Private Brand excellence requires retailers to have a very different mindset. it requires that the retailer incorporate Private Brand as the critical part of their differentiation strategy – and not as a “nice add-on’. The retailer must then live and breathe Private Brand in every part of their operation and consistently implement marketing and in-store communications that support that strategy.
Over the last thirty years few retailers have been able to apply a consistent day in and day out effort that truly built their Private Brands. Target, Loblaw’s, Tesco and Trader Joe’s have been able to capture share and to one degree or another build customer loyalty, but even they have had their missteps and at times lost their focus.
So what are the keys to Private Brand Success
one: Commitment to innovation
- Build a culture that both rewards and expects innovation
- Develop brands who at their core are innovative
- Encourage and reward all partners who bring innovation to the table
two: Clarity of focus
- Create a dedicated Private Brand team that has the skill, time and resources to create and build brands.
- Commit to long-term brand loyalty while encouraging short-term growth.
- Create one, three, five and ten year plans and enlist the entire organization to make them happen
three: Consistency of execution
- Consistent pricing clarifies the brand positioning
- Consistent packaging validates the customer decision and lets the customer easily recognize the brand
- Consistent quality is essential; the customer should never be disappointed
- Consistent merchandising enhances the brand recognition
- Celebrate your brands as assets and tell customers about them, marketing is crucial
Today more than ever retailers have the opportunity to grow Private Brand, to take advantage of a weak economy and floundering CPG’s to transform their Private Brands into National Brands. To use the consumers need to save money as a free sampling opportunity for their Private Brands, if the brands can meet or exceed the promise of national brands at a better price, they have the opportunity to create Private Brand loyalist. If not they will squander the opportunity and make short term margin instead of long term profits.
What will YOU do?