Archive for C-Store

Jan
05

Private Brand Top Ten for 2009

Posted by: myprivatebrand | Comments (3)

2009 has come and gone and it was definitely an exciting year for Private Brands. I began this blog in late December of 2008 and it would be hard to imagine a better time to begin writing about Private Brands. Retailers have stepped up and invested in their brands and national manufacturers have responded in a myriad of intriguing ways.

I continue to be surprised by the overwhelming reception this blog has received from the entire Private Brand community. Everyone from retailers to branding agencies; from Private Brand brokers to investment analysts have subscribed and contributed both comments and compliments. So I find myself taking stock of the year’s posts and creating lists it is a common tactic for traditional media they love to present the prior year in a list and I find myself attracted to the idea. The following is a list of posts and topics that according to Google Analytics attracted the most readers.

  1. Great Value Relaunch – Walmart
    Great Value was the subject of the year and more than just one post it is an entire series of more than a dozen posts detailing the radical redesign and the strategic shift that it signaled. The footnote to this is the apparent demise of the Sam’s Choice brand.
  2. Up & Up Launch – Target
    Target made news just after Walmart when it made what was arguably the most significant strategic shift in Private Brand eliminating the iconic Bullseye brand and replacing it with Up & Up.
  3. Target: Restyles Redecorates and Reorganizes
    The Room Essentials redesign and relaunch is the unheralded piece of Target’s Private brand strategy, combined with the Up & Up launch it illustrated how a Private Brand portfolio strategy can create a group of brands that builds and reinforces the retailer brand. Essentially the redesign of Room Essentials and the launch of Up & Up allowed Target to use the Bullseye logo on the redesigned Target Home – creating a premium home decor brand that further validated their “Expect More, Pay Less” tagline.
  4. Piggly Wiggly Redesign
    This article features the redesign of the Piggly Wiggly house brand. Through the lens of a store walk/shop. Shopping for supplies during a summer vacation my family and I visited a Piggly Wiggly just outside of Charleston, SC. Piggly Wiggly loved the post and has a link to it on the front page of their website.
  5. Olivia and Sarah pose with Mr Pig

    Chief Private Brand Officer, Great Idea or Anomaly?
    This features the appointment of the first ever (to my knowledge) Chief Private Brand Officer, Timothy Adams, at Macy’s

  6. The Green Idea Supermarket – PLMA
    The PLMA’s 2009 Private Label Trade Show included the Idea Supermarket and this article featured a look at green trends in Private Brand.
  7. Private Brand: Trading Down or Shopping Smarter?
    After this guest post Alex Miller, the president of Daymon Worldwide drew a record number of comments on both this blog and numerous LinkedIn groups.
  8. Clover Valley Tastes Better With Great Design – Dollar General.
    Dollar General has been a surprising star of this blog; posts on Clover Valley consistently draw a large and interactive readership. The redesign featured in this post is particularly impressive for the dollar channel.
  9. Private Brand: Our Time is NOW!
    This post features a urgent and inspiring presentation given at the FMI Private Brands Summit by Andres Siefkin, vice president of marketing and consumer insights at private brand broker Daymon Worldwide.
  10. Private Brand under Sheetz
    After a trip to Pennysylvania this post on a store walk of the convenience retail icon Sheetz has consistently drawn readership.
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kangaroo

In this excerpt from the Convenience Store News article, “The Pantry to Invest in IT, On-the-Go Meals” the new president of the convenience store chain The Pantry discusses his companies focus on Private Brands in the coming year. The Pantry operates approximately 1,653 stores in eleven states under select banners, including Kangaroo Express. Over the last few months Private Brands have been the buzz in the convenience channel with both Valero and 7-Eleven growing and creating brands.

On the same day it reported weak fourth-quarter results, The Pantry Inc.’s new president and CEO Terrance M. Marks revealed the convenience store chain will invest in new information systems and comprehensive, on-the-go meal solutions in the coming year.

The new CEO also wants to see more private label items, beyond the new foodservice program. “Private label is now a relatively small portion of our mix,” he said. “And there is a lack of consistency between our private label offer and the name on most of our stores. We need to determine what categories we need to be in private label. There are certain categories in which private label can perform quite well, and others where it is more structurally challenged. But those decisions are center of plate for us right now.”

Read the entire article.

