label competition. Walgreens naming protocol for its store brand is pretty straightforward and seems to be designed to help a consumer find the Walgreens knockoff of the branded product. You can buy Wal-dryl, Wal-itin, and Wal-zyr, and the packaging is color coded to make it easier. This is a very consistent strategy that is designed to make life easier for the consumer and also designed to build the “Wal-“ prefix as a brand.
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By · Nov,08 2009; Comments
In continuing good news for Macy’s and their private brands JP Morgan upgraded Macy’s stock to overweight citing improved monthly same-store sales and a potential for better-than-expected earnings. JP Morgan also said Macy’s is getting a lift from strength in its higher-margin Private Brand and exclusive brands. The “My Macy’s” initiative and an improving New York City shopping backdrop also should help, the bank said. Macy’s will publish Q3 results Wednesday.
I make no claims to expertise in the stock market and would never pretend to give investment advice, however it is good to hear from JP Morgan that the emphasis Macy’s has placed on Private Brands is paying off. Private Brand becoming a strategic pillar is key to continued success as the economy begins to improve.
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By · Nov,05 2009; Comments
Target’s flagship Private Brand food line Archer Farms launched “Simply Balanced”, a new line of healthy and affordable food. This is an intriguing brand extension of the highly successful Archer Farms line that seems to find the sweet spot between healthy living and natural/organic. The packaging design evolves the familiar architecture to a “natural” healthier” version that seems to imply that it is better for you.
Here is the press release from the Target website.
Target Introduces Archer Farms Simply Balanced
Families no longer have to choose between eating right and affordable food prices. Target introduces Archer Farms Simply Balanced, a new food collection built around better-for-you nutrition that’s budget friendly.
Archer Farms Simply Balanced, an extension of the premium Archer Farms food collection, takes the guesswork out of eating right. By providing better-for-you, high-quality options that taste great, Archer Farms Simply Balanced helps families make better choices about the food they eat. Archer Farms Simply Balanced includes more than 70 products, such as pasta, cereal, bread, crackers, granola bars and frozen pizza.
Each Archer Farms Simply Balanced product meets a set of criteria that includes guidelines for calories, fat, saturated fat, and sugar. And each product is free of artificial flavorings, synthetic colors and has zero grams trans fats. The new line of products is also affordable, with prices ranging from $1.48 for whole wheat pasta to $5.49 for chicken skewers.
Making Food Choices Easier
Archer Farms Simply Balanced makes guests’ shopping easier by offering foods that meet the following criteria, which are clearly labeled on the front of the packaging:
- Fat: A maximum of 30 percent calories from fat
- Saturated Fat: A maximum of 10 percent calories from saturated fat
- Trans Fat: 0 grams trans fat
- Sugar: A maximum 25 percent of calories from added sugar
- Food Additives: No artificial flavors, synthetic colors or artificial sweeteners
Each item in the Archer Farms Simply Balanced line also is a good or excellent source of one beneficial nutrient, such as a protein or fiber, or includes a food group to encourage such as whole grains, vegetables or fruit. In addition, Target keeps tabs on the sodium content of the Archer Farms Simply Balanced products while still maintaining the taste quality for which the Archer Farms brand is known.
Great New Tastes
Pomegranate fruit bars, butternut squash and apple soup, Mediterranean-style vegetable pizza and whole-wheat penne pasta are a few of the delicious and nourishing products in the Archer Farms Simply Balanced line launching this fall.
Time for Better Eating
Archer Farms Simply Balanced products will be debuting in Target and SuperTarget stores in October 2009. Even more family-friendly food offerings, such as juice and veggie chips, will make their way to store shelves in the coming year.
Eating Right at the Right Price
Archer Farms Simply Balanced offers guests a wide range of delicious foods at wallet-friendly prices, making it simple to choose better-for-you options for family dining and snacking. Almond Fiber Crunch Breakfast Cereal is $3.99, while Dark Chocolate Cherry Healthy Snack Bars are $2.49 per box. An entrée/dinner kit of Garlic & Ranch Primavera, which serves about five, is $4.49.
Wise Buys Head to head with Waitrose Essentials
By · Nov,05 2009; Comments
According to an article in the English trade magazine Retail Week, Marks & Spencer has launched a price comparison campaign targeting competitor Waitrose’s Private value Private Brand Waitrose Essentials. Although we have seen many retailers including Loblaw, Food Lion and Costco run this type of compare and save campaign; they have always targeted national brands this Private Brand to Private Brand comparison is a truly interesting strategic move.
The ads use the headline “Price checked against Waitrose Essentials. Quality checked by M&S” and promote Marks & Spencers Wise Buys brand. Products include: cornflakes, baked beans and mince meat.
A Marks & Spencer spokesperson said: “We’ve price-checked our Wise Buys products against the Waitrose Essential range to highlight their exceptional value.
“For example within a basket of 1,200 products M&S is typically 2% cheaper than Waitrose – it’s only right that our customers hear this message loud and clear.”
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By · Nov,05 2009; Comments
According to the Daily Intel column from New York Magazine famed futurist Faith Popcorn declared that “Brands are Dead” this past weekend at a benefit concert “Last Song of Summer” in Bridgehampton, Connecticut. She went on to predict that customers continue reject the big names in favor of Private Brands from retailers they trust.
