I spend an inordinate amount of every evening writing blog posts, reading Google alerts and generally working the social media circus, occasionally in the ether of social media I stumble across a nice blog post on Private Brands. The following is from the Aisle7 Blog by Gina Rau, she and I are linked on LinkedIn and friends on Twitter so we stumble across each other regularly, Thanks Gina.
Telling your private label brand story
We can all agree that 2009 has been the year of private label brand. In August, Nielsen reported that private label sales were up 7.4 percent compared to the previous year. Retailers like Safeway, Target and Supervalu have put a lot of effort and marketing budgets behind their private label brands to successfully generate awareness within their target market and steal share from the national players.
While this is great news for retailers looking to private label products to boost their bottom line, recent reports suggest that this trend could be changing. National brand food products appear to be gaining sales and volume strength over the past few weeks. While shoppers are still trading down, their choices might be a lower-cost national brand rather than the retailer’s private label.
As the economy slowly starts to improve, retailers need to take action now to hold onto their private label share and develop customer loyalty to their brand.
How? Well, the most simple way to win shoppers loyalty is to educate your customers on the value AND quality of your private label products.
Don’t think quality is important in a recession? A recent IBM survey indicates that, though price is and will likely continue to be a factor, 72% of the respondents said they’re more concerned with quality than price in the grocery store. You can be sure this figure will increase as the economy improves.
This presents a wonderful opportunity for retailers to tell their private label product story and earn their place in the shopping cart. The first step is getting the shopper to consider your private label product, which means generating awareness. And retailers have many vehicles to deliver those stories from weekly ads, their website, product samples and demonstrations, and in-store digital media.
Clearly, key to long-term private label success is getting into that considered set. If your product delivers on its quality and value promise, loyalty will follow. Today and in better times.
Gina Rau Marketing Product Director at Aisle7
Aisle7 is about providing shoppers with fresh ideas for healthy living, while providing retailers with fresh ideas for wellness marketing—in every aisle, every day.