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rolemommySocial Media, Mommy Bloggers and Private Brand have been the buzz phrases of the last year so it is no surprise that retailers and Private Brands have increasingly tested the social media waters.  This has taken many forms ranging from Walmarts 11 moms to Facebook pages. So when Beth Feldman of Role Mommy hit the road to promote the new book See Mom Run it is no surprise that there was a Private Brand tie in. According to her website Daymon Worldwide arranged Private Brand food sponsors for the book tour. The following is a excerpt from the Role Mommy website

While racing across the country promoting See Mom Run, I have been very lucky that I have not been hungry along my road trip. You see, when I’m hungry, I get angry and that doesn’t bode well for a reading with people who want me to make them laugh. So when the folks at Daymon Worldwide offered to provide food sponsors for several legs of the See Mom Run tour, I wholeheartedly said yes and was thrilled to know that when I would arrive at each event, delicious snacks would be awaiting us!

Our first stop in Larchmont featured shrimp platters and crudite provided by Costco and oodles of treats compliments of 7 Eleven. And let me tell you, these days, there are more than just Big Gulps at your local 7 Eleven!. The snacks we savored during our event at Groove included chocolate covered espresso beans (yummy), gummy bears (my daughter loved that one), chocolate covered pretzels (my personal fave), tons of nuts and lots of other snacks that we were able to transport with us on our road trips to Philadelphia and Ridgewood, New Jersey.

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ameyersConvenience 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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Categories : 7-Eleven, Walmart
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Yosemite RoadSeven & 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.

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7-eleven

According to an article published yesterday in Convenience Store Decisions Dallas based convenience store retailer held its first-ever Private-Label Summit in Dallas on Oct. 28-29 with the Joe Pinto the President and CEO of 7-Eleven opening the summit. This is a perfect example of how retailers can and should commit to their Private Brands. Top down commitment to Private Brand initiatives is key to the success of Private Brands. Private Brands must become a strategic pillar of the retailer’s business strategy in order to receive the attention and funding necessary to create long-term growth and shareholder equity.

The two-day event provided the company’s private-label suppliers the opportunity to meet with its category managers and product directors and attend a formal Private-Label forum.

The purpose of the collaborative program was to educate 7-Eleven supply partners about the company’s business strategy and private-label growth plans.

Sixty people representing 35 suppliers attended the conference, including the first 7-Eleven private-label supplier of food for the company Barrel of Fun, which provides bagged chips for 7-Eleven stores’ 7-Select brand.

“We had 100% participation from every supplier we invited,” said Tom Gerrity, 7-Eleven senior product director recently promoted to oversee the company’s Private-Label program. 7-Eleven President and CEO Joe DePinto kicked off the meeting to demonstrate the company’s commitment to growing its private-label and proprietary brands.

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Categories : 7-Eleven
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SlurpeeBattleofthe Bands

7-Eleven, the Dallas based convenience store is featuring it’s iconic Private Brand frozen drink Slurpee in a new promotion this month. The promotion includes a virtual “Battle of the Bands,” a $10,000 grand prize, new guitar-shaped Slurpee and Big Gulp cups, guitar themed straws and stickers. The tie-ins continue with the featured flavor of the month the Battle Berry Slurpee.

According to an article in Brandweek: “This is the first time Slurpee has sponsored a grassroots music competition with music-lovers from around the country picking the winners,” said Jay Wilkins, 7-Eleven brand manager for proprietary cold beverages, in a statement. “That, along with the cool guitar cups and affordable Slurpee concert series bring the music, and of course Slurpee and Big Gulp drinks, to the people.” Read the entire Brandweek article.

This promotion and the Slurpee website are an exciting next step for Private Brand marketing, engaging consumers and treating Slurpee as a national brand. The website has multiple layers of interaction for the “Slurpee Nation” including: photo and video submissions, a rewards program, a link to the Facebook fan page and Slurpeetainment. The video submissions include odes to Slurpee from all parts of the US with this humorous submission from New York musician Freddy Wexler and his band the Dials. It is great to see customers engage with the brand.

Categories : 7-Eleven, Brandweek
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Aug
10

Valero expands Private Brands.

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CornerStore1According to an article published in the Convenience Store News, San Antonio based convenience store operator Valero will introduce new categories to its Private Brand offering as well as redesigning other parts of its Private Brand portfolio.

Fine-tuning the Fountain

Valero’s first foray into private label at the fountain. Its “Flavors 2 go” soda offering now includes three proprietary beverages — root beer, cherry limeade and cream tangerine. All of the company’s c-stores offer at least two of the new “Flavors 2 go” varieties.

The fountain is just one of many new additions Valero is making to its private label lines. Along with “Flavors 2 go” and its Cibolo Mountain coffee brand on the foodservice side, Valero is expanding its “Fresh Choices” brand of packaged goods. A sports drink launched in June in five flavors — fruit punch, orange, lemon-lime, grape and blue raspberry — and a private label energy drink called “U Power” is expected to roll out in September.

