Archive for Loblaws
“I want to get rid of ugly” Don Watt Private Brand Innovator
Posted by: | CommentsThis fascinating profile of the late Private Brand design icon Don Watt appeared in today’s Canadian daily The Globe and Mail.
Marketing guru Don Watt rebranded Loblaws
‘Wherever I look I see a bad line, a dumb colour, a dumb shape. It would be so easy just not to have that,’ he said in 2005
You probably have never heard of Don Watt, but your brain has no doubt registered his work, especially the part of it that reacts to colours and images and how those interact to make you want to eat, drink, wear or otherwise own whatever they adorn.
Described variously as a marketing visionary, retail guru, brand builder and even genius, Mr. Watt almost single-handedly redesigned the Canadian supermarket from the ground up, changing the way we shop for everything from soup to nuts – literally.
“He was among the first designers to envision a system of branding the entire store, including shelf fixtures, product packaging that went on shelves, aisle signage, department signage, interior design, exterior signage, advertising and promotional messages,” said a 2008 cover story in Private Label Magazine. “In essence, he created a total communications system to deliver a unified store brand message to customers.”
Mr. Watt saw it all in simpler terms: “I want to get rid of ugly,” he told Canadian Business in 2005. “Wherever I look I see a bad line, a dumb colour, a dumb shape. It would be so easy just not to have that.”
Considered by many to be the most influential retail designer of the past 25 years, he was best known for creating the hugely successful Loblaw house-brand packaging, for both the No Name and President’s Choice lines. The latter, with the stylized “PC,” gave the products an up-market cachet and carried the stamp of approval from the boss himself (and Dave Nichol’s own handwriting).
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Posted by: | CommentsIn a fascinating move Private Brand trailblazers Loblaw’s has appointed the creator of their Joe Fresh Private Brand design guru Joe Mimran to oversee home furnishings, electronics, sporting goods, books, toys and hardware. This is an amazing turn of events for the both Mimran and Loblaw’s and is certainly the first time a prominent designer will lead varied categories from electronics to sporting goods for the Canadian retailer. This article from the Globe and Mail details the announcement and the history of Joe Mimran at Loblaw’s.
Loblaw’s Joe Fresh creator to revitalize merchandise
Joe Mimran managed to do what many thought wasn’t possible: He made grocery giant Loblaw Cos. Ltd. a destination for cheap-chic fashion.
Now Loblaw executives are betting that Mr. Mimran can do for its ailing non-food businesses what he did in its fashion aisles. The design guru, who co-founded the Club Monaco clothier before its was sold to fashion powerhouse Ralph Lauren, developed the Joe Fresh line for the grocer almost four years ago. Today, it is one of Canada’s top apparel brands.
He now has been handed the added responsibility for Loblaw’s other general-merchandise sections, including home furnishings, electronics, sporting goods, books, toys and hardware.
“It is a vote of confidence in him,” said Brian Yarbrough, an analyst at Edward Jones in St. Louis, Mo. “He can definitely help drive the business in some of these other categories. But it would be unrealistic to expect the other categories to be nearly as successful as what we’ve seen out of Joe Fresh.”
Over the past three years, Loblaw has been racing to turn around its supermarket business, squeezed partly by the botched expansion into general merchandise. But the fashion business has been an unlikely silver lining for Loblaw’s controlling Weston family, who recruited Mr. Mimran for his style prowess.
Apparel is appealing because its profit margins can be more than double those of food. But just as food goes stale, fashion also has best-before dates and can cause financial pain if the styles fall flat and have to be cleared at a discount. General merchandise can generate better margins than groceries, although Loblaw needs to draw customers with enticing products.
Now Allan Leighton, president of Loblaw and a long-time adviser to the Westons, has hand-picked Mr. Mimran to help solve the retailer’s non-food problems. Mr. Leighton said yesterday that Mr. Mimran has lit a fire under the Joe Fresh fashion business and can perform similar magic in the other departments.
“He’s got that business cooking on gas,” Mr. Leighton said. “You couldn’t have a better guy than Joe running it because he knows what he’s doing. ” Mr. Mimran has a knack for picking cheap and cheerful styles ranging from $80 wool pea coats to $30 skinny jeans. He sources them overseas at low cost, and refreshes the offerings regularly.
