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AdAge

Ad Age Spotlights The Retail Revolution & Private Brands

\"\"This week’s issue of the venerable advertising trade magazine Advertising Age puts a spotlight on retail with a red cover featuring the Target dog complete with a bull’s-eye on one eye, the Walmart asterisk on the other and a Kohl\’s dog tag. The more than a dozen articles cover everything from multicultural issues to our favorite subject Private Brand. The article on Private Brand, “Private Brands Evolve From Generics to Must-Haves” presents an interesting twist to the now familiar store and weaves together a story that takes Private Brand well beyond packaged goods to include Target and Kohl’s where Private Brands account for more than half of the product portfolio. According to the article:

The private-brand concept has been a consistent driver of sales for discount retail giants for decades, but over the years it has been adapted to suit shifting consumer demands. Today, private brands have evolved from generic value products into must-have exclusives at many discounters, and marketing budgets played a big role in that evolution.

and

It started with that wardrobe staple: jeans, or as they used to be called, dungarees. In the \”60s and \”70s, private brands were essentially private-label generics, many of which started in the denim category. Value gave retailers an edge — that is, until every store began to offer the same value brands at the same prices. In the \”90s, however, the concept of new and exclusive private brands took off when retailers learned that \”value\” can also be defined as having distinct products that serve as differentiators, driving store traffic and loyalty.

Read all the articles:

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AdAge

You need to turn a moment into momentum and momentum into a movement!

\"\"Private brands often suffer from me too, from advertising and marketing envy, with Private Brand Manager all to often longing for  the big marketing spends they left behind at the CPG’s…

This article was a guest post by will.i.am of the Black Eyed Peas for the advertising trade magazine AdAge – Retailers should take note, they have the advantage in the challenge he puts forth.

“You need to turn a moment into momentum and momentum into a movement…
that can\’t be done with 30-second commercials…
you need to create conversations with your customers…
so I say, MAKE CONVERSATIONS NOT ADS…”

You own the package, you own the in store conversation, you must own the social conversation… and ultimately the realtionship!

What Does \’Communiting\’ Mean???

Musician will.i.am Challenges Marketers to \’Make Conversations, Not Ads\’

whatever you think about the future of business…

whatever you think your brand means to the masses…

whatever your strategy is for marketing to youth…

one thing is certain…

we are in the midst of a major shift…

In some ways it\’s like we\’re back in the 1600s when everybody was racing to discover the new world…

google is the french…

twitter is the spaniards…

facebook is the english…

microsoft is the dutch…

freakin\’ apple is the portuguese…

the ocean is the internet and computers and software are the ships…

and they are all sailing to find and conquer new land…

the shift is happening everywhere…

in politics all over the world…

in the corporate realm…

in entertainment…

in manufacturing…

businesses and brands have to ask:

why is it happening???

what caused it to happen???

if you don\’t ask you won\’t be able to stay relevant when the energy of change is finished…

New times call for new thinking…

looking to the past is no way to secure a future…

look at the movies:

there\’s a new \”planet of the apes,\” a remake of \”conan the barbarian…

while on TV, there\’s a new \”charlie\’s angels,\” and a new \”hawaii five-0\”…

it\’s as if we aren\’t imagining anymore…

where have all the creative minds vanished to…

or…

who stop investing in the dreamers???

the music industry is still selling plastic discs…

also known as albums when today\’s music fans buy or listen to songs on the net or streaming to their phones…

today is all about accessing the physical representation of collective consciousness.

before…

collective consciousness was a concept…

now…

it\’s on your smartphone and it\’s called twitter…

twitter is a physical representation of collective consciousness where you can tap into the consciousness of millions…

you don\’t have to guess what\’s on the minds of people today…

people are connected…

to stay relevant, you or your business or your brand need to be part of the connection…

you need to be part of the conversation…

or start conversations…

Read the entire article

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Categories
AdAge Winery Exchange

So You Want A Private Brand Beer? Stephanie Grubbs

\"\"This week’s CMO Interviews series from the advertising trade magazine AdAge features a conversation with Stephanie Grubbs, the VP of marketing for Northern California-based the influential Winery Exchange a company that focuses on Private Brand beer, wine and spirits.

Meet the Force Behind Private-Label Booze
Ad Age Talks With the Marketing Chief of Winery Exchange

Stephanie Grubbs might have one of the coolest jobs in the alcohol industry. She gets to create brands from scratch. And she develops not just one or two new offerings every few years, like most big brewers or winemakers, but dozens — all the time. Ms. Grubbs is VP-marketing for Northern California-based Winery Exchange, which sources and helps market private label beer, wine and spirits.