In addition to new product development, Valero is completely redesigning and launching new packaging for its Fresh Choices products. The new packaging, which will be coming in the next few months, is bright, colorful and has a lot more energy, keeping with the new image of the retailer’s Corner Stores, company executives noted.

Read the entire article. Fine-tuning the Fountain

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In what is certainly an interesting turn of events a couple of great Private Brand jobs have been posted over the last week. Two for significant drugstores, Walgreen’s and CVS and one for the convenience store chain Mapco.  Perhaps the most intriguing thing to come out of these job postings is the glimpse into the minds of senior staff and hiring managers at each of the retailers. CPG experience is almost non existent as a qualification and is instead replaced by Private Brand, Marketing and Retail experience.

The buzz words of large retail organizations are littered throughout the postings:

  • partner with…
  • matrix-type organization
  • ability to influence

Typically these are the words used to describe jobs with more influence than power, and best describe long established and successful c0rporate cultures that are built around merchants/buyers. As branding and Private Brands come into their own with retail it will be exciting to witness the evolution of that corporate culture.

These roles are clearly not the Brand Management demigods of traditional CPG’s, they are not endowed with the ultimate power to run a single brand but are instead  marketers, innovators, merchants and strategists tasked with developing an entire portfolio of brands.

SO what then is Brand Management for a Private Brand?

So what is a Private Brand Manager?

Director, Private Brand – Walgreens
Deerfield, Illinois.

walgreens_logo_lgResponsibilities:
Responsible for the creation and execution of both long term and short term Private Brand strategies, this person must demonstrate a strong sense of leadership as he/she works across divisional lines to set corporate standards on the Walgreens Private Brand proposition creating an end-to-end execution plan. This person will be responsible for leading the innovation of new items as well as lead the strategy on store placement and merchandising. In addition, this person will be responsible for tracking Private Brand results by category, analyzing those results, monitoring key competitive, consumer, and corporate performance indices and communicating any issues or opportunities to the appropriate party. Other responsibilities include:

  • Partner with members of the Merchandising organization to identify, develop, and launch Private Brands products
  • Conduct quantitative and statistical analytics to identify Private Branding initiatives across categories
  • Identify innovative Private Brand solutions for key categories
  • Negotiate and implement international supplier partnerships and vendor management programs
  • Manage and resolve logistics and supply chain issues.
  • Travel requirement approximately 30%

Qualifications:

  • BS/BA required, preferably in Marketing, Retail, Global Sourcing, Supply Chain, or Operations Management
  • Knowledge of advanced financial modeling, advanced marketing, and strong analytical skills required
  • Knowledge and extensive Private Label experience with a strong understanding and experience in innovation, sourcing and merchandising across several different product categories required
  • Proven success in establishing Private Brand standards, and growing Private Brand profitably through innovation, marketing and store execution.
  • Previous experience working in a matrix-type organization
  • Ability to think strategically and collaborate with others effectively across divisional lines
  • Strong leadership, problem solving, presentation and communication skills required
  • Ability to influence all levels of the organization
  • Skilled in Microsoft office Suite, and experience utilizing retail data such as Nielsen, IRI.

Director of Private Label – MAPCO Express Inc.
Brentwood, Tennessee

MapcoJob Purpose
Mapco is seeking a Private Label Director who will report to the VP Marketing. The successful candidate will have overall accountability for Mapco’s Private Label sales and will be in a key position to develop a premier Private Label program including product selection and development, vendor relations, and executing sales and marketing strategies. The Private Label Director will work in conjunction with the company’s category managers who are in charge of the ongoing sales purchasing activities.

This role requires a bright and experienced leader; a creative merchandiser with strong commercial capabilities, a self starter with vision and the ability to turn it in to reality.

Key responsibilities include:

  • Develop and maintain an aggressive Private Label strategy for all Mapco c-stores
  • Identify innovation opportunities that differentiate us from our competitors
  • Benchmark SKU opportunities that are successful in other channels (grocery, drug, etc.)
  • Partner with non-competitive companies to create purchasing economies of scale
  • Determine product assortment
  • Partner with Director of Planning and Allocation to determine Private Label budgets, sales targets and markdown strategies
  • Partner with Director of Merchandising on product roll-outs and promotional packages to increase customer awareness of private label product
  • Work closely with category managers on ongoing sales and marketing plan execution
  • Work closely with company executives to ensure Private Label program receives appropriate attention and focus
  • Lead commercial negotiations with vendors
  • Ensure the profitability of Mapco’s Private Label program