He can borrow from having expanded into home furnishings at Club Monaco, and drawing up plans for the now defunct – but at the time edgy – Caban home decor chain.
Still, Mr. Mimran has hit snags with Joe Fresh that he’ll want to avoid – most of which were tied to Loblaw’s weak merchandising systems, which at times left shelves empty because they were incapable of tracking demand and replenishing stores on time.
The systems have improved, but Mr. Leighton said they still have a long way to go. This year, the company is investing heavily in its supply chain and information technology, although the upgrade will pinch operating profit by about $185-million, executive chairman Galen G. Weston warned yesterday, adding that Loblaw overall faces two of its toughest years ahead.
Loblaw has scaled back its ambitions in some non-food departments and shifted space to food, apparel and health and beauty items. Joe Fresh by last year had become the second-biggest clothing brand in this country by unit sales.
“We really do believe that could be a billion dollar business,” Mr. Leighton said.
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Here is the Fall 2009 Commercial, pretty cool.
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Posted by: | CommentsWith the recent passing of Private Brand design luminary, Don Watt it has been particularly interesting to see the Canadian retailer, Loblaw return to his startlingly stark “No Name Brand” package design. The Canadian daily the Edmonton Journal takes a look at this decision and its impact on brand recognition in the Loblaws space. More than 20 years ago Don Watt, Dave Nichols and Loblaws led North America through one of its many Private Brand revolutions. Their influence can still be felt in Walmart’s Great Value whose original strategy with Great Value and Sam’s Choice was an exact copy of the “No Name” and Presidents Choice Private Brands, which Loblaw’s ground breathtakingly deployed. What does it say about the current Private Brand revolution that Loblaw has returned to this strategy?
No Name returns to no frills
During tough economic times, back-to-basics marketing reaches a fever pitch. But at a time when most corporate marketing budgets were whittled to the extreme, a campaign from grocery giant Loblaw Cos. for its No Name line of in-house consumer goods virtually re-wrote the genre of no-frills simplicity.
When the company relaunched its No Name line one year ago in the depths of the recession — a happy coincidence in timing for Loblaw, as it had planned the brand revival for months — it went back to the basic, bold packaging that it used in 1978 when the line launched with just 16 products: a product name in black lower-case typeface against a lemon-yellow background. The packaging had no product shots.
The television ads from Loblaw’s ad agency of record, Bensimon Byrne, is bringing that packaging to life, featuring scrolling black text against a blinding yellow backdrop to the strains of kitschy stock organ music.
“They are produced for a fraction of what a [standard] Canadian TV commercial costs,” says David Rosenberg, creative director at Bensimon Byrne. “There is no film, there are no actors.” Since the brand relaunch, the agency has created 19 of the No Name spots.
“We don’t have a single item under $2,” the text of one recent ad reads. “We have 300.” The No Name insignia appears onscreen to close out the ad. That’s it.
“[Loblaw] was looking to get back to [a message conveying] no gimmicks, no fakery — just high-quality products at the lowest price possible,” Mr. Rosenberg said. Another spot highlights Loblaw’s money-back guarantee on No Name, aimed at encouraging customers to try the generic offering rather than a national brand alternative, and return the No Name version for a refund if they think it is sub-par. The ad jokes that the guarantee itself does not have a name — “you just get your money back.”
Loblaw’s stripped-down branding is a departure from how the line was marketed in recent years. As No Name grew over the years from 16 staples to more than 2,900 products today, the line began to take on a look that resembled its flashier private-label sister, President’s Choice. It featured pictures on the packaging, and while the bright yellow backdrop was usually present, the text was less obtrusive and featured other colours in addition to black.
“Two years ago it was spectacular packaging, similar in many cases to what the national brands were offering,” says Ian Gordon, senior vice-president of grocery at Loblaw.