While there\’s a good chance you\’ve never heard of the company — it keeps a low profile, not even disclosing the breweries and wineries they work with — you\’ve probably seen its brands, which are increasingly popping up at some of the biggest supermarket chains across the globe, including Supervalu, Kroger, Tesco, Safeway and Costco. Its newest offering is Barrel Trolley beer, debuting this month at Harris Teeter. Whole Foods just tapped the exchange for a new line of craft brands called St. Cloud Belgian White Ale, Four in Hand IPA and Copper Bell Light and Lager. Value brands include Big Flats 1901 for Walgreens and Game Day for 7-Eleven.

All told, the company takes in roughly $100 million in revenue a year, with 65 wine brands, 35 beer brands and 10 spirits brands in the market.

Ms. Grubbs grew up in Napa, pitching in at her family\’s independent drug store. Her first job in alcohol was at Robert Mondavi Winery, working part-time \”answering the phones and doing bookwork for their summer festival\” at a renovated tractor shed in the middle of a vineyard. She was promoted to marketing analyst, \”did my time in sales\” and eventually became brand manager for coastal wines. After stints at other wineries, she landed at Winery Exchange in 2003 and was promoted to VP in 2005.

These days, much of her focus is on growing the company\’s beer business. Private-label beers still command just a tiny fraction of the beer market — but it\’s a growing segment, with store-brand sales up 41% in the year ended April 2, compared to the 2.3% drop in branded offerings, according to Nielsen. Much of the growth is fueled by private-label crafts, including at Winery Exchange, where the beer unit, called World Brews, has grown craft brands by 400% so far this year, Beer Business Daily recently reported citing Nielsen.

Ad Age recently talked with Ms. Grubbs about her company and overall alcohol trends.

Ad Age: Explain your business.

Ms. Grubbs: We have nowhere near the marketing dollars and funding that a national brand has. So the marketing initiatives are probably simpler. And we focus a lot more on encouraging the retailer to leverage their in-store advantages. So it all focuses on shelf, pricing [and] display rotation.

Ad Age: How do you break through in a lifestyle category like beer, which is so often fueled by image and big marketing budgets.

Ms. Grubbs: We do, internally as a company, invest pretty substantially in the package and in the design and the actual packaging so that it does stand out and does, we think, stand out above the competition.

Ad Age: How do you break through in a lifestyle category like beer, which is so often fueled by image and big marketing budgets.

Ms. Grubbs: We do, internally as a company, invest pretty substantially in the package and in the design and the actual packaging so that it does stand out and does, we think, stand out above the competition.

Read the entire interview.

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Categories
AdAge

The Age of Private Brand

\"\"This past week the advertising trade magazine Advertising Age published the following article on the continued rise of Private Brands. Despite the somewhat derisive and wonderfully ironic headline the article the article with its corresponding research continues the endless research that says more people are buying Private Brands.

Generic Headline Here
As Part of Recession Cutbacks, Consumers Are Stocking up on Private-Label Goods

Consumers are cutting back in a variety of ways as the recession lingers on. One subtle but important shift can be seen in the rise of generic or private-label brands. According to SymphonyIRI, the private-label consumer-packaged-goods category has seen share of both units and dollars rise in the past two years. An Ad Age/Ipsos Observer survey shows that 90% of consumers who are responsible for a majority of grocery shopping are buying as many or more private-label products this year.

Read the entire article.

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Categories
AdAge

A Dearth of Innovation Opens The Door For Private Brand

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In recent years virtually every form of the media has taken notice of Private Brand, often with broad generalizations and a lack of in depth analysis that would reveal the true potential of Private Brand. This article from Advertising Age takes a look at national brand packaged goods companies and their surprising lack of innovation. Retailers must use this as an opportunity to permanently change the playing field.

Packaged Goods Suffering From Dearth of Innovation
Bad Economy Might Seem to Favor Basics Like Shampoo Over Frills Like IPads, but Not This Time

Packaged goods are supposed to be recession-resistant staples people can\’t do without. Yet things have been different in this recession. People have proven they can do without, or at least spend less. The downturn hit household and personal-care products harder than expected last year, and the rebound this year has been weaker than many expected.

Private-label market shares, while stalling last spring after a big run up, resumed their upward march this summer. While packaged food did fare well as people ate out less, private-label shares have surged there, too.

On the surface, all this makes sense. The market is tough. But consider this: As people cut back on packaged goods, they are still doling out for such things as smartphones and tablet computers — many of them coming with steep monthly tariffs on top of three-digit price tags.

The reason? According to some industry watchers, it\’s simple: Tech companies are innovating; CPG companies aren\’t.

\”Only four in 10 CPG companies are investing more in product research than they were 10 years ago,\” said Pat Conroy, vice chairman and U.S. consumer products leader at Deloitte. \”They\’ve lived on product extensions as opposed to developing truly innovative products.\”

Read the entire story.

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