A successful candidate will:
Short term (by the end of 2009)

  1. Develop an overall Private Label strategy
  2. Develop a comprehensive road map for above strategy execution
  3. Identify key vendors and develop distribution channels

Long term

  1. Achieve above industry Private Label sales and GP
  2. Mapco will have unique Private Label products that will turn its stores into destination.
  3. High customer loyalty and brand awareness

Candidate Profile
The ideal candidate for this position is an accomplished marketing professional with 5-7 years experience in either wholesale manufacturing of multi-category Private Label or retail development of Private Label within grocery, mass or drug channels. Key expertise should be in Private label product selection and sourcing, product quality, merchandising, product development and commercials. Bachelor’s degree in management / marketing is required, and advanced degree is preferred.

Director, Portfolio Strategy Private Label – CVS
Woonsocket, RI

CVSPosition Description:

  • 1-3-5 Year Business Plan
  • Partner with Portfolio Activation Director in building business plans for portfolio of brands, working in conjunction with corporate objectives and initiatives
  • Establish marketing goals to ensure share of market and profitability of all brands
  • Portfolio Development and Management
  • Proactively manage the portfolio strategy against the portfolio charter to maintain a strategically sound portfolio of store brands
  • Develop the portfolio vision and strategy for current and future portfolio growth
  • Govern the execution of the portfolio charter and the execution of store brands brand guidelines for all brand building activities (Corporate Advertising, Category, Product management and design)
  • Lead all “white space opportunities” for Store Brand portfolio growth and new brand rationalization
  • Develop and manage the lifecycle of the store brands within the portfolio
  • Proactively (working with Brand Activation Director, Category Management & Product Management) manage the development of brand through brand extension into new categories, items, and product lines
  • Partner with Portfolio Activation Director to manage sales and forecasting
  • Partner with Portfolio Activation Director to make adjustments to P&L forecasts as needed
  • Partner with Portfolio Activation Director on planogram management and relevant IRI data review
  • Partner with Portfolio Activation Director to communicate to the organization how the opportunities are in line with corporate objectives and initiatives

Portfolio Marketing Plans

  • Responsible for the development and management of the portfolio marketing budget (non-trade spends) for the brand budgets. (Store Brands DMM and VP will approve plan and make adjustments as needed)
  • Manage the development and execution of marketing plans to ensure the profit growth and expansion of Store Brands
  • Govern the portfolio’s advertising and promotion activities including circular, print media, electronic, and in-store
  • Manage the evaluation of market reactions to advertising programs, merchandising strategies, and product packaging and formulation to ensure the timely adjustment of marketing strategy and plans to meet changing market and competitive conditions.

Portfolio/Brands Research

  • Lead market research to identify consumer insights, need states and to uncover portfolio opportunities through new brand, brand, and product extensions
  • Oversee brand and product positioning research to ensure fit with portfolio strategy
  • Lead brand metrics efforts to monitor portfolio equities
  • Oversee the utilization of consumer insights to stay on trend with portfolio and brand(s) development

Public Relations Management

  • Oversee Store Brands partnership with Public Relations team to initiate product features in multiple media venues/publications to create awareness and trial
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Categories : CVS, MAPCO, Walgreens
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7selectThis week Brandweek published a Private Brand story that included convenience store operators – 7-Eleven & Valero. They referenced much of the research that has been published in the last few month. Including the NPD Group report “Private Label Perceptions, Usage Patterns and Intentions” and the report from GfK Custom Research North America for the Private Label Manufacturers Association.

Private Label Programs Take Off
Recent research on a number of fronts all point in one direction: difficult economic times have bolstered the rollout and expansion of many retailers’ private label lines — including c-store operators.

According to The NPD Group’s “Private Label Perceptions, Usage Patterns and Intentions,” 24 percent of all food and beverages served in American homes last year were store brands, up from 18 percent in 1999. Today, 97 percent of all households consume private label foods on a regular basis.

“There is no question that private label foods have become an integral part of American life,” said Harry Balzer, chief industry analyst at NPD and author of “Eating Patterns in America.” He added: “Furthermore, we do not hide private label foods as an ingredient or as an additive to another dish. Today over half of all store brand food eatings are the end dish.”

Price and value are the chief reasons consumers purchase private label or store brands, according to an NPD survey of grocery shoppers. Most respondents, however, also feel the quality of store brands is often equal to, or in some cases better than, name brands. Users of private label foods and beverages span all income levels and demographic profiles, according to the report.

Read more of Private Label Programs Take Off

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