But blending in was exactly what Loblaw needed to guard against — with the bold packaging muted, the generic brand looked too much like its higher-priced rivals. “When you went into the frozen pizza aisle, you would have to hunt for [No Name pizza],” he said. Sold at a 25% lower price tag than comparative national brands, the brand appeals to consumers watching their wallets, but “the real impetus for this was about restoring the in-store distinctiveness of the packaging,” Mr. Gordon said.
Here is one of the commercials referenced in the article, it is a 15 second spot that wholeheartedly embraces the ethos of “No Name” brand
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Posted by: | CommentsThis obituary was published in the Toronto Star on January 2, 2010 and tells the story of Private Brand legend, Don Watt. I never had the privilege to meet him however the influence of his work is in virtually every post on this blog. The vast majority of the design work that has been featured here owes something large or small to Don Watt. Whether it is the stark simplicity of UP & UP or the dark elegance of DR Delish today’s modern Private Brands owe a debt to his groundbreaking work. He will be missed.
Don passed away suddenly and unexpectedly on Wednesday, December 23, 2009 at age 73. Totally loved husband of Patricia (nee Martin). Dear father of Peggy (Adam), Greg (Beth), Laura (Craig), Sarah and step-son Robert. Proud grandfather of Katie, Jennifer, David and Lauren. Born in Regina, Saskatchewan, Don attended Luther College there, and moved to Toronto in the mid-1950’s to attend the Ontario College of Art & Design. He was predeceased by Patricia Watt (nee Williams) and is survived by his first wife Val Mund. Recognized as an icon in his industry, Don worked with major retailers all over the world. He developed brands that today are still current, and store designs that remain some of the world’s most recognizable. The list is very long and includes the following – redesign of the Loblaws stores, No Name and President’s Choice; Wal-Mart Super Centres, Great Value and Sam’s Choice; Home Depot with its distinctive orange logo and innovative store concept; and more recently the new Metro stores and packaging. While working for Nestle, Don was the first designer to use photo-symbolism on packaging for their instant coffee. He was recognized by the Harvard School of Business and was recently inducted into the Private Label Hall of Fame and into Canada’s Marketing Hall of Legends. During Don’s early career he worked as an animator for Warner Brothers. He then took a job at an advertising agency, where they asked him to design a cigarette package that would appeal to younger people. He pondered it for a few days and then quit, saying it did not feel right. This should tell you heaps about the man and his principles. He often said, ‘just ask yourself what is the right thing to do and you won’t go wrong’. He worked as a designer for A.V. Roe, working on the cockpit design for the Avro Arrow airplane, and he also worked on the design of the Canada Pavilion at Expo ‘67. One of Don’s proudest achievements occurred in 1965 when his design was personally chosen by Prime Minister Lester B. Pearson for the new Canadian Flag. Don’s design, featured a realistic representation of a red maple leaf, flanked by two solid blue bands representing ‘from sea to sea’. Pearson changed the blue bands to red, saying to Don, ‘this is a Liberal flag’. Don’s design, until recently, was credited to a design committee. However, it is now recognized as his work by leading International and Canadian news and design publications. Don was a visionary with a brilliant mind. He changed how people shopped around the world. He could have lived and worked anywhere in the world, but he preferred to stay in Canada, a country he loved and often said, where he preferred to have his children raised. He was a man who was the epitome of being comfortable in his own skin. He was genuine. He was kind, and he had the most wonderful sense of humour. His feet were firmly planted on the ground and he always had lots of time for everyone, no matter their walk in life. Don was a generous man and a supporter of many charities. However the closest to his heart was the Clarke Institute. He recognized that mental health was an area where it was more difficult to raise money. He was instrumental in raising the $17 million needed to purchase their first P.E.T. machine allowing doctors to more accurately diagnose disorders of the brain. He also helped bring the Courage to Come Back Dinner to Toronto, still one of CAMH’s most successful fundraising events today. The Clarke merged with the Queen Street Mental Health Centre in 1998 to become CAMH. He was unselfish with his time and sat on many boards, giving them the advantage of his vast wealth of retail knowledge. Words cannot express how deeply he will be missed by his family, his longtime business partner Geoff Belchetz at DW+Partners and by the many people whose lives he touched. A private family service and burial will take place at Mount Pleasant Cemetery. A memorial service and celebration of Don’s wonderful life is planned for a later date. The family graciously declines flowers, but donations may be made to the CAMH Research Centre at http://www.supportcamh.ca/donations.asp A Book of Condolences is available at www.etouch.ca where you can leave a message for the family.