“Take a walk down Madison Avenue from 60th to 80th Street,” she said. “All the luxury stores, like Prada, Gucci, and Hermès, are empty. What do they do for us except overcharge us?” But some will endure, she said, like the Faith Popcorn brand. “My brand is the future because it is not just a brand,” she said. “It is just about being right for 35 years.”
This is consistent with the findings in her “Culture of the Recession” Study, which indicated that 48% of consumers had made a “conscious decision to switch from a brand name product to a Private Brand product.”
Private Brand Is the Star of the Show at Aldi.
By · Nov,04 2009; CommentsCheck out these new commercials from Aldi, they are not groundbreaking but they are definitely on brand. The commercials give a starring role to their extensive portfolio of Private Brands. In this economy they feel incredibly relevant.
7-Eleven Wine is the Toast of Private Brand.
By · Nov,04 2009; Comments
Seven & I Holdings Co began selling on Wednesday two Private Brand wines from California. A Chardonnay and Cabernet Sauvignon will be sold at the more than 15,000 stores worldwide, including 12,300 Seven-Eleven Japan convenience stores and close to 2,000 7-Eleven stores in the US.
The Wine Group will produce the wines exclusively for Seven & I. Experienced, award-winning wine-makers John Willumson and Jim McDonald were called upon to create the new wines.
The new Private Brand wine will be called ‘‘Yosemite Road’’. This is the first of some 10 Private Brand products, which Seven & I plans to introduce by the end of 2010 as part of its global merchandizing strategy.
If you enjoyed this post, get FREE updates when you subscribe to Myprivatebrand’s Blog by Email.How will the Recovery Impact Private Brand?
By · Nov,03 2009; CommentsThis release from Daymon Worldwide highlights the publication of their new report on Private Brands and the recession, “The Maturing US Recession & Implications for Private Brands.” There is no question that the current economic situation has facilitated the rapid growth of Private Brands this report looks at the recession and the projected recovery’s impact on Private Brands.
“For Private Brand retailers and manufacturers, the challenge is to fully grasp this opportunity and deal with the recession fact-set even after the recession. There is much to be done to meet this challenge. Private Brand programs are not monolithic, and the best approaches and solutions will not be, either.”
Alex Miller, President – Daymon Worldwide
Post-recession with recession-like traits
Suggests crucial role for Private Brands
The current recession continues to set records, as measured by economic indicators, the combined effect on world economies and the impact on consumers facing an economic crisis unprecedented in their lifetimes.
In “The Maturing US Recession & Implications for Private Brands,” Daymon Worldwide Inc., the world’s leading Private Brand Broker and Consumer Events expert, provides perspective on the downturn and its meaning for consumers and Private Brands.
According to Daymon President, Alex Miller, “In a nation where consumer spending accounts for 70% of the GDP, and where food is the second largest expense in the family budget behind housing, absolutely Private Brands are on the front burner of every retailer during this recession.”
The most severe downturn in more than sixty years has created a “perfect storm” for American consumers, combining historic losses of personal wealth ($11.1 trillion in 2008), record home foreclosures (nearly a million in the same year) and job losses topping the seven million mark since December 2007. Before the recession, annual losses of 3% in US manufacturing employment were considered alarming. Now, some industries have shed over a quarter of their jobs in less than two years.
Believing that the US economy will show GDP growth for Q3 2009, bringing the recession technically to a close, Daymon sees complications to recovery on the consumer side. These include persistent unemployment, expected to climb from September’s mark of 9.8%, and the related effect on median household income, which declined 3.6% for 2008 and is predicted to drop more. Higher taxes and higher interest rates are looming as well, putting more pressure on household incomes. “As a consequence, consumers will feel as much or more of a squeeze on their incomes during recovery, and perhaps afterwards, as during the recession itself,” says Ron Shirk, Global Research Manager at Daymon Worldwide and author of the report.
Private Brands have certainly done well in the recession. In its September issue of Times & Trends, Information Resources Inc. (IRI), reports that unit share for Private Brands grew 1.2 points for the 52 weeks ending in July, reaching 22.8% overall and 25.6% in grocery. Looking ahead, continuing financial strains for the economy and consumers mean that Private Brands will not easily relinquish any of their recessionary gains. Instead, signs point to a post-recession where “learned” shopper behaviors are likely to be extended and may well become entrenched over the long term.
For Private Brands, the prospect of a protracted recovery and a post-recession with recession-like traits presents opportunities and challenges. Daymon finds that Private Brands are shaping up to be a focal point of retail strategy and a key differentiator for retailers. This is true not only from the perspective of retailer performance, but in the minds of consumers as well, with smart shoppers looking for the best Private Brands.
“For Private Brand retailers and manufacturers,” says Miller, “the challenge is to fully grasp this opportunity and deal with the recession fact-set even after the recession. There is much to be done to meet this challenge. Private Brand programs are not monolithic, and the best approaches and solutions will not be, either.”
For more information on the “The Maturing US Recession & Implications for Private Brands” report, or to speak with a Daymon executive, please contact Tim Davis, Director of Corporate Communications, Daymon Worldwide, (203) 352-7678.