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Brampton, Ontario based Loblaw published the flagship of its Private Brand marketing with its 2009 Holiday Insider’s Report the report once again features its premium Private Brand President’s Choice.
According to Loblaw’s “For the last 25 years and the next quarter century, the President’s Choice brand is about helping make the holiday season for customers easy to manage and special with innovative, high-quality products at affordable prices — and this year’s no different,” said Paul Uys, Loblaw’s vice president, Fresh and Loblaw Brands. “We’ve brought back many classic favorites that we know people look forward to each holiday season and, as always, introduced an exciting and delicious range of new products that Canadians are also sure to love.”
This years Holiday Publication features party foods from around the world as well as charcuterie,easy meal ideas and some interesting looking mocktails.
Check out the 2009 Holiday Insider’s Report
A Private Brand with No Name
Posted by: | CommentsHere is a straight forward compare and save commercial from Private Brand pioneers, Canadian retailer, Loblaws. This promotion has been used by retailers all across the country and this version is a classic example.
Loblaw Relaunches President’s Choice Pet Food.
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Canadian retailer and Private Brand ground breaker Loblaw is relaunching its President’s Choice Nutrition First pet foods. The new and improved products contain gourmet ingredients such as New Zealand lamb and fresh chicken, wholesome rice, corn and barley.
$1 Billion Private Brand Baby Food?
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According to a article published yesterday in the Wall Street Journal, Gordonsville, Virginia-based PBM Products, a manufacturer of Private Brand formula, is attempting to broker a buyout or partial sale of the company. According to the Journal’s sources the company, “could fetch a price of eight to ten times operating earnings, valuing it at as much as $1 billion.”
PBM’s products are featured as part of the Private Brand portfolio at numerous national and regional retailers including: Walmart, Target, Kroger, Loblaws and Walgreens.
Read the entire Wall Street Journal article: Private Label Baby Food Producer PBM Seeks Buyer, Could Fetch up to USD 1 Billion
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This article from The Canadian Press takes a look at Canadian usage of Private Brands. With research from the NPD Group and examples from Loblaw’s and Sobey’s
Store brand products gaining favour with food shoppers, study shows
Canadian grocery shoppers driven to purchase store brand products because of financial necessity during the recession now claim a longer term loyalty to them, a recent study shows.
In fact, when asked what they purchased in the last 12 months, store brands represented 50 per cent or more of food items for two of three households surveyed in Canada.
“This is a long term trend and I think it will continue to grow,” says Joel Gregoire, food and beverage industry analyst for the NPD Group which provides consumer and retail information for manufacturers, retailers and service companies.
Store brands are those which are the supermarket’s own brand of products or a brand name exclusively for sale at particular chains. For example, Sobey’s store brand products are sold under the Compliments label while Loblaws’ label is President’s Choice. An example of a generic label is No Name Brand.
Gregoire says that the study shows “nearly every Canadian household is consuming store brand goods in some form or another within an average week.”
Read the entire article. Store brand products gaining favour with food shoppers, study shows
Dave Nichol returns to Advise Loblaw
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According to the PLMA Escanner:
Loblaw in Canada has hired an icon of private label retailing, Dave Nichol, as an adviser to help expand the supermarket chain’s store brand program. The retailer is aiming to boost its market share for store brands to 30% by 2010, up from the current level of 25%. To achieve its targets, the company is working with former Loblaw executive Dave Nichol, who helped develop the store’s No Name brand in 1978 and its President’s Choice brand in 1984. The company is seeking to better define the distinctions and price gaps between the two brands. Nichol has his own firm and is advising Loblaw executives on future direction.
“In this economy, it’s probably easier to steal your competitors’ customers than at any other time,” Nichol says “The consumer is willing to switch supermarkets if you give them a real reason why they should change. It’s probably an once-in-a-lifetime opportunity.”
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